[House Report 104-724]
[From the U.S. Government Publishing Office]



104th Congress            HOUSE OF REPRESENTATIVES             Report
  2d Session                                                   104-724
_______________________________________________________________________


 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997        

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3230




                 July 30, 1996.--Ordered to be printed


         NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997


104th Congress            HOUSE OF REPRESENTATIVES            Report
  2d Session                                                  104-724
_______________________________________________________________________

                                     



                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 1997

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3230




                 July 30, 1996.--Ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
  DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS...............   470
  Title I--Procurement...........................................   470
    Funding Explanations.........................................   471
    Items of Special Interest....................................   568
    Legislative Provisions Adopted...............................   569
        Subtitle A--Authorization of Appropriations..............   569
        Subtitle B--Army Programs................................   572
        Subtitle C--Navy Programs................................   573
        Subtitle D--Air Force Programs...........................   577
        Subtitle E--Other Matters................................   578
    Legislative Provisions Not Adopted...........................   579
  Title II--Research, Development, Test, and Evaluation..........   580
    Funding Explanations.........................................   581
    Items of Special Interest....................................   661
    Legislative Provisions Adopted...............................   667
        Subtitle A--Authorization of Appropriations..............   667
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   669
        Subtitle C--Ballistic Missile Defense Programs...........   678
        Subtitle D--Other Matters................................   680
        Subtitle E--National Oceanographic Partnership Program...   682
    Legislative Provisions Not Adopted...........................   683
  Title III--Operation and Maintenance...........................   690
    Funding Explanations.........................................   691
    Items of Special Interest....................................   718
    Legislative Provisions Adopted...............................   720
        Subtitle A--Authorization of Appropriations..............   720
        Subtitle B--Depot-Level Activities.......................   721
        Subtitle C--Environmental Provisions.....................   721
        Subtitle D--Commissaries and Nonappropriated Fund........   727
        Subtitle E--Performance of Functions by Private-Sector 
          Sources................................................   728
        Subtitle F--Other Matters................................   728
    Legislative Provisions Not Adopted...........................   732
  Title IV--Military Personnel Authorizations....................   735
    Items of Special Interest....................................   735
    Legislative Provisions Adopted...............................   736
        Subtitle A--Active Forces................................   736
        Subtitle B--Reserve Forces...............................   737
  Title V--Military Personnel Policy.............................   739
    Items of Special Interest....................................   739
    Legislative Provisions Adopted...............................   740
        Subtitle A--Officer Personnel Policy.....................   740
        Subtitle B--Enlisted Personnel Policy....................   742
        Subtitle C--Activation and Recall........................   743
        Subtitle D--Reserve Component Retirement.................   743
        Subtitle E--Other Reserve Component Matters..............   744
        Subtitle F--Officer Education Programs...................   746
        Subtitle G--Decorations and Awards.......................   748
        Subtitle H--Other Matters................................   748
        Subtitle I--Commissioned Corps of the Public Health 
          Service................................................   750
    Legislative Provisions Not Adopted...........................   751
  Title VI--Compensation and Other Personnel Benefits............   752
    Legislative Provisions Adopted...............................   752
        Subtitle A--Pay and Allowances...........................   752
        Subtitle B--Bonuses and Special and Incentive Pays.......   754
        Subtitle C--Travel and Transportation Allowances.........   755
        Subtitle D--Retired Pay, Survivor Benefits, and Related 
          Matters................................................   756
        Subtitle E--Other Matters................................   758
    Legislative Provisions Not Adopted...........................   759
  Title VII--Health Care Provisions..............................   760
    Items of Special Interest....................................   760
    Legislative Provisions Adopted...............................   760
        Subtitle A--Health Care Services.........................   760
        Subtitle B--TRICARE Program..............................   762
        Subtitle C--Uniformed Services Treatment Facilities......   763
        Subtitle D--Other Changes to Existing Laws Regarding 
          Health Care Management.................................   764
        Subtitle E--Other Matters................................   765
    Legislative Provisions Not Adopted...........................   767
  Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   768
    Legislative Provisions Adopted...............................   768
        Subtitle A--Acquisition Management.......................   768
        Subtitle B--Other Matters................................   771
    Legislative Provisions Not Adopted...........................   775
  Title IX--Department of Defense Organizaiton and Management....   776
    Legislative Provisions Adopted...............................   776
        Subtitle A--General Matters..............................   776
        Subtitle B--Force Structure Review.......................   779
  Title X--General Provisions....................................   781
    Legislative Provisions Adopted...............................   781
        Subtitle A--Financial Matters............................   781
        Subtitle B--Naval Vessels and Shipyards..................   783
        Subtitle C--Counter-Drug Activities......................   785
        Subtitle D--Reports and Studies..........................   788
        Subtitle E--Management of Armed Forces Retirement Home...   790
        Subtitle F--Other Matters................................   791
    Legislative Provisions Not Adopted...........................   798
  Title XI--National Imagery and Mapping Agency..................   802
    Legislative Provisions Adopted...............................   804
        Subtitle A--Establishment of Agency......................   804
        Subtitle B--Reserve Component Accessibility..............   806
        Subtitle C--Reserve Forces Sustainment...................   806
  Title XIII--Arms Control and Related Matters...................   808
    Items of Special Interest....................................   808
    Legislative Provisions Adopted...............................   810
        Subtitle A--Arms Control, Counterproliferations 
          Activities, and Related Matters........................   810
        Subtitle B--Commission to Assess the Ballistic Missile 
          Threat to the United States............................   815
    Legislative Provisions Not Adopted...........................   816
  Title XIV--Defense Against Weapons of Mass Destruction.........   816
  Title XV--Cooperative Threat Reduction with States of Former 
  Soviet Union...................................................   821
  Title XVI--Department of Defense Civilian Personnel............   821
    Legislative Provisions Adopted...............................   821
        Subtitle A--Miscellaneous Matters Relating to Personnel 
          Management, Pay, and Allowances........................   821
        Subtitle B--Department of Defense Intelligence Personnel 
          Policy.................................................   825
    Legislative Provisions Adopted...............................   825
  Title XVII--Federal Employee Travel Reform.....................   826
  Title XVIII--Federal Charter for the Fleet Reserve Association.   827
  DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS...............   827
  Title XXI--Army................................................   857
    Items of Special Interest....................................   857
    Legislative Provisions Adopted...............................   857
    Legislative Provisions Not Adopted...........................   857
  Title XXII--Navy...............................................   858
    Items of Special Interest....................................   858
    Legislative Provisions Adopted...............................   858
    Legislative Provisions Not Adopted...........................   858
  Title XXIII--Air Force.........................................   859
    Items of Special Interest....................................   859
    Legislative Provisions Adopted...............................   859
  Title XXIV--Defense Agencies...................................   859
    Legislative Provisions Adopted...............................   860
  Title XXV--North Atlantic Treaty Organization Security 
  Investment Program.............................................   860
  Title XXVI--Guard and Reserve Forces Facilities................   860
    Legislative Provisions Adopted...............................   860
    Legislative Provisions Not Adopted...........................   861
  Title XXVII--Expiration and Extension of Authorizations........   861
    Legislative Provisions Adopted...............................   861
    Legislative Provisions Not Adopted...........................   862
  Title XXVIII--General Provisions...............................   862
    Legislative Provisions Adopted...............................   862
        Subtitle A--Military Construction Program and Military 
          Family.................................................   862
        Subtitle B--Defense Base Closure and Realignment.........   863
        Subtitle C--Land Conveyances.............................   865
            Part I--Army Conveyances.............................   865
            Part II--Navy Conveyances............................   867
            Part III--Air Force Conveyances......................   869
            Part IV--Other Conveyances...........................   870
        Subtitle D--Other Matters................................   871
    Legislative Provisions Not Adopted...........................   873
  Title XXIX--Military Land Withdrawals..........................   873
    Legislative Provisions Adopted...............................   874
        Subtitle A--For Carson--Pinon Canyon Military Lands 
          Withdrawal.............................................   874
        Subtitle B--El Centro Naval Air Facility Ranges 
          Withdrawal.............................................   875
  DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY 
  AUTHORIZATIONS AND OTHER AUTHORIZATIONS........................   876
  Title XXXI--Department of Energy National Security Programs....   876
    Legislative Provisions Adopted...............................   892
        Subtitle A--National Security Programs Authorizations....   892
        Subtitle B--Recurring General Provisions.................   898
        Subtitle C--Program Authorizations, Restrictions, and 
          Limitations............................................   900
        Subtitle D--Other Maters.................................   909
        Subtitle E--Defense Nuclear Environmental Cleanup and 
          Management.............................................   913
        Subtitle F--Waste Isolation Pilot Plant Land Withdrawal 
          Act Amendments.........................................   914
    Legislative Provisions Not Adopted...........................   915
  Title XXXII--Defense Nuclear Facilities Safety Board...........   916
    Legislative Provisions Adopted...............................   916
  Title XXXIII--National Defense Stockpile.......................   916
    Legislative Provisions Adopted...............................   916
        Subtitle A--Authorization of Disposals and Use of Funds..   916
        Subtitle B--Programmatic Change..........................   917
    Legislative Provisions Not Adopted...........................   917
  Title XXXIV--Naval Petroleum Reserves..........................   918
    Legislative Provisions Adopted...............................   918
  Title XXXV--Panama Canal Commission............................   918
    Legislative Provisions Adopted...............................   918



104th Congress          HOUSE OF REPRESENTATIVES                Report
  2d Session                                                    104-724
_______________________________________________________________________



        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

                                _______
                                

                 July 30, 1996.--Ordered to be printed

_______________________________________________________________________


  Mr. Spence, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 3230]

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

SECTION 1. SHORT TITLE.

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

             Subtitle C--Ballistic Missile Defense Programs

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

                        Subtitle D--Other Matters

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

         Subtitle E--National Oceanographic Partnership Program

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

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

                  Subtitle C--Environmental Provisions

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

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

                        Subtitle F--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
          in grades of major, lieutenant colonel, and colonel and navy 
          grades of lieutenant commander, commander, and captain.
Sec. 404. Extension of requirement for recommendations regarding 
          appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
          duty in the Marine Corps.

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                  Subtitle B--Enlisted Personnel Policy

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

                    Subtitle C--Activation and Recall

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

                Subtitle D--Reserve Component Retirement

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

               Subtitle E--Other Reserve Component Matters

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

                 Subtitle F--Officer Education Programs

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

                   Subtitle G--Decorations and Awards

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

                        Subtitle H--Other Matters

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

       Subtitle I--Commissioned Corps of the Public Health Service

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

           Subtitle C--Uniformed Services Treatment Facilities

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

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

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

                        Subtitle E--Other Matters

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

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

                   Subtitle A--Acquisition Management

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

                        Subtitle B--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

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

                   Subtitle B--Force Structure Review

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

                     Subtitle D--Reports and Studies

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

         Subtitle E--Management of Armed Forces Retirement Home

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

                        Subtitle F--Other Matters

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

              TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

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

                   Subtitle A--Establishment of Agency

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

          Subtitle B--Conforming Amendments and Effective Dates

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

                TITLE XII--RESERVE FORCES REVITALIZATION

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

                 Subtitle A--Reserve Component Structure

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

               Subtitle B--Reserve Component Accessibility

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

                 Subtitle C--Reserve Forces Sustainment

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

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

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

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

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

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

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

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

                    Subtitle A--Domestic Preparedness

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

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

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

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

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

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

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

                        Subtitle E--Miscellaneous

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

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

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

           TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

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

     Subtitle B--Department of Defense Intelligence Personnel Policy

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

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

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

                  Subtitle B--Miscellaneous Provisions

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

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Land acquisition, National Ground Intelligence Center, 
          Charlottesville, Virginia.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Beach replenishment, Naval Air Station, North Island, 
          California.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Elimination of authority to carry out fiscal year 1995 
          project, Spangdahlem Air Force Base, Germany.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land acquisition 
          projects.
Sec. 2402. Military housing planning and design.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Military housing improvement program.
Sec. 2405. Energy conservation projects.
Sec. 2406. Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
          year 1996 Defense Agencies military construction, land 
          acquisition, and military family housing functions.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Authorization and funding for construction and improvement of 
          Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
          Airport, Maine.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

            Subtitle B--Defense Base Closure and Realignment

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

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle D--Other Matters

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

                  TITLE XXIX--MILITARY LAND WITHDRAWALS

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

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

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
          facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
          development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
          People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
          environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
          facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
          at the defense waste processing facility, Savannah River Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
          spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
          facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
          infrastructure at Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
          reports.
Sec. 3153. Requirement to develop future use plans for environmental 
          management program.
Sec. 3154. Report on Department of Energy liability at Department 
          superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
          security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
          budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
          Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
          laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
          regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
          environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
          expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
          remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
          Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
          Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

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

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

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

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

                     Subtitle B--Programmatic Change

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

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

                   TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

           Subtitle B--Amendments to Panama Canal Act of 1979

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

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

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1997 for procurement of aircraft, vehicles, communications 
equipment, and other equipment for the reserve components of 
the Armed Forces as follows:
            (1) For the Army National Guard, $171,000,000.
            (2) For the Air National Guard, $234,000,000.
            (3) For the Army Reserve, $98,000,000.
            (4) For the Naval Reserve, $116,000,000.
            (5) For the Air Force Reserve, $94,000,000.
            (6) For the Marine Corps Reserve, $67,000,000.

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal 
year 1997 the amount of $759,847,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1997 for the Department of Defense for procurement for 
carrying out health care programs, projects, and activities of 
the Department of Defense in the total amount of $269,470,000.

                       Subtitle B--Army Programs

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

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

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.

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

SEC. 113. BRADLEY TOW 2 TEST PROGRAM SETS.

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

                       Subtitle C--Navy Programs

SEC. 121. NUCLEAR ATTACK SUBMARINE PROGRAMS.

    (a) Amounts Authorized From SCN Account.--(1) Of the amount 
authorized to be appropriated by section 102(a)(3) for fiscal 
year 1997--
            (A) $699,071,000 is available for continued 
        construction of the third vessel (designated SSN-23) in 
        the Seawolf attack submarine class, which shall be the 
        final vessel in that class;
            (B) $296,186,000 is available for long-lead and 
        advance construction and procurement of components for 
        construction of a submarine (previously designated by 
        the Navy as the New Attack Submarine) beginning in 
        fiscal year 1998 to be built by Electric Boat Division; 
        and
            (C) $701,000,000 is available for long-lead and 
        advance construction and procurement of components for 
        construction of a second submarine (previously 
        designated by the Navy as the New Attack Submarine) 
        beginning in fiscal year 1999 to be built by Newport 
        News Shipbuilding.
    (2) In addition to the purposes for which the amounts under 
subparagraphs (B) and (C) of paragraph (1) are available, such 
amounts are also available for contracts with Electric Boat 
Division and Newport News Shipbuilding to carry out the 
provisions of the ``Memorandum of Agreement Among the 
Department of the Navy, Electric Boat Corporation (EB) and 
Newport News Shipbuilding and Drydock Company (NNS) Concerning 
the New Attack Submarine'', dated April 5, 1996, relating to 
design data transfer, design improvements, integrated process 
teams, and updated design base.
    (b) Amounts Authorized From Navy RDT&E Account.--(1) Of the 
amount authorized to be appropriated by section 201(2), 
$487,611,000 is available for the design of the submarine 
previously designated by the Navy as the New Attack Submarine.
    (2)(A) Of the amount authorized to be appropriated by 
section 201(2), $60,000,000 is available for obligation under 
contracts with Electric Boat Division and Newport News 
Shipbuilding and other entities to address the inclusion on 
future nuclear attack submarines of the core advanced 
technologies that are identified by the Secretary of Defense 
(in the report of the Secretary entitled ``Report on Nuclear 
Attack Submarine Procurement and Submarine Technology'', 
submitted to Congress on March 26, 1996) as those technologies 
the maturation of which the Submarine Technology Assessment 
Panel recommended be addressed in its March 15, 1996, final 
report to the Assistant Secretary of the Navy for Research, 
Development, and Acquisition, as follows: hydrodynamics, 
alternative sail designs, advanced arrays, electric drive, 
external weapons, and active controls and mounts.
    (B) Of the amount available under subparagraph (A), 
$20,000,000 shall be equally divided between Electric Boat 
Division and Newport News Shipbuilding for the purpose of 
ensuring that those shipbuilders are principal participants in 
the process of addressing the inclusion of technologies 
referred to in subparagraph (A) on future nuclear attack 
submarines. Contracts with the shipbuilders under this 
subparagraph shall provide the shipbuilders with wide latitude 
to pursue submarine-wide, integrated systems approaches to the 
inclusion of such technologies. The Secretary of the Navy shall 
ensure that those shipbuilders have access for such purpose 
(under procedures prescribed by the Secretary) to the Navy 
laboratories and the Office of Naval Intelligence and (in 
accordance with arrangements to be made by the Secretary) to 
the Defense Advanced Research Projects Agency.
    (3) Of the amount authorized to be appropriated by section 
201(2), $38,000,000 is available to begin funding those 
Category I and Category II advanced technologies described in 
Appendix C of the report of the Secretary of Defense referred 
to in paragraph (2)(A). The Secretary of the Navy shall ensure 
that Electric Boat Division and Newport News Shipbuilding are 
also principal participants in the technology initiatives 
pursued with such funds to ensure submarine-wide, integrated 
systems approaches to the inclusion of such technologies on 
future nuclear attack submarines.
    (4) In addition to the purposes for which the amounts under 
paragraphs (1), (2), and (3) are available, such amounts are 
also available for contracts with Electric Boat Division and 
Newport News Shipbuilding to carry out the provisions of the 
memorandum of agreement referred to in subsection (a)(2) for 
research and development activities under that memorandum of 
agreement.
    (c) Amount From Fiscal Year 1996 Funds for National Defense 
Sealift Fund.--(1) Section 132 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 210) is repealed.
    (2) The amount referred to in section 132 of the National 
Defense Authorization Act for Fiscal Year 1996 (as in effect 
immediately before the repeal by paragraph (1)) shall be 
available to the Secretary of the Navy for activities relating 
only to advanced submarine technology that involve the 
construction of large scale vehicles for purposes of 
hydrodynamic and hydroacoustic research on developmental 
designs for hulls and propulsion systems.
    (d) Contracts Authorized.--(1) The Secretary of the Navy is 
authorized, using funds available pursuant to subparagraphs (B) 
and (C) of subsection (a)(1), to enter into contracts with 
Electric Boat Division and Newport News Shipbuilding, and 
suppliers of components, during fiscal year 1997 for--
            (A) the procurement of long-lead components for the 
        fiscal year 1998 submarine and the fiscal year 1999 
        submarine under this section; and
            (B) advance construction of such components and 
        other components for such submarines.
    (2) The Secretary may enter into a contract or contracts 
under this section with the shipbuilder of the fiscal year 1998 
submarine only if the Secretary enters into a contract or 
contracts under this section with the shipbuilder of the fiscal 
year 1999 submarine.
    (e) Limitations.--(1)(A) Of the amounts specified in 
subsection (a)(1), not more than $100,000,000 may be obligated 
until the Secretary of Defense certifies in writing to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives that 
procurement of nuclear attack submarines described in 
subparagraph (B) will be under one or more contracts that are 
entered into after competition between Electric Boat Division 
and Newport News Shipbuilding in which the Secretary of the 
Navy solicits competitive proposals and awards the contract or 
contracts on the basis of price.
    (B) The submarines referred to in subparagraph (A) are 
nuclear attack submarines that are to be constructed 
beginning--
            (i) after fiscal year 1999; or
            (ii) if four submarines are to be procured as 
        provided for in the plan required under section 131(c) 
        of the National Defense Authorization Act for Fiscal 
        Year 1996 (Public Law 104-106; 110 Stat. 208), after 
        fiscal year 2001.
    (2) Of the amounts specified in subsection (a)(1), not more 
than $675,000,000 may be obligated until the Under Secretary of 
Defense for Acquisition and Technology submits to the 
congressional committees specified in paragraph (1) a report in 
writing detailing the following:
            (A) The Under Secretary's oversight activities to 
        date, and plans for the future, for the development and 
        improvement of the nuclear attack submarine program of 
        the Navy as required by section 131(b)(2)(C) of the 
        National Defense Authorization Act for Fiscal Year 1996 
        (110 Stat. 207).
            (B) The implementation of, and activities conducted 
        under, the program required to be established by the 
        Director of the Defense Advanced Research Projects 
        Agency by section 131(i) of the National Defense 
        Authorization Act for Fiscal Year 1996 (110 Stat. 210) 
        for the development and demonstration of advanced 
        submarine technologies and a rapid prototype 
        acquisition strategy for both land-based and at-sea 
        subsystem and system demonstrations of such 
        technologies.
            (C) A description of all research, development, 
        test, and evaluation programs, projects, or activities 
        within the Department of Defense which, in the opinion 
        of the Under Secretary, are designed to contribute to 
        the development and demonstration of advanced submarine 
        technologies leading to a more capable, more affordable 
        nuclear attack submarine, specifically identifying 
        ongoing involvement, and plans for future involvement, 
        in any such program, project, or activity by either 
        Electric Boat Division or Newport News Shipbuilding, or 
        by both.
    (3) Of the amount specified in subsection (b)(1), not more 
than $100,000,000 may be obligated or expended until the Under 
Secretary of Defense (Comptroller) certifies in writing to the 
congressional committees specified in paragraph (1) that--
            (A) funds specified in subsection (c)(2) have been 
        made available for obligation; and
            (B) to the extent that funds specified in 
        paragraphs (2) and (3) of subsection (b) have been 
        appropriated for the purposes specified in such 
        paragraphs, such funds have been made available for 
        obligation.
    (f) Acquisition Simplification.--In furtherance of the 
direction provided by subsection (d) of section 131 of the 
National Defense Authorization Act for Fiscal Year 1996 (110 
Stat. 209) to the Secretary of Defense regarding the 
application of acquisition reform policies and procedures to 
the submarine program under that section, the Secretary shall 
direct the Secretary of the Navy to implement for the submarine 
programs of the Navy acquisition reform initiatives similar in 
intent and approach to the initiatives begun by the Secretary 
of the Air Force in May 1995 and referred to as the ``Lightning 
Bolt'' initiatives. The Secretary of the Navy shall, not later 
than March 31, 1997, submit to the congressional committees 
specified in subsection (e)(1) a report on the results of the 
implementation of such initiatives.
    (g) Design Responsibility.--(1) The Secretary of the Navy 
shall carry out the submarine program described in section 131 
of the National Defense Authorization Act for Fiscal Year 1996 
in a manner that ensures that each of the two shipbuilders 
involved in the design and construction of the four submarines 
described in that section be allowed to propose to the 
Secretary any design improvement that the shipbuilder considers 
appropriate for the submarines to be built by that shipbuilder 
as part of those four submarines. The Secretary shall ensure 
that both shipbuilders have full and open access to all design 
data concerning the design of the submarine previously 
designated by the Navy as the New Attack Submarine.
    (2) The designs proposed by the shipbuilders should proceed 
from, but not be limited to, the specific advanced technologies 
referred to in subsection (b)(2)(A), especially technologies 
involving hydrodynamics and hydroacoustics concepts.
    (3) The Secretary shall require both shipbuilders to submit 
to the Secretary an annual report on the progress of the design 
work on the submarines referred to in paragraph (1) and shall 
transmit each such report to the committees specified in 
subsection (e)(1).
    (4) The Secretary shall also submit an annual report to the 
committees specified in subsection (e)(1) on the design 
improvements proposed by the two shipbuilders under paragraph 
(1) for incorporation on any of the four submarines and on the 
degree to which design information on the base design and 
design improvements has been shared between the shipbuilders. 
Each annual report shall set forth each design improvement 
proposed and whether that proposal was--
            (A) reviewed, approved, and funded by the Navy;
            (B) reviewed and approved, but not funded; or
            (C) not approved, in which case the report shall 
        include the reasons therefor and any views of the 
        shipyard making the proposal.
    (5) The reports referred to in paragraphs (3) and (4) shall 
be submitted concurrently with the annual revisions to the 
Secretary of Defense's nuclear attack submarine plan required 
by section 131(e) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 209).
    (h) Serial Production.--The Secretary of Defense shall 
modify the plan relating to development of a program leading to 
production of a more capable and less expensive submarine than 
the New Attack Submarine that was submitted to Congress 
pursuant to section 131(c) of the National Defense 
Authorization Act for Fiscal Year 1996 in order to provide in 
such plan the option for selection of a design for a next 
submarine for serial production not earlier than fiscal year 
2002 (rather than fiscal year 2003, as provided in paragraph 
(3)(B) of such section 131(c)).
    (i) References to Shipbuilders.--For purposes of this 
section--
            (1) the shipbuilder referred to as ``Electric Boat 
        Division'' is the Electric Boat Division of the General 
        Dynamics Corporation; and
            (2) the shipbuilder referred to as ``Newport News 
        Shipbuilding'' is the Newport News Shipbuilding and 
        Drydock Company.
    (j) Submarines Defined by Reference to Fiscal Year.--For 
purposes of this section--
            (1) the term ``fiscal year 1998 submarine'' means 
        the submarine referred to in subsection (a)(1)(B); and
            (2) the term ``fiscal year 1999 submarine'' means 
        the submarine referred to in subsection (a)(1)(C).

SEC. 122. ARLEIGH BURKE CLASS DESTROYER PROGRAM.

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

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

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

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

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

SEC. 125. PENGUIN MISSILE PROGRAM.

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

                     Subtitle D--Air Force Programs

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

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

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

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

                       Subtitle E--Other Matters

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

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

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

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

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

             Subtitle C--Ballistic Missile Defense Programs

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

                        Subtitle D--Other Matters

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

         Subtitle E--National Oceanographic Partnership Program

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

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

SEC. 203. DUAL-USE TECHNOLOGY PROGRAM.

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

SEC. 204. DEFENSE SPECIAL WEAPONS AGENCY.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. SPACE LAUNCH MODERNIZATION.

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

SEC. 212. SPACE-BASED INFRARED SYSTEM PROGRAM.

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

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

    (a) Amount for Program.--Of the amount authorized to be 
appropriated under section 201(3), $50,000,000 shall be 
available for the Clementine 2 micro-satellite near-Earth 
asteroid interception mission.
    (b) Limitation.--Of the funds authorized to be appropriated 
pursuant to this Act for the global positioning system (GPS) 
Block II F Satellite system, not more than $25,000,000 may be 
obligated until the Secretary of Defense certifies to Congress 
that--
            (1) funds appropriated for fiscal year 1996 for the 
        Clementine 2 Micro-Satellite development program have 
        been obligated in accordance with Public Law 104-106 
        and the Joint Explanatory Statement of the Committee of 
        Conference accompanying S. 1124 (House Report 104-450 
        (104th Congress, second session)); and
            (2) the Secretary has made available for obligation 
        the funds appropriated for fiscal year 1997 for the 
        purpose specified in subsection (a).

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

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

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

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

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

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

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

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

SEC. 218. F-22 AIRCRAFT PROGRAM REPORTS.

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

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

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

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

    (a) Allocation of Funds.--Of the amounts authorized to be 
appropriated pursuant to the authorizations in section 201, 
$602,069,000 shall be available only for advanced technology 
development for the Joint Advanced Strike Technology (JAST) 
program. Of that amount--
            (1) $259,833,000 shall be available only for 
        program element 63800N in the budget of the Department 
        of Defense for fiscal year 1997;
            (2) $263,836,000 shall be available only for 
        program element 63800F in the budget of the Department 
        of Defense for fiscal year 1997; and
            (3) $78,400,000 shall be available only for program 
        element 63800E in the budget of the Department of 
        Defense for fiscal year 1997.
    (b) Analysis of Force Structure.--Of the amounts authorized 
to be appropriated by section 201 for the Joint Advanced Strike 
Technology program, up to $10,000,000 shall be available for 
the conduct of an analysis by the Institute for Defense 
Analyses of the following:
            (1) The weapon systems force structure required to 
        meet the anticipated range of threats projected by the 
        intelligence community for the period 2000 through 
        2025.
            (2) Alternative force mixes, including, at a 
        minimum, the following force mixes:
                    (A) Joint Strike Fighter derivative 
                aircraft; remanufactured AV-8 aircraft; F-18C/
                D, F-18E/F, AH-64, AH-1W, RAH-66, F-14, F-16, 
                F-15, F-117, F-22, B-1, B-2, and B-52 aircraft; 
                and air-to-surface and surface-to-surface 
                weapons systems.
                    (B) Joint Strike Fighter derivative 
                aircraft; remanufactured AV-8 aircraft; F-18C/
                D, F-18E/F, F-14, F-16, F-15, F-117, and F-22 
                aircraft; and air-to-surface and surface-to-
                surface weapons systems.
            (3) Cost and operational effectiveness of the 
        alternative force mixes analyzed under paragraph (2), 
        including sensitivity analyses related to system 
        performance, costs, threats, and force employment 
        scenarios.
            (4) Required operational capability dates of 
        systems not yet in production for the force mixes 
        analyzed under paragraph (2).
            (5) Affordability, commonality, and roles and 
        missions considerations related to the alternative 
        force mixes analyzed under paragraph (2).
    (c) Cost Review of Force Structure Analysis.--The Secretary 
of Defense shall direct the Cost Analysis Improvement Group in 
the Office of the Secretary of Defense to review cost estimates 
made under the analysis conducted under subsection (b) and 
submit to the Secretary a report on the results of the review. 
The report may include comments and additional cost sensitivity 
analyses.
    (d) Briefing and Report.--(1) Not later than November 15, 
1996, the Secretary of Defense shall make available to the 
congressional defense committees a briefing on the plan and 
assumptions for the analysis to be conducted under subsection 
(b).
    (2) Not later than May 15, 1997, the Secretary of Defense 
shall submit to the congressional defense committees a report 
containing a copy of the analysis conducted under subsection 
(b) and of the cost review conducted under subsection (c), 
together with the views of the Secretary on such analysis and 
cost review.

SEC. 221. UNMANNED AERIAL VEHICLES.

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

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

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

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

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

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

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

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

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

SEC. 226. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTERS.

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

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

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

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

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

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

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

SEC. 230. NONLETHAL WEAPONS AND TECHNOLOGIES PROGRAMS.

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

SEC. 231. COUNTERPROLIFERATION SUPPORT PROGRAM.

    (a) Funding.--Of the funds authorized to be appropriated to 
the Department of Defense under section 201(4), $186,200,000 
shall be available for the Counterproliferation Support 
Program, of which $75,000,000 shall be available for a tactical 
antisatellite technologies program.
    (b) Additional Authority To Transfer Authorizations.--(1) 
In addition to the transfer authority provided in section 1001, 
upon determination by the Secretary of Defense that such action 
is necessary in the national interest, the Secretary may 
transfer amounts of authorizations made available to the 
Department of Defense in this division for fiscal year 1997 to 
counterproliferation programs, projects, and activities 
identified as areas for progress by the Counterproliferation 
Program Review Committee established by section 1605 of the 
National Defense Authorization Act for Fiscal Year 1994 (22 
U.S.C. 2751 note). Amounts of authorizations so transferred 
shall be merged with and be available for the same purposes as 
the authorization to which transferred.
    (2) The total amount of authorizations transferred under 
the authority of this subsection may not exceed $50,000,000.
    (3) The authority provided by this subsection to transfer 
authorizations--
            (A) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (B) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (4) A transfer made from one account to another under the 
authority of this subsection shall be deemed to increase the 
amount authorized for the account to which the amount is 
transferred by an amount equal to the amount transferred.
    (5) The Secretary of Defense shall promptly notify Congress 
of transfers made under the authority of this subsection.
    (c) Limitation on Use of Funds for Technical Studies and 
Analyses Pending Release of Funds.--(1) None of the funds 
authorized to be appropriated to the Department of Defense for 
fiscal year 1997 for program element 605104D, relating to 
technical studies and analyses, may be obligated or expended 
until the funds referred to in paragraph (2) have been released 
to the program manager of the tactical anti-satellite 
technology program for implementation of that program.
    (2) The funds for release referred to in paragraph (1) are 
as follows:
            (A) Funds authorized to be appropriated by section 
        218(a) of the National Defense Authorization Act for 
        Fiscal Year 1996 (Public Law 104-106; 110 Stat. 222) 
        that are available for the program referred to in 
        paragraph (1).
            (B) Funds authorized to be appropriated to the 
        Department for fiscal year 1997 by this Act for the 
        Counterproliferation Support Program that are to be 
        made available for that program.

             Subtitle C--Ballistic Missile Defense Programs

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

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

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

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

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

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

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

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

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

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

SEC. 246. CAPABILITY OF NATIONAL MISSILE DEFENSE SYSTEM.

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

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

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

SEC. 248. ABM TREATY DEFINED.

    For purposes of this subtitle, the term ``ABM Treaty'' 
means the Treaty Between the United States of America and the 
Union of Soviet Socialist Republics on the Limitation of Anti-
Ballistic Missile Systems, and signed at Moscow on May 26, 
1972, and includes the Protocols to that Treaty, signed at 
Moscow on July 3, 1974.

                       Subtitle D--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

    (a) Conditions for Use of Authority.--Subsection (e) of 
section 2371 of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B);
            (2) by inserting ``and'' after the semicolon at the 
        end of subparagraph (A), as so redesignated;
            (3) by striking out ``; and'' at the end of 
        subparagraph (B), as so redesignated, and inserting in 
        lieu thereof a period;
            (4) by inserting ``(1)'' after ``(e) Conditions.--
        ''; and
            (5) by striking out paragraph (3) and inserting in 
        lieu thereof the following:
    ``(2) A cooperative agreement containing a clause under 
subsection (d) or a transaction authorized by subsection (a) 
may be used for a research project when the use of a standard 
contract, grant, or cooperative agreement for such project is 
not feasible or appropriate.''.
    (b) Revised Requirement for Annual Report.--Section 2371 of 
such title is amended by striking out subsection (h) and 
inserting in lieu thereof the following:
    ``(h) Annual Report.--(1) Not later than 90 days after the 
end of each fiscal year, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report on the use by the Department of Defense during such 
fiscal year of--
            ``(A) cooperative agreements authorized under 
        section 2358 of this title that contain a clause under 
        subsection (d); and
            ``(B) transactions authorized by subsection (a).
    ``(2) The report shall include, with respect to the 
cooperative agreements and other transactions covered by the 
report, the following:
            ``(A) The technology areas in which research 
        projects were conducted under such agreements or other 
        transactions.
            ``(B) The extent of the cost-sharing among Federal 
        Government and non-Federal sources.
            ``(C) The extent to which the use of the 
        cooperative agreements and other transactions--
                    ``(i) has contributed to a broadening of 
                the technology and industrial base available 
                for meeting Department of Defense needs; and
                    ``(ii) has fostered within the technology 
                and industrial base new relationships and 
                practices that support the national security of 
                the United States.
            ``(D) The total amount of payments, if any, that 
        were received by the Federal Government during the 
        fiscal year covered by the report pursuant to a clause 
        described in subsection (d) that was included in the 
        cooperative agreements and other transactions, and the 
        amount of such payments, if any, that were credited to 
        each account established under subsection (f).''.
    (c) Division of Section Into Distinct Provisions by Subject 
Matter.--(1) Chapter 139 of title 10, United States Code, is 
amended--
            (A) by inserting before the last subsection of 
        section 2371 (relating to cooperative research and 
        development agreements under the Stevenson-Wydler 
        Technology Innovation Act of 1980) the following:

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

            (B) in section 2371a (as designated by the 
        amendment made by subparagraph (A)), by striking out 
        ``(i) Cooperative Research and Development Agreements 
        Under Stevenson-Wydler Technology Innovation Act of 
        1980.--''; and
            (C) in the table of sections at the beginning of 
        such chapter, by inserting after the item relating to 
        section 2371 the following:

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

    (2) Section 2358(d) of such title is amended by striking 
out ``section 2371'' and inserting in lieu thereof ``sections 
2371 and 2371a''.

SEC. 268. DESALTING TECHNOLOGIES.

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

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

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

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

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

         Subtitle E--National Oceanographic Partnership Program

SEC. 281. FINDINGS.

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

SEC. 282. NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM.

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

       ``CHAPTER 665--NATIONAL OCEANOGRAPHIC PARTNERSHIP PROGRAM

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

``Sec. 7901. National Oceanographic Partnership Program

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

``Sec. 7902. National Ocean Research Leadership Council

    ``(a) Council.--There is a National Ocean Research 
Leadership Council (hereinafter in this chapter referred to as 
the `Council').
    ``(b) Membership.--The Council is composed of the following 
members:
            ``(1) The Secretary of the Navy.
            ``(2) The Administrator of the National Oceanic and 
        Atmospheric Administration.
            ``(3) The Director of the National Science 
        Foundation.
            ``(4) The Administrator of the National Aeronautics 
        and Space Administration.
            ``(5) The Deputy Secretary of Energy.
            ``(6) The Administrator of the Environmental 
        Protection Agency.
            ``(7) The Commandant of the Coast Guard.
            ``(8) The Director of the Geological Survey of the 
        Department of the Interior.
            ``(9) The Director of the Defense Advanced Research 
        Projects Agency.
            ``(10) The Director of the Minerals Management 
        Service of the Department of the Interior.
            ``(11) The President of the National Academy of 
        Sciences, the President of the National Academy of 
        Engineering, and the President of the Institute of 
        Medicine.
            ``(12) The Director of the Office of Science and 
        Technology.
            ``(13) The Director of the Office of Management and 
        Budget.
            ``(14) One member appointed by the chairman from 
        among individuals who will represent the views of ocean 
        industries.
            ``(15) One member appointed by the chairman from 
        among individuals who will represent the views of State 
        governments.
            ``(16) One member appointed by the chairman from 
        among individuals who will represent the views of 
        academia.
            ``(17) One member appointed by the chairman from 
        among individuals who will represent such other views 
        as the chairman considers appropriate.
    ``(c) Chairman and Vice Chairman.--(1) Except as provided 
in paragraph (2), the chairman and vice chairman of the Council 
shall be appointed every two years by a selection committee of 
the Council composed of, at a minimum, the Secretary of the 
Navy, the Administrator of the National Oceanic and Atmospheric 
Administration, and the Director of the National Science 
Foundation. The term of office of the chairman and vice 
chairman shall be two years. A person who has previously served 
as chairman or vice chairman may be reappointed.
    ``(2) The first chairman of the Council shall be the 
Secretary of the Navy. The first vice chairman of the Council 
shall be the Administrator of the National Oceanic and 
Atmospheric Administration.
    ``(d) Term of Office.--The term of office of a member of 
the Council appointed under paragraph (14), (15), (16), or (17) 
of subsection (b) shall be two years, except that any person 
appointed to fill a vacancy occurring before the expiration of 
the term for which his predecessor was appointed shall be 
appointed for the remainder of such term.
    ``(e) Responsibilities.--The Council shall have the 
following responsibilities:
            ``(1) To prescribe policies and procedures to 
        implement the National Oceanographic Partnership 
        Program.
            ``(2) To review, select, and identify and allocate 
        funds for partnership projects for implementation under 
        the program, based on the following criteria:
                    ``(A) Whether the project addresses 
                critical research objectives or operational 
                goals, such as data accessibility and quality 
                assurance, sharing of resources, education, or 
                communication.
                    ``(B) Whether the project has, or is 
                designed to have, broad participation within 
                the oceanographic community.
                    ``(C) Whether the partners have a long-term 
                commitment to the objectives of the project.
                    ``(D) Whether the resources supporting the 
                project are shared among the partners.
                    ``(E) Whether the project has been 
                subjected to adequate peer review.
            ``(3) To assess whether there is a need for a 
        facility (or facilities) to provide national 
        centralization of oceanographic data, and to establish 
        such a facility or facilities if determined necessary. 
        In conducting the assessment, the Council shall review, 
        at a minimum, the following:
                    ``(A) The need for a national oceanographic 
                data center.
                    ``(B) The need for a national coastal data 
                center.
                    ``(C) Accessibility by potential users of 
                such centers.
                    ``(D) Preexisting facilities and expertise.
    ``(f) Annual Report.--Not later than March 1 of each year, 
the Council shall submit to Congress a report on the National 
Oceanographic Partnership Program. The report shall contain the 
following:
            ``(1) A description of activities of the program 
        carried out during the fiscal year before the fiscal 
        year in which the report is prepared, together with a 
        list of the members of the Ocean Research Advisory 
        Panel and any working groups in existence during the 
        fiscal year covered.
            ``(2) A general outline of the activities planned 
        for the program during the fiscal year in which the 
        report is prepared.
            ``(3) A summary of projects continued from the 
        fiscal year before the fiscal year in which the report 
        is prepared and projects expected to be started during 
        the fiscal year in which the report is prepared and 
        during the following fiscal year.
            ``(4) A description of the involvement of the 
        program with Federal interagency coordinating entities.
            ``(5) The amounts requested, in the budget 
        submitted to Congress pursuant to section 1105(a) of 
        title 31, for the fiscal year following the fiscal year 
        in which the report is prepared, for the programs, 
        projects, and activities of the program and the 
        estimated expenditures under such programs, projects, 
        and activities during such following fiscal year.
    ``(g) Partnership Program Office.--(1) The Council shall 
establish a partnership program office for the National 
Oceanographic Partnership Program. The Council shall use 
competitive procedures in selecting an operator for the 
partnership program office.
    ``(2) The Council shall assign the following duties to the 
partnership program office:
            ``(A) To establish and oversee working groups to 
        propose partnership projects to the Council and advise 
        the Council on such projects.
            ``(B) To manage the process for proposing 
        partnership projects to the Council, including managing 
        peer review of such projects.
            ``(C) To submit to the Council an annual report on 
        the status of all partnership projects and activities 
        of the office.
            ``(D) Any additional duties for the administration 
        of the National Oceanographic Partnership Program that 
        the Council considers appropriate.
    ``(3) The Council shall supervise the performance of duties 
by the partnership program office.
    ``(h) Contract and Grant Authority.--The Council may 
authorize one or more of the departments or agencies 
represented on the Council to enter into contracts and make 
grants, using funds appropriated pursuant to an authorization 
of appropriations for the National Oceanographic Partnership 
Program, for the purpose of implementing the program and 
carrying out the responsibilities of the Council.
    ``(i) Establishment and Forms of Partnership Projects.--(1) 
A partnership project under the National Oceanographic 
Partnership Program may be established by any instrument that 
the Council considers appropriate, including a memorandum of 
understanding, a cooperative research and development 
agreement, and any similar instrument.
    ``(2) Projects under the program may include demonstration 
projects.

``Sec. 7903. Ocean Research Advisory Panel

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

``665. National Oceanographic Partnership Program................7901''.

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Armed Forces Retirement Home.
Sec. 304. Transfer from National Defense Stockpile Transaction Fund.
Sec. 305. Civil Air Patrol Corporation.
Sec. 306. Availability of additional funds for antiterrorism activities.
Sec. 307. Nonlethal weapons capabilities.
Sec. 308. SR-71 contingency reconnaissance force.

                   Subtitle B--Depot-Level Activities

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

                  Subtitle C--Environmental Provisions

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

   Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

                        Subtitle F--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal 
year 1997 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for expenses, not 
otherwise provided for, for operation and maintenance, in 
amounts as follows:
            (1) For the Army, $18,264,406,000.
            (2) For the Navy, $20,387,737,000.
            (3) For the Marine Corps, $2,421,007,000.
            (4) For the Air Force, $17,635,335,000.
            (5) For Defense-wide activities, $9,912,962,000.
            (6) For the Army Reserve, $1,136,436,000.
            (7) For the Naval Reserve, $858,927,000.
            (8) For the Marine Corps Reserve, $113,367,000.
            (9) For the Air Force Reserve, $1,499,553,000.
            (10) For the Army National Guard, $2,277,477,000.
            (11) For the Air National Guard, $2,711,173,000.
            (12) For the Defense Inspector General, 
        $136,501,000.
            (13) For the United States Court of Appeals for the 
        Armed Forces, $6,797,000.
            (14) For Environmental Restoration, Army, 
        $356,916,000.
            (15) For Environmental Restoration, Navy, 
        $302,900,000.
            (16) For Environmental Restoration, Air Force, 
        $414,700,000.
            (17) For Environmental Restoration, Defense-wide, 
        $258,500,000.
            (18) For Overseas Humanitarian, Disaster, and Civic 
        Aid programs, $54,544,000.
            (19) For Drug Interdiction and Counter-drug 
        Activities, Defense-wide, $796,524,000.
            (20) For the Kaho'olawe Island Conveyance, 
        Remediation, and Environmental Restoration Trust Fund, 
        $10,000,000.
            (21) For Medical Programs, Defense, $9,833,288,000.
            (22) For Cooperative Threat Reduction programs, 
        $364,900,000.
            (23) For Domestic Emergency Assistance programs, 
        $97,000,000.
            (24) For OPLAN 34A-35 P.O.W. payments, $20,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1997 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Business Operations Fund, 
        $947,900,000.
            (2) For the National Defense Sealift Fund, 
        $1,118,002,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal 
year 1997 from the Armed Forces Retirement Home Trust Fund the 
sum of $57,300,000 for the operation of the Armed Forces 
Retirement Home, including the United States Soldiers' and 
Airmen's Home and the Naval Home.

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

    (a) Transfer Authority.--To the extent provided in 
appropriations Acts, not more than $150,000,000 is authorized 
to be transferred from the National Defense Stockpile 
Transaction Fund to operation and maintenance accounts for 
fiscal year 1997 in amounts as follows:
            (1) For the Army, $50,000,000.
            (2) For the Navy, $50,000,000.
            (3) For the Air Force, $50,000,000.
    (b) Treatment of Transfers.--Amounts transferred under this 
section--
            (1) shall be merged with, and be available for the 
        same purposes and the same period as, the amounts in 
        the accounts to which transferred; and
            (2) may not be expended for an item that has been 
        denied authorization of appropriations by Congress.
    (c) Relationship to Other Transfer Authority.--The transfer 
authority provided in this section is in addition to the 
transfer authority provided in section 1001.

SEC. 305. CIVIL AIR PATROL CORPORATION.

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

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

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

SEC. 307. NONLETHAL WEAPONS CAPABILITIES.

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

SEC. 308. SR-71 CONTINGENCY RECONNAISSANCE FORCE.

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

                   Subtitle B--Depot-Level Activities

SEC. 311. EXTENSION OF AUTHORITY FOR AVIATION DEPOTS AND NAVAL 
                    SHIPYARDS TO ENGAGE IN DEFENSE-RELATED PRODUCTION 
                    AND SERVICES.

    Section 1425(e) of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1684) is 
amended by striking out ``September 30, 1996'' and inserting in 
lieu thereof ``September 30, 1997''.

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

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

                  Subtitle C--Environmental Provisions

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

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

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

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

``Sec. 2703. Environmental restoration accounts

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

``2703. Environmental restoration accounts.''.

    (b) References.--Any reference to the Defense Environmental 
Restoration Account in any Federal law, Executive Order, 
regulation, delegation of authority, or document shall be 
deemed to refer to the appropriate environmental restoration 
account established under section 2703(a)(1) of title 10, 
United States Code (as amended by subsection (a)(1)).
    (c) Conforming Amendment.--Section 2705(g)(1) of title 10, 
United States Code, is amended by striking out ``the Defense 
Environmental Restoration Account established'' and inserting 
in lieu thereof ``the environmental restoration account 
concerned''.
    (d) Treatment of Unobligated Balances.--Any unobligated 
balances that remain in the Defense Environmental Restoration 
Account under section 2703(a) of title 10, United States Code, 
as of the effective date specified in subsection (e) shall be 
transferred on such date to the Environmental Restoration 
Account, Defense, established under section 2703(a)(1) of title 
10, United States Code (as amended by subsection (a)(1)).
    (e) Effective Date.--The amendments made by this section 
shall take effect on the later of--
            (1) October 1, 1996; or
            (2) the date of the enactment of this Act.

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

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

SEC. 324. SHIPBOARD SOLID WASTE CONTROL.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 332. CONSERVATION AND CULTURAL ACTIVITIES.

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

``Sec. 2694. Conservation and cultural activities

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

``2694. Conservation and cultural activities.''.

    (b) Effective Date.--Section 2694 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 1996.

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

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

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

    (a) In General.--Section 120(h)(3) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(42 U.S.C. 9620(h)(3)) is amended--
            (1) by redesignating subparagraph (A) as clause (i) 
        and clauses (i), (ii), and (iii) of that subparagraph 
        as subclauses (I), (II), and (III), respectively;
            (2) by striking out ``After the last day'' and 
        inserting in lieu thereof the following:
                    ``(A) In general.--After the last day'';
            (3) by redesignating subparagraph (B) as clause 
        (ii) and clauses (i) and (ii) of that subparagraph as 
        subclauses (I) and (II), respectively;
            (4) by redesignating subparagraph (C) as clause 
        (iii);
            (5) by moving the remainder of the text of 
        subparagraph (A), as designated by paragraph (2) of 
        this subsection (including the clauses and subclauses 
        redesignated by paragraphs (1), (3), and (4) of this 
        subsection) 2 ems to the right;
            (6) by striking ``For purposes of subparagraph 
        (B)(i)'' and inserting the following:
                    ``(B) Covenant requirements.--For purposes 
                of subparagraphs (A)(ii)(I) and (C)(iii)'';
            (7) in subparagraph (B), as designated by paragraph 
        (5), by striking ``subparagraph (B)'' each place it 
        appears and inserting ``subparagraph (A)(ii)''; and
            (8) by adding at the end the following:
                    ``(C) Deferral.--
                            ``(i) In general.--The 
                        Administrator, with the concurrence of 
                        the Governor of the State in which the 
                        facility is located (in the case of 
                        real property at a Federal facility 
                        that is listed on the National 
                        Priorities List), or the Governor of 
                        the State in which the facility is 
                        located (in the case of real property 
                        at a Federal facility not listed on the 
                        National Priorities List) may defer the 
                        requirement of subparagraph (A)(ii)(I) 
                        with respect to the property if the 
                        Administrator or the Governor, as the 
                        case may be, determines that the 
                        property is suitable for transfer, 
                        based on a finding that--
                                    ``(I) the property is 
                                suitable for transfer for the 
                                use intended by the transferee, 
                                and the intended use is 
                                consistent with protection of 
                                human health and the 
                                environment;
                                    ``(II) the deed or other 
                                agreement proposed to govern 
                                the transfer between the United 
                                States and the transferee of 
                                the property contains the 
                                assurances set forth in clause 
                                (ii);
                                    ``(III) the Federal agency 
                                requesting deferral has 
                                provided notice, by publication 
                                in a newspaper of general 
                                circulation in the vicinity of 
                                the property, of the proposed 
                                transfer and of the opportunity 
                                for the public to submit, 
                                within a period of not less 
                                than 30 days after the date of 
                                the notice, written comments on 
                                the suitability of the property 
                                for transfer; and
                                    ``(IV) the deferral and the 
                                transfer of the property will 
                                not substantially delay any 
                                necessary response action at 
                                the property. 
                            ``(ii) Response action 
                        assurances.--With regard to a release 
                        or threatened release of a hazardous 
                        substance for which a Federal agency is 
                        potentially responsible under this 
                        section, the deed or other agreement 
                        proposed to govern the transfer shall 
                        contain assurances that--
                                    ``(I) provide for any 
                                necessary restrictions on the 
                                use of the property to ensure 
                                the protection of human health 
                                and the environment;
                                    ``(II) provide that there 
                                will be restrictions on use 
                                necessary to ensure that 
                                required remedial 
                                investigations, response 
                                action, and oversight 
                                activities will not be 
                                disrupted;
                                    ``(III) provide that all 
                                necessary response action will 
                                be taken and identify the 
                                schedules for investigation and 
                                completion of all necessary 
                                response action as approved by 
                                the appropriate regulatory 
                                agency; and
                                    ``(IV) provide that the 
                                Federal agency responsible for 
                                the property subject to 
                                transfer will submit a budget 
                                request to the Director of the 
                                Office of Management and Budget 
                                that adequately addresses 
                                schedules for investigation and 
                                completion of all necessary 
                                response action, subject to 
                                congressional authorizations 
                                and appropriations.
                            ``(iii) Warranty.--When all 
                        response action necessary to protect 
                        human health and the environment with 
                        respect to any substance remaining on 
                        the property on the date of transfer 
                        has been taken, the United States shall 
                        execute and deliver to the transferee 
                        an appropriate document containing a 
                        warranty that all such response action 
                        has been taken, and the making of the 
                        warranty shall be considered to satisfy 
                        the requirement of subparagraph 
                        (A)(ii)(I).
                            ``(iv) Federal responsibility.--A 
                        deferral under this subparagraph shall 
                        not increase, diminish, or affect in 
                        any manner any rights or obligations of 
                        a Federal agency (including any rights 
                        or obligations under sections 106, 107, 
                        and 120 existing prior to transfer) 
                        with respect to a property transferred 
                        under this subparagraph.''.
    (b) Continued Application of State Law.--The first sentence 
of section 120(a)(4) of the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9620(a)(4)) is amended by inserting ``or facilities that are 
the subject of a deferral under subsection (h)(3)(C)'' after 
``United States''.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

    ``An agency or instrumentality of the Department of Defense 
that supports the operation of the exchange system, or the 
operation of a morale, welfare, and recreation system, of the 
Department of Defense may enter into a contract or other 
agreement with another element of the Department of Defense or 
with another Federal department, agency, or instrumentality to 
provide or obtain goods and services beneficial to the 
efficient management and operation of the exchange system or 
that morale, welfare, and recreation system.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2482 
the following new item:

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

    (b) Conforming Amendment Regarding Commissary System.--
Section 2482(b)(1) of such title is amended by striking out 
``another department'' and all that follows through ``provide 
services'' and inserting in lieu thereof ``another element of 
the Department of Defense or with another Federal department, 
agency, or instrumentality to provide or obtain services''.

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

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

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

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

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

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

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

    (b) Effective Date.--Subsection (a) of section 2489a of 
title 10, United States Code, as added by subsection (a) of 
this section, shall take effect 90 days after the date of the 
enactment of this Act.

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

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

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

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

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

                       Subtitle F--Other Matters

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

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

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

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

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

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

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

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

    ``(a) Authority to Enter Into Agreements.--(1) The 
Secretary concerned, without regard to section 3709 of the 
Revised Statutes (41 U.S.C. 5), may make agreements or other 
arrangements for the training of members of the uniformed 
services under the jurisdiction of that Secretary by, in, or 
through non-Government facilities.
    ``(2) In this section, the term `non-Government facility' 
means any of the following:
            ``(A) The government of a State or of a territory 
        or possession of the United States, including the 
        Commonwealth of Puerto Rico, an interstate governmental 
        organization, and a unit, subdivision, or 
        instrumentality of any of the foregoing.
            ``(B) A foreign government or international 
        organization, or instrumentality of either, which is 
        designated by the President as eligible to provide 
        training under this section.
            ``(C) A medical, scientific, technical, 
        educational, research, or professional institution, 
        foundation, or organization.
            ``(D) A business, commercial, or industrial firm, 
        corporation, partnership, proprietorship, or other 
        organization.
            ``(E) Individuals other than civilian or military 
        personnel of the Government.
            ``(F) The services and property of any of the 
        foregoing providing the training.
    ``(b) Expenses.--The Secretary concerned, from 
appropriations or other funds available to the Secretary, may--
            ``(1) pay all or a part of the pay of a member of a 
        uniformed service who is selected and assigned for 
        training under this section, for the period of 
        training; and
            ``(2) pay, or reimburse the member of a uniformed 
        service for, all or a part of the necessary expenses of 
        the training (without regard to subsections (a) and (b) 
        of section 3324 of title 31), including among those 
        expenses the necessary costs of the following:
                    ``(A) Travel and per diem instead of 
                subsistence under sections 404 and 405 of title 
                37 and the Joint Travel Regulations for the 
                Uniformed Services.
                    ``(B) Transportation of immediate family, 
                household goods and personal effects, packing, 
                crating, temporarily storing, draying, and 
                unpacking under sections 406 and 409 of title 
                37 and the Joint Travel Regulations for the 
                Uniformed Services when the estimated costs of 
                transportation and related services are less 
                than the estimated aggregate per diem payments 
                for the period of training.
                    ``(C) Tuition and matriculation fees.
                    ``(D) Library and laboratory services.
                    ``(E) Purchase or rental of books, 
                materials, and supplies.
                    ``(F) Other services or facilities directly 
                related to the training of the member.
    ``(c) Certain Expenses Excluded.--The expenses of training 
do not include membership fees except to the extent that the 
fee is a necessary cost directly related to the training itself 
or that payment of the fee is a condition precedent to 
undergoing the training.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (b) Effective Date.--Section 2013 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 1996.

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

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

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

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

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

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

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

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

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

    ``(a) Assistance Authorized.--The Secretary of Defense may, 
with respect to the ceremonies relating to the inauguration of 
a President, provide the assistance referred to in subsection 
(b) to--
            (1) the Presidential Inaugural Committee; and
            (2) the congressional Joint Inaugural Committee.
    ``(b) Assistance.--Assistance that may be provided under 
subsection (a) is the following:
            ``(1) Planning and carrying out activities relating 
        to security and safety.
            ``(2) Planning and carrying out ceremonial 
        activities.
            ``(3) Loan of property.
            ``(4) Any other assistance that the Secretary 
        considers appropriate.
    ``(c) Reimbursement.--(1) The Presidential Inaugural 
Committee shall reimburse the Secretary for any costs incurred 
in connection with the provision to the committee of assistance 
referred to in subsection (b)(4).
    ``(2) Costs reimbursed under paragraph (1) shall be 
credited to the appropriations from which the costs were paid. 
The amount credited to an appropriation shall be proportionate 
to the amount of the costs charged to that appropriation.
    ``(d) Loaned Property.--With respect to property loaned for 
a presidential inauguration under subsection (b)(3), the 
Presidential Inaugural Committee shall--
            ``(1) return that property within nine days after 
        the date of the ceremony inaugurating the President;
            ``(2) give good and sufficient bond for the return 
        in good order and condition of that property;
            ``(3) indemnify the United States for any loss of, 
        or damage to, that property; and
            ``(4) defray any expense incurred for the delivery, 
        return, rehabilitation, replacement, or operation of 
        that property.
    ``(e) Definitions.--In this section:
            ``(1) The term `Presidential Inaugural Committee' 
        means the committee referred to in subsection (b)(2) of 
        the first section of the Presidential Inaugural 
        Ceremonies Act (36 U.S.C. 721) that is appointed with 
        respect to the inauguration of a President-elect and 
        Vice President-elect.
            ``(2) The term `congressional Joint Inaugural 
        Committee' means the joint committee of the Senate and 
        House of Representatives referred to in the proviso in 
        section 9 of the Presidential Inaugural Ceremonies Act 
        (36 U.S.C. 729) that is appointed with respect to the 
        inauguration of a President-elect and Vice President-
        elect.''.
    (b) Clerical Amendment.--The item relating to section 2543 
in the table of sections at the beginning of chapter 152 of 
such title is amended to read as follows:

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

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

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

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

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

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

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

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

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

    (B) The item relating to such section in the table of 
sections at the beginning of chapter 157 of title 10, United 
States Code, is amended to read as follows:

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

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

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

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

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

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 159 of such title is 
amended to read as follows:

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

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

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

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

    ``(a) Operation as Nonappropriated Fund Instrumentality.--
The Superintendent of the Naval Academy shall operate the Naval 
Academy activities referred to in subsection (b) as a 
nonappropriated fund instrumentality under the jurisdiction of 
the Navy.
    ``(b) Covered Activities.--The nonappropriated fund 
instrumentality required under subsection (a) shall consist of 
the following Naval Academy activities:
            ``(1) The midshipmen's store.
            ``(2) The barber shop.
            ``(3) The cobbler shop.
            ``(4) The tailor shop.
            ``(5) The dairy.
            ``(6) The laundry.
    ``(c) Nonappropriated Fund Accounts.--The Superintendent of 
the Naval Academy shall administer a separate nonappropriated 
fund account for each of the Naval Academy activities included 
in the nonappropriated fund instrumentality required under 
subsection (a).
    ``(d) Crediting of Revenue.--The Superintendent shall 
credit all revenue received from a Naval Academy activity 
referred to in subsection (b) to the account administered with 
respect to that activity under subsection (c), and amounts so 
credited shall be available for operating expenses of that 
activity.
    ``(e) Regulations.--This section shall be carried out under 
regulations prescribed by the Secretary of the Navy.''.
    (b) Civil Service Employment Status of Employees of Covered 
Activities.--Section 2105(b) of title 5, United States Code, is 
amended--
            (1) by inserting ``who is'' after ``An 
        individual''; and
            (2) by inserting ``and whose employment in such a 
        position began before October 1, 1996, and has been 
        uninterrupted in such a position since that date'' 
        after ``Academy dairy,''.
    (c) Conforming Repeal.--Section 6970 of title 10, United 
States Code, is repealed.
    (d) Clerical Amendments.--The table of sections at the 
beginning of chapter 603 of title 10, United States Code, is 
amended by striking out the items relating to sections 6970 and 
6971 and inserting in lieu thereof the following new item:

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

    (e) Effective Date.--The amendments made by this section 
shall take effect on October 1, 1996.

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

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

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

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

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

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

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

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

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

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

SEC. 376. TECHNICAL AMENDMENT REGARDING IMPACT AID PROGRAM.

    Paragraph (3) of section 8003(a) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 7703(a)) is amended 
by striking out ``2,000 and such number equals or exceeds 15'' 
and inserting in lieu thereof ``1,000 or such number equals or 
exceeds 10''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Permanent end strength levels to support two major regional 
          contingencies.
Sec. 403. Authorized strengths for commissioned officers on active duty 
          in grades of major, lieutenant colonel, and colonel and navy 
          grades of lieutenant commander, commander, and captain.
Sec. 404. Extension of requirement for recommendations regarding 
          appointments to joint 4-star officer positions.
Sec. 405. Increase in authorized number of general officers on active 
          duty in the Marine Corps.

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

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

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

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

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

----------------------------------------------------------------------------------------------------------------
                                                                     Number of officers who may be serving on   
                                                                           active duty in the grade of:         
 ``Total number of commissioned officers (excluding officers in  -----------------------------------------------
     categories specified in subsection (b)) on active duty:                        Lieutenant                  
                                                                       Major          Colonel         Colonel   
----------------------------------------------------------------------------------------------------------------
  Army:                                                                                                         
  20,000........................................................           6,848           5,253        1,613   
  25,000........................................................           7,539           5,642        1,796   
  30,000........................................................           8,231           6,030        1,980   
  35,000........................................................           8,922           6,419        2,163   
  40,000........................................................           9,614           6,807        2,347   
  45,000........................................................          10,305           7,196        2,530   
  50,000........................................................          10,997           7,584        2,713   
  55,000........................................................          11,688           7,973        2,897   
  60,000........................................................          12,380           8,361        3,080   
  65,000........................................................          13,071           8,750        3,264   
  70,000........................................................          13,763           9,138        3,447   
  75,000........................................................          14,454           9,527        3,631   
  80,000........................................................          15,146           9,915        3,814   
  85,000........................................................          15,837          10,304        3,997   
  90,000........................................................          16,529          10,692        4,181   
  95,000........................................................          17,220          11,081        4,364   
  100,000.......................................................          17,912          11,469        4,548   
  110,000.......................................................          19,295          12,246        4,915   
  120,000.......................................................          20,678          13,023        5,281   
  130,000.......................................................          22,061          13,800        5,648   
  170,000.......................................................          27,593          16,908        7,116   
Air Force:                                                                                                      
  35,000........................................................           9,216           7,090        2,125   
  40,000........................................................          10,025           7,478        2,306   
  45,000........................................................          10,835           7,866        2,487   
  50,000........................................................          11,645           8,253        2,668   
  55,000........................................................          12,454           8,641        2,849   
  60,000........................................................          13,264           9,029        3,030   
  65,000........................................................          14,073           9,417        3,211   
  70,000........................................................          14,883           9,805        3,392   
  75,000........................................................          15,693          10,193        3,573   
  80,000........................................................          16,502          10,582        3,754   
  85,000........................................................          17,312          10,971        3,935   
  90,000........................................................          18,121          11,360        4,115   
  95,000........................................................          18,931          11,749        4,296   
  100,000.......................................................          19,741          12,138        4,477   
  105,000.......................................................          20,550          12,527        4,658   
  110,000.......................................................          21,360          12,915        4,838   
  115,000.......................................................          22,169          13,304        5,019   
  120,000.......................................................          22,979          13,692        5,200   
  125,000.......................................................          23,789          14,081        5,381   
Marine Corps:                                                                                                   
  10,000........................................................           2,525           1,480          571   
  12,500........................................................           2,900           1,600          592   
  15,000........................................................           3,275           1,720          613   
  17,500........................................................           3,650           1,840          633   
  20,000........................................................           4,025           1,960          654   
  22,500........................................................           4,400           2,080          675   
  25,000........................................................           4,775           2,200          695.''
----------------------------------------------------------------------------------------------------------------


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

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


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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General.--The Armed Forces are authorized strengths 
for Selected Reserve personnel of the reserve components as of 
September 30, 1997, as follows:
            (1) The Army National Guard of the United States, 
        366,758.
            (2) The Army Reserve, 215,179.
            (3) The Naval Reserve, 96,304.
            (4) The Marine Corps Reserve, 42,000.
            (5) The Air National Guard of the United States, 
        109,178.
            (6) The Air Force Reserve, 73,311.
            (7) The Coast Guard Reserve, 8,000.
    (b) Waiver Authority.--The Secretary of Defense may vary 
the end strength authorized by subsection (a) by not more than 
2 percent.
    (c) Adjustments.--The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve 
component for a fiscal year shall be proportionately reduced 
by--
            (1) the total authorized strength of units 
        organized to serve as units of the Selected Reserve of 
        such component which are on active duty (other than for 
        training) at the end of the fiscal year, and
            (2) the total number of individual members not in 
        units organized to serve as units of the Selected 
        Reserve of such component who are on active duty (other 
        than for training or for unsatisfactory participation 
        in training) without their consent at the end of the 
        fiscal year.
Whenever such units or such individual members are released 
from active duty during any fiscal year, the end strength 
prescribed for such fiscal year for the Selected Reserve of 
such reserve component shall be proportionately increased by 
the total authorized strengths of such units and by the total 
number of such individual members.

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

    Within the end strengths prescribed in section 411(a), the 
reserve components of the Armed Forces are authorized, as of 
September 30, 1997, the following number of Reserves to be 
serving on full-time active duty or full-time duty, in the case 
of members of the National Guard, for the purpose of 
organizing, administering, recruiting, instructing, or training 
the reserve components:
            (1) The Army National Guard of the United States, 
        22,798.
            (2) The Army Reserve, 11,729.
            (3) The Naval Reserve, 16,603.
            (4) The Marine Corps Reserve, 2,559.
            (5) The Air National Guard of the United States, 
        10,403.
            (6) The Air Force Reserve, 655.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS.

    (a) Authorization for Fiscal Year 1997.--The minimum number 
of military technicians as of the last day of fiscal year 1997 
for the reserve components of the Army and the Air Force 
(notwithstanding section 129 of title 10, United States Code) 
shall be the following:
            (1) For the Army Reserve, 6,799.
            (2) For the Army National Guard of the United 
        States, 25,500.
            (3) For the Air Force Reserve, 9,802.
            (4) For the Air National Guard of the United 
        States, 23,299.
    (b) Information To Be Provided With Future Authorization 
Requests.--Section 10216 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (b) as subsection 
        (c); and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) Information Required To Be Submitted With Annual End 
Strength Authorization Request.--(1) The Secretary of Defense 
shall include as part of the budget justification documents 
submitted to Congress with the budget of the Department of 
Defense for any fiscal year the following information with 
respect to the end strengths for military technicians requested 
in that budget pursuant to section 115(g) of this title, shown 
separately for each of the Army and Air Force reserve 
components:
            ``(A) The number of dual-status technicians in the 
        high priority units and organizations specified in 
        subsection (a)(1).
            ``(B) The number of technicians other than dual-
        status technicians in the high priority units and 
        organizations specified in subsection (a)(1).
            ``(C) The number of dual-status technicians in 
        other than high priority units and organizations 
        specified in subsection (a)(1).
            ``(D) The number of technicians other than dual-
        status technicians in other than high priority units 
        and organizations specified in subsection (a)(1).
    ``(2)(A) If the budget submitted to Congress for any fiscal 
year requests authorization for that fiscal year under section 
115(g) of this title of a military technician end strength for 
a reserve component of the Army or Air Force in a number that 
constitutes a reduction from the end strength minimum 
established by law for that reserve component for the fiscal 
year during which the budget is submitted, the Secretary of 
Defense shall submit to the congressional defense committees 
with that budget a justification providing the basis for that 
requested reduction in technician end strength.
    ``(B) Any justification submitted under subparagraph (A) 
shall clearly delineate--
            ``(i) in the case of a reduction that includes a 
        reduction in technicians described in subparagraph (A) 
        or (C) of paragraph (1), the specific force structure 
        reductions forming the basis for such requested 
        technician reduction (and the numbers related to those 
        force structure reductions); and
            ``(ii) in the case of a reduction that includes 
        reductions in technicians described in subparagraphs 
        (B) or (D) of paragraph (1), the specific force 
        structure reductions, Department of Defense civilian 
        personnel reductions, or other reasons forming the 
        basis for such requested technician reduction (and the 
        numbers related to those reductions).''.
    (c) Technical Amendments.--Such section is further 
amended--
            (1) in subsection (a), by striking out ``section 
        115'' and inserting in lieu thereof ``section 115(g)''; 
        and
            (2) in subsection (c), as redesignated by 
        subsection (b)(1), by striking out ``after the date of 
        the enactment of this section'' both places it appears 
        and inserting in lieu thereof ``after February 10, 
        1996,''.

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

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

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the 
Department of Defense for military personnel for fiscal year 
1997 a total of $70,056,130,000. The authorization in the 
preceding sentence supersedes any other authorization of 
appropriations (definite or indefinite) for such purpose for 
fiscal year 1997.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                  Subtitle B--Enlisted Personnel Policy

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

                    Subtitle C--Activation and Recall

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

                Subtitle D--Reserve Component Retirement

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

               Subtitle E--Other Reserve Component Matters

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

                 Subtitle F--Officer Education Programs

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

                   Subtitle G--Decorations and Awards

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

                        Subtitle H--Other Matters

Sec. 571. Hate crimes in the military.
Sec. 572. Disability coverage for members granted excess leave for 
          educational or emergency purposes.
Sec. 573. Clarification of authority of a reserve judge advocate to act 
          as a military notary public when not in a duty status.
Sec. 574. [H531-539 SR w/am] Panel on jurisdiction of courts-martial for 
          the National Guard when not in Federal service.
Sec. 575. Authority to expand law enforcement placement program to 
          include firefighters.
Sec. 576. Improvements to program to assist separated military and 
          civilian personnel to obtain employment as teachers or 
          teachers' aides.
Sec. 577. Retirement at grade to which selected for promotion when a 
          physical disability is found at any physical examination.
Sec. 578. [S537 HR w/am] Revisions to missing persons authorities.

       Subtitle I--Commissioned Corps of the Public Health Service

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

                  Subtitle A--Officer Personnel Policy

SEC. 501. GRADE OF CHIEF OF NAVAL RESEARCH.

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

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

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

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

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

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

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

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

    (2) The table of sections at the beginning of chapter 807 
of such title is amended by inserting after the item relating 
to section 8067 the following new item:
``8069. Air Force Nurse Corps: Chief and assistant chief; appointment; 
          grade.''.

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

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

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

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

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

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

SEC. 506. CHIEF WARRANT OFFICER PROMOTIONS.

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

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

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

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

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

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

    (a) Semiannual Report.--The Secretary of Defense shall 
submit to Congress a semiannual report on the status of actions 
taken by the Secretary to implement the recommendations made by 
the Department of Defense Inspector General in the report of 
November 29, 1995, entitled ``Inspection of the Department of 
Defense Joint Manpower Process'' (Report No. 96-029). The first 
such report shall be submitted not later than February 1, 1997. 
The requirement to submit such reports terminates after the 
fourth such report is submitted.
    (b) Additional Matter for First Report.--As part of the 
first report under subsection (a), the Secretary shall include 
the following:
            (1) The Secretary's assessment as to the need to 
        establish a joint, centralized permanent organization 
        in the Department of Defense to determine, validate, 
        approve, and manage military and civilian manpower 
        requirements resources at joint organizations.
            (2) The Secretary's assessment of the Department of 
        Defense timeline and plan to increase the capability of 
        the joint professional military education system 
        (including the Armed Forces Staff College) to overcome 
        the capacity limitations cited in the report referred 
        to in subsection (a).
            (3) The Secretary's plan and timeline to provide 
        the necessary training and education of reserve 
        component officers.
    (c) GAO Assessment.--The Comptroller General of the United 
States shall assess the completeness and adequacy of the 
corrective actions taken by the Secretary with respect to the 
matters covered in the Inspector General report referred to in 
subsection (a). Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to 
Congress a report, based on the assessment under this 
subsection, providing the Comptroller General's findings and 
recommendations.

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

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

                 Subtitle B--Enlisted Personnel Policy

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

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

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

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

                   Subtitle C--Activation and Recall

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

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

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

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

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

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

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

    ``(a) General and Flag Officers.--Not more than 15 retired 
general officers of the Army, Air Force, or Marine Corps, and 
not more than 15 retired flag officers of the Navy, may be on 
active duty at any one time. For the purposes of this 
subsection a retired officer ordered to active duty for a 
period of 60 days or less is not counted.
    ``(b) Limitation by Service.--(1) Not more than 25 officers 
of any one armed force may be serving on active duty 
concurrently pursuant to orders to active duty issued under 
section 688 of this title.
    ``(2) In the administration of paragraph (1), the following 
officers shall not be counted:
            ``(A) A chaplain who is assigned to duty as a 
        chaplain for the period of active duty to which 
        ordered.
            ``(B) A health care professional (as characterized 
        by the Secretary concerned) who is assigned to duty as 
        a health care professional for the period of the active 
        duty to which ordered.
            ``(C) Any officer assigned to duty with the 
        American Battle Monuments Commission for the period of 
        active duty to which ordered.
    ``(c) Waiver for Periods of War or National Emergency.--
Subsection (a) does not apply in time of war or of national 
emergency declared by Congress or the President after November 
30, 1980. Subsection (b) does not apply in time of war or of 
national emergency declared by Congress or the President.''.
    (b) Effective Date.--The amendments made by this section 
shall take effect on September 30, 1997.
    (c) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by striking out the item 
relating to section 688 and inserting in lieu thereof the 
following:

``688. Retired members: authority to order to active duty; duties.
``689. Retired members: grade in which ordered to active duty and upon 
          release from active duty.
``690. Retired members ordered to active duty: limitation on number.''.

    (d) Cross Reference Amendment.--Section 6151(a) of title 
10, United States Code, is amended by striking out ``688'' and 
inserting in lieu thereof ``689''.

SEC. 522. CLARIFICATION OF DEFINITION OF ACTIVE STATUS.

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

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

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

                Subtitle D--Reserve Component Retirement

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

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

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

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

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

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

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

    (b) Navy and Marine Corps.--(1) Chapter 571 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

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

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

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

    (c) Air Force.--(1) Chapter 869 of title 10, United States 
Code, is amended by inserting after section 8962 the following 
new section:

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

    ``(a) A Reserve enlisted member of the Air Force described 
in subsection (b) who is retired under section 8914 of this 
title shall be retired in the highest enlisted grade in which 
the member served on active duty satisfactorily (or, in the 
case of a member of the National Guard, in which the member 
served on full-time National Guard duty satisfactorily), as 
determined by the Secretary of the Air Force.
    ``(b) This section applies to a Reserve enlisted member 
who--
            ``(1) at the time of retirement is serving on 
        active duty (or, in the case of a member of the 
        National Guard, on full-time National Guard duty) in a 
        grade lower than the highest enlisted grade held by the 
        member while on active duty (or full-time National 
        Guard duty); and
            ``(2) was previously administratively reduced in 
        grade not as a result of the member's own misconduct, 
        as determined by the Secretary of the Air Force.
    ``(c) This section applies with respect to Reserve enlisted 
members who are retired under section 8914 of this title after 
September 30, 1996.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 8962 
the following new item:

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

    (d) Computation of Retired and Retainer Pay Based Upon 
Retired Grade.--(1) Section 3991 of such title is amended by 
adding at the end the following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members 
Covered by Section 3963.--In the case of a Reserve enlisted 
member retired under section 3914 of this title whose retired 
grade is determined under section 3963 of this title and who 
first became a member of a uniformed service before September 
8, 1980, the retired pay base of the member (notwithstanding 
section 1406(a)(1) of this title) is the amount of the monthly 
basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under 
section 1406(c) of this title.''.
    (2) Section 6333 of such title is amended by adding at the 
end the following new subsection:
    ``(c) In the case of a Reserve enlisted member whose grade 
upon transfer to the Fleet Reserve or Fleet Marine Corps 
Reserve is determined under section 6336 of this title and who 
first became a member of a uniformed service before September 
8, 1980, the retainer pay base of the member (notwithstanding 
section 1406(a)(1) of this title) is the amount of the monthly 
basic pay of the grade in which the member is so transferred 
(determined based upon the rates of basic pay applicable on the 
date of the member's transfer), and that amount shall be used 
for the purposes of the table in subsection (a) rather than the 
amount computed under section 1406(d) of this title.''.
    (3) Section 8991 of such title is amended by adding at the 
end the following new subsection:
    ``(c) Special Rule for Retired Reserve Enlisted Members 
Covered by Section 8963.--In the case of a Reserve enlisted 
member retired under section 8914 of this title whose retired 
grade is determined under section 8963 of this title and who 
first became a member of a uniformed service before September 
8, 1980, the retired pay base of the member (notwithstanding 
section 1406(a)(1) of this title) is the amount of the monthly 
basic pay of the member's retired grade (determined based upon 
the rates of basic pay applicable on the date of the member's 
retirement), and that amount shall be used for the purposes of 
subsection (a)(1)(A) rather than the amount computed under 
section 1406(e) of this title.''.

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

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

SEC. 534. ELIGIBILITY OF RESERVES FOR DISABILITY RETIREMENT.

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

              Subtitle E--Other Reserve Component Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                 Subtitle F--Officer Education Programs

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                   Subtitle G--Decorations and Awards

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

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

SEC. 562. WAIVER OF TIME LIMITATIONS FOR AWARD OF CERTAIN DECORATIONS 
                    TO SPECIFIED PERSONS.

    (a) Waiver of Time Limitation.--Any limitation established 
by law or policy for the time within which a recommendation for 
the award of a military decoration or award must be submitted 
shall not apply in the case of awards of decorations as 
described in subsection (b), the award of each such decoration 
having been determined by the Secretary of the Navy to be 
warranted in accordance with section 1130 of title 10, United 
States Code.
    (b) Distinguished Flying Cross.--Subsection (a) applies to 
awards of the Distinguished Flying Cross for service during 
World War II as follows:
            (1) First award.--First award, for completion of at 
        least 20 qualifying combat missions, to the following 
        members and former members of the Armed Forces:
                    Vernard V. Aiken of Wilmington, Vermont.
                    Ira V. Babcock of Dothan, Georgia.
                    George S. Barlow of Grafton, Virginia.
                    Earl A. Bratton of Bodega Bay, California.
                    Travis C. Cork of Leesburg, Florida.
                    Herman C. Edwards of Johns Island, South 
                Carolina.
                    Norman J. Ehr of Kiel, Wisconsin.
                    James M. Fitzgerald of Anchorage, Alaska.
                    Raymond C. Gordon of Sherborn, 
                Massachusetts.
                    Paul L. Hitchcock of Raleigh, North 
                Carolina.
                    Harold H. Hottle of Hillsboro, Ohio.
                    Samuel M. Keith of Anderson, South 
                Carolina.
                    Stanley J. Ksiadz of Cheektowaga, New York.
                    Otis Lancaster of Wyoming, Michigan.
                    Robert W. Lorette of Wilton, New Hampshire.
                    John B. McCabe of Biglerville, 
                Pennsylvania.
                    James P. Merriman of Midland, Texas.
                    The late Michael L. Michalak, formerly of 
                Akron, New York.
                    The late Edward J. Naparkowsky, formerly of 
                Hartford, Connecticut.
                    Pete G. Nicora of Warren, Ohio.
                    Stanley J. Orlowski of Jackson, Michigan.
                    Raymond A. Peischl of Allentown, 
                Pennsylvania.
                    A. Jerome Pfeiffer of Racine, Wisconsin.
                    Duane L. Rhodes of Earp, California.
                    Frank V. Roach of Bloomfield, New Jersey.
                    Arnold V. Rosekrans of Horseheads, New 
                York.
                    Joseph E. Seaman, Jr. of Bordentown, New 
                Jersey.
                    Richard F. Shumaker of Hilliard, Ohio.
                    Luther E. Thomas of Panama City, Florida.
                    Merton S. Ward of South Hamilton, 
                Massachusetts.
                    Simon L. Webb of Magnolia, Mississippi.
                    Jerry W. Webster of Leander, Texas.
            (2) Second award.--Second award, for completion of 
        at least 40 qualifying combat missions, to the 
        following members and former members of the Armed 
        Forces:
                    Arthur C. Adair of Grants Pass, Oregon.
                    Robert B. Carnes of West Yarmouth, 
                Massachusetts.
                    Daniel K. Connors of Hampton, New 
                Hampshire.
                    Glen E. Danielson of Whittier, California.
                    Ralph J. Deceuster of Dover, Ohio.
                    Albert P. Emsley of Bothell, Washington.
                    Urbain J. Fournier of Houma, Louisiana.
                    Prescott C. Jernegan of Hemet, California.
                    Stephen K. Johnson of Englewood, Florida.
                    Warren E. Johnson of Vista, California.
                    Elbert J. Kimble of San Francisco, 
                California.
                    George W. Knauff of Monument, Colorado.
                    John W. Lincoln of Rockland, Massachusetts.
                    Alan D. Marker of Sonoma, California.
                    Joseph J. Oliver of White Haven, 
                Pennsylvania.
                    Shefield Phelps of Seattle, Washington.
                    John B. Tagliapiri of St. Helena, 
                California.
                    Dewilles A.H.W. Schwartz of Watertown, 
                South Dakota.
                    Ray B. Stiltner of Centralia, Washington.
            (3) Third award.--Third award, for completion of at 
        least 60 qualifying combat missions, to the following 
        members and former members of the Armed Forces:
                    Glenn Bowers of Dillsburg, Pennsylvania.
                    Arthur C. Casey of Irving, California.
                    Robert J. Larsen of Gulf Breeze, Florida.
                    David Mendoza of McAllen, Texas.
                    William A. Nickerson of Portland, Oregon.
                    Maurice F. Smith of Sequim, Washington.
            (4) Fourth award.--Fourth award, for completion of 
        at least 80 qualifying combat missions, to the 
        following members and former members of the Armed 
        Forces:
                    Robert Bair of Ontario, California.
                    Arvid L. Kretz of Santa Rosa, California.
                    George E. McClane of Cocoa Beach, Florida.
                    Orville R. Swick of Issaquah, Washington.
            (5) Fifth award.--Fifth award, for completion of at 
        least 100 qualifying combat missions, to the following 
        members and former members of the Armed Forces:
                    William A. Baldwin of San Clemente, 
                California.
                    George Bobb of Blackwood, New Jersey.
                    John R. Conrad of Hot Springs, Arkansas.
                    Herbert R. Hetrick of Roaring Springs, 
                Pennsylvania.
                    William L. Wells of Cordele, Georgia.
            (6) Sixth award.--Sixth award, for completion of at 
        least 120 qualifying combat missions, to Richard L. 
        Murray of Dallas, Texas.

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

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

                       Subtitle H--Other Matters

SEC. 571. HATE CRIMES IN THE MILITARY.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 578. REVISIONS TO MISSING PERSONS AUTHORITIES.

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

      Subtitle I--Commissioned Corps of the Public Health Service

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

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

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

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

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

    (a) Legal Assistance Available.--Subsection (a) of section 
1044 of title 10, United States Code, is amended by striking 
out paragraph (3) and inserting in lieu thereof the following:
            ``(3) Officers of the commissioned corps of the 
        Public Health Service who are on active duty or 
        entitled to retired or equivalent pay.
            ``(4) Dependents of members and former members 
        described in paragraphs (1), (2), and (3).''.
    (b) Limitation on Assistance.--Subsection (c) of such 
section is amended--
            (1) by striking out ``armed forces'' and inserting 
        in lieu thereof ``uniformed services described in 
        subsection (a)''; and
            (2) by inserting ``such'' after ``dependent of''.
    (c) Clarifying Amendments.--Subsection (a) of such section 
is further amended by striking out ``under his jurisdiction'' 
in paragraphs (1) and (2).
    (d) Stylistic Amendments.--Subsection (a) of such section 
is further amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``to--'' and inserting in lieu thereof 
        ``to the following persons:'';
            (2) by capitalizing the first letter of the first 
        word of paragraphs (1) and (2);
            (3) by striking out the semicolon at the end of 
        paragraph (1) and inserting in lieu thereof a period; 
        and
            (4) by striking out ``; and'' at the end of 
        paragraph (2) and inserting in lieu thereof a period.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                     Subtitle A--Pay and Allowances

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

    (a) Waiver of Section 1009 Adjustment.--Any adjustment 
required by section 1009 of title 37, United States Code, in 
elements of compensation of members of the uniformed services 
to become effective during fiscal year 1997 shall not be made.
    (b) Increase in Basic Pay and BAS.--Effective on January 1, 
1997, the rates of basic pay and basic allowance for 
subsistence of members of the uniformed services are increased 
by 3.0 percent.
    (c) Increase in BAQ.--Effective on January 1, 1997, the 
rates of basic allowance for quarters of members of the 
uniformed services are increased by 4.6 percent.

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

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

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

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

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

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 3 of title 37, United 
States Code, is amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1998,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) 
of title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1998''.
    (c) Enlistment Bonuses for Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each 
amended by striking out ``September 30, 1997'' and inserting in 
lieu thereof ``September 30, 1998''.
    (d) Special Pay for Nuclear Qualified Officers Extending 
Period of Active Service.--Section 312(e) of title 37, United 
States Code, is amended by striking out ``September 30, 1997'' 
and inserting in lieu thereof ``September 30, 1998''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of 
title 37, United States Code, is amended by striking out 
``September 30, 1997'' and inserting in lieu thereof 
``September 30, 1998''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) 
of title 37, United States Code, is amended by striking out 
``October 1, 1997'' and inserting in lieu thereof ``October 1, 
1998''.
    (g) Repayment of Education Loans for Certain Health 
Professionals Who Serve in the Selected Reserve.--Section 
16302(d) of title 10, United States Code, is amended by 
striking out ``October 1, 1997'' and inserting in lieu thereof 
``October 1, 1998''.

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

    (a) Optometrists.--Section 302a(b) of title 37, United 
States Code, is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``an armed force'' in 
                the matter preceding subparagraph (A) and 
                inserting in lieu thereof ``a uniformed 
                service''; and
                    (B) by striking out ``of the military 
                department'' in subparagraph (C); and
            (2) in paragraph (4), by striking out ``of the 
        military department''.
    (b) Nonphysician Health Care Providers.--Section 302c(d) of 
title 37, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``Secretary of Defense'' and inserting in 
        lieu thereof ``Secretary concerned''; and
            (2) in paragraph (1)--
                    (A) by striking out ``or'' the third place 
                it appears; and
                    (B) by inserting before the period at the 
                end the following: ``, or an officer in the 
                Regular or Reserve Corps of the Public Health 
                Service''.

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

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

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

    ``(a) Accession Bonus Authorized.--(1) A person who is a 
graduate of an accredited dental school and who, during the 
period beginning on the date of the enactment of this section, 
and ending on September 30, 2002, executes a written agreement 
described in subsection (c) to accept a commission as an 
officer of the armed forces and remain on active duty for a 
period of not less than four years may, upon the acceptance of 
the agreement by the Secretary concerned, be paid an accession 
bonus in an amount determined by the Secretary concerned.
    ``(2) The amount of an accession bonus under paragraph (1) 
may not exceed $30,000.
    ``(b) Limitation on Eligibility for Bonus.--A person may 
not be paid a bonus under subsection (a) if--
            ``(1) the person, in exchange for an agreement to 
        accept an appointment as an officer, received financial 
        assistance from the Department of Defense to pursue a 
        course of study in dentistry; or
            ``(2) the Secretary concerned determines that the 
        person is not qualified to become and remain certified 
        and licensed as a dentist.
    ``(c) Agreement.--The agreement referred to in subsection 
(a) shall provide that, consistent with the needs of the armed 
service concerned, the person executing the agreement will be 
assigned to duty, for the period of obligated service covered 
by the agreement, as an officer of the Dental Corps of the Army 
or the Navy or an officer of the Air Force designated as a 
dental officer.
    ``(d) Repayment.--(1) An officer who receives a payment 
under subsection (a) and who fails to become and remain 
certified or licensed as a dentist during the period for which 
the payment is made shall refund to the United States an amount 
equal to the full amount of such payment.
    ``(2) An officer who voluntarily terminates service on 
active duty before the end of the period agreed to be served 
under subsection (a) shall refund to the United States an 
amount that bears the same ratio to the amount paid to the 
officer as the unserved part of such period bears to the total 
period agreed to be served.
    ``(3) An obligation to reimburse the United States imposed 
under paragraph (1) or (2) is for all purposes a debt owed to 
the United States.
    ``(4) A discharge in bankruptcy under title 11 that is 
entered less than five years after the termination of an 
agreement under this section does not discharge the person 
signing such agreement from a debt arising under such agreement 
or this subsection. This paragraph applies to any case 
commenced under title 11 after the date of the enactment of 
this section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 302g 
the following new item:

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

    (3) Section 303a of title 37, United States Code, is 
amended by striking out ``302g'' each place it appears and 
inserting in lieu thereof ``302h''.
    (d) Report on Additional Activities to Increase Recruitment 
of Dentists.--Not later than April 1, 1997, the Secretary of 
Defense shall submit to Congress a report describing the 
feasibility of increasing the number of persons enrolled in the 
Armed Forces Health Professions Scholarship and Financial 
Assistance program who are pursuing a course of study in 
dentistry in anticipation of service as an officer of the 
Dental Corps of the Army or the Navy or an officer of the Air 
Force designated as a dental officer.
    (e) Stylistic Amendments.--Section 302b of title 37, United 
States Code, is amended--
            (1) in subsection (a), by inserting ``Variable, 
        Additional, and Board Certification Special Pay.--'' 
        after ``(a)'';
            (2) in subsection (b), by inserting ``Active-Duty 
        Agreement.--'' after ``(b)'';
            (3) in subsection (c), by inserting 
        ``Regulations.--'' after ``(c)'';
            (4) in subsection (d), by inserting ``Frequency of 
        Payments.--'' after ``(d)'';
            (5) in subsection (e), by inserting ``Refund for 
        Period of Unserved Obligated Service.--'' after 
        ``(e)'';
            (6) in subsection (f), by inserting ``Effect of 
        Discharge in Bankruptcy.--'' after ``(f)''; and
            (7) in subsection (g), by inserting ``Determination 
        of Creditable Service.--'' after ``(g)''.

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

    (a) Allowance Authorized.--Section 407(a) of title 37, 
United States Code, is amended in the matter preceding 
paragraph (1) by striking out ``two months'' and inserting in 
lieu thereof ``two and one-half months''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall take effect on January 1, 1997.

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

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

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

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

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

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

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

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

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

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

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

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

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

                 ``SUBCHAPTER II--SURVIVOR BENEFIT PLAN

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

``Sec. 1447. Definitions

    ``In this subchapter:
            ``(1) Plan.--The term `Plan' means the Survivor 
        Benefit Plan established by this subchapter.
            ``(2) Standard annuity.--The term `standard 
        annuity' means an annuity provided by virtue of 
        eligibility under section 1448(a)(1)(A) of this title.
            ``(3) Reserve-component annuity.--The term 
        `reserve-component annuity' means an annuity provided 
        by virtue of eligibility under section 1448(a)(1)(B) of 
        this title.
            ``(4) Retired pay.--The term `retired pay' includes 
        retainer pay paid under section 6330 of this title.
            ``(5) Reserve-component retired pay.--The term 
        `reserve-component retired pay' means retired pay under 
        chapter 1223 of this title (or under chapter 67 of this 
        title as in effect before the effective date of the 
        Reserve Officer Personnel Management Act).
            ``(6) Base amount.--The term `base amount' means 
        the following:
                    ``(A) Full amount under standard annuity.--
                In the case of a person who dies after becoming 
                entitled to retired pay, such term means the 
                amount of monthly retired pay (determined 
                without regard to any reduction under section 
                1409(b)(2) of this title) to which the person--
                            ``(i) was entitled when he became 
                        eligible for that pay; or
                            ``(ii) later became entitled by 
                        being advanced on the retired list, 
                        performing active duty, or being 
                        transferred from the temporary 
                        disability retired list to the 
                        permanent disability retired list.
                    ``(B) Full amount under reserve-component 
                annuity.--In the case of a person who would 
                have become eligible for reserve-component 
                retired pay but for the fact that he died 
                before becoming 60 years of age, such term 
                means the amount of monthly retired pay for 
                which the person would have been eligible--
                            ``(i) if he had been 60 years of 
                        age on the date of his death, for 
                        purposes of an annuity to become 
                        effective on the day after his death in 
                        accordance with a designation made 
                        under section 1448(e) of this title; or
                            ``(ii) upon becoming 60 years of 
                        age (if he had lived to that age), for 
                        purposes of an annuity to become 
                        effective on the 60th anniversary of 
                        his birth in accordance with a 
                        designation made under section 1448(e) 
                        of this title.
                    ``(C) Reduced amount.--Such term means any 
                amount less than the amount otherwise 
                applicable under subparagraph (A) or (B) with 
                respect to an annuity provided under the Plan 
                but which is not less than $300 and which is 
                designated by the person (with the concurrence 
                of the person's spouse, if required under 
                section 1448(a)(3) of this title) providing the 
                annuity on or before--
                            ``(i) the first day for which he 
                        becomes eligible for retired pay, in 
                        the case of a person providing a 
                        standard annuity, or
                            ``(ii) the end of the 90-day period 
                        beginning on the date on which he 
                        receives the notification required by 
                        section 12731(d) of this title that he 
                        has completed the years of service 
                        required for eligibility for reserve-
                        component retired pay, in the case of a 
                        person providing a reserve-component 
                        annuity.
            ``(7) Widow.--The term `widow' means the surviving 
        wife of a person who, if not married to the person at 
        the time he became eligible for retired pay--
                    ``(A) was married to him for at least one 
                year immediately before his death; or
                    ``(B) is the mother of issue by that 
                marriage.
            ``(8) Widower.--The term `widower' means the 
        surviving husband of a person who, if not married to 
        the person at the time she became eligible for retired 
        pay--
                    ``(A) was married to her for at least one 
                year immediately before her death; or
                    ``(B) is the father of issue by that 
                marriage.
            ``(9) Surviving spouse.--The term `surviving 
        spouse' means a widow or widower.
            ``(10) Former spouse.--The term `former spouse' 
        means the surviving former husband or wife of a person 
        who is eligible to participate in the Plan.
            ``(11) Dependent child.--
                    ``(A) In general.--The term `dependent 
                child' means a person who--
                            ``(i) is unmarried;
                            ``(ii) is (I) under 18 years of 
                        age, (II) at least 18, but under 22, 
                        years of age and pursuing a full-time 
                        course of study or training in a high 
                        school, trade school, technical or 
                        vocational institute, junior college, 
                        college, university, or comparable 
                        recognized educational institution, or 
                        (III) incapable of self support because 
                        of a mental or physical incapacity 
                        existing before the person's eighteenth 
                        birthday or incurred on or after that 
                        birthday, but before the person's 
                        twenty-second birthday, while pursuing 
                        such a full-time course of study or 
                        training; and
                            ``(iii) is the child of a person to 
                        whom the Plan applies, including (I) an 
                        adopted child, and (II) a stepchild, 
                        foster child, or recognized natural 
                        child who lived with that person in a 
                        regular parent-child relationship.
                    ``(B) Special rules for college students.--
                For the purpose of subparagraph (A), a child 
                whose twenty-second birthday occurs before July 
                1 or after August 31 of a calendar year, and 
                while regularly pursuing such a course of study 
                or training, is considered to have become 22 
                years of age on the first day of July after 
                that birthday. A child who is a student is 
                considered not to have ceased to be a student 
                during an interim between school years if the 
                interim is not more than 150 days and if the 
                child shows to the satisfaction of the 
                Secretary of Defense that the child has a bona 
                fide intention of continuing to pursue a course 
                of study or training in the same or a different 
                school during the school semester (or other 
                period into which the school year is divided) 
                immediately after the interim.
                    ``(C) Foster children.--A foster child, to 
                qualify under this paragraph as the dependent 
                child of a person to whom the Plan applies, 
                must, at the time of the death of that person, 
                also reside with, and receive over one-half of 
                his support from, that person, and not be cared 
                for under a social agency contract. The 
                temporary absence of a foster child from the 
                residence of that person, while a student as 
                described in this paragraph, shall not be 
                considered to affect the residence of such a 
                foster child.
            ``(12) Court.--The term `court' has the meaning 
        given that term by section 1408(a)(1) of this title.
            ``(13) Court order.--
                    ``(A) In general.--The term `court order' 
                means a court's final decree of divorce, 
                dissolution, or annulment or a court ordered, 
                ratified, or approved property settlement 
                incident to such a decree (including a final 
                decree modifying the terms of a previously 
                issued decree of divorce, dissolution, 
                annulment, or legal separation, or of a court 
                ordered, ratified, or approved property 
                settlement agreement incident to such 
                previously issued decree).
                    ``(B) Final decree.--The term `final 
                decree' means a decree from which no appeal may 
                be taken or from which no appeal has been taken 
                within the time allowed for the taking of such 
                appeals under the laws applicable to such 
                appeals, or a decree from which timely appeal 
                has been taken and such appeal has been finally 
                decided under the laws applicable to such 
                appeals.
                    ``(C) Regular on its face.--The term 
                `regular on its face', when used in connection 
                with a court order, means a court order that 
                meets the conditions prescribed in section 
                1408(b)(2) of this title.

``Sec. 1448. Application of plan

    ``(a) General Rules for Participation in the Plan.--
            ``(1) Name of plan; eligible participants.--The 
        program established by this subchapter shall be known 
        as the Survivor Benefit Plan. The following persons are 
        eligible to participate in the Plan:
                    ``(A) Persons entitled to retired pay.
                    ``(B) Persons who would be eligible for 
                reserve-component retired pay but for the fact 
                that they are under 60 years of age.
            ``(2) Participants in the plan.--The Plan applies 
        to the following persons, who shall be participants in 
        the Plan:
                    ``(A) Standard annuity participants.--A 
                person who is eligible to participate in the 
                Plan under paragraph (1)(A) and who is married 
                or has a dependent child when he becomes 
                entitled to retired pay, unless he elects (with 
                his spouse's concurrence, if required under 
                paragraph (3)) not to participate in the Plan 
                before the first day for which he is eligible 
                for that pay.
                    ``(B) Reserve-component annuity 
                participants.--A person who (i) is eligible to 
                participate in the Plan under paragraph (1)(B), 
                (ii) is married or has a dependent child when 
                he is notified under section 12731(d) of this 
                title that he has completed the years of 
                service required for eligibility for reserve-
                component retired pay, and (iii) elects to 
                participate in the Plan (and makes a 
                designation under subsection (e)) before the 
                end of the 90-day period beginning on the date 
                he receives such notification.
        A person described in clauses (i) and (ii) of 
        subparagraph (B) who does not elect to participate in 
        the Plan before the end of the 90-day period referred 
        to in that clause remains eligible, upon reaching 60 
        years of age and otherwise becoming entitled to retired 
        pay, to participate in the Plan in accordance with 
        eligibility under paragraph (1)(A).
            ``(3) Elections.--
                    ``(A) Spousal consent for certain elections 
                respecting standard annuity.--A married person 
                who is eligible to provide a standard annuity 
                may not without the concurrence of the person's 
                spouse elect--
                            ``(i) not to participate in the 
                        Plan;
                            ``(ii) to provide an annuity for 
                        the person's spouse at less than the 
                        maximum level; or
                            ``(iii) to provide an annuity for a 
                        dependent child but not for the 
                        person's spouse.
                    ``(B) Spousal consent for certain elections 
                respecting reserve-component annuity.--A 
                married person who elects to provide a reserve-
                component annuity may not without the 
                concurrence of the person's spouse elect--
                            ``(i) to provide an annuity for the 
                        person's spouse at less than the 
                        maximum level; or
                            ``(ii) to provide an annuity for a 
                        dependent child but not for the 
                        person's spouse.
                    ``(C) Exception when spouse unavailable.--A 
                person may make an election described in 
                subparagraph (A) or (B) without the concurrence 
                of the person's spouse if the person 
                establishes to the satisfaction of the 
                Secretary concerned--
                            ``(i) that the spouse's whereabouts 
                        cannot be determined; or
                            ``(ii) that, due to exceptional 
                        circumstances, requiring the person to 
                        seek the spouse's consent would 
                        otherwise be inappropriate.
                    ``(D) Construction with former spouse 
                election provisions.--This paragraph does not 
                affect any right or obligation to elect to 
                provide an annuity for a former spouse (or for 
                a former spouse and dependent child) under 
                subsection (b)(2).
                    ``(E) Notice to spouse of election to 
                provide former spouse annuity.--If a married 
                person who is eligible to provide a standard 
                annuity elects to provide an annuity for a 
                former spouse (or for a former spouse and 
                dependent child) under subsection (b)(2), that 
                person's spouse shall be notified of that 
                election.
            ``(4) Irrevocability of elections.--
                    ``(A) Standard annuity.--An election under 
                paragraph (2)(A) not to participate in the Plan 
                is irrevocable if not revoked before the date 
                on which the person first becomes entitled to 
                retired pay.
                    ``(B) Reserve-component annuity.--An 
                election under paragraph (2)(B) to participate 
                in the Plan is irrevocable if not revoked 
                before the end of the 90-day period referred to 
                in that paragraph.
            ``(5) Participation by person marrying after 
        retirement, etc.--
                    ``(A) Election to participate in plan.--A 
                person who is not married and has no dependent 
                child upon becoming eligible to participate in 
                the Plan but who later marries or acquires a 
                dependent child may elect to participate in the 
                Plan.
                    ``(B) Manner and time of election.--Such an 
                election must be written, signed by the person 
                making the election, and received by the 
                Secretary concerned within one year after the 
                date on which that person marries or acquires 
                that dependent child.
                    ``(C) Limitation on revocation of 
                election.--Such an election may not be revoked 
                except in accordance with subsection (b)(3).
                    ``(D) Effective date of election.--The 
                election is effective as of the first day of 
                the first calendar month following the month in 
                which the election is received by the Secretary 
                concerned.
                    ``(E) Designation if rcsbp election.--In 
                the case of a person providing a reserve-
                component annuity, such an election shall 
                include a designation under subsection (e).
            ``(6) Election out of plan by person with spouse 
        coverage who remarries.--
                    ``(A) General rule.--A person--
                            ``(i) who is a participant in the 
                        Plan and is providing coverage under 
                        the Plan for a spouse (or a spouse and 
                        child);
                            ``(ii) who does not have an 
                        eligible spouse beneficiary under the 
                        Plan; and
                            ``(iii) who remarries,
                may elect not to provide coverage under the 
                Plan for the person's spouse.
                    ``(B) Effect of election on retired pay.--
                If such an election is made, reductions in the 
                retired pay of that person under section 1452 
                of this title shall not be made.
                    ``(C) Terms and conditions of election.--An 
                election under this paragraph--
                            ``(i) is irrevocable;
                            ``(ii) shall be made within one 
                        year after the person's remarriage; and
                            ``(iii) shall be made in such form 
                        and manner as may be prescribed in 
                        regulations under section 1455 of this 
                        title.
                    ``(D) Notice to spouse.--If a person makes 
                an election under this paragraph--
                            ``(i) not to participate in the 
                        Plan;
                            ``(ii) to provide an annuity for 
                        the person's spouse at less than the 
                        maximum level; or
                            ``(iii) to provide an annuity for a 
                        dependent child but not for the 
                        person's spouse,
                the person's spouse shall be notified of that 
                election.
                    ``(E) Construction with former spouse 
                election provisions.--This paragraph does not 
                affect any right or obligation to elect to 
                provide an annuity to a former spouse under 
                subsection (b).
    ``(b) Insurable Interest and Former Spouse Coverage.--
            ``(1) Coverage for person with insurable 
        interest.--
                    ``(A) General rule.--A person who is not 
                married and does not have a dependent child 
                upon becoming eligible to participate in the 
                Plan may elect to provide an annuity under the 
                Plan to a natural person with an insurable 
                interest in that person. In the case of a 
                person providing a reserve-component annuity, 
                such an election shall include a designation 
                under subsection (e).
                    ``(B) Termination of coverage.--An election 
                under subparagraph (A) for a beneficiary who is 
                not the former spouse of the person providing 
                the annuity may be terminated. Any such 
                termination shall be made by a participant by 
                the submission to the Secretary concerned of a 
                request to discontinue participation in the 
                Plan, and such participation in the Plan shall 
                be discontinued effective on the first day of 
                the first month following the month in which 
                the request is received by the Secretary 
                concerned. Effective on such date, the 
                Secretary concerned shall discontinue the 
                reduction being made in such person's retired 
                pay on account of participation in the Plan or, 
                in the case of a person who has been required 
                to make deposits in the Treasury on account of 
                participation in the Plan, such person may 
                discontinue making such deposits effective on 
                such date.
                    ``(C) Form for discontinuation.--A request 
                under subparagraph (B) to discontinue 
                participation in the Plan shall be in such form 
                and shall contain such information as may be 
                required under regulations prescribed by the 
                Secretary of Defense.
                    ``(D) Withdrawal of request for 
                discontinuation.--The Secretary concerned shall 
                furnish promptly to each person who submits a 
                request under subparagraph (B) to discontinue 
                participation in the Plan a written statement 
                of the advantages and disadvantages of 
                participating in the Plan and the possible 
                disadvantages of discontinuing participation. A 
                person may withdraw the request to discontinue 
                participation if withdrawn within 30 days after 
                having been submitted to the Secretary 
                concerned.
                    ``(E) Consequences of discontinuation.--
                Once participation is discontinued, benefits 
                may not be paid in conjunction with the earlier 
                participation in the Plan and premiums paid may 
                not be refunded. Participation in the Plan may 
                not later be resumed except through a qualified 
                election under paragraph (5) of subsection (a).
            ``(2) Former spouse coverage upon becoming a 
        participant in the plan.--
                    ``(A) General rule.--A person who has a 
                former spouse upon becoming eligible to 
                participate in the Plan may elect to provide an 
                annuity to that former spouse.
                    ``(B) Effect of former spouse election on 
                spouse or dependent child.--In the case of a 
                person with a spouse or a dependent child, such 
                an election prevents payment of an annuity to 
                that spouse or child (other than a child who is 
                a beneficiary under an election under paragraph 
                (4)), including payment under subsection (d).
                    ``(C) Designation if more than one former 
                spouse.--If there is more than one former 
                spouse, the person shall designate which former 
                spouse is to be provided the annuity.
                    ``(D) Designation if rcsbp election.--In 
                the case of a person providing a reserve-
                component annuity, such an election shall 
                include a designation under subsection (e).
            ``(3) Former spouse coverage by persons already 
        participating in plan.--
                    ``(A) Election of coverage.--
                            ``(i) Authority for election.--A 
                        person--
                                    ``(I) who is a participant 
                                in the Plan and is providing 
                                coverage for a spouse or a 
                                spouse and child (even though 
                                there is no beneficiary 
                                currently eligible for such 
                                coverage), and
                                    ``(II) who has a former 
                                spouse who was not that 
                                person's former spouse when 
                                that person became eligible to 
                                participate in the Plan,
                        may (subject to subparagraph (B)) elect 
                        to provide an annuity to that former 
                        spouse.
                            ``(ii) Termination of previous 
                        coverage.--Any such election terminates 
                        any previous coverage under the Plan.
                            ``(iii) Manner and time of 
                        election.--Any such election must be 
                        written, signed by the person making 
                        the election, and received by the 
                        Secretary concerned within one year 
                        after the date of the decree of 
                        divorce, dissolution, or annulment.
                    ``(B) Limitation on election.--A person may 
                not make an election under subparagraph (A) to 
                provide an annuity to a former spouse who that 
                person married after becoming eligible for 
                retired pay unless--
                            ``(i) the person was married to 
                        that former spouse for at least one 
                        year, or
                            ``(ii) that former spouse is the 
                        parent of issue by that marriage.
                    ``(C) Irrevocability, effective date, 
                etc.--An election under this paragraph may not 
                be revoked except in accordance with section 
                1450(f) of this title. Such an election is 
                effective as of the first day of the first 
                calendar month following the month in which it 
                is received by the Secretary concerned. This 
                paragraph does not provide the authority to 
                change a designation previously made under 
                subsection (e).
                    ``(D) Notice to spouse.--If a person who is 
                married makes an election to provide an annuity 
                to a former spouse under this paragraph, that 
                person's spouse shall be notified of the 
                election.
            ``(4) Former spouse and child coverage.--A person 
        who elects to provide an annuity for a former spouse 
        under paragraph (2) or (3) may, at the time of the 
        election, elect to provide coverage under that annuity 
        for both the former spouse and a dependent child, if 
        the child resulted from the person's marriage to that 
        former spouse.
            ``(5) Disclosure of whether election of former 
        spouse coverage is required.--A person who elects to 
        provide an annuity to a former spouse under paragraph 
        (2) or (3) shall, at the time of making the election, 
        provide the Secretary concerned with a written 
        statement (in a form to be prescribed by that Secretary 
        and signed by such person and the former spouse) 
        setting forth--
                    ``(A) whether the election is being made 
                pursuant to the requirements of a court order; 
                or
                    ``(B) whether the election is being made 
                pursuant to a written agreement previously 
                entered into voluntarily by such person as a 
                part of, or incident to, a proceeding of 
                divorce, dissolution, or annulment and (if so) 
                whether such voluntary written agreement has 
                been incorporated in, or ratified or approved 
                by, a court order.
    ``(c) Persons on Temporary Disability Retired List.--The 
application of the Plan to a person whose name is on the 
temporary disability retired list terminates when his name is 
removed from that list and he is no longer entitled to 
disability retired pay.
    ``(d) Coverage for Survivors of Retirement-Eligible Members 
Who Die on Active Duty.--
            ``(1) Surviving spouse annuity.--The Secretary 
        concerned shall pay an annuity under this subchapter to 
        the surviving spouse of a member who dies on active 
        duty after--
                    ``(A) becoming eligible to receive retired 
                pay;
                    ``(B) qualifying for retired pay except 
                that he has not applied for or been granted 
                that pay; or
                    ``(C) completing 20 years of active service 
                but before he is eligible to retire as a 
                commissioned officer because he has not 
                completed 10 years of active commissioned 
                service.
            ``(2) Dependent child annuity.--The Secretary 
        concerned shall pay an annuity under this subchapter to 
        the dependent child of a member described in paragraph 
        (1) if there is no surviving spouse or if the member's 
        surviving spouse subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a member 
        described in paragraph (1) is required under a court 
        order or spousal agreement to provide an annuity to a 
        former spouse upon becoming eligible to be a 
        participant in the Plan or has made an election under 
        subsection (b) to provide an annuity to a former 
        spouse, the Secretary--
                    ``(A) may not pay an annuity under 
                paragraph (1) or (2); but
                    ``(B) shall pay an annuity to that former 
                spouse as if the member had been a participant 
                in the Plan and had made an election under 
                subsection (b) to provide an annuity to the 
                former spouse, or in accordance with that 
                election, as the case may be, if the Secretary 
                receives a written request from the former 
                spouse concerned that the election be deemed to 
                have been made in the same manner as provided 
                in section 1450(f)(3) of this title.
            ``(4) Priority.--An annuity that may be provided 
        under this subsection shall be provided in preference 
        to an annuity that may be provided under any other 
        provision of this subchapter on account of service of 
        the same member.
            ``(5) Computation.--The amount of an annuity under 
        this subsection is computed under section 1451(c) of 
        this title.
    ``(e) Designation for Commencement of Reserve-Component 
Annuity.--In any case in which a person electing to participate 
in the Plan is required to make a designation under this 
subsection, the person making such election shall designate 
whether, in the event he dies before becoming 60 years of age, 
the annuity provided shall become effective on--
            ``(1) the day after the date of his death; or
            ``(2) the 60th anniversary of his birth.
    ``(f) Coverage of Survivors of Persons Dying When Eligible 
To Elect Reserve-Component Annuity.--
            ``(1) Surviving spouse annuity.--The Secretary 
        concerned shall pay an annuity under this subchapter to 
        the surviving spouse of a person who is eligible to 
        provide a reserve-component annuity and who dies--
                    ``(A) before being notified under section 
                12731(d) of this title that he has completed 
                the years of service required for eligibility 
                for reserve-component retired pay; or
                    ``(B) during the 90-day period beginning on 
                the date he receives notification under section 
                12731(d) of this title that he has completed 
                the years of service required for eligibility 
                for reserve-component retired pay if he had not 
                made an election under subsection (a)(2)(B) to 
                participate in the Plan.
            ``(2) Dependent child annuity.--The Secretary 
        concerned shall pay an annuity under this subchapter to 
        the dependent child of a person described in paragraph 
        (1) if there is no surviving spouse or if the person's 
        surviving spouse subsequently dies.
            ``(3) Mandatory former spouse annuity.--If a person 
        described in paragraph (1) is required under a court 
        order or spousal agreement to provide an annuity to a 
        former spouse upon becoming eligible to be a 
        participant in the Plan or has made an election under 
        subsection (b) to provide an annuity to a former 
        spouse, the Secretary--
                    ``(A) may not pay an annuity under 
                paragraph (1) or (2); but
                    ``(B) shall pay an annuity to that former 
                spouse as if the person had been a participant 
                in the Plan and had made an election under 
                subsection (b) to provide an annuity to the 
                former spouse, or in accordance with that 
                election, as the case may be, if the Secretary 
                receives a written request from the former 
                spouse concerned that the election be deemed to 
                have been made in the same manner as provided 
                in section 1450(f)(3) of this title.
            ``(4) Computation.--The amount of an annuity under 
        this subsection is computed under section 1451(c) of 
        this title.
    ``(g) Election To Increase Coverage Upon Remarriage.--
            ``(1) Election.--A person--
                    ``(A) who is a participant in the Plan and 
                is providing coverage under subsection (a) for 
                a spouse or a spouse and child, but at less 
                than the maximum level; and
                    ``(B) who remarries,
        may elect, within one year of such remarriage, to 
        increase the level of coverage provided under the Plan 
        to a level not in excess of the current retired pay of 
        that person.
            ``(2) Payment required.--Such an election shall be 
        contingent on the person paying to the United States 
        the amount determined under paragraph (3) plus interest 
        on such amount at a rate determined under regulations 
        prescribed by the Secretary of Defense.
            ``(3) Amount to be paid.--The amount referred to in 
        paragraph (2) is the amount equal to the difference 
        between--
                    ``(A) the amount that would have been 
                withheld from such person's retired pay under 
                section 1452 of this title if the higher level 
                of coverage had been in effect from the time 
                the person became a participant in the Plan; 
                and
                    ``(B) the amount of such person's retired 
                pay actually withheld.
            ``(4) Manner of making election.--An election under 
        paragraph (1) shall be made in such manner as the 
        Secretary shall prescribe and shall become effective 
        upon receipt of the payment required by paragraph (2).
            ``(5) Disposition of payments.--A payment received 
        under this subsection by the Secretary of Defense shall 
        be deposited into the Department of Defense Military 
        Retirement Fund. Any other payment received under this 
        subsection shall be deposited in the Treasury as 
        miscellaneous receipts.

``Sec. 1449. Mental incompetency of member

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

``Sec. 1450. Payment of annuity: beneficiaries

    ``(a) In General.--Effective as of the first day after the 
death of a person to whom section 1448 of this title applies 
(or on such other day as that person may provide under 
subsection (j)), a monthly annuity under section 1451 of this 
title shall be paid to the person's beneficiaries under the 
Plan, as follows:
            ``(1) Surviving spouse or former spouse.--The 
        eligible surviving spouse or the eligible former 
        spouse.
            ``(2) Surviving children.--The surviving dependent 
        children in equal shares, if the eligible surviving 
        spouse or the eligible former spouse is dead, dies, or 
        otherwise becomes ineligible under this section.
            ``(3) Dependent children.--The dependent children 
        in equal shares if the person to whom section 1448 of 
        this title applies (with the concurrence of the 
        person's spouse, if required under section 1448(a)(3) 
        of this title) elected to provide an annuity for 
        dependent children but not for the spouse or former 
        spouse.
            ``(4) Natural person designated under `insurable 
        interest' coverage.--The natural person designated 
        under section 1448(b)(1) of this title, unless the 
        election to provide an annuity to the natural person 
        has been changed as provided in subsection (f).
    ``(b) Termination of Annuity for Death, Remarriage Before 
Age 55, Etc.--
            ``(1) General rule.--An annuity payable to the 
        beneficiary terminates effective as of the first day of 
        the month in which eligibility is lost.
            ``(2) Termination of spouse annuity upon death or 
        remarriage before age 55.--An annuity for a surviving 
        spouse or former spouse shall be paid to the surviving 
        spouse or former spouse while the surviving spouse or 
        former spouse is living or, if the surviving spouse or 
        former spouse remarries before reaching age 55, until 
        the surviving spouse or former spouse remarries.
            ``(3) Effect of termination of subsequent marriage 
        before age 55.--If the surviving spouse or former 
        spouse remarries before reaching age 55 and that 
        marriage is terminated by death, annulment, or divorce, 
        payment of the annuity shall be resumed effective as of 
        the first day of the month in which the marriage is so 
        terminated. However, if the surviving spouse or former 
        spouse is also entitled to an annuity under the Plan 
        based upon the marriage so terminated, the surviving 
        spouse or former spouse may not receive both annuities 
        but must elect which to receive.
    ``(c) Offset for Amount of Dependency and Indemnity 
Compensation.--
            ``(1) Required offset.--If, upon the death of a 
        person to whom section 1448 of this title applies, the 
        surviving spouse or former spouse of that person is 
        also entitled to dependency and indemnity compensation 
        under section 1311(a) of title 38, the surviving spouse 
        or former spouse may be paid an annuity under this 
        section, but only in the amount that the annuity 
        otherwise payable under this section would exceed that 
        compensation.
            ``(2) Effective date of offset.--A reduction in an 
        annuity under this section required by paragraph (1) 
        shall be effective on the date of the commencement of 
        the period of payment of such dependency and indemnity 
        compensation under title 38.
    ``(d) Limitation on Payment of Annuities When Coverage 
Under Civil Service Retirement Elected.--If, upon the death of 
a person to whom section 1448 of this title applies, that 
person had in effect a waiver of that person's retired pay for 
the purposes of subchapter III of chapter 83 of title 5, an 
annuity under this section shall not be payable unless, in 
accordance with section 8339(j) of title 5, that person 
notified the Office of Personnel Management that he did not 
desire any spouse surviving him to receive an annuity under 
section 8341(b) of that title.
    ``(e) Refund of Amounts Deducted From Retired Pay When DIC 
Offset Is Applicable.--
            ``(1) Full refund when dic greater than sbp 
        annuity.--If an annuity under this section is not 
        payable because of subsection (c), any amount deducted 
        from the retired pay of the deceased under section 1452 
        of this title shall be refunded to the surviving spouse 
        or former spouse.
            ``(2) Partial refund when sbp annuity reduced by 
        dic.--If, because of subsection (c), the annuity 
        payable is less than the amount established under 
        section 1451 of this title, the annuity payable shall 
        be recalculated under that section. The amount of the 
        reduction in the retired pay required to provide that 
        recalculated annuity shall be computed under section 
        1452 of this title, and the difference between the 
        amount deducted before the computation of that 
        recalculated annuity and the amount that would have 
        been deducted on the basis of that recalculated annuity 
        shall be refunded to the surviving spouse or former 
        spouse.
    ``(f) Change in Election of Insurable Interest or Former 
Spouse Beneficiary.--
            ``(1) Authorized changes.--
                    ``(A) Election in favor of spouse or 
                child.--A person who elects to provide an 
                annuity to a person designated by him under 
                section 1448(b) of this title may, subject to 
                paragraph (2), change that election and provide 
                an annuity to his spouse or dependent child.
                    ``(B) Notice.--The Secretary concerned 
                shall notify the former spouse or other natural 
                person previously designated under section 
                1448(b) of this title of any change of election 
                under subparagraph (A).
                    ``(C) Procedures, effective date, etc.--Any 
                such change of election is subject to the same 
                rules with respect to execution, revocation, 
                and effectiveness as are set forth in section 
                1448(a)(5) of this title (without regard to the 
                eligibility of the person making the change of 
                election to make such an election under that 
                section).
            ``(2) Limitation on change in beneficiary when 
        former spouse coverage in effect.--A person who, 
        incident to a proceeding of divorce, dissolution, or 
        annulment, is required by a court order to elect under 
        section 1448(b) of this title to provide an annuity to 
        a former spouse (or to both a former spouse and child), 
        or who enters into a written agreement (whether 
        voluntary or required by a court order) to make such an 
        election, and who makes an election pursuant to such 
        order or agreement, may not change that election under 
        paragraph (1) unless, of the following requirements, 
        whichever are applicable in a particular case are 
        satisfied:
                    ``(A) In a case in which the election is 
                required by a court order, or in which an 
                agreement to make the election has been 
                incorporated in or ratified or approved by a 
                court order, the person--
                            ``(i) furnishes to the Secretary 
                        concerned a certified copy of a court 
                        order which is regular on its face and 
                        which modifies the provisions of all 
                        previous court orders relating to such 
                        election, or the agreement to make such 
                        election, so as to permit the person to 
                        change the election; and
                            ``(ii) certifies to the Secretary 
                        concerned that the court order is valid 
                        and in effect.
                    ``(B) In a case of a written agreement that 
                has not been incorporated in or ratified or 
                approved by a court order, the person--
                            ``(i) furnishes to the Secretary 
                        concerned a statement, in such form as 
                        the Secretary concerned may prescribe, 
                        signed by the former spouse and 
                        evidencing the former spouse's 
                        agreement to a change in the election 
                        under paragraph (1); and
                            ``(ii) certifies to the Secretary 
                        concerned that the statement is current 
                        and in effect.
            ``(3) Required former spouse election to be deemed 
        to have been made.--
                    ``(A) Deemed election upon request by 
                former spouse.--If a person described in 
                paragraph (2) or (3) of section 1448(b) of this 
                title is required (as described in subparagraph 
                (B)) to elect under section 1448(b) of this 
                title to provide an annuity to a former spouse 
                and such person then fails or refuses to make 
                such an election, such person shall be deemed 
                to have made such an election if the Secretary 
                concerned receives the following:
                            ``(i) Request from former spouse.--
                        A written request, in such manner as 
                        the Secretary shall prescribe, from the 
                        former spouse concerned requesting that 
                        such an election be deemed to have been 
                        made.
                            ``(ii) Copy of court order or other 
                        official statement.--Either--
                                    ``(I) a copy of the court 
                                order, regular on its face, 
                                which requires such election or 
                                incorporates, ratifies, or 
                                approves the written agreement 
                                of such person; or
                                    ``(II) a statement from the 
                                clerk of the court (or other 
                                appropriate official) that such 
                                agreement has been filed with 
                                the court in accordance with 
                                applicable State law.
                    ``(B) Persons required to make election.--A 
                person shall be considered for purposes of 
                subparagraph (A) to be required to elect under 
                section 1448(b) of this title to provide an 
                annuity to a former spouse if--
                            ``(i) the person enters, incident 
                        to a proceeding of divorce, 
                        dissolution, or annulment, into a 
                        written agreement to make such an 
                        election and the agreement (I) has been 
                        incorporated in or ratified or approved 
                        by a court order, or (II) has been 
                        filed with the court of appropriate 
                        jurisdiction in accordance with 
                        applicable State law; or
                            ``(ii) the person is required by a 
                        court order to make such an election.
                    ``(C) Time limit for request by former 
                spouse.--An election may not be deemed to have 
                been made under subparagraph (A) in the case of 
                any person unless the Secretary concerned 
                receives a request from the former spouse of 
                the person within one year of the date of the 
                court order or filing involved.
                    ``(D) Effective date of deemed election.--
                An election deemed to have been made under 
                subparagraph (A) shall become effective on the 
                first day of the first month which begins after 
                the date of the court order or filing involved.
            ``(4) Former spouse coverage may be required by 
        court order.--A court order may require a person to 
        elect (or to enter into an agreement to elect) under 
        section 1448(b) of this title to provide an annuity to 
        a former spouse (or to both a former spouse and child).
    ``(g) Limitation on Changing or Revoking Elections.--
            ``(1) In general.--An election under this section 
        may not be changed or revoked.
            ``(2) Exceptions.--Paragraph (1) does not apply 
        to--
                    ``(A) a revocation of an election under 
                section 1449(b) of this title; or
                    ``(B) a change in an election under 
                subsection (f).
    ``(h) Treatment of Annuities Under Other Laws.--Except as 
provided in section 1451 of this title, an annuity under this 
section is in addition to any other payment to which a person 
is entitled under any other provision of law. Such annuity 
shall be considered as income under laws administered by the 
Secretary of Veterans Affairs.
    ``(i) Annuities Exempt From Certain Legal Process.--Except 
as provided in subsection (l)(3)(B), an annuity under this 
section is not assignable or subject to execution, levy, 
attachment, garnishment, or other legal process.
    ``(j) Effective Date of Reserve-Component Annuities.--
            ``(1) Persons making section 1448(e) designation.--
        An annuity elected by a person providing a reserve-
        component annuity shall be effective in accordance with 
        the designation made by such person under section 
        1448(e) of this title.
            ``(2) Persons dying before making section 1448(e) 
        designation.--An annuity payable under section 1448(f) 
        of this title shall be effective on the day after the 
        date of the death of the person upon whose service the 
        right to the annuity is based.
    ``(k) Adjustment of Spouse or Former Spouse Annuity Upon 
Loss of Dependency and Indemnity Compensation.--
            ``(1) Readjustment if beneficiary 55 years of age 
        or more.--If a surviving spouse or former spouse whose 
        annuity has been adjusted under subsection (c) 
        subsequently loses entitlement to dependency and 
        indemnity compensation under section 1311(a) of title 
        38 because of the remarriage of the surviving spouse, 
        or former spouse, and if at the time of such remarriage 
        the surviving spouse or former spouse is 55 years of 
        age or more, the amount of the annuity of the surviving 
        spouse or former spouse shall be readjusted, effective 
        on the effective date of such loss of dependency and 
        indemnity compensation, to the amount of the annuity 
        which would be in effect with respect to the surviving 
        spouse or former spouse if the adjustment under 
        subsection (c) had never been made.
            ``(2) Repayment of amounts previously refunded.--
                    ``(A) General rule.--A surviving spouse or 
                former spouse whose annuity is readjusted under 
                paragraph (1) shall repay any amount refunded 
                under subsection (e) by reason of the 
                adjustment under subsection (c).
                    ``(B) Interest required if repayment not a 
                lump sum.--If the repayment is not made in a 
                lump sum, the surviving spouse or former spouse 
                shall pay interest on the amount to be repaid. 
                Such interest shall commence on the date on 
                which the first such payment is due and shall 
                be applied over the period during which any 
                part of the repayment remains to be paid.
                    ``(C) Manner of repayment; rate of 
                interest.--The manner in which such repayment 
                shall be made, and the rate of any such 
                interest, shall be prescribed in regulations 
                under section 1455 of this title.
                    ``(D) Deposit of amounts repaid.--An amount 
                repaid under this paragraph (including any such 
                interest) received by the Secretary of Defense 
                shall be deposited into the Department of 
                Defense Military Retirement Fund. Any other 
                amount repaid under this paragraph shall be 
                deposited into the Treasury as miscellaneous 
                receipts.
    ``(l) Participants in the Plan Who Are Missing.--
            ``(1) Authority to presume death of missing 
        participant.--
                    ``(A) In general.--Upon application of the 
                beneficiary of a participant in the Plan who is 
                missing, the Secretary concerned may determine 
                for purposes of this subchapter that the 
                participant is presumed dead.
                    ``(B) Participant who is missing.--A 
                participant in the Plan is considered to be 
                missing for purposes of this subsection if--
                            ``(i) the retired pay of the 
                        participant has been suspended on the 
                        basis that the participant is missing; 
                        or
                            ``(ii) in the case of a participant 
                        in the Plan who would be eligible for 
                        reserve-component retired pay but for 
                        the fact that he is under 60 years of 
                        age, his retired pay, if he were 
                        entitled to retired pay, would be 
                        suspended on the basis that he is 
                        missing.
                    ``(C) Requirements applicable to 
                presumption of death.--Any such determination 
                shall be made in accordance with regulations 
                prescribed under section 1455 of this title. 
                The Secretary concerned may not make a 
                determination for purposes of this subchapter 
                that a participant who is missing is presumed 
                dead unless the Secretary finds that--
                            ``(i) the participant has been 
                        missing for at least 30 days; and
                            ``(ii) the circumstances under 
                        which the participant is missing would 
                        lead a reasonably prudent person to 
                        conclude that the participant is dead.
            ``(2) Commencement of annuity.--Upon a 
        determination under paragraph (1) with respect to a 
        participant in the Plan, an annuity otherwise payable 
        under this subchapter shall be paid as if the 
        participant died on the date as of which the retired 
        pay of the participant was suspended.
            ``(3) Effect of person not being dead.--
                    ``(A) Termination of annuity.--If, after a 
                determination under paragraph (1), the 
                Secretary concerned determines that the 
                participant is alive--
                            ``(i) any annuity being paid under 
                        this subchapter by reason of this 
                        subsection shall be terminated; and
                            ``(ii) the total amount of any 
                        annuity payments made by reason of this 
                        subsection shall constitute a debt to 
                        the United States.
                    ``(B) Collection from participant of 
                annuity amounts erroneously paid.--A debt under 
                subparagraph (A)(ii) may be collected or 
                offset--
                            ``(i) from any retired pay 
                        otherwise payable to the participant;
                            ``(ii) if the participant is 
                        entitled to compensation under chapter 
                        11 of title 38, from that compensation; 
                        or
                            ``(iii) if the participant is 
                        entitled to any other payment from the 
                        United States, from that payment.
                    ``(C) Collection from beneficiary.--If the 
                participant dies before the full recovery of 
                the amount of annuity payments described in 
                subparagraph (A)(ii) has been made by the 
                United States, the remaining amount of such 
                annuity payments may be collected from the 
                participant's beneficiary under the Plan if 
                that beneficiary was the recipient of the 
                annuity payments made by reason of this 
                subsection.

``Sec. 1451. Amount of annuity

    ``(a) Computation of Annuity for a Spouse, Former Spouse, 
or Child.--
            ``(1) Standard annuity.--In the case of a standard 
        annuity provided to a beneficiary under section 1450(a) 
        of this title (other than under section 1450(a)(4)), 
        the monthly annuity payable to the beneficiary shall be 
        determined as follows:
                    ``(A) Beneficiary under 62 years of age.--
                If the beneficiary is under 62 years of age or 
                is a dependent child when becoming entitled to 
                the annuity, the monthly annuity shall be the 
                amount equal to 55 percent of the base amount.
                    ``(B) Beneficiary 62 years of age or 
                older.--
                            ``(i) General rule.--If the 
                        beneficiary (other than a dependent 
                        child) is 62 years of age or older when 
                        becoming entitled to the annuity, the 
                        monthly annuity shall be the amount 
                        equal to 35 percent of the base amount.
                            ``(ii) Rule if beneficiary eligible 
                        for social security offset 
                        computation.--If the beneficiary is 
                        eligible to have the annuity computed 
                        under subsection (e) and if, at the 
                        time the beneficiary becomes entitled 
                        to the annuity, computation of the 
                        annuity under that subsection is more 
                        favorable to the beneficiary than 
                        computation under clause (i), the 
                        annuity shall be computed under that 
                        subsection rather than under clause 
                        (i).
            ``(2) Reserve-component annuity--In the case of a 
        reserve-component annuity provided to a beneficiary 
        under section 1450(a) of this title (other than under 
        section 1450(a)(4)), the monthly annuity payable to the 
        beneficiary shall be determined as follows:
                    ``(A) Beneficiary under 62 years of age.--
                If the beneficiary is under 62 years of age or 
                is a dependent child when becoming entitled to 
                the annuity, the monthly annuity shall be the 
                amount equal to a percentage of the base amount 
                that--
                            ``(i) is less than 55 percent; and
                            ``(ii) is determined under 
                        subsection (f).
                    ``(B) Beneficiary 62 years of age or 
                older.--
                            ``(i) General rule.--If the 
                        beneficiary (other than a dependent 
                        child) is 62 years of age or older when 
                        becoming entitled to the annuity, the 
                        monthly annuity shall be the amount 
                        equal to a percentage of the base 
                        amount that--
                                    ``(I) is less than 35 
                                percent; and
                                    ``(II) is determined under 
                                subsection (f).
                            ``(ii) Rule if beneficiary eligible 
                        for social security offset 
                        computation.--If the beneficiary is 
                        eligible to have the annuity computed 
                        under subsection (e) and if, at the 
                        time the beneficiary becomes entitled 
                        to the annuity, computation of the 
                        annuity under that subsection is more 
                        favorable to the beneficiary than 
                        computation under clause (i), the 
                        annuity shall be computed under that 
                        subsection rather than under clause 
                        (i).
    ``(b) Insurable Interest Beneficiary.--
            ``(1) Standard annuity.--In the case of a standard 
        annuity provided to a beneficiary under section 
        1450(a)(4) of this title, the monthly annuity payable 
        to the beneficiary shall be the amount equal to 55 
        percent of the retired pay of the person who elected to 
        provide the annuity after the reduction in that pay in 
        accordance with section 1452(c) of this title.
            ``(2) Reserve-component annuity.--In the case of a 
        reserve-component annuity provided to a beneficiary 
        under section 1450(a)(4) of this title, the monthly 
        annuity payable to the beneficiary shall be the amount 
        equal to a percentage of the retired pay of the person 
        who elected to provide the annuity after the reduction 
        in such pay in accordance with section 1452(c) of this 
        title that--
                    ``(A) is less than 55 percent; and
                    ``(B) is determined under subsection (f).
            ``(3) Computation of reserve-component annuity when 
        participant dies before age 60.--For the purposes of 
        paragraph (2), a person--
                    ``(A) who provides an annuity that is 
                determined in accordance with that paragraph;
                    ``(B) who dies before becoming 60 years of 
                age; and
                    ``(C) who at the time of death is otherwise 
                entitled to retired pay,
        shall be considered to have been entitled to retired 
        pay at the time of death. The retired pay of such 
        person for the purposes of such paragraph shall be 
        computed on the basis of the rates of basic pay in 
        effect on the date on which the annuity provided by 
        such person is to become effective in accordance with 
        the designation of such person under section 1448(e) of 
        this title.
    ``(c) Annuities for Survivors of Certain Persons Dying 
During a Period of Special Eligibility for SBP.--
            ``(1) In general.--In the case of an annuity 
        provided under section 1448(d) or 1448(f) of this 
        title, the amount of the annuity shall be determined as 
        follows:
                    ``(A) Beneficiary under 62 years of age.--
                If the person receiving the annuity is under 62 
                years of age or is a dependent child when the 
                member or former member dies, the monthly 
                annuity shall be the amount equal to 55 percent 
                of the retired pay to which the member or 
                former member would have been entitled if the 
                member or former member had been entitled to 
                that pay based upon his years of active service 
                when he died.
                    ``(B) Beneficiary 62 years of age or 
                older.--
                            ``(i) General rule.--If the person 
                        receiving the annuity (other than a 
                        dependent child) is 62 years of age or 
                        older when the member or former member 
                        dies, the monthly annuity shall be the 
                        amount equal to 35 percent of the 
                        retired pay to which the member or 
                        former member would have been entitled 
                        if the member or former member had been 
                        entitled to that pay based upon his 
                        years of active service when he died.
                            ``(ii) Rule if beneficiary eligible 
                        for social security offset 
                        computation.--If the beneficiary is 
                        eligible to have the annuity computed 
                        under subsection (e) and if, at the 
                        time the beneficiary becomes entitled 
                        to the annuity, computation of the 
                        annuity under that subsection is more 
                        favorable to the beneficiary than 
                        computation under clause (i), the 
                        annuity shall be computed under that 
                        subsection rather than under clause 
                        (i).
            ``(2) DIC offset.--An annuity computed under 
        paragraph (1) that is paid to a surviving spouse shall 
        be reduced by the amount of dependency and indemnity 
        compensation to which the surviving spouse is entitled 
        under section 1311(a) of title 38. Any such reduction 
        shall be effective on the date of the commencement of 
        the period of payment of such compensation under title 
        38.
            ``(3) Servicemembers not yet granted retired pay.--
        In the case of an annuity provided by reason of the 
        service of a member described in section 1448(d)(1)(B) 
        or 1448(d)(1)(C) of this title who first became a 
        member of a uniformed service before September 8, 1980, 
        the retired pay to which the member would have been 
        entitled when he died shall be determined for purposes 
        of paragraph (1) based upon the rate of basic pay in 
        effect at the time of death for the grade in which the 
        member was serving at the time of death, unless (as 
        determined by the Secretary concerned) the member would 
        have been entitled to be retired in a higher grade.
            ``(4) Rate of pay to be used in computing 
        annuity.--In the case of an annuity paid under section 
        1448(f) of this title by reason of the service of a 
        person who first became a member of a uniformed service 
        before September 8, 1980, the retired pay of the person 
        providing the annuity shall for the purposes of 
        paragraph (1) be computed on the basis of the rates of 
        basic pay in effect on the effective date of the 
        annuity.
    ``(d) Reduction of Annuities at Age 62.--
            ``(1) Reduction required.--The annuity of a person 
        whose annuity is computed under subparagraph (A) of 
        subsection (a)(1), (a)(2), or (c)(1) shall be reduced 
        on the first day of the month after the month in which 
        the person becomes 62 years of age.
            ``(2) Amount of annuity as reduced.--
                    ``(A) 35 percent annuity.--Except as 
                provided in subparagraph (B), the reduced 
                amount of the annuity shall be the amount of 
                the annuity that the person would be receiving 
                on that date if the annuity had initially been 
                computed under subparagraph (B) of that 
                subsection.
                    ``(B) Savings provision for beneficiaries 
                eligible for social security offset 
                computation.--In the case of a person eligible 
                to have an annuity computed under subsection 
                (e) and for whom, at the time the person 
                becomes 62 years of age, the annuity computed 
                with a reduction under subsection (e)(3) is 
                more favorable than the annuity with a 
                reduction described in subparagraph (A), the 
                reduction in the annuity shall be computed in 
                the same manner as a reduction under subsection 
                (e)(3).
    ``(e) Savings Provision for Certain Beneficiaries.--
            ``(1) Persons covered.--The following beneficiaries 
        under the Plan are eligible to have an annuity under 
        the Plan computed under this subsection:
                    ``(A) A beneficiary receiving an annuity 
                under the Plan on October 1, 1985, as the 
                surviving spouse or former spouse of the person 
                providing the annuity.
                    ``(B) A spouse or former spouse beneficiary 
                of a person who on October 1, 1985--
                            ``(i) was a participant in the 
                        Plan;
                            ``(ii) was entitled to retired pay 
                        or was qualified for that pay except 
                        that he had not applied for and been 
                        granted that pay; or
                            ``(iii) would have been eligible 
                        for reserve-component retired pay but 
                        for the fact that he was under 60 years 
                        of age.
            ``(2) Amount of annuity.--Subject to paragraph (3), 
        an annuity computed under this subsection is determined 
        as follows:
                    ``(A) Standard annuity.--In the case of the 
                beneficiary of a standard annuity, the annuity 
                shall be the amount equal to 55 percent of the 
                base amount.
                    ``(B) Reserve component annuity.--In the 
                case of the beneficiary of a reserve-component 
                annuity, the annuity shall be the percentage of 
                the base amount that--
                            ``(i) is less than 55 percent; and
                            ``(ii) is determined under 
                        subsection (f).
                    ``(C) Beneficiaries of persons dying during 
                a period of special eligibility for sbp.--In 
                the case of the beneficiary of an annuity under 
                section 1448(d) or 1448(f) of this title, the 
                annuity shall be the amount equal to 55 percent 
                of the retired pay of the person providing the 
                annuity (as that pay is determined under 
                subsection (c)).
            ``(3) Social security offset.--An annuity computed 
        under this subsection shall be reduced by the lesser of 
        the following:
                    ``(A) Social security computation.--The 
                amount of the survivor benefit, if any, to 
                which the surviving spouse (or the former 
                spouse, in the case of a former spouse 
                beneficiary who became a former spouse under a 
                divorce that became final after November 29, 
                1989) would be entitled under title II of the 
                Social Security Act (42 U.S.C. 401 et seq.) 
                based solely upon service by the person 
                concerned as described in section 210(l)(1) of 
                such Act (42 U.S.C. 410(l)(1)) and calculated 
                assuming that the person concerned lives to age 
                65.
                    ``(B) Maximum amount of reduction.--40 
                percent of the amount of the monthly annuity as 
                determined under paragraph (2).
            ``(4) Special rules for social security offset 
        computation.--
                    ``(A) Treatment of deductions made on 
                account of work.--For the purpose of paragraph 
                (3), a surviving spouse (or a former spouse, in 
                the case of a person who becomes a former 
                spouse under a divorce that becomes final after 
                November 29, 1989) shall not be considered as 
                entitled to a benefit under title II of the 
                Social Security Act (42 U.S.C. 401 et seq.) to 
                the extent that such benefit has been offset by 
                deductions under section 203 of such Act (42 
                U.S.C. 403) on account of work.
                    ``(B) Treatment of certain periods for 
                which social security refunds are made.--In the 
                computation of any reduction made under 
                paragraph (3), there shall be excluded any 
                period of service described in section 
                210(l)(1) of the Social Security Act (42 U.S.C. 
                410(l)(1))--
                            ``(i) which was performed after 
                        December 1, 1980; and
                            ``(ii) which involved periods of 
                        service of less than 30 continuous days 
                        for which the person concerned is 
                        entitled to receive a refund under 
                        section 6413(c) of the Internal Revenue 
                        Code of 1986 of the social security tax 
                        which the person had paid.
    ``(f) Determination of Percentages Applicable to 
Computation of Reserve-Component Annuities.--The percentage to 
be applied in determining the amount of an annuity computed 
under subsection (a)(2), (b)(2), or (e)(2)(B) shall be 
determined under regulations prescribed by the Secretary of 
Defense. Such regulations shall be prescribed taking into 
consideration the following:
            ``(1) The age of the person electing to provide the 
        annuity at the time of such election.
            ``(2) The difference in age between such person and 
        the beneficiary of the annuity.
            ``(3) Whether such person provided for the annuity 
        to become effective (in the event he died before 
        becoming 60 years of age) on the day after his death or 
        on the 60th anniversary of his birth.
            ``(4) Appropriate group annuity tables.
            ``(5) Such other factors as the Secretary considers 
        relevant.
    ``(g) Adjustments to Annuities.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in annuities when retired 
                pay increased.--Whenever retired pay is 
                increased under section 1401a of this title (or 
                any other provision of law), each annuity that 
                is payable under the Plan shall be increased at 
                the same time.
                    ``(B) Percentage of increase.--The increase 
                shall, in the case of any annuity, be by the 
                same percent as the percent by which the 
                retired pay of the person providing the annuity 
                would have been increased at such time if the 
                person were alive (and otherwise entitled to 
                such pay).
                    ``(C) Certain reductions to be 
                disregarded.--The amount of the increase shall 
                be based on the monthly annuity payable before 
                any reduction under section 1450(c) of this 
                title or under subsection (c)(2).
            ``(2) Rounding down.--The monthly amount of an 
        annuity payable under this subchapter, if not a 
        multiple of $1, shall be rounded to the next lower 
        multiple of $1.
    ``(h) Adjustments to Base Amount.--
            ``(1) Periodic adjustments for cost-of-living.--
                    ``(A) Increases in base amount when retired 
                pay increased.--Whenever retired pay is 
                increased under section 1401a of this title (or 
                any other provision of law), the base amount 
                applicable to each participant in the Plan 
                shall be increased at the same time.
                    ``(B) Percentage of increase.--The increase 
                shall be by the same percent as the percent by 
                which the retired pay of the participant is so 
                increased.
            ``(2) Recomputation at age 62.--When the retired 
        pay of a person who first became a member of a 
        uniformed service on or after August 1, 1986, and who 
        is a participant in the Plan is recomputed under 
        section 1410 of this title upon the person's becoming 
        62 years of age, the base amount applicable to that 
        person shall be recomputed (effective on the effective 
        date of the recomputation of such retired pay under 
        section 1410 of this title) so as to be the amount 
        equal to the amount of the base amount that would be in 
        effect on that date if increases in such base amount 
        under paragraph (1) had been computed as provided in 
        paragraph (2) of section 1401a(b) of this title (rather 
        than under paragraph (3) of that section).
            ``(3) Disregarding of retired pay reductions for 
        retirement before 30 years of service.--Computation of 
        a member's retired pay for purposes of this section 
        shall be made without regard to any reduction under 
        section 1409(b)(2) of this title.
    ``(i) Recomputation of Annuity for Certain Beneficiaries.--
In the case of an annuity under the Plan which is computed on 
the basis of the retired pay of a person who would have been 
entitled to have that retired pay recomputed under section 1410 
of this title upon attaining 62 years of age, but who dies 
before attaining that age, the annuity shall be recomputed, 
effective on the first day of the first month beginning after 
the date on which the member or former member would have 
attained 62 years of age, so as to be the amount equal to the 
amount of the annuity that would be in effect on that date if 
increases under subsection (h)(1) in the base amount applicable 
to that annuity to the time of the death of the member or 
former member, and increases in such annuity under subsection 
(g)(1), had been computed as provided in paragraph (2) of 
section 1401a(b) of this title (rather than under paragraph (3) 
of that section).

``Sec. 1452. Reduction in retired pay

    ``(a) Spouse and Former Spouse Annuities.--
            ``(1) Required reduction in retired pay.--Except as 
        provided in subsection (b), the retired pay of a 
        participant in the Plan who is providing spouse 
        coverage (as described in paragraph (5)) shall be 
        reduced as follows:
                    ``(A) Standard annuity.--If the annuity 
                coverage being providing is a standard annuity, 
                the reduction shall be as follows:
                            ``(i) Disability and nonregular 
                        service retirees.--In the case of a 
                        person who is entitled to retired pay 
                        under chapter 61 or chapter 1223 of 
                        this title, the reduction shall be in 
                        whichever of the alternative reduction 
                        amounts is more favorable to that 
                        person.
                            ``(ii) Members as of enactment of 
                        flat-rate reduction.--In the case of a 
                        person who first became a member of a 
                        uniformed service before March 1, 1990, 
                        the reduction shall be in whichever of 
                        the alternative reduction amounts is 
                        more favorable to that person.
                            ``(iii) New entrants after 
                        enactment of flat-rate reduction.--In 
                        the case of a person who first becomes 
                        a member of a uniformed service on or 
                        after March 1, 1990, and who is 
                        entitled to retired pay under a 
                        provision of law other than chapter 61 
                        or chapter 1223 of this title, the 
                        reduction shall be in an amount equal 
                        to 6\1/2\ percent of the base amount.
                            ``(iv) Alternative reduction 
                        amounts.--For purposes of clauses (i) 
                        and (ii), the alternative reduction 
                        amounts are the following:
                                    ``(I) Flat-rate 
                                reduction.--An amount equal to 
                                6\1/2\ percent of the base 
                                amount.
                                    ``(II) Amount under pre-
                                flat-rate reduction.--An amount 
                                equal to 2\1/2\ percent of the 
                                first $337 (as adjusted after 
                                November 1, 1989, under 
                                paragraph (4)) of the base 
                                amount plus 10 percent of the 
                                remainder of the base amount.
                    ``(B) Reserve-component annuity.--If the 
                annuity coverage being provided is a reserve-
                component annuity, the reduction shall be in 
                whichever of the following amounts is more 
                favorable to that person:
                            ``(i) Flat-rate reduction.--An 
                        amount equal to 6\1/2\ percent of the 
                        base amount plus an amount determined 
                        in accordance with regulations 
                        prescribed by the Secretary of Defense 
                        as a premium for the additional 
                        coverage provided through reserve-
                        component annuity coverage under the 
                        Plan.
                            ``(ii) Amount under pre-flat-rate 
                        reduction.--An amount equal to 2\1/2\ 
                        percent of the first $337 (as adjusted 
                        after November 1, 1989, under paragraph 
                        (4)) of the base amount plus 10 percent 
                        of the remainder of the base amount 
                        plus an amount determined in accordance 
                        with regulations prescribed by the 
                        Secretary of Defense as a premium for 
                        the additional coverage provided 
                        through reserve-component annuity 
                        coverage under the Plan.
            ``(2) Additional reduction for child coverage.--If 
        there is a dependent child as well as a spouse or 
        former spouse, the amount prescribed under paragraph 
        (1) shall be increased by an amount prescribed under 
        regulations of the Secretary of Defense.
            ``(3) No reduction when no beneficiary.--The 
        reduction in retired pay prescribed by paragraph (1) 
        shall not be applicable during any month in which there 
        is no eligible spouse or former spouse beneficiary.
            ``(4) Periodic adjustments.--
                    ``(A) Adjustments for increases in rates of 
                basic pay.--Whenever there is an increase in 
                the rates of basic pay of members of the 
                uniformed services effective on or after 
                October 1, 1985, the amounts under paragraph 
                (1) with respect to which the percentage factor 
                of 2\1/2\ is applied shall be increased by the 
                overall percentage of such increase in the 
                rates of basic pay. The increase under the 
                preceding sentence shall apply only with 
                respect to persons whose retired pay is 
                computed based on the rates of basic pay in 
                effect on or after the date of such increase in 
                rates of basic pay.
                    ``(B) Adjustments for retired pay colas.--
                In addition to the increase under subparagraph 
                (A), the amounts under paragraph (1) with 
                respect to which the percentage factor of 2\1/
                2\ is applied shall be further increased at the 
                same time and by the same percentage as an 
                increase in retired pay under section 1401a of 
                this title effective on or after October 1, 
                1985. Such increase under the preceding 
                sentence shall apply only with respect to a 
                person who initially participates in the Plan 
                on a date which is after both the effective 
                date of such increase under section 1401a and 
                the effective date of the rates of basic pay 
                upon which that person's retired pay is 
                computed.
            ``(5) Spouse coverage described.--For the purposes 
        of paragraph (1), a participant in the Plan who is 
        providing spouse coverage is a participant who--
                    ``(A) has (i) a spouse or former spouse, or 
                (ii) a spouse or former spouse and a dependent 
                child; and
                    ``(B) has not elected to provide an annuity 
                to a person designated by him under section 
                1448(b)(1) of this title or, having made such 
                an election, has changed his election in favor 
                of his spouse under section 1450(f) of this 
                title.
    ``(b) Child-Only Annuities.--
            ``(1) Required reduction in retired pay.--The 
        retired pay of a participant in the Plan who is 
        providing child-only coverage (as described in 
        paragraph (4)) shall be reduced by an amount prescribed 
        under regulations by the Secretary of Defense.
            ``(2) No reduction when no child.--There shall be 
        no reduction in retired pay under paragraph (1) for any 
        month during which the participant has no eligible 
        dependent child.
            ``(3) Special rule for certain rcsbp 
        participants.--In the case of a participant in the Plan 
        who is participating in the Plan under an election 
        under section 1448(a)(2)(B) of this title and who 
        provided child-only coverage during a period before the 
        participant becomes entitled to receive retired pay, 
        the retired pay of the participant shall be reduced by 
        an amount prescribed under regulations by the Secretary 
        of Defense to reflect the coverage provided under the 
        Plan during the period before the participant became 
        entitled to receive retired pay. A reduction under this 
        paragraph is in addition to any reduction under 
        paragraph (1) and is made without regard to whether 
        there is an eligible dependent child during a month for 
        which the reduction is made.
            ``(4) Child-only coverage defined.--For the 
        purposes of this subsection, a participant in the Plan 
        who is providing child-only coverage is a participant 
        who has a dependent child and who--
                    ``(A) does not have an eligible spouse or 
                former spouse; or
                    ``(B) has a spouse or former spouse but has 
                elected to provide an annuity for dependent 
                children only.
    ``(c) Reduction for Insurable Interest Coverage.--
            ``(1) Required reduction in retired pay.--The 
        retired pay of a person who has elected to provide an 
        annuity to a person designated by him under section 
        1450(a)(4) of this title shall be reduced as follows:
                    ``(A) Standard annuity.--In the case of a 
                person providing a standard annuity, the 
                reduction shall be by 10 percent plus 5 percent 
                for each full five years the individual 
                designated is younger than that person.
                    ``(B) Reserve component annuity.--In the 
                case of a person providing a reserve-component 
                annuity, the reduction shall be by an amount 
                prescribed under regulations of the Secretary 
                of Defense.
            ``(2) Limitation on total reduction.--The total 
        reduction under paragraph (1) may not exceed 40 
        percent.
            ``(3) Duration of reduction.--The reduction in 
        retired pay prescribed by this subsection shall 
        continue during the lifetime of the person designated 
        under section 1450(a)(4) of this title or until the 
        person receiving retired pay changes his election under 
        section 1450(f) of this title.
            ``(4) Rule for computation.--Computation of a 
        member's retired pay for purposes of this subsection 
        shall be made without regard to any reduction under 
        section 1409(b)(2) of this title.
    ``(d) Deposits To Cover Periods When Retired Pay Not 
Paid.--
            ``(1) Required deposits.--If a person who has 
        elected to participate in the Plan has been awarded 
        retired pay and is not entitled to that pay for any 
        period, that person must deposit in the Treasury the 
        amount that would otherwise have been deducted from his 
        pay for that period.
            ``(2) Deposits not required when participant on 
        active duty.--Paragraph (1) does not apply to a person 
        with respect to any period when that person is on 
        active duty under a call or order to active duty for a 
        period of more than 30 days.
    ``(e) Deposits Not Required for Certain Participants in 
CSRS.--When a person who has elected to participate in the Plan 
waives that person's retired pay for the purposes of subchapter 
III of chapter 83 of title 5, that person shall not be required 
to make the deposit otherwise required by subsection (d) as 
long as that waiver is in effect unless, in accordance with 
section 8339(i) of title 5, that person has notified the Office 
of Personnel Management that he does not desire a spouse 
surviving him to receive an annuity under section 8331(b) of 
title 5.
    ``(f) Refunds of Deductions Not Allowed.--
            ``(1) General rule.--A person is not entitled to 
        refund of any amount deducted from retired pay under 
        this section.
            ``(2) Exceptions.--Paragraph (1) does not apply--
                    ``(A) in the case of a refund authorized by 
                section 1450(e) of this title; or
                    ``(B) in case of a deduction made through 
                administrative error.
    ``(g) Discontinuation of Participation by Participants 
Whose Surviving Spouses Will Be Entitled to DIC.--
            ``(1) Discontinuation.--
                    ``(A) Conditions.--Notwithstanding any 
                other provision of this subchapter but subject 
                to paragraphs (2) and (3), a person who has 
                elected to participate in the Plan and who is 
                suffering from a service-connected disability 
                rated by the Secretary of Veterans Affairs as 
                totally disabling and has suffered from such 
                disability while so rated for a continuous 
                period of 10 or more years (or, if so rated for 
                a lesser period, has suffered from such 
                disability while so rated for a continuous 
                period of not less than 5 years from the date 
                of such person's last discharge or release from 
                active duty) may discontinue participation in 
                the Plan by submitting to the Secretary 
                concerned a request to discontinue 
                participation in the Plan.
                    ``(B) Effective date.--Participation in the 
                Plan of a person who submits a request under 
                subparagraph (A) shall be discontinued 
                effective on the first day of the first month 
                following the month in which the request under 
                subparagraph (A) is received by the Secretary 
                concerned. Effective on such date, the 
                Secretary concerned shall discontinue the 
                reduction being made in such person's retired 
                pay on account of participation in the Plan or, 
                in the case of a person who has been required 
                to make deposits in the Treasury on account of 
                participation in the Plan, such person may 
                discontinue making such deposits effective on 
                such date.
                    ``(C) Form for request for 
                discontinuation.--Any request under this 
                paragraph to discontinue participation in the 
                Plan shall be in such form and shall contain 
                such information as the Secretary concerned may 
                require by regulation.
            ``(2) Consent of beneficiaries required.--A person 
        described in paragraph (1) may not discontinue 
        participation in the Plan under such paragraph without 
        the written consent of the beneficiary or beneficiaries 
        of such person under the Plan.
            ``(3) Information on plan to be provided by 
        secretary concerned.--
                    ``(A) Information to be provided promptly 
                to participant.--The Secretary concerned shall 
                furnish promptly to each person who files a 
                request under paragraph (1) to discontinue 
                participation in the Plan a written statement 
                of the advantages of participating in the Plan 
                and the possible disadvantages of discontinuing 
                participation.
                    ``(B) Right to withdraw discontinuation 
                request.--A person may withdraw a request made 
                under paragraph (1) if it is withdrawn within 
                30 days after having been submitted to the 
                Secretary concerned.
            ``(4) Refund of deductions from retired pay.--Upon 
        the death of a person described in paragraph (1) who 
        discontinued participation in the Plan in accordance 
        with this subsection, any amount deducted from the 
        retired pay of that person under this section shall be 
        refunded to the person's surviving spouse.
            ``(5) Resumption of participation in plan.--
                    ``(A) Conditions for resumption.--A person 
                described in paragraph (1) who discontinued 
                participation in the Plan may elect to 
                participate again in the Plan if--
                            ``(i) after having discontinued 
                        participation in the Plan the Secretary 
                        of Veterans Affairs reduces that 
                        person's service-connected disability 
                        rating to a rating of less than total; 
                        and
                            ``(ii) that person applies to the 
                        Secretary concerned, within such period 
                        of time after the reduction in such 
                        person's service-connected disability 
                        rating has been made as the Secretary 
                        concerned may prescribe, to again 
                        participate in the Plan and includes in 
                        such application such information as 
                        the Secretary concerned may require.
                    ``(B) Effective date of resumed coverage.--
                Such person's participation in the Plan under 
                this paragraph is effective beginning on the 
                first day of the month after the month in which 
                the Secretary concerned receives the 
                application for resumption of participation in 
                the Plan.
                    ``(C) Resumption of contributions.--When a 
                person elects to participate in the Plan under 
                this paragraph, the Secretary concerned shall 
                begin making reductions in that person's 
                retired pay, or require such person to make 
                deposits in the Treasury under subsection (d), 
                as appropriate, effective on the effective date 
                of such participation under subparagraph (B).
    ``(h) Increases in Reduction With Increases in Retired 
Pay.--
            ``(1) General rule.--Whenever retired pay is 
        increased under section 1401a of this title (or any 
        other provision of law), the amount of the reduction to 
        be made under subsection (a) or (b) in the retired pay 
        of any person shall be increased at the same time and 
        by the same percentage as such retired pay is so 
        increased.
    ``(i) Recomputation of Reduction Upon Recomputation of 
Retired Pay.--When the retired pay of a person who first became 
a member of a uniformed service on or after August 1, 1986, and 
who is a participant in the Plan is recomputed under section 
1410 of this title upon the person's becoming 62 years of age, 
the amount of the reduction in such retired pay under this 
section shall be recomputed (effective on the effective date of 
the recomputation of such retired pay under section 1410 of 
this title) so as to be the amount equal to the amount of such 
reduction that would be in effect on that date if increases in 
such retired pay under section 1401a(b) of this title, and 
increases in reductions in such retired pay under subsection 
(h), had been computed as provided in paragraph (2) of section 
1401a(b) of this title (rather than under paragraph (3) of that 
section).

``Sec. 1453. Recovery of amounts erroneously paid

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

``Sec. 1454. Correction of administrative errors

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

``Sec. 1455. Regulations

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

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

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

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

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

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

    (a) Civil Service Retirement and Disability System.--(1) 
Subsection (c) of section 8332 of title 5, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(4) If, after January 1, 1997, an employee or Member 
waives retired pay that is subject to a court order for which 
there has been effective service on the Secretary concerned for 
purposes of section 1408 of title 10, the military service on 
which the retired pay is based may be credited as service for 
purposes of this subchapter only if the employee or Member 
authorizes the Director to deduct and withhold from the annuity 
payable to the employee or Member under this subchapter an 
amount equal to the amount that, if the annuity payment was 
instead a payment of the employee's or Member's retired pay, 
would have been deducted and withheld and paid to the former 
spouse covered by the court order under such section 1408. The 
amount deducted and withheld under this paragraph shall be paid 
to that former spouse. The period of civil service employment 
by the employee or Member shall not be taken into consideration 
in determining the amount of the deductions and withholding or 
the amount of the payment to the former spouse. The Director of 
the Office of Personnel Management shall prescribe regulations 
to carry out this paragraph.''.
    (2) Paragraph (1) of such subsection is amended by striking 
out ``Except as provided in paragraph (2)'' and inserting in 
lieu thereof ``Except as provided in paragraphs (2) and (4)''.
    (b) Federal Employees' Retirement System.--(1) Subsection 
(c) of section 8411 of title 5, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(5) If, after January 1, 1997, an employee or Member 
waives retired pay that is subject to a court order for which 
there has been effective service on the Secretary concerned for 
purposes of section 1408 of title 10, the military service on 
which the retired pay is based may be credited as service for 
purposes of this chapter only if the employee or Member 
authorizes the Director to deduct and withhold from the annuity 
payable to the employee or Member under this subchapter an 
amount equal to the amount that, if the annuity payment was 
instead a payment of the employee's or Member's retired pay, 
would have been deducted and withheld and paid to the former 
spouse covered by the court order under such section 1408. The 
amount deducted and withheld under this paragraph shall be paid 
to that former spouse. The period of civil service employment 
by the employee or Member shall not be taken into consideration 
in determining the amount of the deductions and withholding or 
the amount of the payment to the former spouse. The Director of 
the Office of Personnel Management shall prescribe regulations 
to carry out this paragraph.''.
    (2) Paragraph (1) of such subsection is amended by striking 
``Except as provided in paragraph (2) or (3)'' and inserting 
``Except as provided in paragraphs (2), (3), and (5)''.
    (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on January 1, 1997.

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

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

                       Subtitle E--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

           Subtitle C--Uniformed Services Treatment Facilities

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

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

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

                        Subtitle E--Other Matters

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

                    Subtitle A--Health Care Services

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

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

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

    (B) The item relating to such section in the table of 
sections at the beginning of chapter 55 of such title is 
amended to read as follows:

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

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

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

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

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

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

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

    ``(a) Requirement for Plan.--The Secretary of Defense shall 
establish a dental insurance plan for military retirees, 
certain unremarried surviving spouses, and dependents in 
accordance with this section.
    ``(b) Persons Eligible for Plan.--The following persons are 
eligible to enroll in the dental insurance plan established 
under subsection (a):
            ``(1) Members of the armed forces who are entitled 
        to retired pay.
            ``(2) Members of the Retired Reserve who would be 
        entitled to retired pay under chapter 1223 of this 
        title but for being under 60 years of age.
            ``(3) Eligible dependents of a member described in 
        paragraph (1) or (2) who are covered by the enrollment 
        of the member in the plan.
            ``(4) The unremarried surviving spouse and eligible 
        child dependents of a deceased member--
                    ``(A) who dies while in a status described 
                in paragraph (1) or (2); or
                    ``(B) who is described in section 
                1448(d)(1) of this title.
    ``(c) Premiums.--(1) A member enrolled in the dental 
insurance plan established under subsection (a) shall pay the 
premiums charged for the insurance coverage.
    ``(2) The amount of the premiums payable by a member 
entitled to retired pay shall be deducted and withheld from the 
retired pay and shall be disbursed to pay the premiums. The 
regulations prescribed under subsection (h) shall specify the 
procedures for payment of the premiums by other enrolled 
members and by enrolled surviving spouses.
    ``(d) Benefits Available Under the Plan.--The dental 
insurance plan established under subsection (a) shall provide 
benefits for basic dental care and treatment, including 
diagnostic services, preventative services, basic restorative 
services (including endodontics), surgical services, and 
emergency services.
    ``(e) Coverage.--(1) The Secretary shall prescribe a 
minimum required period for enrollment by a member or surviving 
spouse in the dental insurance plan established under 
subsection (a).
    ``(2) The dental insurance plan shall provide for voluntary 
enrollment of participants and shall authorize a member or 
eligible unremarried surviving spouse to enroll for self only 
or for self and eligible dependents.
    ``(f) Termination of Enrollment.--The Secretary shall 
terminate the enrollment of any enrollee, and any eligible 
dependents of the enrollee covered by the enrollment, in the 
dental insurance plan established under subsection (a) upon the 
occurrence of the following:
            ``(1) In the case of an enrollment under subsection 
        (b)(1), termination of the member's entitlement to 
        retired pay.
            ``(2) In the case of an enrollment under subsection 
        (b)(2), termination of the member's status as a member 
        of the Retired Reserve.
            ``(3) In the case of an enrollment under subsection 
        (b)(4), remarriage of the surviving spouse.
    ``(g) Continuation of Dependents' Enrollment Upon Death of 
Enrollee.--Coverage of a dependent in the dental insurance plan 
established under subsection (a) under an enrollment of a 
member or a surviving spouse who dies during the period of 
enrollment shall continue until the end of that period and may 
be renewed by (or for) the dependent, so long as the premium 
paid is sufficient to cover continuation of the dependent's 
enrollment. The Secretary may terminate coverage of the 
dependent when the premiums paid are no longer sufficient to 
cover continuation of the enrollment. The Secretary shall 
prescribe in regulations under subsection (h) the parties 
responsible for paying the remaining premiums due on the 
enrollment and the manner for collection of the premiums.
    ``(h) Regulations.--The dental insurance plan established 
under subsection (a) shall be administered under regulations 
prescribed by the Secretary of Defense, in consultation with 
the Secretary of Transportation.
    ``(i) Definitions.--In this section:
            ``(1) The term `eligible dependent' means a 
        dependent described in subparagraph (A), (D), or (I) of 
        section 1072(2) of this title.
            ``(2) The term `eligible child dependent' means a 
        dependent described in subparagraph (D) or (I) of 
        section 1072(2) of this title.
            ``(3) The term `retired pay' includes retainer 
        pay.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
1076b the following new item:

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

    (b) Implementation.--Beginning not later than October 1, 
1997, the Secretary of Defense shall--
            (1) offer members of the Armed Forces and other 
        persons described in subsection (b) of section 1076c of 
        title 10, United States Code (as added by subsection 
        (a)(1) of this section), the opportunity to enroll in 
        the dental insurance plan required under that section; 
        and
            (2) begin to provide benefits under the plan.

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

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

                      Subtitle B--TRICARE Program

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

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

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

    (a) Uniform Interfaces.--The Secretary of Defense shall 
ensure that the automated medical information system being 
developed by the Department of Defense (known as the Composite 
Health Care System) provides for uniform interfaces between 
information systems of military treatment facilities and 
private contractors under managed care programs of the TRICARE 
program. The uniform interface shall provide for a full 
electronic two-way exchange of health care information between 
the military treatment facilities and contractor information 
systems, including enrollment information, information 
regarding eligibility determinations, provider network 
information, appointment information, and information regarding 
the existence of third-party payers.
    (b) Amendment of Existing Contracts.--To assure a single 
consistent source of information throughout the health care 
delivery system of the uniformed services, the Secretary of 
Defense shall amend each TRICARE program contract, with the 
consent of the TRICARE program contractor and notwithstanding 
any requirement for competition, to require the contractor--
            (1) to use software furnished under the Composite 
        Health Care System to record military treatment 
        facility provider appointments; and
            (2) to record TRICARE program enrollment through 
        direct use of the Composite Health Care System software 
        or through the uniform two-way interface between the 
        contractor and military treatment facilities systems, 
        where applicable.
    (c) Definition of TRICARE Program.--For purposes of this 
section, the term ``TRICARE program'' means the managed health 
care program that is established by the Secretary of Defense 
under the authority of chapter 55 of title 10, United States 
Code, principally section 1097 of such title, and includes the 
competitive selection of contractors to financially underwrite 
the delivery of health care services under the Civilian Health 
and Medical Program of the Uniformed Services.

SEC. 713. PLANS FOR MEDICARE SUBVENTION DEMONSTRATION PROGRAMS.

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

          Subtitle C--Uniformed Services Treatment Facilities

SEC. 721. DEFINITIONS.

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

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

    (a) Inclusion in System.--The health care delivery system 
of the uniformed services shall include the designated 
providers.
    (b) Agreements to Provide Managed Health Care Services.--
(1) After consultation with the other administering 
Secretaries, the Secretary of Defense shall negotiate and enter 
into an agreement with each designated provider under which the 
designated provider will provide health care services in or 
through managed care plans to covered beneficiaries who enroll 
with the designated provider.
    (2) The agreement shall be entered into on a sole source 
basis. The Federal Acquisition Regulation, except for those 
requirements regarding competition, issued pursuant to section 
25(c) of the Office of Federal Procurement Policy Act (41 
U.S.C. 421(c)) shall apply to the agreements as acquisitions of 
commercial items.
    (3) The implementation of an agreement is subject to 
availability of funds for such purpose.
    (c) Effective Date of Agreements.--(1) Unless an earlier 
effective date is agreed upon by the Secretary and the 
designated provider, the agreement shall take effect upon the 
later of the following:
            (A) The date on which a managed care support 
        contract under the TRICARE program is implemented in 
        the service area of the designated provider.
            (B) October 1, 1997.
    (2) Notwithstanding paragraph (1), the designated provider 
whose service area includes Seattle, Washington, shall 
implement its agreement as soon as the agreement permits.
    (d) Temporary Continuation of Existing Participation 
Agreements.--The Secretary shall extend the participation 
agreement of a designated provider in effect immediately before 
the date of the enactment of this Act under section 718(c) of 
the National Defense Authorization Act for Fiscal Year 1991 
(Public Law 101-510; 42 U.S.C. 248c) until the agreement 
required by this section takes effect under subsection (c).
    (e) Service Area.--The Secretary may not reduce the size of 
the service area of a designated provider below the size of the 
service area in effect as of September 30, 1996.
    (f) Compliance With Administrative Requirements.--(1) 
Unless otherwise agreed upon by the Secretary and a designated 
provider, the designated provider shall comply with necessary 
and appropriate administrative requirements established by the 
Secretary for other providers of health care services and 
requirements established by the Secretary of Health and Human 
Services for risk-sharing contractors under section 1876 of the 
Social Security Act (42 U.S.C. 1395mm). The Secretary and the 
designated provider shall determine and apply only such 
administrative requirements as are minimally necessary and 
appropriate. A designated provider shall not be required to 
comply with a law or regulation of a State government requiring 
licensure as a health insurer or health maintenance 
organization.
    (2) A designated provider may not contract out more than 
five percent of its primary care enrollment without the 
approval of the Secretary, except in the case of primary care 
contracts between a designated provider and a primary care 
contractor in force on the date of the enactment of this Act.

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

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

SEC. 724. ENROLLMENT OF COVERED BENEFICIARIES.

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

SEC. 725. APPLICATION OF CHAMPUS PAYMENT RULES.

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

SEC. 726. PAYMENTS FOR SERVICES.

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

SEC. 727. REPEAL OF SUPERSEDED AUTHORITIES.

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

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

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

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

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

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

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

    (a) Credits to CHAMPUS Accounts.--(1) Chapter 55 of title 
10, United States Code, is amended by inserting after section 
1079 the following new section:

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

    ``All refunds and other amounts collected in the 
administration of the Civilian Health and Medical Program of 
the Uniformed Services shall be credited to the appropriation 
available for that program for the fiscal year in which the 
refund or amount is collected.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1079 
the following new item:

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

    (b) Conforming Repeal.--Section 8094 of the Department of 
Defense Appropriations Act, 1996 (Public Law 104-61; 109 Stat. 
671), is repealed.

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

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

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

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

                       Subtitle E--Other Matters

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

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

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

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

SEC. 743. INDEPENDENT RESEARCH REGARDING GULF WAR SYNDROME.

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

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

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

SEC. 745. REPORT REGARDING SPECIALIZED TREATMENT FACILITY PROGRAM.

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

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

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

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

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

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

                   Subtitle A--Acquisition Management

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

                        Subtitle B--Other Matters

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

                   Subtitle A--Acquisition Management

SEC. 801. PROCUREMENT TECHNICAL ASSISTANCE PROGRAMS.

    (a) Funding.--Of the amount authorized to be appropriated 
under section 301(5), $12,000,000 shall be available for 
carrying out the provisions of chapter 142 of title 10, United 
States Code.
    (b) Specific Programs.--Of the amounts made available 
pursuant to subsection (a), $600,000 shall be available for 
fiscal year 1997 for the purpose of carrying out programs 
sponsored by eligible entities referred to in subparagraph (D) 
of section 2411(1) of title 10, United States Code, that 
provide procurement technical assistance in distressed areas 
referred to in subparagraph (B) of section 2411(2) of such 
title. If there is an insufficient number of satisfactory 
proposals for cooperative agreements in such distressed areas 
to allow effective use of the funds made available in 
accordance with this subsection in such areas, the funds shall 
be allocated among the Defense Contract Administration Services 
regions in accordance with section 2415 of such title.

SEC. 802. EXTENSION OF PILOT MENTOR-PROTEGE PROGRAM.

    Section 831(j) of the National Defense Authorization Act 
for Fiscal Year 1991 (10 U.S.C. 2302 note) is amended--
            (1) in paragraph (1), by striking out ``1995'' and 
        inserting in lieu thereof ``1998''; and
            (2) in paragraph (2), by striking out ``1996'' and 
        inserting in lieu thereof ``1999''.

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

    (a) Authority.--The Secretary of Defense may waive sections 
2399, 2403, 2432, and 2433 of title 10, United States Code, in 
accordance with this section for any defense acquisition 
program designated by the Secretary of Defense for 
participation in the defense acquisition pilot program 
authorized by section 809 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2430 
note).
    (b) Operational Test and Evaluation.--The Secretary of 
Defense may waive the requirements for operational test and 
evaluation for such a defense acquisition program as set forth 
in section 2399 of title 10, United States Code, if the 
Secretary--
            (1) determines (without delegation) that such test 
        would be unreasonably expensive or impractical;
            (2) develops a suitable alternate operational test 
        program for the system concerned;
            (3) describes in the test and evaluation master 
        plan, as approved by the Director of Operational Test 
        and Evaluation, the method of evaluation that will be 
        used to evaluate whether the system will be effective 
        and suitable for combat; and
            (4) submits to the congressional defense committees 
        a report containing the determination that was made 
        under paragraph (1), a justification for that 
        determination, and a copy of the plan required by 
        paragraph (3).
    (c) Contractor Guarantees for Major Weapons Systems.--The 
Secretary of Defense may waive the requirements of section 2403 
of title 10, United States Code, for such a defense acquisition 
program if an alternative guarantee is used that ensures high 
quality weapons systems.
    (d) Selected Acquisition Reports.--The Secretary of Defense 
may waive the requirements of sections 2432 and 2433 of title 
10, United States Code, for such a defense acquisition program 
if the Secretary provides a single annual report to Congress at 
the end of each fiscal year that describes the status of the 
program in relation to the baseline description for the program 
established under section 2435 of such title.

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 809. COMPENSATION OF CERTAIN CONTRACTOR PERSONNEL.

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

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

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

                       Subtitle B--Other Matters

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

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

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

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

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

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

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

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

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

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

SEC. 826. STUDY OF EFFECTIVENESS OF DEFENSE MERGERS.

    (a) Study.--The Secretary of Defense shall conduct a study 
on mergers and acquisitions in the defense sector. The study 
shall address the following:
            (1) The effectiveness of defense mergers and 
        acquisitions in eliminating excess capacity within the 
        defense industry.
            (2) The degree of change in the dependence by 
        defense contractors on defense-related Federal 
        contracts within their overall business after mergers.
            (3) The effect on defense industry employment 
        resulting from defense mergers and acquisitions 
        occurring during the three years preceding the date of 
        the enactment of this Act.
            (4) The effect on competition for defense 
        contracts.
    (b) Report.--Not later than six months after the date of 
the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report on the results of the study 
conducted under subsection (a).

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

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

SEC. 828. FOREIGN ENVIRONMENTAL TECHNOLOGY.

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

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

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

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

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

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

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

``Sec. 2504. Annual report to Congress

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

``2504. Annual report to Congress.''.

    (2) Such table of sections is further amended by striking 
out the item relating to section 2506 and inserting in lieu 
thereof the following new item:

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

    (h) Repeal of Superseded and Executed Law.--Sections 4218, 
4219, and 4220 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484; 10 U.S.C. 2505 note and 
2506 note) are repealed.

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

    (a) Expanded Report.--The Secretary of Defense shall 
include in the report submitted in 1997 under section 381(f) of 
the National Defense Authorization Act for Fiscal Year 1995 
(Public Law 103-337; 10 U.S.C. 113 note) a discussion of the 
following matters relating to information resources management:
            (1) The progress made in implementing the 
        Information Technology Management Reform Act of 1996 
        (division E of Public Law 104-106; 110 Stat. 679; 40 
        U.S.C. 1401 et seq.) and the amendments made by that 
        Act.
            (2) The progress made in implementing the strategy 
        for the development or modernization of automated 
        information systems for the Department of Defense, as 
        required by section 366 of the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 275; 10 U.S.C. 113 note).
            (3) Plans of the Department of Defense for 
        establishing an integrated framework for management of 
        information resources within the department.
    (b) Specific Elements of Report.--The presentation of 
matters under subsection (a) shall specifically include a 
discussion of the following:
            (1) The status of the implementation of performance 
        measures.
            (2) The specific actions being taken to link the 
        proposed performance measures to the planning, 
        programming, and budgeting system of the Department of 
        Defense and to the life-cycle management processes of 
        the department.
            (3) The results of pilot program testing of 
        proposed performance measures.
            (4) The additional training necessary for the 
        implementation of performance-based information 
        management.
            (5) The department-wide actions that are necessary 
        to comply with the requirements of the following 
        provisions of law:
                    (A) The amendments made by the Government 
                Performance and Results Act of 1993 (Public Law 
                103-62; 107 Stat. 285).
                    (B) The Information Technology Management 
                Reform Act of 1996 (division E of Public Law 
                104-106; 110 Stat. 679; 40 U.S.C. 1401 et seq.) 
                and the amendments made by that Act.
                    (C) Title V of the Federal Acquisition 
                Streamlining Act of 1994 (Public Law 103-355; 
                108 Stat. 3349) and the amendments made by that 
                title.
                    (D) The Chief Financial Officers Act of 
                1990 (Public Law 101-576; 104 Stat. 2838) and 
                the amendments made by that Act.

SEC. 831. YEAR 2000 SOFTWARE CONVERSION.

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

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

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

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

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

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

SEC. 833. CABLE TELEVISION FRANCHISE AGREEMENTS.

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

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                       Subtitle A--General Matters

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

                   Subtitle B--Force Structure Review

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

                      Subtitle A--General Matters

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

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

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

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

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

    (a) Permanent Limitation on OSD Personnel.--Effective 
October 1, 1999, the number of OSD personnel may not exceed 75 
percent of the baseline number.
    (b) Phased Reduction.--The number of OSD personnel--
            (1) as of October 1, 1997, may not exceed 85 
        percent of the baseline number; and
            (2) as of October 1, 1998, may not exceed 80 
        percent of the baseline number.
    (c) Baseline Number.--For purposes of this section, the 
term ``baseline number'' means the number of OSD personnel as 
of October 1, 1994.
    (d) OSD Personnel Defined.--For purposes of this section, 
the term ``OSD personnel'' means military and civilian 
personnel of the Department of Defense who are assigned to, or 
employed in, functions in the Office of the Secretary of 
Defense (including Direct Support Activities of that Office and 
the Washington Headquarters Services of the Department of 
Defense).
    (e) Limitation on Reassignment of Functions.--In carrying 
out reductions in the number of personnel assigned to, or 
employed in, the Office of the Secretary of Defense in order to 
comply with this section, the Secretary of Defense may not 
reassign functions solely in order to evade the requirements 
contained in this section.
    (f) Flexibility.--If the Secretary of Defense determines, 
and certifies to Congress, that the limitation in subsection 
(b) with respect to any fiscal year would adversely affect 
United States national security, the Secretary may waive the 
limitation under that subsection with respect to that fiscal 
year. If the Secretary of Defense determines, and certifies to 
Congress, that the limitation in subsection (a) during fiscal 
year 1999 would adversely affect United States national 
security, the Secretary may waive the limitation under that 
subsection with respect to that fiscal year. The authority 
under this subsection may be used only once, with respect to a 
single fiscal year.
    (g) Repeal of Prior Requirement.--Section 901(d) of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 110 Stat. 401) is repealed.

SEC. 904. REPORT ON MILITARY DEPARTMENT HEADQUARTERS STAFFS.

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

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

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

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

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

``2644. Control of transportation systems in time of war.''.

    (2) The table of sections at the beginning of chapter 447 
of such title is amended by striking out the item relating to 
section 4742.
    (3) The table of sections at the beginning of chapter 947 
of such title is amended by striking out the item relating to 
section 9742.

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

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

``Sec. 2112a. Continued operation of University

    ``(a) Closure Prohibited.--The University may not be 
closed.
    ``(b) Personnel Strength.--During the five-year period 
beginning on October 1, 1996, the personnel staffing levels for 
the University may not be reduced below the personnel staffing 
levels for the University as of October 1, 1993.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2112 
the following new item:

``2112a. Continued operation of University.''.

    (b) Repeal of Superseded Law.--(1) Section 922 of the 
National Defense Authorization Act for Fiscal Year 1995 (Public 
Law 103-337; 108 Stat. 2829; 10 U.S.C. 2112 note) is amended by 
striking out subsection (a).
    (2) Section 1071 of the National Defense Authorization Act 
for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 445; 10 
U.S.C. 2112 note) is amended by striking out subsection (b).

SEC. 908. JOINT REQUIREMENTS OVERSIGHT COUNCIL.

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

SEC. 909. MEMBERSHIP OF THE AMMUNITION STORAGE BOARD.

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

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

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

SEC. 911. COMPOSITION OF AIRCRAFT ACCIDENT INVESTIGATION BOARDS.

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

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

    ``(a) Required Membership of Boards.--Whenever the 
Secretary of a military department convenes an aircraft 
accident investigation board to conduct an accident 
investigation (as described in section 2254(a)(2) of this 
title) with respect to a Class A accident involving an aircraft 
under the jurisdiction of the Secretary, the Secretary shall 
select the membership of the board so that--
            ``(1) a majority of the members (or in the case of 
        a board consisting of a single member, the member) is 
        selected from units other than the mishap unit or a 
        unit subordinate to the mishap unit; and
            ``(2) in the case of a board consisting of more 
        than one member, at least one member of the board is a 
        member of the armed forces or an officer or an employee 
        of the Department of Defense who possesses knowledge 
        and expertise relevant to aircraft accident 
        investigations.
    ``(b) Exception.--(1) The Secretary of the military 
department concerned may waive the requirement of subsection 
(a)(1) in the case of an aircraft accident if the Secretary 
determines that--
            ``(A) it is not practicable to meet the requirement 
        because of--
                    ``(i) the remote location of the aircraft 
                accident;
                    ``(ii) an urgent need to promptly begin the 
                investigation; or
                    ``(iii) a lack of available persons outside 
                of the mishap unit who have adequate knowledge 
                and expertise regarding the type of aircraft 
                involved in the accident; and
            ``(B) the objectivity and independence of the 
        aircraft accident investigation board will not be 
        compromised.
    ``(2) The Secretary shall notify Congress of a waiver 
exercised under this subsection and the reasons therefor.
    ``(c) Consultation Requirement.--In the case of an aircraft 
accident investigation board consisting of a single member, the 
member shall consult with a member of the armed forces or an 
officer or an employee of the Department of Defense who 
possesses knowledge and expertise relevant to aircraft accident 
investigations.
    ``(d) Designation of Class A Accidents.--Not later than 60 
days after an aircraft accident involving an aircraft under the 
jurisdiction of the Secretary of a military department, the 
Secretary shall determine whether the aircraft accident should 
be designated as a Class A accident for purposes of this 
section.
    ``(e) Definitions.--In this section:
            ``(1) The term `Class A accident' means an accident 
        involving an aircraft that results in--
                    ``(A) the loss of life or permanent 
                disability;
                    ``(B) damages to the aircraft, other 
                property, or a combination of both, in an 
                amount in excess of the amount specified by the 
                Secretary of Defense for purposes of 
                determining Class A accidents; or
                    ``(C) the destruction of the aircraft.
            ``(2) The term `mishap unit', with respect to an 
        aircraft accident investigation, means the unit of the 
        armed forces (at the squadron or battalion level or 
        equivalent) to which was assigned the flight crew of 
        the aircraft that sustained the accident that is the 
        subject of the investigation.''.
    (2) The table of sections at the beginning of subchapter II 
of such chapter is amended by adding at the end the following 
new item:

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

    (b) Effective Date.--Section 2255 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to any aircraft accident investigation board convened 
by the Secretary of a military department after the end of the 
six-month period beginning on the date of the enactment of this 
Act.

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

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

                   Subtitle B--Force Structure Review

SEC. 921. SHORT TITLE.

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

SEC. 922. FINDINGS.

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

SEC. 923. QUADRENNIAL DEFENSE REVIEW.

    (a) Requirement in 1997.--The Secretary of Defense, in 
consultation with the Chairman of the Joint Chiefs of Staff, 
shall complete in 1997 a review of the defense program of the 
United States intended to satisfy the requirements for a 
Quadrennial Defense Review as identified in the recommendations 
of the Commission on Roles and Missions of the Armed Forces. 
The review shall include a comprehensive examination of the 
defense strategy, force structure, force modernization plans, 
infrastructure, budget plan, and other elements of the defense 
program and policies with a view toward determining and 
expressing the defense strategy of the United States and 
establishing a revised defense program through the year 2005.
    (b) Involvement of National Defense Panel.--(1) The 
Secretary shall apprise the National Defense Panel established 
under section 924, on an ongoing basis, of the work undertaken 
in the conduct of the review.
    (2) Not later than March 14, 1997, the Chairman of the 
National Defense Panel shall submit to the Secretary the 
Panel's assessment of work undertaken in the conduct of the 
review as of that date and shall include in the assessment the 
recommendations of the Panel for improvements to the review, 
including recommendations for additional matters to be covered 
in the review.
    (c) Assessments of Review.--Upon completion of the review, 
the Chairman of the Joint Chiefs of Staff and the Chairman of 
the National Defense Panel, on behalf of the Panel, shall each 
prepare and submit to the Secretary such chairman's assessment 
of the review in time for the inclusion of the assessment in 
its entirety in the report under subsection (d).
    (d) Report.--Not later than May 15, 1997, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives a comprehensive report on the review. The 
report shall include the following:
            (1) The results of the review, including a 
        comprehensive discussion of the defense strategy of the 
        United States and the force structure best suited to 
        implement that strategy.
            (2) The threats examined for purposes of the review 
        and the scenarios developed in the examination of such 
        threats.
            (3) The assumptions used in the review, including 
        assumptions relating to the cooperation of allies and 
        mission-sharing, levels of acceptable risk, warning 
        times, and intensity and duration of conflict.
            (4) The effect on the force structure of 
        preparations for and participation in peace operations 
        and military operations other than war.
            (5) The effect on the force structure of the 
        utilization by the Armed Forces of technologies 
        anticipated to be available by the year 2005, including 
        precision guided munitions, stealth, night vision, 
        digitization, and communications, and the changes in 
        doctrine and operational concepts that would result 
        from the utilization of such technologies.
            (6) The manpower and sustainment policies required 
        under the defense strategy to support engagement in 
        conflicts lasting more than 120 days.
            (7) The anticipated roles and missions of the 
        reserve components in the defense strategy and the 
        strength, capabilities, and equipment necessary to 
        assure that the reserve components can capably 
        discharge those roles and missions.
            (8) The appropriate ratio of combat forces to 
        support forces (commonly referred to as the ``tooth-to-
        tail'' ratio) under the defense strategy, including, in 
        particular, the appropriate number and size of 
        headquarter units and Defense Agencies for that 
        purpose.
            (9) The air-lift and sea-lift capabilities required 
        to support the defense strategy.
            (10) The forward presence, pre-positioning, and 
        other anticipatory deployments necessary under the 
        defense strategy for conflict deterrence and adequate 
        military response to anticipated conflicts.
            (11) The extent to which resources must be shifted 
        among two or more theaters under the defense strategy 
        in the event of conflict in such theaters.
            (12) The advisability of revisions to the Unified 
        Command Plan as a result of the defense strategy.
            (13) Any other matter the Secretary considers 
        appropriate.

SEC. 924. NATIONAL DEFENSE PANEL.

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

SEC. 925. POSTPONEMENT OF DEADLINES.

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

SEC. 926. DEFINITIONS.

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

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

                   Subtitle C--Counter-Drug Activities

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

                     Subtitle D--Reports and Studies

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

         Subtitle E--Management of Armed Forces Retirement Home

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

                        Subtitle F--Other Matters

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

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

    (a) Authority To Transfer Authorizations.--(1) Upon 
determination by the Secretary of Defense that such action is 
necessary in the national interest, the Secretary may transfer 
amounts of authorizations made available to the Department of 
Defense in this division for fiscal year 1997 between any such 
authorizations for that fiscal year (or any subdivisions 
thereof). Amounts of authorizations so transferred shall be 
merged with and be available for the same purposes as the 
authorization to which transferred.
    (2) The total amount of authorizations that the Secretary 
of Defense may transfer under the authority of this section may 
not exceed $2,000,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items 
        that have a higher priority than the items from which 
        authority is transferred; and
            (2) may not be used to provide authority for an 
        item that has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from 
one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the 
account to which the amount is transferred by an amount equal 
to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly 
notify Congress of each transfer made under subsection (a).

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

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

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

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

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

    Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 1996 in the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) are 
hereby adjusted, with respect to any such authorized amount, by 
the amount by which appropriations pursuant to such 
authorization were increased (by a supplemental appropriation) 
or decreased (by a rescission), or both, in the Omnibus 
Consolidated Rescissions and Appropriations Act of 1996 (Public 
Law 104-134).

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

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

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

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

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

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

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

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

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

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

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

    ``(a)(1) Subject to paragraph (3), a disbursing official of 
the Coast Guard may designate a deputy disbursing official--
            ``(A) to make payments as the agent of the 
        disbursing official;
            ``(B) to sign checks drawn on disbursing accounts 
        of the Secretary of the Treasury; and
            ``(C) to carry out other duties required under law.
    ``(2) The penalties for misconduct that apply to a 
disbursing official apply to a deputy disbursing official 
designated under this subsection.
    ``(3) A disbursing official may make a designation under 
paragraph (1) only with the approval of the Secretary of 
Transportation (when the Coast Guard is not operating as a 
service in the Navy).
    ``(b)(1) If a disbursing official of the Coast Guard dies, 
becomes disabled, or is separated from office, a deputy 
disbursing official may continue the accounts and payments in 
the name of the former disbursing official until the last day 
of the second month after the month in which the death, 
disability, or separation occurs. The accounts and payments 
shall be allowed, audited, and settled as provided by law. The 
Secretary of the Treasury shall honor checks signed in the name 
of the former disbursing official in the same way as if the 
former disbursing official had continued in office.
    ``(2) The deputy disbursing official, and not the former 
disbursing official or the estate of the former disbursing 
official, is liable for the actions of the deputy disbursing 
official under this subsection.
    ``(c)(1) Except as provided in paragraph (2), this section 
does not apply to the Coast Guard when section 2773 of title 10 
applies to the Coast Guard by reason of the operation of the 
Coast Guard as a service in the Navy.
    ``(2) A designation of a deputy disbursing official under 
subsection (a) that is made while the Coast Guard is not 
operating as a service in the Navy continues in effect for 
purposes of section 2773 of title 10 while the Coast Guard 
operates as a service in the Navy unless and until the 
designation is terminated by the disbursing official who made 
the designation or an official authorized to approve such a 
designation under subsection (a)(3) of such section.''.
    (B) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (b) Designation of Members of the Armed Forces To Have 
Authority To Certify Vouchers.--Section 3325(b) of title 31, 
United States Code, is amended by striking out ``members of the 
armed forces under the jurisdiction of the Secretary of Defense 
may certify vouchers when authorized, in writing, by the 
Secretary to do so'' and inserting in lieu thereof ``members of 
the armed forces may certify vouchers when authorized, in 
writing, by the Secretary of Defense or, in the case of the 
Coast Guard when it is not operating as a service in the Navy, 
by the Secretary of Transportation''.
    (c) Conforming Amendments.--(1) Section 1007(a) of title 
37, United States Code, is amended by inserting after 
``Secretary of Defense'' the following: ``(or the Secretary of 
Transportation, in the case of an officer of the Coast Guard 
when the Coast Guard is not operating as a service in the 
Navy)''.
    (2) Section 3527(b)(1) of title 31, United States Code, is 
amended--
            (A) in subparagraph (A)(i), by inserting after 
        ``Department of Defense'' the following: ``(or the 
        Secretary of Transportation, in the case of a 
        disbursing official of the Coast Guard when the Coast 
        Guard is not operating as a service in the Navy)''; and
            (B) in subparagraph (B), by inserting after ``or 
        the Secretary of the appropriate military department'' 
        the following: ``(or the Secretary of Transportation, 
        in the case of a disbursing official of the Coast Guard 
        when the Coast Guard is not operating as a service in 
        the Navy)''.

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

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

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

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

                Subtitle B--Naval Vessels and Shipyards

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

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

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

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

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

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

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

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

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

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

                  Subtitle C--Counter-Drug Activities

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

    (a) Authority To Provide Additional Support.--Subject to 
subsection (e), during fiscal year 1997, the Secretary of 
Defense may provide the Government of Mexico with the support 
described in subsection (b) for the counter-drug activities of 
the Government of Mexico. The support provided under the 
authority of this subsection shall be in addition to support 
provided to the Government of Mexico under any other provision 
of law.
    (b) Types of Support.--The authority under subsection (a) 
is limited to the provision of the following types of support:
            (1) The transfer of non-lethal protective and 
        utility personnel equipment.
            (2) The transfer of the following nonlethal 
        specialized equipment:
                    (A) Navigation equipment.
                    (B) Secure and nonsecure communications 
                equipment.
                    (C) Photo equipment.
                    (D) Radar equipment.
                    (E) Night vision systems.
                    (F) Repair equipment and parts for 
                equipment referred to in subparagraphs (A), 
                (B), (C), (D), and (E).
            (3) The transfer of nonlethal components, 
        accessories, attachments, parts (including ground 
        support equipment), firmware, and software for aircraft 
        or patrol boats, and related repair equipment.
            (4) The maintenance and repair of equipment of the 
        Government of Mexico that is used for counter-drug 
        activities.
    (c) Applicability of Other Support Authorities.--Except as 
otherwise provided in this section, the provisions of section 
1004 of the National Defense Authorization Act for Fiscal Year 
1991 (Public Law 101-510; 10 U.S.C. 374 note) shall apply to 
the provision of support under this section.
    (d) Funding.--Of the amount authorized to be appropriated 
under section 301(19) for drug interdiction and counter-drug 
activities, not more than $8,000,000 shall be available for the 
provision of support under this section.
    (e) Limitations.--(1) The Secretary may not obligate or 
expend funds to provide support under this section until 15 
days after the date on which the Secretary submits to the 
committees referred to in paragraph (3) the certification 
described in paragraph (2).
    (2) The certification referred to in paragraph (1) is a 
written certification of the following:
            (A) That the provision of support under this 
        section will not adversely affect the military 
        preparedness of the United States Armed Forces.
            (B) That the equipment and materiel provided as 
        support will be used only by officials and employees of 
        the Government of Mexico who have undergone a 
        background check by that government.
            (C) That the Government of Mexico has certified to 
        the Secretary that--
                    (i) the equipment and material provided as 
                support will be used only by the officials and 
                employees referred to in subparagraph (B);
                    (ii) none of the equipment or materiel will 
                be transferred (by sale, gift, or otherwise) to 
                any person or entity not authorized by the 
                United States to receive the equipment or 
                materiel; and
                    (iii) the equipment and materiel will be 
                used only for the purposes intended by the 
                United States Government.
            (D) That the Government of Mexico has implemented, 
        to the satisfaction of the Secretary, a system that 
        will provide an accounting and inventory of the 
        equipment and materiel provided as support.
            (E) That the departments, agencies, and 
        instrumentalities of the Government of Mexico will 
        grant United States Government personnel access to any 
        of the equipment or materiel provided as support, or to 
        any of the records relating to such equipment or 
        materiel, under terms and conditions similar to the 
        terms and conditions imposed with respect to such 
        access under section 505(a)(3) of the Foreign 
        Assistance Act of 1961 (22 U.S.C. 2314(a)(3)).
            (F) That the Government of Mexico will provide 
        security with respect to the equipment and materiel 
        provided as support that is substantially the same 
        degree of security that the United States Government 
        would provide with respect to such equipment and 
        materiel.
            (G) That the Government of Mexico will permit 
        continuous observation and review by United States 
        Government personnel of the use of the equipment and 
        materiel provided as support under terms and conditions 
        similar to the terms and conditions imposed with 
        respect to such observation and review under section 
        505(a)(3) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2314(a)(3)).
    (3) The committees referred to in this paragraph are the 
following:
            (A) The Committee on Armed Services and the 
        Committee on Foreign Relations of the Senate.
            (B) The Committee on National Security and the 
        Committee on International Relations of the House of 
        Representatives.

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

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

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

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

``Sec. 2576a. Excess personal property: sale or donation for law 
                    enforcement activities

    ``(a) Transfer Authorized.--(1) Notwithstanding any other 
provision of law and subject to subsection (b), the Secretary 
of Defense may transfer to Federal and State agencies personal 
property of the Department of Defense, including small arms and 
ammunition, that the Secretary determines is--
            ``(A) suitable for use by the agencies in law 
        enforcement activities, including counter-drug and 
        counter-terrorism activities; and
            ``(B) excess to the needs of the Department of 
        Defense.
    ``(2) The Secretary shall carry out this section in 
consultation with the Attorney General and the Director of 
National Drug Control Policy.
    ``(b) Conditions for Transfer.--The Secretary of Defense 
may transfer personal property under this section only if--
            ``(1) the property is drawn from existing stocks of 
        the Department of Defense;
            ``(2) the recipient accepts the property on an as-
        is, where-is basis;
            ``(3) the transfer is made without the expenditure 
        of any funds available to the Department of Defense for 
        the procurement of defense equipment; and
            ``(4) all costs incurred subsequent to the transfer 
        of the property are borne or reimbursed by the 
        recipient.
    ``(c) Consideration.--Subject to subsection (b)(4), the 
Secretary may transfer personal property under this section 
without charge to the recipient agency.
    ``(d) Preference for Certain Transfers.--In considering 
applications for the transfer of personal property under this 
section, the Secretary shall give a preference to those 
applications indicating that the transferred property will be 
used in the counter-drug or counter-terrorism activities of the 
recipient agency.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2576 
the following new item:

``2576a. Excess personal property: sale or donation for law enforcement 
          activities.''.

    (b) Conforming Amendments.--(1) Section 1208 of the 
National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189; 10 U.S.C. 372 note) is repealed.
    (2) Section 1005 of the National Defense Authorization Act 
for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1630) is 
amended by striking out ``section 1208 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (10 U.S.C. 372 
note) and section 372'' and inserting in lieu thereof 
``sections 372 and 2576a''.

SEC. 1034. SALE BY FEDERAL DEPARTMENTS OR AGENCIES OF CHEMICALS USED TO 
                    MANUFACTURE CONTROLLED SUBSTANCES.

    (a) DEA Certification.--The Controlled Substances Act is 
amended by inserting after section 519 (21 U.S.C. 889) the 
following new section:

``SEC. 520. REVIEW OF FEDERAL SALES OF CHEMICALS USABLE TO MANUFACTURE 
                    CONTROLLED SUBSTANCES.

    ``A Federal department or agency may not sell from the 
stocks of the department or agency any chemical which, as 
determined by the Administrator of the Drug Enforcement 
Administration, could be used in the manufacture of a 
controlled substance unless the Administrator certifies in 
writing to the head of the department or agency that there is 
no reasonable cause to believe that the sale of the chemical 
would result in the illegal manufacture of a controlled 
substance.''.
    (b) Clerical Amendment.--The table of contents of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (84 
Stat. 1236) is amended by inserting after the item relating to 
section 519 the following new item:

``Sec. 520. Review of Federal sales of chemicals usable to manufacture 
          controlled substances.''.

                    Subtitle D--Reports and Studies

SEC. 1041. ANNUAL REPORT ON OPERATION PROVIDE COMFORT AND OPERATION 
                    ENHANCED SOUTHERN WATCH.

    (a) Annual Report.--Not later than March 1 of each year, 
the Secretary of Defense shall submit to Congress a report on 
Operation Provide Comfort and Operation Enhanced Southern 
Watch.
    (b) Matters Relating to Operation Provide Comfort.--Each 
report under subsection (a) shall include, with respect to 
Operation Provide Comfort, the following:
            (1) A detailed presentation of the projected costs 
        to be incurred by the Department of Defense for that 
        operation during the fiscal year in which the report is 
        submitted and projected for the following fiscal year, 
        together with a discussion of missions and functions 
        expected to be performed by the Department as part of 
        that operation during each of those fiscal years.
            (2) A detailed presentation of the projected costs 
        to be incurred by other departments and agencies of the 
        Federal Government participating in or providing 
        support to that operation during each of those fiscal 
        years.
            (3) A discussion of options being pursued to reduce 
        the involvement of the Department of Defense in those 
        aspects of that operation that are not directly related 
        to the military mission of the Department of Defense.
            (4) A discussion of the exit strategy for United 
        States involvement in, and support for, that operation.
            (5) A description of alternative approaches to 
        accomplishing the mission of that operation that are 
        designed to limit the scope and cost to the Department 
        of Defense of accomplishing that mission while 
        maintaining mission success.
            (6) The contributions (both in-kind and actual) by 
        other nations to the costs of conducting that 
        operation.
            (7) A detailed presentation of significant Iraqi 
        military activity (including specific violations of the 
        no-fly zone) determined to jeopardize the security of 
        the Kurdish population in northern Iraq.
    (c) Matters Relating to Operation Enhanced Southern 
Watch.--Each report under subsection (a) shall include, with 
respect to Operation Enhanced Southern Watch, the following:
            (1) The expected duration and annual costs of the 
        various elements of that operation.
            (2) The political and military objectives 
        associated with that operation.
            (3) The contributions (both in-kind and actual) by 
        other nations to the costs of conducting that 
        operation.
            (4) A description of alternative approaches to 
        accomplishing the mission of that operation that are 
        designed to limit the scope and cost of accomplishing 
        that mission while maintaining mission success.
            (5) A comprehensive discussion of the political and 
        military objectives and initiatives that the Department 
        of Defense has pursued, and intends to pursue, in order 
        to reduce United States involvement in that operation.
            (6) A detailed presentation of significant Iraqi 
        military activity (including specific violations of the 
        no-fly zone) determined to jeopardize the security of 
        the Shiite population by air attack in southern Iraq or 
        to jeopardize the security of Kuwait.
    (d) Termination of Report Requirement.--The requirement 
under subsection (a) shall cease to apply with respect to an 
operation named in that subsection upon the termination of 
United States involvement in that operation.
    (e) Definitions.--For purposes of this section:
            (1) Operation enhanced southern watch.--The term 
        ``Operation Enhanced Southern Watch'' means the 
        operation of the Department of Defense that as of 
        October 30, 1995, is designated as Operation Enhanced 
        Southern Watch.
            (2) Operation provide comfort.--The term 
        ``Operation Provide Comfort'' means the operation of 
        the Department of Defense that as of October 30, 1995, 
        is designated as Operation Provide Comfort.

SEC. 1042. ANNUAL REPORT ON EMERGING OPERATIONAL CONCEPTS.

    (a) Report Required.--Not later than March 1 of each year 
through 2000, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on 
emerging operational concepts. Each such report shall be 
prepared by the Secretary in consultation with the Chairman of 
the Joint Chiefs of Staff.
    (b) Matters To Be Included.--Each such report shall contain 
a description, for the year preceding the year in which the 
report is submitted, of the following:
            (1) The process undertaken in the Department of 
        Defense, and in each of the Army, Navy, Air Force, and 
        Marine Corps, to define and develop doctrine, 
        operational concepts, organizational concepts, and 
        acquisition strategies to address--
                    (A) the potential of emerging technologies 
                for significantly improving the operational 
                effectiveness of the Armed Forces;
                    (B) changes in the international order that 
                may necessitate changes in the operational 
                capabilities of the Armed Forces;
                    (C) emerging capabilities of potential 
                adversary states; and
                    (D) changes in defense budget projections.
            (2) The manner in which the processes described in 
        paragraph (1) are harmonized to ensure that there is a 
        sufficient consideration of the development of joint 
        doctrine, operational concepts, and acquisition 
        strategies.
            (3) The manner in which the processes described in 
        paragraph (1) are coordinated through the Joint 
        Requirements Oversight Council and reflected in the 
        planning, programming, and budgeting process of the 
        Department of Defense.

SEC. 1043. REPORT ON DEPARTMENT OF DEFENSE MILITARY CHILD CARE 
                    PROGRAMS.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense should be 
        congratulated on the successful implementation of the 
        Military Child Care Act of 1989 (originally enacted as 
        title XV of Public Law 101-189 and subsequently 
        codified as subchapter II of chapter 88 of title 10, 
        United States Code).
            (2) The actions taken by the Department as a result 
        of that Act have dramatically improved the 
        availability, affordability, quality, and consistency 
        of the child-care services provided to members of the 
        Armed Forces.
            (3) Child care is important to the readiness of 
        members of the Armed Forces since single parents and 
        couples in military service must have access to 
        affordable child care of good quality if they are to 
        perform their jobs and respond effectively to long work 
        hours or deployments.
            (4) Child care is important to the retention of 
        members of the Armed Forces in military service because 
        the dissatisfaction of the families of such members 
        with military life is a primary reason for the 
        departure of such members from military service.
    (b) Sense of Congress Related to Military-Civilian Child-
Care Partnership Programs.--It is the sense of Congress that--
            (1) the civilian and military child-care 
        communities, Federal, State, and local agencies, and 
        businesses and communities involved in the provision of 
        child-care services could benefit from the development 
        of partnerships to foster an exchange of ideas, 
        information, and materials relating to their 
        experiences with the provision of such services and to 
        encourage closer relationships between military 
        installations and the communities that support them;
            (2) such partnerships would be beneficial to all 
        families by helping providers of child-care services 
        exchange ideas about innovative ways to address 
        barriers to the effective provision of such services; 
        and
            (3) there are many ways that such partnerships 
        could be developed, including--
                    (A) cooperation between the directors and 
                curriculum specialists of military child 
                development centers and civilian child 
                development centers in assisting such centers 
                in the accreditation process;
                    (B) use of family support staff to conduct 
                parent and family workshops for new parents and 
                parents with young children in family housing 
                on military installations and in communities in 
                the vicinity of such installations;
                    (C) internships in Department of Defense 
                child-care programs for civilian child-care 
                providers to broaden the base of good-quality 
                child-care services in communities in the 
                vicinity of military installations; and
                    (D) attendance by civilian child-care 
                providers at Department child-care training 
                classes on a space-available basis.
    (c) Report.--Not later than June 30, 1997, the Secretary of 
Defense shall submit to Congress a report on the status of any 
partnerships and other initiatives undertaken by the Department 
of Defense as described in subsection (b), including 
recommendations for additional ways to improve the child-care 
programs of the Department of Defense and to improve such 
programs so as to benefit civilian child-care providers in 
communities in the vicinity of military installations.

SEC. 1044. REPORT ON DEPARTMENT OF DEFENSE MILITARY YOUTH PROGRAMS.

    (a) Findings.--Congress makes the following findings:
            (1) Programs of the Department of Defense for youth 
        who are dependents of members of the Armed Forces have 
        not received the same level of attention and resources 
        as have child care programs of the Department since the 
        passage of the Military Child Care Act of 1989 
        (originally enacted as title XV of Public Law 101-189 
        and subsequently codified as subchapter II of chapter 
        88 of title 10, United States Code).
            (2) Older children deserve as much attention to 
        their developmental needs as do younger children.
            (3) The Department has started to direct more 
        attention to programs for youths who are dependents of 
        members of the Armed Forces by providing funds for the 
        implementation of 20 model community programs to 
        address the needs of such youths.
            (4) The lessons learned from such programs could 
        apply to civilian youth programs as well.
    (b) Sense of Congress Related to Military-Civilian Youth 
Partnership Programs.--It is the sense of Congress that--
            (1) the Department of Defense, Federal, State, and 
        local agencies, and businesses and communities involved 
        in conducting youth programs could benefit from the 
        development of partnerships to foster an exchange of 
        ideas, information, and materials relating to such 
        programs and to encourage closer relationships between 
        military installations and the communities that support 
        them;
            (2) such partnerships could be beneficial to all 
        families by helping the providers of services for 
        youths exchange ideas about innovative ways to address 
        barriers to the effective provision of such services; 
        and
            (3) there are many ways that such partnerships 
        could be developed, including--
                    (A) cooperation between the Department and 
                Federal and State educational agencies in 
                exploring the use of public school facilities 
                for child care programs and youth programs that 
                are mutually beneficial to the Department and 
                civilian communities and complement programs of 
                the Department carried out at its facilities; 
                and
                    (B) improving youth programs that enable 
                adolescents to relate to new peer groups when 
                families of members of the Armed Forces are 
                relocated.
    (c) Report.--Not later than June 30, 1997, the Secretary of 
Defense shall submit to Congress a report on the status of any 
partnerships and other initiatives undertaken by the Department 
as described in subsection (b), including recommendations for 
additional ways to improve the youth programs of the Department 
of Defense and to improve such programs so as to benefit 
communities in the vicinity of military installations.

SEC. 1045. QUARTERLY REPORTS REGARDING COPRODUCTION AGREEMENTS.

    (a) Quarterly Reports on Coproduction Agreements.--Section 
36(a) of the Arms Export Control Act (22 U.S.C. 2776(a)) is 
amended--
            (1) by striking out ``and'' at the end of paragraph 
        (10);
            (2) by striking out the period at the end of 
        paragraph (11) and inserting in lieu thereof ``; and''; 
        and
            (3) by inserting after paragraph (11) the following 
        new paragraph:
            ``(12) a report on all concluded government-to-
        government agreements regarding foreign coproduction of 
        defense articles of United States origin and all other 
        concluded agreements involving coproduction or licensed 
        production outside of the United States of defense 
        articles of United States origin (including 
        coproduction memoranda of understanding or agreement) 
        that have not been previously reported under this 
        subsection, which shall include--
                    ``(A) the identity of the foreign 
                countries, international organizations, or 
                foreign firms involved;
                    ``(B) a description and the estimated value 
                of the articles authorized to be produced, and 
                an estimate of the quantity of the articles 
                authorized to be produced;
                    ``(C) a description of any restrictions on 
                third party transfers of the foreign-
                manufactured articles; and
                    ``(D) if any such agreement does not 
                provide for United States access to and 
                verification of quantities of articles produced 
                overseas and their disposition in the foreign 
                country, a description of alternative measures 
                and controls incorporated in the coproduction 
                or licensing program to ensure compliance with 
                restrictions in the agreement on production 
                quantities and third party transfers.''.
    (b) Effective Date.--Paragraph (12) of section 36(a) of the 
Arms Export Control Act, as added by subsection (a)(3), does 
not apply with respect to an agreement described in such 
paragraph entered into before the date of the enactment of this 
Act.

SEC. 1046. REPORT ON WITNESS INTERVIEW PROCEDURES FOR DEPARTMENT OF 
                    DEFENSE CRIMINAL INVESTIGATIONS.

    (a) Survey of Military Department Policies and Practices.--
The Comptroller General of the United States shall conduct a 
survey of the policies and practices of the Naval Criminal 
Investigative Service with respect to the manner in which 
interviews of suspects and witnesses are conducted in 
connection with criminal investigations of allegations of 
contractor fraud. The purpose of the survey shall be to 
ascertain whether or not investigators and agents of the Naval 
Criminal Investigative Service conduct investigations of 
contractor fraud in accordance with generally accepted Federal 
law enforcement standards and applicable law.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on National Security of the House of 
Representatives and the Committee on Armed Services of the 
Senate a report concerning the survey under subsection (a). The 
report shall specifically address the following:
            (1) The extent to which investigators of the Naval 
        Criminal Investigative Service investigators and agents 
        of the Naval Criminal Investigative Service conduct 
        investigations of contractor fraud in accordance with 
        generally accepted federal law enforcement standards 
        and applicable law.
            (2) The extent to which the interview policies 
        established by Department of Defense directives or Navy 
        regulations are adequate to instruct and guide 
        investigators in the proper conduct of subject and 
        witness interviews.
            (3) The desirability and feasibility of providing 
        for video and audio recording of interviews and, if 
        recording is desirable, the circumstances under which 
        recordings should be made.
            (4) The desirability and feasibility of making such 
        recordings or written transcriptions of interviews, or 
        both, available on demand to the subject or witness 
        interviewed.
            (5) The extent to which existing Department of 
        Defense directives and Navy regulations address the 
        carrying and display of weapons by agents, together 
        with an assessment of whether any change in any such 
        directive or regulation is necessary.
            (6) The extent to which existing Department of 
        Defense directives and Navy regulations provide 
        guidance to agents to ensure that the agents' conduct 
        and demeanor is in accordance with generally accepted 
        federal law enforcement standards and applicable law.
            (7) Any recommendation for legislation to ensure 
        that investigators and agents of the Naval Criminal 
        Investigative Service use legal and proper tactics 
        during interviews in connection with criminal 
        investigations of allegations of contractor fraud.

SEC. 1047. REPORT ON MILITARY READINESS REQUIREMENTS OF THE ARMED 
                    FORCES.

    (a) Report Required.--Not later than January 31, 1997, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the military 
readiness requirements of the active and reserve components of 
the Armed Forces, including specific combat units, combat 
support units, and combat service support units. Based on the 
assessment scenario described in subsection (c), the report 
shall assess such readiness requirements under a tiered 
readiness and response system that categorizes a given unit of 
the Armed Forces according to the likelihood that the unit will 
be required to respond to a military conflict and the time in 
which the unit will be required to respond.
    (b) Preparation of Report.--The Chairman of the Joint 
Chiefs of Staff, together with the other members of the Joint 
Chiefs of Staff specified in section 151(a) of title 10, United 
States Code, shall prepare the report required by subsection 
(a). The Chairman of the Joint Chiefs of Staff shall consult 
with the Commander of the Special Operations Command in the 
preparation of the report.
    (c) Assessment Scenario.--The report shall assess readiness 
requirements in a scenario based on the following assumptions:
            (1) The conflict is in a generic theater of 
        operations located anywhere in the world and does not 
        exceed the notional limits for a major regional 
        conflict.
            (2) The forces available for deployment include the 
        forces described in the Bottom Up Review force 
        structure, including all planned force enhancements.
            (3) Assistance is not available from allies.
    (d) Assessment Elements.--The report shall identify by unit 
type and component, and assess the readiness requirements of, 
all active and reserve component units. Each such unit shall be 
categorized within one of the following classifications:
            (1) Forward-deployed and crisis response forces, or 
        ``Tier I'' forces, that possess limited internal 
        sustainment capability and do not require immediate 
        access to regional air bases or ports or overflight 
        rights, including the following:
                    (A) Force units that are routinely deployed 
                forward at sea or on land outside the United 
                States.
                    (B) Combat-ready crises response forces 
                that are capable of mobilizing and deploying 
                within 10 days after receipt of orders.
                    (C) Forces that are supported by 
                prepositioning equipment afloat or are capable 
                of being inserted into a theater upon the 
                capture of a port or airfield by forcible entry 
                forces.
            (2) Combat-ready follow-on forces, or ``Tier II'' 
        forces, that can be mobilized and deployed to a theater 
        within approximately 60 days after receipt of orders.
            (3) Combat-ready conflict resolution forces, or 
        ``Tier III'' forces, that can be mobilized and deployed 
        to a theater within approximately 180 days after 
        receipt of orders.
            (4) All other active and reserve component force 
        units which are not categorized within a classification 
        described in paragraph (1), (2), or (3).
    (e) Additional Information Regarding Certain Units.--With 
regard to each unit that is not categorized within a 
classification described in paragraph (1), (2), or (3) of 
subsection (d), the report shall include--
            (1) a description of the mission and mobilization 
        or deployment schedule (or both) of the unit in 
        connection with the requirements of the assessment 
        scenario and the combat readiness requirements of the 
        Armed Forces; or
            (2) an identification of the unit as excess to the 
        needs of the national military strategy and the reasons 
        therefor.
    (f) Form of Report.--The report under this section shall be 
submitted in unclassified form but may contain a classified 
annex.

SEC. 1048. REPORT ON NATO ENLARGEMENT.

    (a) Report.--Not later than February 1, 1997, the President 
shall transmit to the Committee on Armed Services and the 
Committee on Foreign Relations of the Senate and the Committee 
on National Security and the Committee on International 
Relations of the House of Representatives a report on the 
enlargement of the North Atlantic Treaty Organization. The 
report shall contain a comprehensive discussion of the 
following:
            (1) Geopolitical and financial costs and benefits, 
        including financial savings, associated with--
                    (A) enlargement of the North Atlantic 
                Treaty Organization;
                    (B) further delays in the process of 
                enlargement of the North Atlantic Treaty 
                Organization; and
                    (C) a failure to enlarge the North Atlantic 
                Treaty Organization.
            (2) Additional North Atlantic Treaty Organization 
        and United States military expenditures requested by 
        prospective members of the North Atlantic Treaty 
        Organization to facilitate their admission into the 
        North Atlantic Treaty Organization.
            (3) Modifications necessary in the military 
        strategy of the North Atlantic Treaty Organization and 
        force structure required by the inclusion of new 
        members and steps necessary to integrate new members, 
        including the role of nuclear and conventional 
        capabilities, reinforcement, force deployments, 
        prepositioning of equipment, mobility, and headquarter 
        locations.
            (4) The relationship between enlargement of the 
        North Atlantic Treaty Organization and transatlantic 
        stability and security.
            (5) The state of military preparedness and 
        interoperability of Central and Eastern European 
        nations as it relates to the responsibilities of 
        membership of the North Atlantic Treaty Organization 
        and additional security costs or benefits that may 
        accrue to the United States from enlargement of the 
        North Atlantic Treaty Organization.
            (6) The state of democracy and free market 
        development as it affects the preparedness of Central 
        and Eastern European nations for the responsibilities 
        of membership of the North Atlantic Treaty 
        Organization, including civilian control of the 
        military, the rule of law, human rights, and 
        parliamentary oversight.
            (7) The state of relations between prospective 
        members of the North Atlantic Treaty Organization and 
        their neighbors, steps taken by prospective members to 
        reduce tensions, and mechanisms for the peaceful 
        resolution of border disputes.
            (8) The commitment of prospective members of the 
        North Atlantic Treaty Organization to the principles of 
        the North Atlantic Treaty and the security of the North 
        Atlantic area.
            (9) The effect of enlargement of the North Atlantic 
        Treaty Organization on the political, economic, and 
        security conditions of European Partnership for Peace 
        nations not among the first new members of the North 
        Atlantic Treaty Organization.
            (10) The relationship between enlargement of the 
        North Atlantic Treaty Organization and EU enlargement 
        and the costs and benefits of both.
            (11) The relationship between enlargement of the 
        North Atlantic Treaty Organization and treaties 
        relevant to United States and European security, such 
        as the Conventional Armed Forces in Europe Treaty.
            (12) The anticipated impact both of enlargement of 
        the North Atlantic Treaty Organization and further 
        delays of enlargement on Russian foreign and defense 
        policies and the costs and benefits of a security 
        relationship between the North Atlantic Treaty 
        Organization and Russia.
    (b) Interpretation.--Nothing in this section shall be 
interpreted or construed to affect the implementation of the 
NATO Participation Act of 1994 (title II of Public Law 103-447; 
22 U.S.C. 1928 note), or any other program or activity which 
facilitates or assists prospective members of the North 
Atlantic Treaty Organization.

         Subtitle E--Management of Armed Forces Retirement Home

SEC. 1051. RETIREMENT HOME BOARDS OF DIRECTORS.

    (a) Additional Term of Office.--Subsection (e) of section 
1515 of the Armed Forces Retirement Home Act of 1991 (24 U.S.C. 
415) is amended by adding at the end the following new 
paragraph:
    ``(3) The chairman of the Retirement Home Board may appoint 
a member of the Retirement Home Board for a second consecutive 
term. The chairman of a Local Board may appoint a member of 
that Local Board for a second consecutive term.''.
    (b) Early Expiration of Term.--(1) Subsection (f) of such 
section is amended to read as follows:
    ``(f) Early Expiration of Term.--A member of the Armed 
Forces or Federal civilian employee who is appointed as a 
member of the Retirement Home Board or a Local Board may serve 
as a board member only so long as the member of the Armed 
Forces or Federal civilian employee is assigned to or serving 
in the duty position that gave rise to the appointment as a 
board member.''.
    (2) The amendment made by this subsection shall not affect 
the staggered terms of members of the Armed Forces Retirement 
Home Board or a Local Board of the Retirement Home under 
section 1515(f) of such Act, as such section is in effect 
before the date of the enactment of this Act.
    (c) Annual Evaluation of Directors.--Section 1517 of such 
Act (24 U.S.C. 417) is amended by striking out subsection (f) 
and inserting in lieu thereof the following:
    ``(f) Annual Evaluation of Directors.--The chairman of the 
Retirement Home Board shall annually evaluate the performance 
of the Directors and shall make such recommendations to the 
Secretary of Defense as the chairman considers appropriate in 
light of the evaluation.''.

SEC. 1052. [S582 HR] ACCEPTANCE OF UNCOMPENSATED SERVICES.

    (a) Authority.--Part A of the Armed Forces Retirement Home 
Act of 1991 (title XV of Public Law 101-510; 24 U.S.C. 401 et 
seq.) is amended by adding at the end the following new 
section:

``SEC. 1522. AUTHORITY TO ACCEPT CERTAIN UNCOMPENSATED SERVICES.

    ``(a) Authority To Accept Services.--Subject to subsection 
(b) and notwithstanding section 1342 of title 31, United States 
Code, the Chairman of the Retirement Home Board or the Director 
of each establishment of the Retirement Home may accept from 
any person voluntary personal services or gratuitous services 
unless the acceptance of the voluntary services is disapproved 
by the Retirement Home Board.
    ``(b) Requirements and Limitations.--(1) The Chairman of 
the Retirement Home Board or the Director of the establishment 
accepting the services shall notify the person of the scope of 
the services accepted.
    ``(2) The Chairman or Director shall--
            ``(A) supervise the person providing the services 
        to the same extent as that official would supervise a 
        compensated employee providing similar services; and
            ``(B) ensure that the person is licensed, 
        privileged, has appropriate credentials, or is 
        otherwise qualified under applicable laws or 
        regulations to provide such services.
    ``(3) A person providing services accepted under subsection 
(a) may not--
            ``(A) serve in a policymaking position of the 
        Retirement Home; or
            ``(B) be compensated for the services by the 
        Retirement Home.
    ``(c) Authority To Recruit and Train Persons Providing 
Services.--The Chairman of the Retirement Home Board or the 
Director of an establishment of the Retirement Home may recruit 
and train persons to provide services authorized to be accepted 
under subsection (a).
    ``(d) Status of Persons Providing Services.--(1) Subject to 
paragraph (3), while providing services accepted under 
subsection (a) or receiving training under subsection (c), a 
person shall be considered to be an employee of the Federal 
Government only for purposes of the following provisions of 
law:
            ``(A) Subchapter I of chapter 81 of title 5, United 
        States Code (relating to compensation for work-related 
        injuries).
            ``(B) Chapter 171 of title 28, United States Code 
        (relating to claims for damages or loss).
    ``(2) A person providing services accepted under subsection 
(a) shall be considered to be an employee of the Federal 
Government under paragraph (1) only with respect to services 
that are within the scope of the services accepted.
    ``(3) For purposes of determining the compensation for 
work-related injuries payable under chapter 81 of title 5, 
United States Code (pursuant to this subsection) to a person 
providing services accepted under subsection (a), the monthly 
pay of the person for such services shall be deemed to be the 
amount determined by multiplying--
            ``(A) the average monthly number of hours that the 
        person provided the services, by
            ``(B) the minimum wage determined in accordance 
        with section 6(a)(1) of the Fair Labor Standards Act of 
        1938 (29 U.S.C. 206(a)(1)).
    ``(e) Reimbursement of Incidental Expenses.--The Chairman 
of the Retirement Board or the Director of the establishment 
accepting services under subsection (a) may provide for 
reimbursement of a person for incidental expenses incurred by 
the person in providing the services accepted under subsection 
(a). The Chairman or Director shall determine which expenses 
qualify for reimbursement under this subsection.''.
    (b) Federal Status of Residents Paid for Part-Time or 
Intermittent Services.--Paragraph (2) of section 1521(b) of the 
Armed Forces Retirement Home Act of 1991 (24 U.S.C. 421(b)) is 
amended to read as follows:
            ``(2) being an employee of the United States for 
        any purpose other than--
                    ``(A) subchapter I of chapter 81 of title 
                5, United States Code (relating to compensation 
                for work-related injuries); and
                    ``(B) chapter 171 of title 28, United 
                States Code (relating to claims for damages or 
                loss).''.

SEC. 1053. DISPOSAL OF TRACT OF REAL PROPERTY IN THE DISTRICT OF 
                    COLUMBIA.

    (a) Disposal Authorized.--Notwithstanding title II the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 481 et seq.), title VIII of such Act (40 U.S.C. 531 et 
seq.), section 501 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11411), or any other provision of law 
relating to the management and disposal of real property by the 
United States, the Armed Forces Retirement Home Board may 
convey, by sale or otherwise, all right, title, and interest of 
the United States in a parcel of real property, including 
improvements thereon, consisting of approximately 49 acres 
located in Washington, District of Columbia, east of North 
Capitol Street, and recorded as District Parcel 121/19.
    (b) Manner, Terms, and Conditions of Disposal.--The Armed 
Forces Retirement Home Board may determine--
            (1) the manner for the disposal of the real 
        property under subsection (a); and
            (2) the terms and conditions for the conveyance of 
        that property, including any terms and conditions that 
        the Board considers necessary to protect the interests 
        of the United States.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Armed Forces Retirement Home Board. The cost of the survey 
shall be borne by the party or parties to which the property is 
to be conveyed.
    (d) Congressional Notification.--(1) Before disposing of 
real property under subsection (a), the Armed Forces Retirement 
Home Board shall notify the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives of the proposed disposal. The Board may not 
dispose of the real property until the later of--
            (A) the date that is 60 days after the date on 
        which the notification is received by the committees; 
        or
            (B) the date of the next day following the 
        expiration of the first period of 30 days of continuous 
        session of Congress that follows the date on which the 
        notification is received by the committees.
    (2) For the purposes of paragraph (1)--
            (A) continuity of session is broken only by an 
        adjournment of Congress sine die; and
            (B) the days on which either House is not in 
        session because of an adjournment of more than three 
        days to a day certain are excluded in the computation 
        of any period of time in which Congress is in 
        continuous session.

                       Subtitle F--Other Matters

SEC. 1061. POLICY ON PROTECTION OF NATIONAL INFORMATION INFRASTRUCTURE 
                    AGAINST STRATEGIC ATTACK.

    (a) Report Requirement.--Not later than 180 days after the 
date of the enactment of this Act, the President shall submit 
to Congress a report setting forth a national policy on 
protecting the national information infrastructure against 
strategic attack.
    (b) Matters To Be Included.--The policy described in the 
report shall include the following:
            (1) Plans to meet essential Government and civilian 
        needs during a national security emergency associated 
        with a strategic attack on elements of the national 
        information infrastructure the functioning of which 
        depend on networked computer systems.
            (2) The identification of information 
        infrastructure functions that must be performed during 
        such an emergency.
            (3) The assignment of responsibilities to Federal 
        departments and agencies, and a description of the 
        roles of Government and industry, relating to 
        indications and warning of, assessment of, response to, 
        and reconstitution after, potential strategic attacks 
        on the elements of the national information 
        infrastructure described under paragraph (1).
    (c) Unresolved Issues.--The report shall also identify--
            (1) matters relating to the national policy 
        described in the report that, as of the submission of 
        the report, are in need of further study and 
        resolution, such as technology and funding shortfalls; 
        and
            (2) legal and regulatory considerations relating to 
        the national policy.
    (d) Update of Earlier Report.--The report shall include an 
update of the report required to be submitted to Congress 
pursuant to section 1053 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 440).

SEC. 1062. INFORMATION SYSTEMS SECURITY PROGRAM.

    (a) Allocation.--Of the amounts appropriated for the 
Department of Defense for the Defense Information 
Infrastructure for each of fiscal years 1999 through 2002, the 
Secretary of Defense shall allocate to the information systems 
security program (program element 0303140K) amounts as follows:
            (1) For fiscal year 1999, 2.5 percent.
            (2) For fiscal year 2000, 3.0 percent.
            (3) For fiscal year 2001, 3.5 percent.
            (4) For fiscal year 2002, 4.0 percent.
    (b) Relationship to Other Amounts.--Amounts allocated under 
subsection (a) are in addition to amounts appropriated to the 
National Security Agency and the Defense Advanced Research 
Projects Agency for development of information security 
systems, acquisition of information security systems, and 
operation of information security systems.
    (c) Report.--Not later than November 15, 1997, the 
Secretary of Defense shall submit to the congressional defense 
committees and the congressional intelligence committees a 
report on information security activities of the Department of 
Defense. The report shall describe--
            (1) the objectives of the Secretary with respect to 
        information security and the strategy of the Secretary 
        (including the strategy with respect to funding) during 
        fiscal years 1999 through 2002 to achieve those 
        objectives;
            (2) how the Secretary intends to manage and 
        allocate the funds required by subsection (a) to be 
        allocated to the information systems security program; 
        and
            (3) if the Secretary determines that a funding plan 
        for the information systems security program for fiscal 
        years 1999 through 2002 other than that specified in 
        subsection (a) is appropriate, the alternative funding 
        plan proposed by the Secretary.
    (d) Defense Information Infrastructure.--For purposes of 
this section, the Defense Information Infrastructure is the web 
of communications networks, computers, software, databases, 
applications, data security services, and other capabilities 
that meets the information processing and transport needs of 
Department of Defense users.

SEC. 1063. AUTHORITY TO ACCEPT SERVICES FROM FOREIGN GOVERNMENTS AND 
                    INTERNATIONAL ORGANIZATIONS FOR DEFENSE PURPOSES.

    Section 2608(a) of title 10, United States Code, is amended 
by inserting before the period at the end the following: ``and 
may accept from any foreign government or international 
organization any contribution of services made by such foreign 
government or international organization for use by the 
Department of Defense''.

SEC. 1064. PROHIBITION ON COLLECTION AND RELEASE OF DETAILED SATELLITE 
                    IMAGERY RELATING TO ISRAEL.

    (a) Collection and Dissemination.--A department or agency 
of the United States may issue a license for the collection or 
dissemination by a non-Federal entity of satellite imagery with 
respect to Israel only if such imagery is no more detailed or 
precise than satellite imagery of Israel that is available from 
commercial sources.
    (b) Declassification and Release.--A department or agency 
of the United States may declassify or otherwise release 
satellite imagery with respect to Israel only if such imagery 
is no more detailed or precise than satellite imagery of Israel 
that is available from commercial sources.

SEC. 1065. GEORGE C. MARSHALL EUROPEAN CENTER FOR STRATEGIC SECURITY 
                    STUDIES.

    (a) Authority To Accept Foreign Gifts and Donations.--(1) 
The Secretary of Defense may, on behalf of the George C. 
Marshall European Center for Strategic Security Studies (in 
this section referred to as the ``Marshall Center''), accept 
foreign gifts or donations in order to defray the costs of, or 
enhance the operation of, the Marshall Center.
    (2) Funds received by the Secretary under paragraph (1) 
shall be credited to appropriations available for the 
Department of Defense for the Marshall Center. Funds so 
credited shall be merged with the appropriations to which 
credited and shall be available for the Marshall Center for the 
same purposes and same period as the appropriations with which 
merged.
    (3) The Secretary of Defense shall notify Congress if the 
total amount of money accepted under paragraph (1) exceeds 
$2,000,000 in any fiscal year. Any such notice shall list each 
of the contributors of such amounts and the amount of each 
contribution in such fiscal year.
    (4) For purposes of this subsection, a foreign gift or 
donation is a gift or donation of funds, materials (including 
research materials), property, or services (including lecture 
services and faculty services) from a foreign government, a 
foundation or other charitable organization in a foreign 
country, or an individual in a foreign country.
    (b) Marshall Center Participation By Foreign Nations.--(1) 
Notwithstanding any other provision of law, the Secretary of 
Defense may authorize participation by a European or Eurasian 
nation in Marshall Center programs if the Secretary determines, 
after consultation with the Secretary of State, that such 
participation is in the national interest of the United States.
    (2) Not later than January 31 of each year, the Secretary 
of Defense shall submit to Congress a report setting forth the 
names of the foreign nations permitted to participate in 
programs of the Marshall Center during the preceding year under 
paragraph (1). Each such report shall be prepared by the 
Secretary with the assistance of the Director of the Marshall 
Center.
    (c) Exemptions for Members of Marshall Center Board of 
Visitors From Certain Requirements.--(1) In the case of any 
person invited to serve without compensation on the Marshall 
Center Board of Visitors, the Secretary of Defense may waive 
any requirement for financial disclosure that would otherwise 
apply to that person solely by reason of service on such Board.
    (2) Notwithstanding any other provision of law, a member of 
the Marshall Center Board of Visitors may not be required to 
register as an agent of a foreign government solely by reason 
of service as a member of the Board.
    (3) Notwithstanding section 219 of title 18, United States 
Code, a non-United States citizen may serve on the Marshall 
Center Board of Visitors even though registered as a foreign 
agent.

SEC. 1066. AUTHORITY TO AWARD TO CIVILIAN PARTICIPANTS IN THE DEFENSE 
                    OF PEARL HARBOR THE CONGRESSIONAL MEDAL PREVIOUSLY 
                    AUTHORIZED ONLY FOR MILITARY PARTICIPANTS IN THE 
                    DEFENSE OF PEARL HARBOR.

    (a) Authority.--The Speaker of the House of Representatives 
and the President pro tempore of the Senate are authorized 
jointly to present, on behalf of Congress, a bronze medal 
provided for under section 1492 of the National Defense 
Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 
Stat. 1721) to any person who meets the eligibility 
requirements set forth in subsection (d) of that section other 
than the requirement for membership in the Armed Forces, as 
certified under subsection (e) of that section or under 
subsection (b) of this section.
    (b) Certification.--The Secretary of Defense shall, not 
later than 12 months after the date of the enactment of this 
Act, certify to the Speaker of the House of Representatives and 
the President pro tempore of the Senate the names of persons 
who are eligible for award of the medal under this Act and have 
not previously been certified under section 1492(e) of the 
National Defense Authorization Act for Fiscal Year 1991.
    (c) Applications.--Subsections (d)(2) and (f) of section 
1492 of the National Defense Authorization Act for Fiscal Year 
1991 shall apply in the administration of this section.
    (d) Additional Striking Authority.--The Secretary of the 
Treasury shall strike such additional medals as may be 
necessary for presentation under the authority of subsection 
(a).
    (e) Authorization of Appropriations.--There is authorized 
to be appropriated such sum as may be necessary to carry out 
this section.
    (f) Retroactive Effective Date.--The authority under 
subsection (a) shall be effective as of November 5, 1990.

SEC. 1067. ASSIMILATIVE CRIMES AUTHORITY FOR TRAFFIC OFFENSES ON 
                    MILITARY INSTALLATIONS.

    Section 4 of the Act of June 1, 1948 (40 U.S.C. 318c), is 
amended--
            (1) by striking out ``Whoever shall violate'' and 
        inserting in lieu thereof ``(a) Except as provided in 
        subsection (b), whoever violates'';
            (2) by inserting ``than'' after ``not more''; and
            (3) by adding at the end the following:
    ``(b)(1) Whoever violates any military traffic regulation 
shall be fined an amount not to exceed the amount of the 
maximum fine for a like or similar offense under the criminal 
or civil law of the State, territory, possession, or district 
where the military installation in which the violation occurred 
is located, or imprisoned for not more than 30 days, or both.
    ``(2) For purposes of this subsection, the term `military 
traffic regulation' means a rule or regulation for the control 
of vehicular or pedestrian traffic on military installations 
that is promulgated by the Secretary of Defense, or the 
designee of the Secretary, under the authority delegated 
pursuant to section 2.''.

SEC. 1068. UNIFORM CODE OF MILITARY JUSTICE AMENDMENTS.

    (a) Technical Amendment Regarding Forfeitures During 
Confinement Adjudged by a Court-martial.--(1) Section 
858b(a)(1) of title 10, United States Code (article 58b(a)(1) 
of the Uniform Code of Military Justice), is amended--
            (A) in the first sentence, by inserting ``(if 
        adjudged by a general court-martial)'' after ``all pay 
        and''; and
            (B) in the third sentence, by striking out ``two-
        thirds of all pay and allowances'' and inserting in 
        lieu thereof ``two-thirds of all pay''.
    (2) The amendments made by paragraph (1) shall take effect 
as of April 1, 1996, and shall apply to any case in which a 
sentence is adjudged by a court-martial on or after that date.
    (b)  Excepted Service Appointments to Certain Nonattorney 
Positions of the United States Court of Appeals for the Armed 
Forces.--(1) Subsection (c) of section 943 of title 10, United 
States Code (article 143(c) of the Uniform Code of Military 
Justice) is amended in paragraph (1) by inserting after the 
first sentence the following: ``A position of employment under 
the Court that is provided primarily for the service of one 
judge of the court, reports directly to the judge, and is a 
position of a confidential character is excepted from the 
competitive service.''.
    (2) The caption for such subsection is amended by striking 
out ``attorney'' and inserting in lieu thereof ``certain''.
    (c) Repeal of 13-Year Special Limit on Term of Transitional 
Judge of United States Court of Appeals for the Armed Forces.--
(1) Subsection (d)(2) of section 1301 of the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
101-189; 103 Stat. 1575; 10 U.S.C. 942 note) is amended by 
striking out ``to the judges who are first appointed to the two 
new positions of the court created as of October 1, 1990--'' 
and all that follows and inserting in lieu thereof ``to the 
judge who is first appointed to one of the two new positions of 
the court created as of October 1, 1990, as designated by the 
President at the time of appointment, the anniversary referred 
to in subparagraph (A) of that paragraph shall be treated as 
being the seventh anniversary and the number of years referred 
to in subparagraph (B) of that paragraph shall be treated as 
being seven.''.
    (2) Subsection (e)(1) of such section is amended by 
striking out ``each judge'' and inserting in lieu thereof ``a 
judge''.

SEC. 1069. PUNISHMENT OF INTERSTATE STALKING.

    (a) In General.--Chapter 110A of title 18, United States 
Code, is amended by inserting after section 2261 the following 
new section:

``Sec. 2261A. Interstate stalking

    ``Whoever travels across a State line or within the special 
maritime and territorial jurisdiction of the United States with 
the intent to injure or harass another person, and in the 
course of, or as a result of, such travel places that person in 
reasonable fear of the death of, or serious bodily injury (as 
defined in section 1365(g)(3) of this title) to, that person or 
a member of that person's immediate family (as defined in 
section 115 of this title) shall be punished as provided in 
section 2261 of this title.''.
    (b) Conforming Amendments.--Title 18, United States Code, 
is amended as follows:
            (1) Section 2261(b) is amended by inserting ``or 
        section 2261A'' after ``this section''.
            (2) Sections 2261(b) and 2262(b) are each amended 
        by striking ``offender's spouse or intimate partner'' 
        each place it appears and inserting ``victim''.
            (3) The chapter heading for chapter 110A is amended 
        by inserting ``AND STALKING'' after ``VIOLENCE''.
            (4) The item relating to chapter 110A in the table 
        of chapters at the beginning of part I is amended to 
        read as follows:

``110A.  Domestic violence and stalking..........................2261''.

    (c) Clerical Amendment.--The table of sections at the 
beginning of chapter 110A of such title is amended by inserting 
after the item relating to section 2261 the following new item:

``2261A. Interstate stalking.''.

SEC. 1070. PARTICIPATION OF MEMBERS, DEPENDENTS, AND OTHER PERSONS IN 
                    CRIME PREVENTION EFFORTS AT INSTALLATIONS.

    (a) Crime Prevention Plan.--The Secretary of Defense shall 
prepare and implement an incentive-based plan to encourage 
members of the Armed Forces, dependents of members, civilian 
employees of the Department of Defense, and employees of 
defense contractors performing work at military installations 
to report to an appropriate military law enforcement agency any 
crime or criminal activity that the person reasonably believes 
occurred on a military installation or involves a member of the 
Armed Forces.
    (b) Incentives To Report Criminal Activity.--The Secretary 
of Defense shall include in the plan developed under subsection 
(a) incentives for members and other persons described in such 
subsection to provide information to appropriate military law 
enforcement agencies regarding any crime or criminal activity 
occurring on a military installation or involving a member of 
the Armed Forces.
    (c) Report Regarding Implementation.--Not later than 
February 1, 1997, the Secretary shall submit to Congress a 
report describing the plan being developed under subsection 
(a).

SEC. 1071. DISPLAY OF STATE FLAGS AT INSTALLATIONS AND FACILITIES OF 
                    THE DEPARTMENT OF DEFENSE.

    (a) In General.--Subchapter I of chapter 134 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 2249b. Display of State flags: prohibition on use of funds to 
                    arbitrarily exclude flag; position and manner of 
                    display

    ``(a) Prohibition on Use of Funds.--Funds available to the 
Department of Defense may not be used to prescribe or enforce 
any rule that arbitrarily excludes the official flag of any 
State, territory, or possession of the United States from any 
display of the flags of the States, territories, and 
possessions of the United States at an official ceremony of the 
Department of Defense.
    ``(b) Position and Manner of Display.--The display of an 
official flag of a State, territory, or possession of the 
United States at an installation or other facility of the 
Department shall be governed by the provisions of section 3 of 
the Joint Resolution of June 22, 1942 (56 Stat. 378, chapter 
435; 36 U.S.C. 175), and any modification of such provisions 
under section 8 of that Joint Resolution (36 U.S.C. 178).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of chapter I of such chapter is amended by adding at 
the end the following new item:

``2249b. Display of State flags: prohibition on use of funds to 
          arbitrarily exclude flag; position and manner of display.''.

SEC. 1072. TREATMENT OF EXCESS OPERATIONAL SUPPORT AIRLIFT AIRCRAFT.

    (a) Reutilization or Sale Before Transfer.--An operational 
support airlift aircraft that is excess to the requirements of 
the United States shall be placed in an inactive status and 
stored at Davis-Monthan Air Force Base, Arizona, only upon the 
determination of the Secretary of Defense that all reasonable 
efforts for the reutilization of the aircraft by, or sale of 
the aircraft to, Federal agencies or other persons have been 
completed. The Secretary shall ensure that attempts to 
reutilize or sell the entire aircraft are given precedence over 
any reutilization or sale of individual parts or components of 
the aircraft.
    (b) Operational Support Airlift Aircraft Defined.--In this 
section, the term ``operational support airlift aircraft'' has 
the meaning given such term in section 1086(f) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 458).

SEC. 1073. CORRECTION TO STATUTORY REFERENCES TO CERTAIN DEPARTMENT OF 
                    DEFENSE ORGANIZATIONS.

    (a) North American Aerospace Defense Command.--Section 
162(a) of title 10, United States Code, is amended by striking 
out ``North American Air Defense Command'' in paragraphs (1), 
(2), and (3) and inserting in lieu thereof ``North American 
Aerospace Defense Command''.
    (b) Former Naval Records and History Office and Fund.--(1) 
Section 7222 of title 10, United States Code, is amended by 
striking out ``Office of Naval Records and History'' each place 
it appears in subsections (a) and (c) and inserting in lieu 
thereof ``Naval Historical Center''.
    (2)(A) The heading of such section is amended to read as 
follows:

``Sec. 7222. Naval Historical Center Fund''.

    (B) The item relating to such section in the table of 
sections at the beginning of chapter 631 of title 10, United 
States Code, is amended to read as follows:

``7222. Naval Historical Center Fund.''.

    (3) Section 2055(g) of the Internal Revenue Code of 1986 is 
amended by striking out paragraph (4) and inserting in lieu 
thereof the following:

          ``(4) For treatment of gifts and bequests for the benefit of 
        the Naval Historical Center as gifts or bequests to or for the 
        use of the United States, see section 7222 of title 10, United 
        States Code.''.

    (c) Defense Distribution Center, Anniston.--The Corporation 
for the Promotion of Rifle Practice and Firearms Safety Act 
(title XVI of Public Law 104-106; 110 Stat. 515; 36 U.S.C. 5501 
et seq.) is amended by striking out ``Anniston Army Depot'' 
each place it appears in the following provisions and inserting 
in lieu thereof ``Defense Distribution Depot, Anniston'':
            (1) Section 1615(a)(3) (36 U.S.C. 5505(a)(3)).
            (2) Section 1616(b) (36 U.S.C. 5506(b)).
            (3) Section 1619(a)(1) (36 U.S.C. 5509(a)(1)).
    (d) Chemical Demilitarization Citizens Advisory 
Commissions.--Section 172 of the National Defense Authorization 
Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2341; 
50 U.S.C. 1521 note) is amended by striking out ``Assistant 
Secretary of the Army (Installations, Logistics, and 
Environment)'' in subsections (b) and (f) and inserting in lieu 
thereof ``Assistant Secretary of the Army (Research, 
Development and Acquisition)''.
    (e) Defense Advanced Research Projects Agency.--(1) Each of 
the following provisions of law is amended by inserting 
``Defense'' before ``Advanced Research Projects Agency'' each 
place it appears:
            (A) Section 5316 of title 5, United States Code.
            (B) Subsections (b), (f), and (i) of section 2371 
        of title 10, United States Code.
            (C) Section 822(c)(1)(D) of Public Law 101-510 (42 
        U.S.C. 6686).
            (D) Section 845(a) of Public Law 103-160 (10 U.S.C. 
        2371 note).
            (E) Section 243(a) of Public Law 103-160 (10 U.S.C. 
        2431 note).
            (F) Sections 1352(c)(2), 1353, and 1354(a) of 
        Public Law 103-160 (10 U.S.C. 2501 note).
    (2) The section headings of each of the following sections 
are amended by inserting ``defense'' before ``advanced'':
            (A) Section 845 of Public Law 103-160 (10 U.S.C. 
        2371 note).
            (B) Sections 1353 and 1354 of Public Law 103-160 
        (10 U.S.C. 2501 note).
    (3) The heading for subsection (a) of section 1354 of 
Public Law 103-160 (10 U.S.C. 2501 note) is amended by striking 
out ``ARPA'' and inserting in lieu thereof ``DARPA''.

SEC. 1074. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Miscellaneous Amendments to Title 10, United States 
Code.--Title 10, United States Code, is amended as follows:
            (1) Section 129(a) is amended by striking out ``the 
        date of the enactment of the National Defense 
        Authorization Act for Fiscal Year 1996'' and inserting 
        in lieu thereof ``February 10, 1996,''.
            (2) Section 401 is amended--
                    (A) in subsection (a)(4), by striking out 
                ``Armed Forces'' both places it appears and 
                inserting in lieu thereof ``armed forces''; and
                    (B) in subsection (e), by inserting ``any 
                of the following'' after ``means''.
            (3) Section 528(b) is amended by striking out 
        ``(1)'' after ``(b)'' and inserting ``(1)'' before 
        ``The limitation''.
            (4) Section 1078a(a) is amended by striking out 
        ``Beginning on October 1, 1994, the'' and inserting in 
        lieu thereof ``The''.
            (5) Section 1161(b)(2) is amended by striking out 
        ``section 1178'' and inserting in lieu thereof 
        ``section 1167''.
            (6) Section 1167 is amended by striking out 
        ``person'' and inserting in lieu thereof ``member''.
            (7) The table of sections at the beginning of 
        chapter 81 is amended by striking out ``Sec.'' in the 
        item relating to section 1599a.
            (8) Section 1588(d)(1)(C) is amended by striking 
        out ``Section 522a'' and inserting in lieu thereof 
        ``Section 552a''.
            (9) Chapter 87 is amended--
                    (A) in section 1723(a), by striking out the 
                second sentence;
                    (B) in section 1724--
                            (i) in subsection (a), by striking 
                        out ``small purchase threshold'' and 
                        inserting in lieu thereof ``simplified 
                        acquisition threshold''; and
                            (ii) in subsections (a) and (b), by 
                        striking out ``, beginning on October 
                        1, 1993,'';
                    (C) in section 1733(a), by striking out 
                ``On and after October 1, 1993, a'' and 
                inserting in lieu thereof ``A''; and
                    (D) in section 1734--
                            (i) in subsection (a)(1), by 
                        striking out ``, on and after October 
                        1, 1993,''; and
                            (ii) in subsection (b)(1)(A), by 
                        striking out ``, on and after October 
                        1, 1991,''.
            (10) Section 2216, as added by section 371 of the 
        National Defense Authorization Act for Fiscal Year 1996 
        (Public Law 104-106; 107 Stat. 277), is redesignated as 
        section 2216a, and the item relating to that section in 
        the table of sections at the beginning of chapter 131 
        is revised so as to reflect such redesignation.
            (11) Section 2305(b)(6) is amended--
                    (A) in subparagraph (B), by striking out 
                ``of this section'' and ``of this paragraph'';
                    (B) in subparagraph (C), by striking out 
                ``this subsection'' and inserting in lieu 
                thereof ``subparagraph (A)''; and
                    (C) in subparagraph (D), by striking out 
                ``pursuant to this subsection'' and inserting 
                in lieu thereof ``under subparagraph (A)''.
            (12) Section 2306a(h)(3) is amended by inserting 
        ``(41 U.S.C. 403(12))'' before the period at the end.
            (13) Section 2323a(a) is amended by striking out 
        ``section 1207 of the National Defense Authorization 
        Act for Fiscal Year 1987 (10 U.S.C. 2301 note)'' and 
        inserting in lieu thereof ``section 2323 of this 
        title''.
            (14) Section 2534(c)(4) is amended by striking out 
        ``the date occurring two years after the date of the 
        enactment of the National Defense Authorization Act for 
        Fiscal Year 1996'' and inserting in lieu thereof 
        ``February 10, 1998''.
            (15) The table of sections at the beginning of 
        chapter 155 is amended by striking out the item 
        relating to section 2609.
            (16) Section 2610(e) is amended by striking out 
        ``two years after the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 
        1996'' and inserting in lieu thereof ``on February 10, 
        1998''.
            (17) Sections 2824(c) and 2826(i)(1) are amended by 
        striking out ``the date of the enactment of the 
        National Defense Authorization Act for Fiscal Year 
        1996'' and inserting in lieu thereof ``February 10, 
        1996''.
            (18) Section 3036(d)(3) is amended by striking out 
        ``For purposes of this subsection,'' and inserting in 
        lieu thereof ``In this subsection,''.
            (19) The table of sections at the beginning of 
        chapter 641 is amended by striking out the item 
        relating to section 7434.
            (20) Section 7863 is amended by inserting ``were'' 
        in the first sentence after ``the stores''.
            (21) Section 10542(b)(21) is amended by striking 
        out ``261'' and inserting in lieu thereof ``12001''.
            (22) Section 12205(a) is amended by striking out 
        ``After September 30, 1995, no person'' and inserting 
        in lieu thereof ``No person''.
    (b) Amendments to Public Law 104-106.--The National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 186 et seq.) is amended as follows:
            (1) Section 561(d)(1) (110 Stat. 322) is amended by 
        inserting ``of such title'' after ``Section 1405(c)''.
            (2) Section 1092(b)(2) (110 Stat. 460) is amended 
        by striking out the period at the end and inserting in 
        lieu thereof ``; and''.
            (3) Section 4301(a)(1) (110 Stat. 656) is amended 
        by inserting ``of subsection (a)'' after ``in paragraph 
        (2)''.
            (4) Section 5601 (110 Stat. 699) is amended--
                    (A) in subsection (a), by inserting ``of 
                title 10, United States Code,'' before ``is 
                amended''; and
                    (B) in subsection (c), by striking out 
                ``use of equipment or services if,'' in the 
                second quoted matter therein and inserting in 
                lieu thereof ``use of the equipment or 
                services''.
            (5) Section 3403 (110 Stat. 631) is amended by 
        striking out ``Act of Fiscal'' and inserting in lieu 
        thereof ``Act for Fiscal''.
            (6) Section 4202(c)(1) (110 Stat. 653) is amended, 
        effective as of February 10, 1996, by striking out 
        ``purchases of' '' in the first quoted matter therein 
        and inserting in lieu thereof ``contracts for' ''.
            (7) Section 5607(c) (110 Stat. 701) is amended, 
        effective as of February 10, 1996--
                    (A) by striking out ``303B(h)'' and by 
                inserting in lieu thereof ``303B(k)''; and
                    (B) by striking out ``253b(h)'' and by 
                inserting in lieu thereof ``253b(k)''.
    (c) Provisions Executed Before Enactment of Public Law 104-
106.--
            (1) Section 533(b) of the National Defense 
        Authorization Act for Fiscal Year 1996 (Public Law 104-
        106; 110 Stat. 315) shall apply as if enacted as of 
        December 31, 1995.
            (2) The authority provided under section 942(f) of 
        title 10, United States Code, shall be effective as if 
        section 1142 of the National Defense Authorization Act 
        for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 
        467) had been enacted on September 29, 1995.
    (d) Amendments to Other Acts.--
            (1) The last section of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 434), as added by 
        section 5202 of Public Law 104-106 (110 Stat. 690), is 
        redesignated as section 38, and the item appearing 
        after section 34 in the table of contents in the first 
        section of that Act is transferred to the end of such 
        table of contents and revised so as to reflect such 
        redesignation.
            (2) Section 1412(g)(2) of the Department of Defense 
        Authorization Act, 1986 (50 U.S.C. 1521(g)(2)), is 
        amended--
                    (A) in the matter preceding subparagraph 
                (A), by striking out ``shall contain--'' and 
                inserting in lieu thereof ``shall include the 
                following:'';
                    (B) in subparagraph (A)--
                            (i) by striking out ``a'' before 
                        ``site-by-site'' and inserting in lieu 
                        thereof ``A''; and
                            (ii) by striking out the semicolon 
                        at the end and inserting in lieu 
                        thereof a period; and
                    (C) in subparagraphs (B) and (C), by 
                striking out ``an'' at the beginning of the 
                subparagraph and inserting in lieu thereof 
                ``An''.
            (3) Section 3131 of Public Law 99-570 (19 U.S.C. 
        2081; 100 Stat. 3207-91) is amended in clause (v) of 
        subsection (a)(1)(A) by striking out ``and (c)'' both 
        places it appears.
    (e) Coordination With Other Amendments.--For purposes of 
applying amendments made by provisions of this Act other than 
provisions of this section, this section shall be treated as 
having been enacted immediately before the other provisions of 
this Act.
    (f) Amendments to the Office of Federal Procurement Policy 
Act.--The Office of Federal Procurement Policy Act (41 U.S.C. 
403 et seq.) is amended as follows:
            (1) Section 6(f) (41 U.S.C. 405(f)) is amended by 
        striking out ``the policies set forth in section 2 
        or''.
            (2) Section 15(a) (41 U.S.C. 413(a)) is amended by 
        striking out the second sentence.
            (3) Section 25 (41 U.S.C. 421) is amended--
                    (A) in subsection (c)--
                            (i) in paragraph (3), by striking 
                        out ``the policies set forth in section 
                        2 of this Act or''; and
                            (ii) in paragraph (5), by striking 
                        out ``or the policies set forth in 
                        section 2 of this Act''; and
                    (B) in subsection (e), by striking out 
                ``the policies of section 2 and''.

SEC. 1075. MODIFICATION TO THIRD-PARTY LIABILITY TO UNITED STATES FOR 
                    TORTIOUS INFLICTION OF INJURY OR DISEASE ON MEMBERS 
                    OF THE UNIFORMED SERVICES.

    (a) Recovery of Pay and Allowances.--The first section of 
Public Law 87-693 (42 U.S.C. 2651) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``or pay for'' after 
                ``required by law to furnish''; and
                    (B) by striking out ``or to be furnished'' 
                both places it appears and inserting in lieu 
                thereof ``, to be furnished, paid for, or to be 
                paid for'';
            (2) by redesignating subsections (b) and (c) as 
        subsections (d) and (e), respectively;
            (3) by inserting after subsection (a), the 
        following new subsections:
    ``(b) If a member of the uniformed services is injured, or 
contracts a disease, under circumstances creating a tort 
liability upon a third person (other than or in addition to the 
United States and except employers of seamen referred to in 
subsection (a)) for damages for such injury or disease and the 
member is unable to perform the member's regular military 
duties as a result of the injury or disease, the United States 
shall have a right (independent of the rights of the member) to 
recover from the third person or an insurer of the third 
person, or both, the amount equal to the total amount of the 
pay that accrues and is to accrue to the member for the period 
for which the member is unable to perform such duties as a 
result of the injury or disease and is not assigned to perform 
other military duties.
    ``(c)(1) If, pursuant to the laws of a State that are 
applicable in a case of a member of the uniformed services who 
is injured or contracts a disease as a result of tortious 
conduct of a third person, there is in effect for such a case 
(as a substitute or alternative for compensation for damages 
through tort liability) a system of compensation or 
reimbursement for expenses of hospital, medical, surgical, or 
dental care and treatment or for lost pay pursuant to a policy 
of insurance, contract, medical or hospital service agreement, 
or similar arrangement, the United States shall be deemed to be 
a third-party beneficiary of such a policy, contract, 
agreement, or arrangement.
    ``(2) For the purposes of paragraph (1)--
            ``(A) the expenses incurred or to be incurred by 
        the United States for care and treatment for an injured 
        or diseased member as described in subsection (a) shall 
        be deemed to have been incurred by the member;
            ``(B) the cost to the United States of the pay of 
        the member as described in subsection (b) shall be 
        deemed to have been pay lost by the member as a result 
        of the injury or disease; and
            ``(C) the United States shall be subrogated to any 
        right or claim that the injured or diseased member or 
        the member's guardian, personal representative, estate, 
        dependents, or survivors have under a policy, contract, 
        agreement, or arrangement referred to in paragraph (1) 
        to the extent of the reasonable value of the care and 
        treatment and the total amount of the pay deemed lost 
        under subparagraph (B).'';
            (4) in subsection (d), as redesignated by paragraph 
        (2), by inserting ``or paid for'' after ``treatment is 
        furnished''; and
            (5) by adding at the end the following:
    ``(f)(1) Any amount recovered under this section for 
medical care and related services furnished by a military 
medical treatment facility or similar military activity shall 
be credited to the appropriation or appropriations supporting 
the operation of that facility or activity, as determined under 
regulations prescribed by the Secretary of Defense.
    ``(2) Any amount recovered under this section for the cost 
to the United States of pay of an injured or diseased member of 
the uniformed services shall be credited to the appropriation 
that supports the operation of the command, activity, or other 
unit to which the member was assigned at the time of the injury 
or illness, as determined under regulations prescribed by the 
Secretary concerned.
    ``(g) For the purposes of this section:
            ``(1) The term `uniformed services' has the meaning 
        given such term in section 101 of title 10, United 
        States Code.
            ``(2) The term `tortious conduct' includes any 
        tortious omission.
            ``(3) The term `pay', with respect to a member of 
        the uniformed services, means basic pay, special pay, 
        and incentive pay that the member is authorized to 
        receive under title 37, United States Code, or any 
        other law providing pay for service in the uniformed 
        services.
            ``(4) The term `Secretary concerned' means--
                    ``(A) the Secretary of Defense, with 
                respect to the Army, the Navy, the Air Force, 
                the Marine Corps, and the Coast Guard (when it 
                is operating as a service in the Navy);
                    ``(B) the Secretary of Transportation, with 
                respect to the Coast Guard when it is not 
                operating as a service in the Navy;
                    ``(C) the Secretary of Health and Human 
                Services, with respect to the commissioned 
                corps of the Public Health Service; and
                    ``(D) the Secretary of Commerce, with 
                respect to the commissioned corps of the 
                National Oceanic and Atmospheric 
                Administration.''.
    (b) Conforming Amendments.--The first section of Public Law 
87-693 (42 U.S.C. 2651) is amended--
            (1) in the first sentence of subsection (a)--
                    (A) by inserting ``(independent of the 
                rights of the injured or diseased person)'' 
                after ``a right to recover''; and
                    (B) by inserting ``, or that person's 
                insurer,'' after ``from said third person'';
            (2) in subsection (d), as redesignated by 
        subsection (a)(2)--
                    (A) by striking out ``such right,'' and 
                inserting in lieu thereof ``a right under 
                subsections (a), (b), and (c)''; and
                    (B) by inserting ``or the insurance carrier 
                or other entity responsible for the payment or 
                reimbursement of medical expenses or lost pay'' 
                after ``the third person who is liable for the 
                injury or disease'' each place it appears.
    (c) Effective Date.--The authority to collect pursuant to 
the amendments made by this section shall apply to expenses 
described in the first section of Public Law 87-693 (as amended 
by this section) that are incurred, or are to be incurred, by 
the United States on or after the date of the enactment of this 
Act, whether the event from which the claim arises occurs 
before, on, or after that date.

SEC. 1076. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) Report.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of the Army shall submit 
to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
a report assessing the implementation and success of the 
establishment of site-specific Integrated Product and Process 
Teams as a management tool for the Chemical Stockpile Emergency 
Preparedness Program.
    (b) Contingent Mandated Reforms.--If at the end of the 120-
day period beginning on the date of the enactment of this Act 
the Secretary of the Army and the Director of the Federal 
Emergency Management Agency have been unsuccessful in 
implementing a site-specific Integrated Product and Process 
Team with each of the affected States, the Secretary of the 
Army shall--
            (1) assume full control and responsibility for the 
        Chemical Stockpile Emergency Preparedness Program 
        (eliminating the role of the Director of the Federal 
        Emergency Management Agency as joint manager of the 
        program);
            (2) establish programmatic agreement with each of 
        the affected States regarding program requirements, 
        implementation schedules, training and exercise 
        requirements, and funding (to include direct grants for 
        program support);
            (3) clearly define the goals of the program; and
            (4) establish fiscal constraints for the program.

SEC. 1077. EXEMPTION FROM REQUIREMENTS APPLICABLE TO SAVINGS 
                    ASSOCIATIONS FOR CERTAIN SAVINGS INSTITUTIONS 
                    SERVING MILITARY PERSONNEL.

    Section 10(m)(3)(F) of the Home Owners' Loan Act (12 U.S.C. 
1467a(m)(3)(F)) is amended--
            (1) in the subparagraph caption, by striking out 
        ``association serving transient'' and inserting in lieu 
        thereof ``associations serving certain'';
            (2) by striking out ``company if--'' and all that 
        follows through ``90 percent'' and inserting in lieu 
        thereof ``company if at least 90 percent''; and
            (3) by striking out ``officers'' both places it 
        appears and inserting in lieu thereof ``members''.

SEC. 1078. IMPROVEMENTS TO NATIONAL SECURITY EDUCATION PROGRAM.

    (a) Temporary Requirement Relating to Employment.--Title 
VII of the Department of Defense Appropriations Act, 1996 
(Public Law 104-61; 109 Stat. 650), is amended in the paragraph 
under the heading ``National Security Education Trust Fund'' by 
striking out the proviso.
    (b) General Program Requirements.--(1) Subparagraph (A) of 
subsection (a)(1) of section 802 of the David L. Boren National 
Security Education Act of 1991 (50 U.S.C. 1902) is amended to 
read as follows:
                    ``(A) awarding scholarships to 
                undergraduate students who--
                            ``(i) are United States citizens in 
                        order to enable such students to study, 
                        for at least one academic semester or 
                        equivalent term, in foreign countries 
                        that are critical countries (as 
                        determined under section 803(d)(4)(A)) 
                        in those languages and study areas 
                        where deficiencies exist (as identified 
                        in the assessments undertaken pursuant 
                        to section 806(d)); and
                            ``(ii) pursuant to subsection 
                        (b)(2)(A), enter into an agreement to 
                        work in a national security position or 
                        work in the field of higher education 
                        in the area of study for which the 
                        scholarship was awarded;''; and
    (2) Subparagraph (B) of that subsection is amended--
            (A) in clause (i), by inserting ``relating to the 
        national security interests of the United States'' 
        after ``international fields''; and
            (B) in clause (ii)--
                    (i) by striking out ``subsection (b)(2)'' 
                and inserting in lieu thereof ``subsection 
                (b)(2)(B)''; and
                    (ii) by striking out ``work for an agency 
                or office of the Federal Government or in'' and 
                inserting in lieu thereof ``work in a national 
                security position or work in''.
    (c) Service Agreement.--(1) Subsection (b) of that section 
is amended in the matter preceding paragraph (1) by striking 
out ``, or of scholarships'' and all that follows through ``12 
months or more,'' and inserting in lieu thereof ``or any 
scholarship''.
    (2) Paragraph (2) of that subsection is amended to read as 
follows:
            ``(2) will--
                    ``(A) not later than eight years after such 
                recipient's completion of the study for which 
                scholarship assistance was provided under the 
                program, and in accordance with regulations 
                issued by the Secretary--
                            ``(i) work in a national security 
                        position for a period specified by the 
                        Secretary, which period shall be no 
                        longer than the period for which 
                        scholarship assistance was provided; or
                            ``(ii) if the recipient 
                        demonstrates to the Secretary (in 
                        accordance with such regulations) that 
                        no national security position is 
                        available, work in the field of higher 
                        education in a discipline relating to 
                        the foreign country, foreign language, 
                        area study, or international field of 
                        study for which the scholarship was 
                        awarded, for a period specified by the 
                        Secretary, which period shall be 
                        determined in accordance with clause 
                        (i); or
                    ``(B) upon completion of such recipient's 
                education under the program, and in accordance 
                with such regulations--
                            ``(i) work in a national security 
                        position for a period specified by the 
                        Secretary, which period shall be not 
                        less than one and not more than three 
                        times the period for which the 
                        fellowship assistance was provided; or
                            ``(ii) if the recipient 
                        demonstrates to the Secretary (in 
                        accordance with such regulations) that 
                        no national security position is 
                        available upon the completion of the 
                        degree, work in the field of higher 
                        education in a discipline relating to 
                        the foreign country, foreign language, 
                        area study, or international field of 
                        study for which the fellowship was 
                        awarded, for a period specified by the 
                        Secretary, which period shall be 
                        established in accordance with clause 
                        (i); and''.
    (d) Evaluation of Progress in Language Skills.--Such 
section is further amended--
            (1) by redesignating subsections (c), (d), and (e) 
        as subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following 
        new subsection (c):
    ``(c) Evaluation of Progress in Language Skills.--The 
Secretary shall, through the National Security Education 
Program office, administer a test of the foreign language 
skills of each recipient of a scholarship or fellowship under 
this title before the commencement of the study or education 
for which the scholarship or fellowship is awarded and after 
the completion of such study or education. The purpose of these 
tests is to evaluate the progress made by recipients of 
scholarships and fellowships in developing foreign language 
skills as a result of assistance under this title.''.
    (e) Functions of the National Security Education Board.--
Section 803(d) of that Act (50 U.S.C. 1903(d)) is amended--
            (1) in paragraph (1), by inserting ``, including an 
        order of priority in such awards that favors 
        individuals expressing an interest in national security 
        issues or pursuing a career in a national security 
        position'' before the period;
            (2) in paragraph (4)--
                    (A) in the matter preceding subparagraph 
                (A), by striking out ``Make recommendations'' 
                and inserting in lieu thereof ``After taking 
                into account the annual analyses of trends in 
                language, international, and area studies under 
                section 806(b)(1), make recommendations'';
                    (B) in subparagraph (A), by inserting ``and 
                countries which are of importance to the 
                national security interests of the United 
                States'' after ``are studying''; and
                    (C) in subparagraph (B), by inserting 
                ``relating to the national security interests 
                of the United States'' after ``section 
                802(a)(1)(B)'';
            (3) by redesignating paragraph (5) as paragraph 
        (8); and
            (4) by inserting after paragraph (4) the following 
        new paragraphs:
            ``(5) Encourage applications for fellowships under 
        this title from graduate students having an educational 
        background in any academic discipline, particularly in 
        the areas of science or technology.
            ``(6) Provide the Secretary biennially with a list 
        of scholarship recipients and fellowship recipients, 
        including an assessment of their foreign area and 
        language skills, who are available to work in a 
        national security position.
            ``(7) Not later than 30 days after a scholarship or 
        fellowship recipient completes the study or education 
        for which assistance was provided under the program, 
        provide the Secretary with a report fully describing 
        the foreign area and language skills obtained by the 
        recipient as a result of the assistance.''.
    (f) National Security Position Defined.--(1) Section 808 of 
that Act (50 U.S.C. 1908) is amended by adding at the end the 
following new paragraph:
            ``(4) The term `national security position' means a 
        position--
                    ``(A) having national security 
                responsibilities in an agency or office of the 
                Federal Government that has national security 
                responsibilities, as determined under section 
                802(g); and
                    ``(B) in which the individual in such 
                position makes their foreign language skills 
                available to such agency or office.''.
    (2) Section 802 of that Act (50 U.S.C. 1902), as amended by 
subsection (d)(1) of this section, is further amended by adding 
at the end the following new subsection:
    ``(g) Determination of Agencies and Offices of the Federal 
Government Having National Security Responsibilities.--(1) The 
Secretary, in consultation with the Board, shall annually 
determine and develop a list identifying each agency or office 
of the Federal Government having national security 
responsibilities at which a recipient of a fellowship or 
scholarship under this title will be able to make the 
recipient's foreign area and language skills available to such 
agency or office. The Secretary shall submit the first such 
list to the Congress and include each subsequent list in the 
annual report to the Congress, as required by section 
806(b)(6).
    ``(2) Notwithstanding section 804, funds may not be made 
available from the Fund to carry out this title for fiscal year 
1997 until 30 days after the date on which the Secretary of 
Defense submits to the Congress the first such list required by 
paragraph (1).''.
    (3) Section 806(b) of that Act (50 U.S.C. 1906(b)) is 
amended by striking out ``and'' at the end of paragraph (5), 
redesignating paragraph (6) as paragraph (7), and inserting 
after paragraph (5) the following new paragraph (6):
            ``(6) the current list of agencies and offices of 
        the Federal Government required to be developed by 
        section 802(g); and''.
    (g) Report on Program.--(1) Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report assessing the improvements to 
the program established under the David L. Boren National 
Security Education Act of 1991 (50 U.S.C. 1901 et seq.) that 
result from the amendments made by this section.
    (2) The report shall include an assessment of the 
contribution of the program, as so improved, in meeting the 
national security objectives of the United States.

SEC. 1079. AVIATION AND VESSEL WAR RISK INSURANCE.

    (a) Aviation Risk Insurance.--(1) Chapter 931 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 9514. Indemnification of Department of Transportation for losses 
                    covered by defense-related aviation insurance

    ``(a) Prompt Indemnification Required.--(1) In the event of 
a loss that is covered by defense-related aviation insurance, 
the Secretary of Defense shall promptly indemnify the Secretary 
of Transportation for the amount of the loss consistent with 
the indemnification agreement between the two Secretaries that 
underlies such insurance. The Secretary of Defense shall make 
such indemnification--
            ``(A) in the case of a claim for the loss of an 
        aircraft hull, not later than 30 days after the date on 
        which the Secretary of Transportation determines the 
        claim to be payable or that amounts are due under the 
        policy that provided the defense-related aviation 
        insurance; and
            ``(B) in the case of any other claim, not later 
        than 180 days after the date on which the Secretary of 
        Transportation determines the claim to be payable.
    ``(2) When there is a loss of an aircraft hull that is (or 
may be) covered by defense-related aviation insurance, the 
Secretary of Transportation may make, during the period when a 
claim for such loss is pending with the Secretary of 
Transportation, any required periodic payments owed by the 
insured party to a lessor or mortgagee of such aircraft. Such 
payments shall commence not later than 30 days following the 
date of the presentment of the claim for the loss of the 
aircraft hull to the Secretary of Transportation. If the 
Secretary of Transportation determines that the claim is 
payable, any amount paid under this paragraph arising from such 
claim shall be credited against the amount payable under the 
aviation insurance. If the Secretary of Transportation 
determines that the claim is not payable, any amount paid under 
this paragraph arising from such claim shall constitute a debt 
to the United States, payable to the insurance fund. Any such 
amounts so returned to the United States shall be promptly 
credited to the fund or account from which the payments were 
made under this paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The 
Secretary of Defense may pay an indemnity described in 
subsection (a) from any funds available to the Department of 
Defense for operation and maintenance, and such sums as may be 
necessary for payment of such indemnity are hereby authorized 
to be transferred to the Secretary of Transportation for such 
purpose.
    ``(c) Notice to Congress.--In the event of a loss that is 
covered by defense-related aviation insurance in the case of an 
incident in which the covered loss is (or is expected to be) in 
an amount in excess of $1,000,000, the Secretary of Defense 
shall submit to Congress--
            ``(1) notification of the loss as soon after the 
        occurrence of the loss as possible and in no event more 
        than 30 days after the date of the loss; and
            ``(2) semiannual reports thereafter updating the 
        information submitted under paragraph (1) and showing 
        with respect to losses arising from such incident the 
        total amount expended to cover such losses, the source 
        of those funds, pending litigation, and estimated total 
        cost to the Government.
    ``(d) Implementing Matters.--(1) Payment of indemnification 
under this section is not subject to section 2214 or 2215 of 
this title or any other provision of law requiring notification 
to Congress before funds may be transferred.
    ``(2) Consolidation of claims arising from the same 
incident is not required before indemnification of the 
Secretary of Transportation for payment of a claim may be made 
under this section.
    ``(e) Construction With Other Transfer Authority.--
Authority to transfer funds under this section is in addition 
to any other authority provided by law to transfer funds 
(whether enacted before, on, or after the date of the enactment 
of this section) and is not subject to any dollar limitation or 
notification requirement contained in any other such authority 
to transfer funds.
    ``(f) Annual Report on Contingent Liabilities.--Not later 
than March 1 of each year, the Secretary of Defense shall 
submit to Congress a report setting forth the current amount of 
the contingent outstanding liability of the United States under 
the insurance program under chapter 443 of title 49.
    ``(g) Definitions.--In this section:
            ``(1) Defense-related aviation insurance.--The term 
        `defense-related aviation insurance' means aviation 
        insurance and reinsurance provided through policies 
        issued by the Secretary of Transportation under chapter 
        443 of title 49 that pursuant to section 44305(b) of 
        that title is provided by that Secretary without 
        premium at the request of the Secretary of Defense and 
        is covered by an indemnity agreement between the 
        Secretary of Transportation and the Secretary of 
        Defense.
            ``(2) Loss.--The term `loss' includes damage to or 
        destruction of property, personal injury or death, and 
        other liabilities and expenses covered by the defense-
        related aviation insurance.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``9514. Indemnification of Department of Transportation for losses 
          covered by defense-related aviation insurance.''.

    (b) Vessel War Risk Insurance.--(1) Chapter 157 of title 
10, United States Code, is amended by adding after section 
2644, as redesignated by section 906, the following new 
section:

``Sec. 2645. Indemnification of Department of Transportation for losses 
                    covered by vessel war risk insurance

    ``(a) Prompt Indemnification Required.--(1) In the event of 
a loss that is covered by vessel war risk insurance, the 
Secretary of Defense shall promptly indemnify the Secretary of 
Transportation for the amount of the loss consistent with the 
indemnification agreement between the two Secretaries that 
underlies such insurance. The Secretary of Defense shall make 
such indemnification--
            ``(A) in the case of a claim for the loss of a 
        vessel, not later than 90 days after the date on which 
        the Secretary of Transportation determines the claim to 
        be payable or that amounts are due under the policy 
        that provided the vessel war risk insurance; and
            ``(B) in the case of any other claim, not later 
        than 180 days after the date on which on which the 
        Secretary of Transportation determines the claim to be 
        payable.
    ``(2) When there is a loss of a vessel that is (or may be) 
covered by vessel war risk insurance, the Secretary of 
Transportation may make, during the period when a claim for 
such loss is pending with the Secretary of Transportation, any 
required periodic payments owed by the insured party to a 
lessor or mortgagee of such vessel. Such payments shall 
commence not later than 30 days following the date of the 
presentment of the claim for the loss of the vessel to the 
Secretary of Transportation. If the Secretary of Transportation 
determines that the claim is payable, any amount paid under 
this paragraph arising from such claim shall be credited 
against the amount payable under the vessel war risk insurance. 
If the Secretary of Transportation determines that the claim is 
not payable, any amount paid under this paragraph arising from 
such claim shall constitute a debt to the United States, 
payable to the insurance fund. Any such amounts so returned to 
the United States shall be promptly credited to the fund or 
account from which the payments were made under this paragraph.
    ``(b) Source of Funds for Payment of Indemnity.--The 
Secretary of Defense may pay an indemnity described in 
subsection (a) from any funds available to the Department of 
Defense for operation and maintenance, and such sums as may be 
necessary for payment of such indemnity are hereby authorized 
to be transferred to the Secretary of Transportation for such 
purpose.
    ``(c) Deposit of Funds.--Any amount transferred to the 
Secretary of Transportation under this section shall be 
deposited in, and merged with amounts in, the Vessel War Risk 
Insurance Fund as provided in the second sentence of section 
1208(a) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
1288(a)).
    ``(d) Notice to Congress.--In the event of a loss that is 
covered by vessel war risk insurance in the case of an incident 
in which the covered loss is (or is expected to be) in an 
amount in excess of $1,000,000, the Secretary of Defense shall 
submit to Congress--
            ``(1) notification of the loss as soon after the 
        occurrence of the loss as possible and in no event more 
        than 30 days after the date of the loss; and
            ``(2) semiannual reports thereafter updating the 
        information submitted under paragraph (1) and showing 
        with respect to losses arising from such incident the 
        total amount expended to cover such losses, the source 
        of such funds, pending litigation, and estimated total 
        cost to the Government.
    ``(e) Implementing Matters.--(1) Payment of indemnification 
under this section is not subject to section 2214 or 2215 of 
this title or any other provision of law requiring notification 
to Congress before funds may be transferred.
    ``(2) Consolidation of claims arising from the same 
incident is not required before indemnification of the 
Secretary of Transportation for payment of a claim may be made 
under this section.
    ``(f) Construction With Other Transfer Authority.--
Authority to transfer funds under this section is in addition 
to any other authority provided by law to transfer funds 
(whether enacted before, on, or after the date of the enactment 
of this section) and is not subject to any dollar limitation or 
notification requirement contained in any other such authority 
to transfer funds.
    ``(f) Annual Report on Contingent Liabilities.--Not later 
than March 1 of each year, the Secretary of Defense shall 
submit to Congress a report setting forth the current amount of 
the contingent outstanding liability of the United States under 
the vessel war risk insurance program under title XII of the 
Merchant Marine Act, 1936 (46 U.S.C. App. 1281 et seq.).
    ``(h) Definitions.--In this section:
            ``(1) Vessel war risk insurance.--The term `vessel 
        war risk insurance' means insurance and reinsurance 
        provided through policies issued by the Secretary of 
        Transportation under title XII of the Merchant Marine 
        Act, 1936 (46 U.S.C. App. 1281 et seq.), that is 
        provided by that Secretary without premium at the 
        request of the Secretary of Defense and is covered by 
        an indemnity agreement between the Secretary of 
        Transportation and the Secretary of Defense.
    ``(2) Vessel war risk insurance fund.--The term `Vessel War 
Risk Insurance Fund' means the insurance fund referred to in 
the first sentence of section 1208(a) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1288(a)).
            ``(3) Loss.--The term `loss' includes damage to or 
        destruction of property, personal injury or death, and 
        other liabilities and expenses covered by the vessel 
        war risk insurance.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding after the item relating to section 2644, 
as added by section 906, the following new item:

``2645. Indemnification of Department of Transportation for losses 
          covered by vessel war risk insurance.''.

SEC. 1080. DESIGNATION OF MEMORIAL AS NATIONAL D-DAY MEMORIAL.

    (a) Designation.--The memorial to be constructed by the 
National D-Day Memorial Foundation in Bedford, Virginia, is 
hereby designated as a national memorial to be known as the 
``National D-Day Memorial''. The memorial shall serve to honor 
the members of the Armed Forces of the United States who served 
in the liberation of Normandy, France, in June 1944.
    (b) Public Proclamation.--The President is requested and 
urged to issue a public proclamation acknowledging the 
designation of the memorial to be constructed by the National 
D-Day Memorial Foundation in Bedford, Virginia, as the National 
D-Day Memorial.
    (c) Maintenance of Memorial.--All expenses for maintenance 
and care of the memorial shall be paid for with non-Federal 
funds, including funds provided by the National D-Day Memorial 
Foundation. The United States shall not be liable for any 
expense incurred for the maintenance and care of the memorial.

SEC. 1081. SENSE OF CONGRESS REGARDING SEMICONDUCTOR TRADE AGREEMENT 
                    BETWEEN UNITED STATES AND JAPAN.

    (a) Findings.--Congress makes the following findings:
            (1) The United States and Japan share a long and 
        important bilateral relationship which serves as an 
        anchor of peace and stability in the Asia Pacific 
        region, an alliance which was reaffirmed at the recent 
        summit meeting between President Clinton and Prime 
        Minister Hashimoto in Tokyo.
            (2) The Japanese economy has experienced difficulty 
        over the past few years, demonstrating that it is no 
        longer possible for Japan, the world's second largest 
        economy, to use exports as the sole engine of economic 
        growth, but that the Government of Japan must promote 
        deregulation of its domestic economy in order to 
        increase economic growth.
            (3) Deregulation of the Japanese economy requires 
        government attention to the removal of barriers to 
        imports of manufactured goods.
            (4) The United States-Japan Semiconductor Trade 
        Agreement has begun the process of deregulation in the 
        semiconductor sector and is opening the Japanese market 
        to competitive foreign products.
            (5) The United States-Japan Semiconductor Trade 
        Agreement has put in place both government-to-
        government and industry-to-industry mechanisms which 
        have played a vital role in allowing cooperation to 
        replace conflict in this important high technology 
        sector.
            (6) The mechanisms include joint calculation of 
        foreign market share, deterrence of dumping, and 
        promotion of industrial cooperation in the design of 
        foreign semiconductor devices.
            (7) Because of these actions under the United 
        States-Japan Semiconductor Trade Agreement, the United 
        States and Japan today enjoy trade in semiconductors 
        which is mutually beneficial, harmonious, and free from 
        the friction that once characterized the semiconductor 
        industry.
            (8) Because of structural barriers in Japan, a gap 
        still remains between the share of the world market for 
        semiconductor products outside Japan that the United 
        States and other foreign semiconductor sources are able 
        to capture through competitiveness and the share of the 
        Japanese semiconductor market that the United States 
        and those other sources are able to capture through 
        competitiveness, and that gap is consistent across the 
        full range of semiconductor products as well as a full 
        range of end-use applications.
            (9) The competitiveness and health of the United 
        States semiconductor industry is of critical importance 
        to the overall economic well-being and high technology 
        defense capabilities of the United States.
            (10) The economic interests of both the United 
        States and Japan are best served by well functioning, 
        open markets, deterrence of dumping, and continuing 
        good cooperative relationships in all sectors, 
        including semiconductors.
            (11) A strong and healthy and military and 
        political alliance between the United States and Japan 
        requires continuation of the industrial and economic 
        cooperation promoted by the United States-Japan 
        Semiconductor Trade Agreement.
            (12) President Clinton has called on the Government 
        of Japan to agree to a continuation of the United 
        States-Japan Semiconductor Trade Agreement beyond the 
        current agreement's expiration on July 31, 1996.
            (13) The Government of Japan has opposed any 
        continuation of the United States-Japan Semiconductor 
        Trade Agreement to promote cooperation in United 
        States-Japan semiconductor trade.
    (b) Sense of Congress.--On the basis of the findings 
contained in subsection (a), it is the sense of Congress that--
            (1) it is regrettable that the Government of Japan 
        has refused to consider continuation of the United 
        States-Japan Semiconductor Trade Agreement to ensure 
        that cooperation continues in the semiconductor sector 
        beyond the expiration of the agreement on July 31, 
        1996; and
            (2) the President should take all necessary and 
        appropriate actions to ensure the resumption and 
        extension of the United States-Japan Semiconductor 
        Trade Agreement beyond July 31, 1996.
    (c) Definition.--For purposes of this section, the term 
``United States-Japan Semiconductor Trade Agreement'' refers to 
the agreement between the United States and Japan concerning 
trade in semiconductor products, with arrangement, done by 
exchange of letters at Washington on June 11, 1991.

SEC. 1082. AGREEMENTS FOR EXCHANGE OF DEFENSE PERSONNEL BETWEEN THE 
                    UNITED STATES AND FOREIGN COUNTRIES.

    (a) Authority to Enter into International Exchange 
Agreements.--(1) The Secretary of Defense may enter into 
international defense personnel exchange agreements.
    (2) For purposes of this section, an international defense 
personnel exchange agreement is an agreement with the 
government of an ally of the United States or another friendly 
foreign country for the exchange of--
            (A) military and civilian personnel of the 
        Department of Defense; and
            (B) military and civilian personnel of the defense 
        ministry of that foreign government.
    (b) Assignment of Personnel.--(1) Pursuant to an 
international defense personnel exchange agreement, personnel 
of the defense ministry of a foreign government may be assigned 
to positions in the Department of Defense and personnel of the 
Department of Defense may be assigned to positions in the 
defense ministry of such foreign government. Positions to which 
exchanged personnel are assigned may include positions of 
instructors.
    (2) An agreement for the exchange of personnel engaged in 
research and development activities may provide for assignment 
of Department of Defense personnel to positions in private 
industry that support the defense ministry of the host foreign 
government.
    (3) An individual may not be assigned to a position 
pursuant to an international defense personnel exchange 
agreement unless the assignment is acceptable to both 
governments.
    (c) Reciprocity of Personnel Qualifications Required.--Each 
government shall be required under an international defense 
personnel exchange agreement to provide personnel with 
qualifications, training, and skills that are essentially equal 
to those of the personnel provided by the other government.
    (d) Payment of Personnel Costs.--(1) Each government shall 
pay the salary, per diem, cost of living, travel costs, cost of 
language or other training, and other costs for its own 
personnel in accordance with the applicable laws and 
regulations of such government.
    (2) Paragraph (1) does not apply to the following costs:
            (A) The cost of temporary duty directed by the host 
        government.
            (B) The cost of training programs conducted to 
        familiarize, orient, or certify exchanged personnel 
        regarding unique aspects of the assignments of the 
        exchanged personnel.
            (C) Costs incident to the use of the facilities of 
        the host government in the performance of assigned 
        duties.
    (e) Prohibited Conditions.--No personnel exchanged pursuant 
to an agreement under this section may take or be required to 
take an oath of allegiance to the host country or to hold an 
official capacity in the government of such country.
    (f) Relationship to Other Authority.--The requirements in 
subsections (c) and (d) shall apply in the exercise of any 
authority of the Secretaries of the military departments to 
enter into an agreement with the government of a foreign 
country to provide for the exchange of members of the armed 
forces and military personnel of the foreign country. The 
Secretary of Defense may prescribe regulations for the 
application of such subsections in the exercise of such 
authority.

SEC. 1083. SENSE OF SENATE REGARDING BOSNIA AND HERZEGOVINA.

    It is the sense of the Senate that, notwithstanding any 
other provision of law, in order to maximize the amount of 
equipment provided to the Government of Bosnia and Herzegovina 
under the authority contained in section 540 of the Foreign 
Operations, Export Financing, and Related Programs 
Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 737), 
the price of the transferred equipment shall not exceed the 
lowest level at which the same or similar equipment has been 
transferred to any other country under any other United States 
Government program.

SEC. 1084. DEFENSE BURDENSHARING.

    (a) Efforts To Increase Allied Burdensharing.--The 
President shall seek to have each nation that has cooperative 
military relations with the United States (including security 
agreements, basing arrangements, or mutual participation in 
multinational military organizations or operations) take one or 
more of the following actions:
            (1) Increase its financial contributions to the 
        payment of the nonpersonnel costs incurred by the 
        United States Government for stationing United States 
        military personnel in that nation, with a goal of 
        achieving by September 30, 2000, 75 percent of such 
        costs. An increase in financial contributions by any 
        nation under this paragraph may include the elimination 
        of taxes, fees, or other charges levied on United 
        States military personnel, equipment, or facilities 
        stationed in that nation.
            (2) Increase its annual budgetary outlays for 
        national defense as a percentage of its gross domestic 
        product by 10 percent or at least to a level 
        commensurate to that of the United States by September 
        30, 1997.
            (3) Increase its annual budgetary outlays for 
        foreign assistance (to promote democratization, 
        economic stabilization, transparency arrangements, 
        defense economic conversion, respect for the rule of 
        law, and internationally recognized human rights) by 10 
        percent or at least to a level commensurate to that of 
        the United States by September 30, 1997.
            (4) Increase the amount of military assets 
        (including personnel, equipment, logistics, support and 
        other resources) that it contributes, or would be 
        prepared to contribute, to multinational military 
        activities worldwide.
    (b) Authorities to Encourage Actions by United States 
Allies.--In seeking the actions described in subsection (a) 
with respect to any nation, or in response to a failure by any 
nation to undertake one or more of such actions, the President 
may take any of the following measures to the extent otherwise 
authorized by law:
            (1) Reduce the end strength level of members of the 
        Armed Forces assigned to permanent duty ashore in that 
        nation.
            (2) Impose on that nation fees or other charges 
        similar to those that such nation imposes on United 
        States forces stationed in that nation.
            (3) Reduce (through rescission, impoundment, or 
        other appropriate procedures as authorized by law) the 
        amount the United States contributes to the NATO Civil 
        Budget, Military Budget, or Security Investment 
        Program.
            (4) Suspend, modify, or terminate any bilateral 
        security agreement the United States has with that 
        nation, consistent with the terms of such agreement.
            (5) Reduce (through rescission, impoundment or 
        other appropriate procedures as authorized by law) any 
        United States bilateral assistance appropriated for 
        that nation.
            (6) Take any other action the President determines 
        to be appropriate as authorized by law.
    (c) Report on Progress in Increasing Allied 
Burdensharing.--Not later than March 1, 1997, the Secretary of 
Defense shall submit to Congress a report on--
            (1) steps taken by other nations to complete the 
        actions described in subsection (a);
            (2) all measures taken by the President, including 
        those authorized in subsection (b), to achieve the 
        actions described in subsection (a); and
            (3) the budgetary savings to the United States that 
        are expected to accrue as a result of the steps 
        described under paragraph (1).
    (d) Report on National Security Bases for Forward 
Deployment and Burdensharing Relationships.--(1) In order to 
ensure the best allocation of budgetary resources, the 
President shall undertake a review of the status of elements of 
the United States Armed Forces that are permanently stationed 
outside the United States. The review shall include an 
assessment of the following:
            (A) The alliance requirements that are to be found 
        in agreements between the United States and other 
        countries.
            (B) The national security interests that support 
        permanently stationing elements of the United States 
        Armed Forces outside the United States.
            (C) The stationing costs associated with the 
        forward deployment of elements of the United States 
        Armed Forces.
            (D) The alternatives available to forward 
        deployment (such as material prepositioning, enhanced 
        airlift and sealift, or joint training operations) to 
        meet such alliance requirements or national security 
        interests, with such alternatives identified and 
        described in detail.
            (E) The costs and force structure configurations 
        associated with such alternatives to forward 
        deployment.
            (F) The financial contributions that allies of the 
        United States make to common defense efforts (to 
        promote democratization, economic stabilization, 
        transparency arrangements, defense economic conversion, 
        respect for the rule of law, and internationally 
        recognized human rights).
            (G) The contributions that allies of the United 
        States make to meeting the stationing costs associated 
        with the forward deployment of elements of the United 
        States Armed Forces.
            (H) The annual expenditures of the United States 
        and its allies on national defense, and the relative 
        percentages of each nation's gross domestic product 
        constituted by those expenditures.
    (2) The President shall submit to Congress a report on the 
review under paragraph (1). The report shall be submitted not 
later than March 1, 1997, in classified and unclassified form.
    (e) Report Date.--Section 1003(c) of Public Law 98-515 is 
amended by striking out ``each year'' and inserting ``by March 
1, 1998, and every other year thereafter''.

             TITLE XI--NATIONAL IMAGERY AND MAPPING AGENCY

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

                   Subtitle A--Establishment of Agency

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

          Subtitle B--Conforming Amendments and Effective Dates

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

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``National Imagery and 
Mapping Agency Act of 1996''.

SEC. 1102. FINDINGS.

    Congress makes the following findings:
            (1) There is a need within the Department of 
        Defense and the Intelligence Community of the United 
        States to provide a single agency focus for the growing 
        number and diverse types of customers for imagery and 
        geospatial information resources within the Government, 
        to ensure visibility and accountability for those 
        resources, and to harness, leverage, and focus rapid 
        technological developments to serve the imagery, 
        imagery intelligence, and geospatial information 
        customers.
            (2) There is a need for a single Government agency 
        to solicit and advocate the needs of that growing and 
        diverse pool of customers.
            (3) A single combat support agency dedicated to 
        imagery, imagery intelligence, and geospatial 
        information could act as a focal point for support of 
        all imagery intelligence and geospatial information 
        customers, including customers in the Department of 
        Defense, the Intelligence Community, and related 
        agencies outside of the Department of Defense.
            (4) Such an agency would best serve the needs of 
        the imagery, imagery intelligence, and geospatial 
        information customers if it were organized--
                    (A) to carry out its mission 
                responsibilities under the authority, 
                direction, and control of the Secretary of 
                Defense, with the advice of the Chairman of the 
                Joint Chiefs of Staff; and
                    (B) to carry out its responsibilities to 
                national intelligence customers in accordance 
                with policies and priorities established by the 
                Director of Central Intelligence.

SEC. 1103. ROLE OF DIRECTOR OF CENTRAL INTELLIGENCE IN APPOINTMENT AND 
                    EVALUATION OF CERTAIN INTELLIGENCE OFFICIALS.

    (a) In General.--Section 201 of title 10, United States 
Code, is amended to read as follows:

``Sec. 201. Certain intelligence officials: consultation and 
                    concurrence regarding appointments; evaluation of 
                    performance

    ``(a) Consultation Regarding Appointment.--Before 
submitting a recommendation to the President regarding the 
appointment of an individual to the position of Director of the 
Defense Intelligence Agency, the Secretary of Defense shall 
consult with the Director of Central Intelligence regarding the 
recommendation.
    ``(b) Concurrence in Appointment.--(1) Before submitting a 
recommendation to the President regarding the appointment of an 
individual to a position referred to in paragraph (2), the 
Secretary of Defense shall seek the concurrence of the Director 
of Central Intelligence in the recommendation. If the Director 
does not concur in the recommendation, the Secretary may make 
the recommendation to the President without the Director's 
concurrence, but shall include in the recommendation a 
statement that the Director does not concur in the 
recommendation.
    ``(2) Paragraph (1) applies to the following positions:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance 
        Office.
            ``(C) The Director of the National Imagery and 
        Mapping Agency.''.
    ``(c) Performance Evaluations.--(1) The Director of Central 
Intelligence shall provide annually to the Secretary of 
Defense, for the Secretary's consideration, an evaluation of 
the performance of the individuals holding the positions 
referred to in paragraph (2) in fulfilling their respective 
responsibilities with regard to the National Foreign 
Intelligence Program.
    ``(2) The positions referred to in paragraph (1) are the 
following:
            ``(A) The Director of the National Security Agency.
            ``(B) The Director of the National Reconnaissance 
        Office.
            ``(C) The Director of the National Imagery and 
        Mapping Agency.''.
    (b) Clerical Amendment.--The item relating to section 201 
in the table of sections at the beginning of subchapter II of 
chapter 8 of such title is amended to read as follows:

``201. Certain intelligence officials: consultation and concurrence 
          regarding appointments; evaluation of performance.''.

                  Subtitle A--Establishment of Agency

SEC. 1111. ESTABLISHMENT.

    (a) Establishment.--There is hereby established in the 
Department of Defense a Defense Agency to be known as the 
National Imagery and Mapping Agency.
    (b) Transfer of Functions From Department of Defense 
Entities.--The missions and functions of the following elements 
of the Department of Defense are transferred to the National 
Imagery and Mapping Agency:
            (1) The Defense Mapping Agency.
            (2) The Central Imagery Office.
            (3) Other elements of the Department of Defense as 
        specified in the classified annex to this Act.
    (c) Transfer of Functions From Central Intelligence 
Agency.--The missions and functions of the following elements 
of the Central Intelligence Agency are transferred to the 
National Imagery and Mapping Agency:
            (1) The National Photographic Interpretation 
        Center.
            (2) Other elements of the Central Intelligence 
        Agency as specified in the classified annex to this 
        Act.
    (d) Preservation of Level and Quality of Imagery 
Intelligence Support to All-Source Analysis and Production.--In 
managing the establishment of the National Imagery and Mapping 
Agency, the Secretary of Defense, in consultation with the 
Director of Central Intelligence, shall ensure that imagery 
intelligence support provided to all-source analysis and 
production is in no way degraded or compromised.

SEC. 1112. MISSIONS AND AUTHORITY.

    (a) Agency Charter.--Part I of subtitle A of title 10, 
United States Code, is amended--
            (1) by redesignating chapter 22 as chapter 23; and
            (2) by inserting after chapter 21 the following new 
        chapter 22:

           ``CHAPTER 22--NATIONAL IMAGERY AND MAPPING AGENCY

``Subchapter                                                        Sec.
``I. Missions and Authority.......................................   441
``II. Maps, Charts, and Geodetic Products.........................   451
``III. Personnel Management.......................................   461
``IV. Definitions.................................................   467

                 ``SUBCHAPTER I--MISSIONS AND AUTHORITY

``Sec.
``441. Establishment.
``442. Missions.
``443. Imagery intelligence and geospatial information: support for 
          foreign countries.
``444. Support from Central Intelligence Agency.
``445. Protection of agency identifications and organizational 
          information.

``Sec. 441. Establishment

    ``(a) Establishment.--The National Imagery and Mapping 
Agency is a combat support agency of the Department of Defense 
and has significant national missions.
    ``(b) Director.--(1) The Director of the National Imagery 
and Mapping Agency is the head of the agency.
    ``(2) Upon a vacancy in the position of Director, the 
Secretary of Defense shall recommend to the President an 
individual for appointment to the position.
    ``(3) If an officer of the armed forces on active duty is 
appointed to the position of Director, the position shall be 
treated as having been designated by the President as a 
position of importance and responsibility for purposes of 
section 601 of this title and shall carry the grade of 
lieutenant general, or, in the case of an officer of the Navy, 
vice admiral.
    ``(c) Director of Central Intelligence Collection Tasking 
Authority.--Unless otherwise directed by the President, the 
Director of Central Intelligence shall have authority (except 
as otherwise agreed by the Director and the Secretary of 
Defense) to--
            ``(1) approve collection requirements levied on 
        national imagery collection assets;
            ``(2) determine priorities for such requirements; 
        and
            ``(3) resolve conflicts in such priorities.
    ``(d) Availability and Continued Improvement of Imagery 
Intelligence Support to All-Source Analysis and Production 
Function.--The Secretary of Defense, in consultation with the 
Director of Central Intelligence, shall take all necessary 
steps to ensure the full availability and continued improvement 
of imagery intelligence support for all-source analysis and 
production.

``Sec. 442. Missions

    ``(a) National Security Missions.--(1) The National Imagery 
and Mapping Agency shall, in support of the national security 
objectives of the United States, provide the following:
            ``(A) Imagery.
            ``(B) Imagery intelligence.
            ``(C) Geospatial information.
    ``(2) Imagery, intelligence, and information provided in 
carrying out paragraph (1) shall be timely, relevant, and 
accurate.
    ``(b) Navigation Information.--The National Imagery and 
Mapping Agency shall improve means of navigating vessels of the 
Navy and the merchant marine by providing, under the authority 
of the Secretary of Defense, accurate and inexpensive nautical 
charts, sailing directions, books on navigation, and manuals of 
instructions for the use of all vessels of the United States 
and of navigators generally.
    ``(c) Maps, Charts, Etc.--The National Imagery and Mapping 
Agency shall prepare and distribute maps, charts, books, and 
geodetic products as authorized under subchapter II of this 
chapter.
    ``(d) National Missions.--The National Imagery and Mapping 
Agency also has national missions as specified in section 
120(a) of the National Security Act of 1947.
    ``(e) Systems.--The National Imagery and Mapping Agency 
may, in furtherance of a mission of the Agency, design, 
develop, deploy, operate, and maintain systems related to the 
processing and dissemination of imagery intelligence and 
geospatial information that may be transferred to, accepted or 
used by, or used on behalf of--
            ``(1) the armed forces, including any combatant 
        command, component of a combatant command, joint task 
        force, or tactical unit; or
            ``(2) any other department or agency of the United 
        States.

``Sec. 443. Imagery intelligence and geospatial information: support 
                    for foreign countries

    ``(a) Use of Appropriated Funds.--The Director of the 
National Imagery and Mapping Agency may use appropriated funds 
available to the National Imagery and Mapping Agency to provide 
foreign countries with imagery intelligence and geospatial 
information support.
    ``(b) Use of Funds Other Than Appropriated Funds.--The 
Director may use funds other than appropriated funds to provide 
foreign countries with imagery intelligence and geospatial 
information support, notwithstanding provisions of law relating 
to the expenditure of funds of the United States, except that--
            ``(1) no such funds may be expended, in whole or in 
        part, by or for the benefit of the National Imagery and 
        Mapping Agency for a purpose for which Congress had 
        previously denied funds.
            ``(2) proceeds from the sale of imagery 
        intelligence or geospatial information items may be 
        used only to purchase replacement items similar to the 
        items that are sold; and
            ``(3) the authority provided by this subsection may 
        not be used to acquire items or services for the 
        principal benefit of the United States.
    ``(c) Accommodation Procurements.--The authority under this 
section may be exercised to conduct accommodation procurements 
on behalf of foreign countries.
    ``(d) Coordination With Director of Central Intelligence.--
The Director of the Agency shall coordinate with the Director 
of Central Intelligence any action under this section that 
involves imagery intelligence or intelligence products or 
involves providing support to an intelligence or security 
service of a foreign country.

``Sec. 444. Support from Central Intelligence Agency

    ``(a) Support Authorized.--The Director of Central 
Intelligence may provide support in accordance with this 
section to the Director of the National Imagery and Mapping 
Agency. The Director of the National Imagery and Mapping Agency 
may accept support provided under this section.
    ``(b) Administrative and Contract Services.--(1) In 
furtherance of the national intelligence effort, the Director 
of Central Intelligence may provide administrative and contract 
services to the National Imagery and Mapping Agency as if that 
agency were an organizational element of the Central 
Intelligence Agency.
    ``(2) Services provided under paragraph (1) may include the 
services of security police. For purposes of section 15 of the 
Central Intelligence Agency Act of 1949 (50 U.S.C. 403o), an 
installation of the National Imagery and Mapping Agency that is 
provided security police services under this section shall be 
considered an installation of the Central Intelligence Agency.
    ``(3) Support provided under this subsection shall be 
provided under terms and conditions agreed upon by the 
Secretary of Defense and the Director of Central Intelligence.
    ``(c) Detail of Personnel.--The Director of Central 
Intelligence may detail personnel of the Central Intelligence 
Agency indefinitely to the National Imagery and Mapping Agency 
without regard to any limitation on the duration of interagency 
details of Federal Government personnel.
    ``(d) Reimbursable or Nonreimbursable Support.--Support 
under this section may be provided and accepted on either a 
reimbursable basis or a nonreimbursable basis.
    ``(e) Authority To Transfer Funds.--(1) The Director of the 
National Imagery and Mapping Agency may transfer funds 
available for that agency to the Director of Central 
Intelligence for the Central Intelligence Agency.
    ``(2) The Director of Central Intelligence--
            ``(A) may accept funds transferred under paragraph 
        (1); and
            ``(B) shall expend such funds, in accordance with 
        the Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403a et seq.), to provide administrative and contract 
        services or detail personnel to the National Imagery 
        and Mapping Agency under this section.

``Sec. 445. Protection of agency identifications and organizational 
                    information

    ``(a) Unauthorized Use of Agency Name, Initials, or Seal.--
(1) Except with the written permission of the Secretary of 
Defense, no person may knowingly use, in connection with any 
merchandise, retail product, impersonation, solicitation, or 
commercial activity in a manner reasonably calculated to convey 
the impression that such use is approved, endorsed, or 
authorized by the Secretary of Defense, any of the following:
            ``(A) The words `National Imagery and Mapping 
        Agency', the initials `NIMA', or the seal of the 
        National Imagery and Mapping Agency.
            ``(B) The words `Defense Mapping Agency', the 
        initials `DMA', or the seal of the Defense Mapping 
        Agency.
            ``(C) Any colorable imitation of such words, 
        initials, or seals.
    ``(2) Whenever it appears to the Attorney General that any 
person is engaged or about to engage in an act or practice 
which constitutes or will constitute conduct prohibited by 
paragraph (1), the Attorney General may initiate a civil 
proceeding in a district court of the United States to enjoin 
such act or practice. Such court shall proceed as soon as 
practicable to a hearing and determination of such action and 
may, at any time before such final determination, enter such 
restraining orders or prohibitions, or take such other action 
as is warranted, to prevent injury to the United States or to 
any person or class of persons for whose protection the action 
is brought.

          ``SUBCHAPTER II--MAPS, CHARTS, AND GEODETIC PRODUCTS

``Sec.
``451. Maps, charts, and books.
``452. Pilot charts.
``453. Prices of maps, charts, and navigational publications.
``454. Exchange of mapping, charting, and geodetic data with foreign 
          countries and international organizations
``455. Maps, charts, and geodetic data: public availability; exceptions.
``456. Civil actions barred.

                 ``SUBCHAPTER III--PERSONNEL MANAGEMENT

``Sec.
``461. Management rights.

``Sec. 461. Management rights

    ``(a) Scope.--If there is no obligation under the 
provisions of chapter 71 of title 5 for the head of an agency 
of the United States to consult or negotiate with a labor 
organization on a particular matter by reason of that matter 
being covered by a provision of law or a Governmentwide 
regulation, the Director of the National Imagery and Mapping 
Agency is not obligated to consult or negotiate with a labor 
organization on that matter even if that provision of law or 
regulation is inapplicable to the National Imagery and Mapping 
Agency.
    ``(b) Bargaining Units.--The National Imagery and Mapping 
Agency shall accord exclusive recognition to a labor 
organization under section 7111 of title 5 only for a 
bargaining unit that was recognized as appropriate for the 
Defense Mapping Agency on the day before the date on which 
employees and positions of the Defense Mapping Agency in that 
bargaining unit became employees and positions of the National 
Imagery and Mapping Agency under the National Imagery and 
Mapping Agency Act of 1996 (title XI of the National Defense 
Authorization Act for Fiscal Year 1997).
    ``(c) Termination of Bargaining Unit Coverage of Position 
Modified To Affect National Security Directly.--(1) If the 
Director of the National Imagery and Mapping Agency determines 
that the responsibilities of a position within a collective 
bargaining unit should be modified to include intelligence, 
counterintelligence, investigative, or security duties not 
previously assigned to that position and that the performance 
of the newly assigned duties directly affects the national 
security of the United States, then, upon such a modification 
of the responsibilities of that position, the position shall 
cease to be covered by the collective bargaining unit and the 
employee in that position shall cease to be entitled to 
representation by a labor organization accorded exclusive 
recognition for that collective bargaining unit.
    ``(2) A determination described in paragraph (1) that is 
made by the Director of the National Imagery and Mapping Agency 
may not be reviewed by the Federal Labor Relations Authority or 
any court of the United States.

                      ``SUBCHAPTER IV--DEFINITIONS

``Sec.
``467. Definitions.

``Sec. 467. Definitions

    ``In this chapter:
            ``(1) The term `function' means any duty, 
        obligation, responsibility, privilege, activity, or 
        program.
            ``(2)(A) The term `imagery' means, except as 
        provided in subparagraph (B), a likeness or 
        presentation of any natural or manmade feature or 
        related object or activity and the positional data 
        acquired at the same time the likeness or 
        representation was acquired, including--
                    ``(i) products produced by space-based 
                national intelligence reconnaissance systems; 
                and
                    ``(ii) likenesses or presentations produced 
                by satellites, airborne platforms, unmanned 
                aerial vehicles, or other similar means.
            ``(B) Such term does not include handheld or 
        clandestine photography taken by or on behalf of human 
        intelligence collection organizations.
            ``(3) The term `imagery intelligence' means the 
        technical, geographic, and intelligence information 
        derived through the interpretation or analysis of 
        imagery and collateral materials.
            ``(4) The term `geospatial information' means 
        information that identifies the geographic location and 
        characteristics of natural or constructed features and 
        boundaries on the earth and includes--
                    ``(A) statistical data and information 
                derived from, among other things, remote 
                sensing, mapping, and surveying technologies;
                    ``(B) mapping, charting, and geodetic data; 
                and
                    ``(C) geodetic products, as defined in 
                section 455(c) of this title.''.
    (b) Transfer of Defense Mapping Agency Provisions.--(1) 
Sections 2792, 2793, 2794, 2795, 2796, and 2798 of title 10, 
United States Code, are transferred to subchapter II of chapter 
22 of such title, as added by subsection (a), inserted in that 
sequence in such subchapter following the table of sections, 
and redesignated in accordance with the following table:

  Section                                                     Section as
  transferred                                               redesignated
  2792............................................................  451 
  2793............................................................  452 
  2794............................................................  453 
  2795............................................................  454 
  2796............................................................  455 
  2798............................................................  456.

    (2) Sections 451(1), 452, 453, 454, and 455 (in subsections 
(a) and (b)(1)(C)), and 456 of title 10, United States Code, as 
transferred and redesignated by paragraph (1), are amended by 
striking out ``Defense Mapping Agency'' each place it appears 
and inserting in lieu thereof ``National Imagery and Mapping 
Agency''.
    (c) Oversight of Agency as a Combat Support Agency.--
Section 193 of title 10, United States Code, is amended--
            (1) in subsection (d)--
                    (A) by striking out the caption and 
                inserting in lieu thereof ``Review of National 
                Security Agency and National Imagery and 
                Mapping Agency.--'';
                    (B) in paragraph (1)--
                            (i) by inserting ``and the National 
                        Imagery and Mapping Agency'' after 
                        ``the National Security Agency''; and
                            (ii) by striking out ``the Agency'' 
                        and inserting in lieu thereof ``that 
                        the agencies''; and
                    (C) in paragraph (2), by inserting ``and 
                the National Imagery and Mapping Agency'' after 
                ``the National Security Agency'';
            (2) in subsection (e)--
                    (A) by striking out ``DIA and NSA'' in the 
                caption and inserting in lieu thereof the 
                following: ``DIA, NSA, and NIMA''; and
                    (B) by striking out ``and the National 
                Security Agency'' and inserting in lieu thereof 
                ``, the National Security Agency, and the 
                National Imagery and Mapping Agency''; and
            (3) in subsection (f), by striking out paragraph 
        (4) and inserting in lieu thereof the following:
            ``(4) The National Imagery and Mapping Agency.''.
    (d) Consolidation and Standardization of Exemptions From 
Disclosure of Organizational and Personnel Information.--
Chapter 21 of title 10, United States Code, is amended by 
striking out sections 424 and 425 and inserting in lieu thereof 
the following:

``Sec. 424. Disclosure of organizational and personnel information: 
                    exemption for Defense Intelligence Agency, National 
                    Reconnaissance Office, and National Imagery and 
                    Mapping Agency

    ``(a) Exemption From Disclosure.--Except as required by the 
President or as provided in subsection (c), no provision of law 
shall be construed to require the disclosure of--
            ``(1) the organization or any function of an 
        organization of the Department of Defense named in 
        subsection (b); or
            ``(2) the number of persons employed by or assigned 
        or detailed to any such organization or the name, 
        official title, occupational series, grade, or salary 
        of any such person.
    ``(b) Covered Organizations.--This section applies to the 
following organizations of the Department of Defense:
            ``(1) The Defense Intelligence Agency.
            ``(2) The National Reconnaissance Office.
            ``(3) The National Imagery and Mapping Agency.
    ``(c) Provision of Information to Congress.--Subsection (a) 
does not apply with respect to the provision of information to 
Congress.''.
    (e) Special Printing Authority for Agency.--(1) Section 
207(a)(2)(B) of the Legislative Branch Appropriations Act, 1993 
(Public Law 102-392; 44 U.S.C. 501 note), is amended by 
inserting ``National Imagery and Mapping Agency,'' after 
``Defense Intelligence Agency,''.
    (2) Section 1336 of title 44, United States Code, is 
amended--
            (A) by striking out ``Secretary of the Navy'' and 
        inserting in lieu thereof ``Director of the National 
        Imagery and Mapping Agency''; and
            (B) by striking out ``United States Naval 
        Oceanographic Office'' and inserting in lieu thereof 
        ``National Imagery and Mapping Agency''.

SEC. 1113. TRANSFERS OF PERSONNEL AND ASSETS.

    (a) Personnel and Assets.--Subject to subsections (b) and 
(c), the personnel, assets, unobligated balances of 
appropriations and authorizations of appropriations, and, to 
the extent jointly determined appropriate by the Secretary of 
Defense and Director of Central Intelligence, obligated 
balances of appropriations and authorizations of appropriations 
employed, used, held, arising from, or available in connection 
with the missions and functions transferred under section 
1111(b) or section 1111(c) are transferred to the National 
Imagery and Mapping Agency. Transfers of appropriations from 
the Central Intelligence Agency under this subsection shall be 
made in accordance with section 1531 of title 31, United States 
Code.
    (b) Determination of CIA Positions To Be Transferred.--Not 
earlier than two years after the effective date of this 
subtitle, the Secretary of Defense and the Director of Central 
Intelligence shall determine which, if any, positions and 
personnel of the Central Intelligence Agency are to be 
transferred to the National Imagery and Mapping Agency. The 
positions to be transferred, and the employees serving in such 
positions, shall be transferred to the National Imagery and 
Mapping Agency under terms and conditions prescribed by the 
Secretary of Defense and the Director of Central Intelligence.
    (c) Rule for CIA Imagery Activities Only Partially 
Transferred.--If the National Photographic Interpretation 
Center of the Central Intelligence Agency or any imagery-
related activity of the Central Intelligence Agency authorized 
to be performed by the National Imagery and Mapping Agency is 
not completely transferred to the National Imagery and Mapping 
Agency, the Secretary of Defense and the Director of Central 
Intelligence shall--
            (1) jointly determine which, if any, contracts, 
        leases, property, and records employed, used, held, 
        arising from, available to, or otherwise relating to 
        such Center or activity is to be transferred to the 
        National Imagery and Intelligence Agency; and
            (2) provide by written agreement for the transfer 
        of such items.

SEC. 1114. COMPATIBILITY WITH AUTHORITY UNDER THE NATIONAL SECURITY ACT 
                    OF 1947.

    (a) Agency Functions.--Paragraph (2) of section 105(b) of 
the National Security Act of 1947 (50 U.S.C. 403-5(b)) is 
amended to read as follows:
            ``(2) through the National Imagery and Mapping 
        Agency (except as otherwise directed by the President 
        or the National Security Council), with appropriate 
        representation from the intelligence community, the 
        continued operation of an effective unified 
        organization within the Department of Defense--
                    ``(A) for carrying out tasking of imagery 
                collection;
                    ``(B) for the coordination of imagery 
                processing and exploitation activities;
                    ``(C) for ensuring the dissemination of 
                imagery in a timely manner to authorized 
                recipients; and
                    ``(D) notwithstanding any other provision 
                of law, for--
                            ``(i) prescribing technical 
                        architecture and standards related to 
                        imagery intelligence and geospatial 
                        information and ensuring compliance 
                        with such architecture and standards; 
                        and
                            ``(ii) developing and fielding 
                        systems of common concern related to 
                        imagery intelligence and geospatial 
                        information;''.
    (b) National Mission.--Title I of such Act (50 U.S.C. 402 
et seq.) is amended by adding at the end the following new 
section:


       ``national mission of national imagery and mapping agency


    ``Sec. 120. (a) In General.--In addition to the Department 
of Defense missions set forth in section 442 of title 10, 
United States Code, the National Imagery and Mapping Agency 
shall support the imagery requirements of the Department of 
State and other departments and agencies of the United States 
outside the Department of Defense.
    ``(b) Requirements and Priorities.--The Director of Central 
Intelligence shall establish requirements and priorities 
governing the collection of national intelligence by the 
National Imagery and Mapping Agency under subsection (a).
    ``(c) Correction of Deficiencies.--The Director of Central 
Intelligence shall develop and implement such programs and 
policies as the Director and the Secretary of Defense jointly 
determine necessary to review and correct deficiencies 
identified in the capabilities of the National Imagery and 
Mapping Agency to accomplish assigned national missions, 
including support to the all-source analysis and production 
process. The Director shall consult with the Secretary of 
Defense on the development and implementation of such programs 
and policies. The Secretary shall obtain the advice of the 
Chairman of the Joint Chiefs of Staff regarding the matters on 
which the Director and the Secretary are to consult under the 
preceding sentence.''.
    (c) Tasking of Imagery Assets.--Title I of such Act is 
further amended by adding at the end the following new section:


                     ``collection tasking authority


    ``Sec. 121. Unless otherwise directed by the President, the 
Director of Central Intelligence shall have authority (except 
as otherwise agreed by the Director and the Secretary of 
Defense) to--
            ``(1) approve collection requirements levied on 
        national imagery collection assets;
            ``(2) determine priorities for such requirements; 
        and
            ``(3) resolve conflicts in such priorities.''.
    (d) Clerical Amendment.--The table of contents in the first 
section of such Act is amended by inserting after the item 
relating to section 109 the following new items:

``Sec. 120. National mission of National Imagery and Mapping Agency.
``Sec. 121. Collection tasking authority.''.

SEC. 1115. CREDITABLE CIVILIAN SERVICE FOR CAREER CONDITIONAL EMPLOYEES 
                    OF THE DEFENSE MAPPING AGENCY.

    In the case of an employee of the National Imagery and 
Mapping Agency who, on the day before the effective date of 
this title, was an employee of the Defense Mapping Agency in a 
career-conditional status, the continuous service of that 
employee as an employee of the National Imagery and Mapping 
Agency on and after such date shall be considered creditable 
service for the purpose of any determination of the career 
status of the employee.

SEC. 1116. SAVING PROVISIONS.

    (a) Continuing Effect on Legal Documents.--All orders, 
determinations, rules, regulations, permits, agreements, 
international agreements, grants, contracts, leases, 
certificates, licenses, registrations, privileges, and other 
administrative actions--
            (1) which have been issued, made, granted, or 
        allowed to become effective by the President, any 
        Federal agency or official thereof, or by a court of 
        competent jurisdiction, in connection with any of the 
        functions which are transferred under this title or any 
        function that the National Imagery and Mapping Agency 
        is authorized to perform by law, and
            (2) which are in effect at the time this title 
        takes effect, or were final before the effective date 
        of this title and are to become effective on or after 
        the effective date of this title,
shall continue in effect according to their terms until 
modified, terminated, superseded, set aside, or revoked in 
accordance with law by the President, the Secretary of Defense, 
the Director of the National Imagery and Mapping Agency or 
other authorized official, a court of competent jurisdiction, 
or by operation of law.
    (b) Proceedings Not Affected.--This title and the 
amendments made by this title shall not affect any proceedings, 
including notices of proposed rulemaking, or any application 
for any license, permit, certificate, or financial assistance 
pending before an element of the Department of Defense or 
Central Intelligence Agency at the time this title takes 
effect, with respect to function of that element transferred by 
section 1122, but such proceedings and applications shall be 
continued. Orders shall be issued in such proceedings, appeals 
shall be taken therefrom, and payments shall be made pursuant 
to such orders, as if this title had not been enacted, and 
orders issued in any such proceedings shall continue in effect 
until modified, terminated, superseded, or revoked by a duly 
authorized official, by a court of competent jurisdiction, or 
by operation of law. Nothing in this section shall be deemed to 
prohibit the discontinuance or modification of any such 
proceeding under the same terms and conditions and to the same 
extent that such proceeding could have been discontinued or 
modified if this title had not been enacted.

SEC. 1117. DEFINITIONS.

    In this subtitle, the terms ``function'', ``imagery'', 
``imagery intelligence'', and ``geospatial information'' have 
the meanings given those terms in section 467 of title 10, 
United States Code, as added by section 1112.

SEC. 1118. AUTHORIZATION OF APPROPRIATIONS.

    Funds are authorized to be appropriated for the National 
Imagery and Mapping Agency for fiscal year 1997 in amounts and 
for purposes, and subject to the terms, conditions, 
limitations, restrictions, and requirements, that are set forth 
in the Classified Annex to this Act.

         Subtitle B--Conforming Amendments and Effective Dates

SEC. 1121. REDESIGNATION AND REPEALS.

    (a) Redesignation.--Chapter 23 of title 10, United States 
Code (as redesignated by section 1112(a)(1)) is amended by 
redesignating the sections in that chapter as sections 481 and 
482, respectively.
    (b) Repeal of Superseded Law.--Chapter 167 of such title, 
as amended by section 1112(b), is repealed.

SEC. 1122. REFERENCE AMENDMENTS.

    (a) Title 5, United States Code.--Title 5, United States 
Code, is amended as follows:
            (1) Central imagery office.--Sections 
        2302(a)(2)(C)(ii), 3132(a)(1)(B), 4301(1) (in clause 
        (ii)), 4701(a)(1)(B), 5102(a)(1) (in clause (xi)), 
        5342(a)(1)(L), 6339(a)(1)(E), and 
        7323(b)(2)(B)(i)(XIII) are amended by striking out 
        ``Central Imagery Office'' and inserting in lieu 
        thereof ``National Imagery and Mapping Agency''.
            (2) Director, central imagery office.--Section 
        6339(a)(2)(E) is amended by striking out ``Central 
        Imagery Office, the Director of the Central Imagery 
        Office'' and inserting in lieu thereof ``National 
        Imagery and Mapping Agency, the Director of the 
        National Imagery and Mapping Agency''.
    (b) Other Laws.--The following provisions of law are 
amended by striking out ``Central Imagery Office'' and 
inserting in lieu thereof ``National Imagery and Mapping 
Agency'':
            (1) National security act of 1947.--Section 3(4)(E) 
        of the National Security Act of 1947 (50 U.S.C. 
        401a(4)(E).
            (2) Ethics in government act of 1978.--Section 
        105(a) of the Ethics in Government Act of 1978 (Public 
        Law 95-521; 5 U.S.C. App. 4).
            (3) Employee polygraph protection act.--Section 
        7(b)(2)(A)(i) of the Employee Polygraph Protection Act 
        of 1988 (Public Law 100-347; 29 U.S.C. 
        2006(b)(2)(A)(i)).
    (c) Cross Reference.--Section 82 of title 14, United States 
Code, is amended by striking out ``chapter 167'' and inserting 
in lieu thereof ``subchapter II of chapter 22''.

SEC. 1123. HEADINGS AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--
            (1) The table of chapters at the beginning of 
        subtitle A of title 10, United States Code, is 
        amended--
                    (A) by striking out the item relating to 
                chapter 22 and inserting in lieu thereof the 
                following:

``22. National Imagery and Mapping Agency......................... 441  
``23. Miscellaneous Studies and Reports...........................471'';

                and
                    (B) by striking out the item relating to 
                chapter 167.
            (2) The table of chapters at the beginning of part 
        I of such subtitle is amended by striking out the item 
        relating to chapter 22 and inserting in lieu thereof 
        the following:

``22. National Imagery and Mapping Agency......................... 441  
``23. Miscellaneous Studies and Reports...........................471'';

            (3) The table of chapters at the beginning of part 
        IV of such subtitle is amended by striking out the item 
        relating to chapter 167.
            (4) The items in the table of sections at the 
        beginning of chapter 23 of title 10, United States Code 
        (as redesignated by section 1112(a)(1)), are revised so 
        as to reflect the redesignations made by section 
        1121(a).
    (b) Title 44, United States Code.--
            (1) The heading of section 1336 of title 44, United 
        States Code, is amended to read as follows:

``Sec. 1336. National Imagery and Mapping Agency: special 
                    publications''.

            (2) The item relating to that section in the tables 
        of sections at the beginning of chapter 13 of such 
        title is amended to read as follows:

``1336. National Imagery and Mapping Agency: special publications.''.

SEC. 1124. EFFECTIVE DATE.

    This title and the amendments made by this title shall take 
effect on October 1, 1996, or the date of the enactment of this 
Act, whichever is later.

                TITLE XII--RESERVE FORCES REVITALIZATION

                TITLE XII--RESERVE FORCES REVITALIZATION

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

                 Subtitle A--Reserve Component Structure

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

               Subtitle B--Reserve Component Accessibility

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

                 Subtitle C--Reserve Forces Sustainment

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

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Reserve Forces 
Revitalization Act of 1996''.

SEC. 1202. PURPOSE.

    The purpose of this title is to revise the basic statutory 
authorities governing the organization and administration of 
the reserve components of the Armed Forces in order to 
recognize the realities of reserve component partnership in the 
Total Force and to better prepare the American citizen-soldier, 
sailor, airman, and Marine in time of peace for duties in war.

                Subtitle A--Reserve Component Structure

SEC. 1211. RESERVE COMPONENT COMMANDS.

    (a) Establishment.--(1) Part I of subtitle E of title 10, 
United States Code, is amended by inserting after chapter 1005 
the following new chapter:

               ``CHAPTER 1006--RESERVE COMPONENT COMMANDS

  ``Sec.
``10171. United States Army Reserve Command.
``10172. Naval Reserve Force.
``10173. Marine Forces Reserve.
``10174. Air Force Reserve Command.

``Sec. 10171. United States Army Reserve Command

    ``(a) Command.--The United States Army Reserve Command is a 
separate command of the Army commanded by the Chief of Army 
Reserve.
    ``(b) Chain of Command.--Except as otherwise prescribed by 
the Secretary of Defense, the Secretary of the Army shall 
prescribe the chain of command for the United States Army 
Reserve Command.
    ``(c) Assignment of Forces.--The Secretary of the Army--
            ``(1) shall assign to the United States Army 
        Reserve Command all forces of the Army Reserve in the 
        continental United States other than forces assigned to 
        the unified combatant command for special operations 
        forces established pursuant to section 167 of this 
        title; and
            ``(2) except as otherwise directed by the Secretary 
        of Defense in the case of forces assigned to carry out 
        functions of the Secretary of the Army specified in 
        section 3013 of this title, shall assign all such 
        forces of the Army Reserve to the commander of the 
        United States Atlantic Command.

``Sec. 10172. Naval Reserve Force

    ``(a) Establishment of Command.--The Secretary of the Navy, 
with the advice and assistance of the Chief of Naval 
Operations, shall establish a Naval Reserve Force. The Naval 
Reserve Force shall be operated as a separate command of the 
Navy.
    ``(b) Commander.--The Chief of Naval Reserve shall be the 
commander of the Naval Reserve Force. The commander of the 
Naval Reserve Force reports directly to the Chief of Naval 
Operations.
    ``(c) Assignment of Forces.--The Secretary of the Navy--
            ``(1) shall assign to the Naval Reserve Force 
        specified portions of the Naval Reserve other than 
        forces assigned to the unified combatant command for 
        special operations forces established pursuant to 
        section 167 of this title; and
            ``(2) except as otherwise directed by the Secretary 
        of Defense in the case of forces assigned to carry out 
        functions of the Secretary of the Navy specified in 
        section 5013 of this title, shall assign to the 
        combatant commands all such forces assigned to the 
        Naval Reserve Force under paragraph (1) in the manner 
        specified by the Secretary of Defense.

``Sec. 10173. Marine Forces Reserve

    ``(a) Establishment.--The Secretary of the Navy, with the 
advice and assistance of the Commandant of the Marine Corps, 
shall establish in the Marine Corps a command known as the 
Marine Forces Reserve.
    ``(b) Commander.--The Marine Forces Reserve is commanded by 
the Commander, Marine Forces Reserve. The Commander, Marine 
Forces Reserve, reports directly to the Commandant of the 
Marine Corps.
    ``(c) Assignment of Forces.--The Commandant of the Marine 
Corps--
            ``(1) shall assign to the Marine Forces Reserve the 
        forces of the Marine Corps Reserve stationed in the 
        continental United States other than forces assigned to 
        the unified combatant command for special operations 
        forces established pursuant to section 167 of this 
        title; and
            ``(2) except as otherwise directed by the Secretary 
        of Defense in the case of forces assigned to carry out 
        functions of the Secretary of the Navy specified in 
        section 5013 of this title, shall assign to the 
        combatant commands (through the Marine Corps component 
        commander for each such command) all such forces 
        assigned to the Marine Forces Reserve under paragraph 
        (1) in the manner specified by the Secretary of 
        Defense.

``Sec. 10174. Air Force Reserve Command

    ``(a) Establishment of Command.--The Secretary of the Air 
Force, with the advice and assistance of the Chief of Staff of 
the Air Force, shall establish an Air Force Reserve Command. 
The Air Force Reserve Command shall be operated as a separate 
command of the Air Force.
    ``(b) Commander.--The Chief of Air Force Reserve is the 
Commander of the Air Force Reserve Command. The commander of 
the Air Force Reserve Command reports directly to the Chief of 
Staff of the Air Force.
    ``(c) Assignment of Forces.--The Secretary of the Air 
Force--
            ``(1) shall assign to the Air Force Reserve Command 
        all forces of the Air Force Reserve stationed in the 
        continental United States other than forces assigned to 
        the unified combatant command for special operations 
        forces established pursuant to section 167 of this 
        title; and
            ``(2) except as otherwise directed by the Secretary 
        of Defense in the case of forces assigned to carry out 
        functions of the Secretary of the Air Force specified 
        in section 8013 of this title, shall assign to the 
        combatant commands all such forces assigned to the Air 
        Force Reserve Command under paragraph (1) in the manner 
        specified by the Secretary of Defense.''.
    (2) The tables of chapters at the beginning of part I of 
such subtitle and at the beginning of such subtitle are each 
amended by inserting after the item relating to chapter 1005 
the following new item:

``1006. Reserve Component Commands..............................10171''.

    (b) Conforming Repeal.--Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is 
repealed.
    (c) Implementation Schedule.--Implementation of chapter 
1006 of title 10, United States Code, as added by subsection 
(a), shall begin not later than 90 days after the date of the 
enactment of this Act and shall be completed not later than one 
year after such date.

SEC. 1212. RESERVE COMPONENT CHIEFS.

    (a) Chief of Army Reserve.--Section 3038 of title 10, 
United States Code, is amended by adding at the end the 
following new subsections:
    ``(d) Budget.--The Chief of Army Reserve is the official 
within the executive part of the Department of the Army who, 
subject to the authority, direction, and control of the 
Secretary of the Army and the Chief of Staff, is responsible 
for justification and execution of the personnel, operation and 
maintenance, and construction budgets for the Army Reserve. As 
such, the Chief of Army Reserve is the director and functional 
manager of appropriations made for the Army Reserve in those 
areas.
    ``(e) Full Time Support Program.--The Chief of Army Reserve 
manages, with respect to the Army Reserve, the personnel 
program of the Department of Defense known as the Full Time 
Support Program.
    ``(f) Annual Report.--(1) The Chief of Army Reserve shall 
submit to the Secretary of Defense, through the Secretary of 
the Army, an annual report on the state of the Army Reserve and 
the ability of the Army Reserve to meet its missions. The 
report shall be prepared in conjunction with the Chief of Staff 
of the Army and may be submitted in classified and unclassified 
versions.
    ``(2) The Secretary of Defense shall transmit the annual 
report of the Chief of Army Reserve under paragraph (1) to 
Congress, together with such comments on the report as the 
Secretary considers appropriate. The report shall be 
transmitted at the same time each year that the annual report 
of the Secretary under section 113 of this title is submitted 
to Congress.''.
    (b) Chief of Naval Reserve.--(1) Chapter 513 of such title 
is amended by inserting after section 5142a the following new 
section:

``Sec. 5143. Office of Naval Reserve: appointment of Chief

    ``(a) Establishment of Office: Chief of Naval Reserve.--
There is in the executive part of the Department of the Navy, 
on the staff of the Chief of Naval Operations, an Office of the 
Naval Reserve, which is headed by a Chief of Naval Reserve. The 
Chief of Naval Reserve--
            ``(1) is the principal adviser on Naval Reserve 
        matters to the Chief of Naval Operations; and
            ``(2) is the commander of the Naval Reserve Force.
    ``(b) Appointment.--The President, by and with the advice 
and consent of the Senate, shall appoint the Chief of Naval 
Reserve from officers who--
            ``(1) have had at least 10 years of commissioned 
        service;
            ``(2) are in a grade above captain; and
            ``(3) have been recommended by the Secretary of the 
        Navy.
    ``(c) Grade.--(1) The Chief of Naval Reserve holds office 
for a term determined by the Chief of Naval Operations, 
normally four years, but may be removed for cause at any time. 
He is eligible to succeed himself.
    ``(2) The Chief of Naval Reserve, while so serving, has a 
grade above rear admiral (lower half), without vacating the 
officer's permanent grade.
    ``(d) Budget.--The Chief of Naval Reserve is the official 
within the executive part of the Department of the Navy who, 
subject to the authority, direction, and control of the 
Secretary of the Navy and the Chief of Naval Operations, is 
responsible for preparation, justification, and execution of 
the personnel, operation and maintenance, and construction 
budgets for the Naval Reserve. As such, the Chief of Naval 
Reserve is the director and functional manager of 
appropriations made for the Naval Reserve in those areas.
    ``(e) Annual Report.--(1) The Chief of Naval Reserve shall 
submit to the Secretary of Defense, through the Secretary of 
the Navy, an annual report on the state of the Naval Reserve 
and the ability of the Naval Reserve to meet its missions. The 
report shall be prepared in conjunction with the Chief of Naval 
Operations and may be submitted in classified and unclassified 
versions.
    ``(2) The Secretary of Defense shall transmit the annual 
report of the Chief of Naval Reserve under paragraph (1) to 
Congress, together with such comments on the report as the 
Secretary considers appropriate. The report shall be 
transmitted at the same time each year that the annual report 
of the Secretary under section 113 of this title is submitted 
to Congress.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
5142a the following new item:

``5143. Office of Naval Reserve: appointment of Chief.''.

    (c) Chief of Marine Forces Reserve.--(1) Chapter 513 of 
such title is amended by inserting after section 5143 (as added 
by subsection (b)) the following new section:

``Sec. 5144. Office of Marine Forces Reserve: appointment of Commander

    ``(a) Establishment of Office; Commander, Marine Forces 
Reserve.--There is in the executive part of the Department of 
the Navy an Office of the Marine Forces Reserve, which is 
headed by the Commander, Marine Forces Reserve. The Commander, 
Marine Forces Reserve, is the principal adviser to the 
Commandant on Marine Forces Reserve matters.
    ``(b) Appointment.--The President, by and with the advice 
and consent of the Senate, shall appoint the Commander, Marine 
Forces Reserve, from officers of the Marine Corps who--
            ``(1) have had at least 10 years of commissioned 
        service;
            ``(2) are in a grade above colonel; and
            ``(3) have been recommended by the Secretary of the 
        Navy.
    ``(c) Term of Office; Grade.--(1) The Commander, Marine 
Forces Reserve, holds office for a term determined by the 
Commandant of the Marine Corps, normally four years, but may be 
removed for cause at any time. He is eligible to succeed 
himself.
    ``(2) The Commander, Marine Forces Reserve, while so 
serving, has a grade above brigadier general, without vacating 
the officer's permanent grade.
    ``(d) Annual Report.--(1) The Commander, Marine Forces 
Reserve, shall submit to the Secretary of Defense, through the 
Secretary of the Navy, an annual report on the state of the 
Marine Corps Reserve and the ability of the Marine Corps 
Reserve to meet its missions. The report shall be prepared in 
conjunction with the Commandant of the Marine Corps and may be 
submitted in classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual 
report of the Commander, Marine Forces Reserve, under paragraph 
(1) to Congress, together with such comments on the report as 
the Secretary considers appropriate. The report shall be 
transmitted at the same time each year that the annual report 
of the Secretary under section 113 of this title is submitted 
to Congress.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 5143 
(as added by subsection (b)) the following new item:

``5144. Office of Marine Forces Reserve: appointment of Commander.''.

    (d) Chief of Air Force Reserve.--Section 8038 of such title 
is amended by adding at the end the following new subsections:
    ``(d) Budget.--The Chief of Air Force Reserve is the 
official within the executive part of the Department of the Air 
Force who, subject to the authority, direction, and control of 
the Secretary of the Air Force and the Chief of Staff, is 
responsible for preparation, justification, and execution of 
the personnel, operation and maintenance, and construction 
budgets for the Air Force Reserve. As such, the Chief of Air 
Force Reserve is the director and functional manager of 
appropriations made for the Air Force Reserve in those areas.
    ``(e) Full Time Support Program.--(1) The Chief of Air 
Force Reserve manages, with respect to the Air Force Reserve, 
the personnel program of the Department of Defense known as the 
Full Time Support Program.
    ``(f) Annual Report.--(1) The Chief of Air Force Reserve 
shall submit to the Secretary of Defense, through the Secretary 
of the Air Force, an annual report on the state of the Air 
Force Reserve and the ability of the Air Force Reserve to meet 
its missions. The report shall be prepared in conjunction with 
the Chief of Staff of the Air Force and may be submitted in 
classified and unclassified versions.
    ``(2) The Secretary of Defense shall transmit the annual 
report of the Chief of Air Force Reserve under paragraph (1) to 
Congress, together with such comments on the report as the 
Secretary considers appropriate. The report shall be 
transmitted at the same time each year that the annual report 
of the Secretary under section 113 of this title is submitted 
to Congress.''.
    (e) Conforming Amendment.--Section 641(1)(B) of such title 
is amended by inserting ``5143, 5144,'' after ``3038,''.

SEC. 1213. REVIEW OF ACTIVE DUTY AND RESERVE GENERAL AND FLAG OFFICER 
                    AUTHORIZATIONS.

    (a) Report to Congress.--Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report containing any 
recommendations of the Secretary (together with the rationale 
of the Secretary for the recommendations) concerning the 
following:
            (1) Revision of the limitations on general and flag 
        officer grade authorizations and distribution in grade 
        prescribed by sections 525, 526, and 12004 of title 10, 
        United States Code.
            (2) Statutory designation of the positions and 
        grades of any additional general and flag officers in 
        the commands and offices created by sections 1211 and 
        1212.
    (b) Matters To Be Included.--The Secretary shall include in 
the report under subsection (a) the Secretary's views on 
whether current limitations referred to in subsection (a)--
            (1) permit the Secretaries of the military 
        departments, in view of increased requirements for 
        assignment of general and flag officers in positions 
        external to their organic services, to meet adequately 
        both internal and external requirements for general and 
        flag officers;
            (2) adequately recognize the significantly 
        increased role of the reserve components in both 
        service-specific and joint operations; and
            (3) permit the Secretaries of the military 
        departments and the reserve components to assign 
        general and flag officers to active and reserve 
        component positions with grades commensurate with the 
        scope of duties and responsibilities of the position.
    (c) Exemptions From Active-Duty Ceilings.--(1) The 
Secretary shall include in the report under subsection (a) the 
Secretary's recommendations regarding the merits of exempting 
from any active-duty ceiling (established by law or 
administrative action) the following officers:
            (A) Reserve general and flag officers assigned to 
        positions specified in the organizations created by 
        this title.
            (B) Reserve general and flag officers serving on 
        active duty, but who are excluded from the active-duty 
        list.
    (2) If the Secretary determines under paragraph (1) that 
any Reserve general or flag officers should be exempt from 
active duty limits, the Secretary shall include in the report 
under subsection (a) the Secretary's recommendations for--
            (A) the effective management of those Reserve 
        general and flag officers; and
            (B) revision of active duty ceilings so as to 
        prevent an increase in the numbers of active general 
        and flag officers authorizations due solely to the 
        removal of Reserve general and flag officers from under 
        the active duty authorizations.
    (3) If the Secretary determines under paragraph (1) that 
active and reserve general officers on active duty should 
continue to be managed under a common ceiling, the Secretary 
shall make recommendations for the appropriate apportionment of 
numbers for general and flag officers among active and reserve 
officers.
    (d) Reserve Forces Policy Board Participation.--The 
Secretary of Defense shall ensure that the Reserve Forces 
Policy Board participates in the internal Department of Defense 
process for development of the recommendations of the Secretary 
contained in the report under subsection (a). If the Board 
submits to the Secretary any comments or recommendations for 
inclusion in the report, the Secretary shall transmit them to 
Congress, with the report, in the same form as that in which 
they were submitted to the Secretary.
    (e) GAO Review.--The Comptroller General of the United 
States shall assess the criteria used by the Secretary of 
Defense to develop recommendations for purposes of the report 
under this section and shall submit to Congress, not later than 
30 days after the date on which the report of the Secretary 
under this section is submitted, a report setting forth the 
Comptroller General's conclusions concerning the adequacy and 
completeness of the recommendations made by the Secretary in 
the report.

SEC. 1214. GUARD AND RESERVE TECHNICIANS.

    Section 10216 of title 10, United States Code, as amended 
by section 413, is amended--
            (1) by redesignating subsections (a), (b), and (c) 
        as subsections (b), (c), and (d), respectively;
            (2) by inserting after the section heading the 
        following new subsection (a):
    ``(a) In General.--Military technicians are Federal 
civilian employees hired under title 5 and title 32 who are 
required to maintain dual-status as drilling reserve component 
members as a condition of their Federal civilian employment. 
Such employees shall be authorized and accounted for as a 
separate category of dual-status civilian employees, exempt as 
specified in subsection (b)(3) from any general or regulatory 
requirement for adjustments in Department of Defense civilian 
personnel.''; and
            (3) in paragraph (3) of subsection (b), as 
        redesignated by paragraph (1), by striking out ``in 
        high-priority units and organizations specified in 
        paragraph (1)''.

              Subtitle B--Reserve Component Accessibility

SEC. 1231. REPORT TO CONGRESS ON MEASURES TO IMPROVE NATIONAL GUARD AND 
                    RESERVE ABILITY TO RESPOND TO EMERGENCIES.

    (a) Report.--Not later than six months after the date of 
the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report regarding reserve component 
responsiveness to both domestic emergencies and national 
contingency operations. The report shall set forth the measures 
taken, underway, and projected to be taken to improve the 
timeliness, adequacy, and effectiveness of reserve component 
responses to such emergencies and operations.
    (b) Matters Related to Responsiveness to Domestic 
Emergencies.--The report shall address the following:
            (1) The need to expand the time period set by 
        section 12301(b) of title 10, United States Code, which 
        permits the involuntary recall at any time to active 
        duty of units and individuals for up to 15 days per 
        year.
            (2) The recommendations of the 1995 report of the 
        RAND Corporation entitled ``Assessing the State and 
        Federal Missions of the National Guard'', as follows:
                    (A) That Federal law be clarified and 
                amended to authorize Presidential use of the 
                Federal reserves of all military services for 
                domestic emergencies and disasters without any 
                time constraint.
                    (B) That the Secretary of Defense develop 
                and support establishment of an appropriate 
                national level compact for interstate sharing 
                of resources, including the domestic 
                capabilities of the national guards of the 
                States, during emergencies and disasters.
                    (C) That Federal level contingency stocks 
                be created to support the National Guard in 
                domestic disasters.
                    (D) That Federal funding and regulatory 
                support be provided for Federal-State disaster 
                emergency response planning exercises.
    (c) Matters Related to Presidential Reserve Call-Up 
Authority.--The report under this section shall specifically 
address matters related to the authority of the President to 
activate for service on active duty units and members of 
reserve components under sections 12301, 12302, and 12304 of 
title 10, United States Code, including--
            (1) whether such authority is adequate to meet the 
        full range of reserve component missions for the 21st 
        century, particularly with regard to the time periods 
        for which such units and members may be on active duty 
        under those authorities and the ability to activate 
        both units and individual members; and
            (2) whether the three-tiered set of statutory 
        authorities (under such sections 12301, 12302, and 
        12304) should be consolidated, modified, or in part 
        eliminated in order to facilitate current and future 
        use of Reserve units and individual reserve component 
        members for a broader range of missions, and, if so, in 
        what manner.
    (d) Matters Related to Release From Active Duty.--The 
report under this section shall include findings and 
recommendations (based upon a review of current policies and 
procedures) concerning procedures for release from active duty 
of units and members of reserve components who have been 
involuntarily called or ordered to active duty under section 
12301, 12302, or 12304 of title 10, United States Code, with 
specific recommendations concerning the desirability of 
statutory provisions to--
            (1) establish specific guidelines for when it is 
        appropriate (or inappropriate) to retain on active duty 
        such reserve component units when active component 
        units are available to perform the mission being 
        performed by the reserve component unit;
            (2) minimize the effects of frequent mobilization 
        of the civilian employers, as well as the effects of 
        frequent mobilization on recruiting and retention in 
        the reserve components; and
            (3) address other matters relating to the needs of 
        such members of reserve components, their employers, 
        and (in the case of such members who own businesses) 
        their employees, while such members are on active duty.
    (e) Reserve Forces Policy Board Participation.--The 
Secretary of Defense shall ensure that the Reserve Forces 
Policy Board participates in the internal Department of Defense 
process for development of the recommendations of the Secretary 
contained in the report under subsection (a). If the Board 
submits to the Secretary any comments or recommendations for 
inclusion in the report, the Secretary shall transmit them to 
Congress, with the report, in the same form as that in which 
they were submitted to the Secretary.
    (f) GAO Review.--The Comptroller General of the United 
States shall assess the criteria used by the Secretary of 
Defense to develop recommendations for purposes of the report 
under this section and shall submit to Congress, not later than 
30 days after the date on which the report of the Secretary 
under this section is submitted, a report setting forth the 
Comptroller General's conclusions concerning the adequacy and 
completeness of the recommendations made by the Secretary in 
the report.

SEC. 1232. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR EMPLOYERS 
                    OF MEMBERS OF RESERVE COMPONENTS.

    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to provide tax 
incentives to employers of members of reserve components in 
order to compensate employers for absences of those employees 
due to required training and for absences due to performance of 
active duty.

SEC. 1233. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM FOR 
                    ACTIVATED RESERVISTS.

    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth legislative recommendations for changes to 
chapter 1214 of title 10, United States Code. Such 
recommendations shall in particular provide, in the case of a 
mobilized member who owns a business, income replacement for 
that business and for employees of that member or business who 
have a loss of income during the period of such activation 
attributable to the activation of the member.

SEC. 1234. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR 
                    MEMBERS RELEASED FROM RESERVE SERVICE DURING 
                    CONTINGENCY OPERATIONS.

    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to establish a 
small business loan program to provide members of reserve 
components who are ordered to active duty or active Federal 
service (other than for training) during a contingency 
operation (as defined in section 101 of title 10, United States 
Code) low-cost loans to assist those members in retaining or 
rebuilding businesses that were affected by their service on 
active duty or in active Federal service.

                 Subtitle C--Reserve Forces Sustainment

SEC. 1251. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE 
                    EXPENSES.

    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report setting forth a draft of legislation to restore the tax 
deductibility of nonreimbursable expenses incurred by members 
of reserve components in connection with military service.

SEC. 1252. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS 
                    PERFORMING ACTIVE DUTY FOR TRAINING.

    Section 404(j)(1) of title 37, United States Code, is 
amended by striking out ``annual training duty'' and inserting 
in lieu thereof ``active duty for training''.

SEC. 1253. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING 
                    SERVICE ON ACTIVE DUTY FOR TRAINING.

    It is the sense of Congress that the United States should 
continue to pay members of reserve components appropriate 
quarters allowances during periods of service on active duty 
for training.

SEC. 1254. SENSE OF CONGRESS CONCERNING MILITARY LEAVE POLICY.

    It is the sense of Congress that military leave policies in 
effect as of the date of the enactment of this Act with respect 
to members of the reserve components should not be changed.

SEC. 1255. RESERVE FORCES POLICY BOARD.

    (a) Commendation.--The Congress commends the Reserve Forces 
Policy Board, created by the Armed Forces Reserve Act of 1952 
(Public Law 82-476), for its fine work in the past as an 
independent source of advice to the Secretary of Defense on all 
matters pertaining to the reserve components.
    (b) Sense of Congress.--It is the sense of Congress that 
the Reserve Forces Policy Board and the reserve forces policy 
committees for the individual branches of the Armed Forces 
should continue to perform the vital role of providing the 
civilian leadership of the Department of Defense with 
independent advice on matters pertaining to the reserve 
components.
    (c) Annual Report of Reserve Forces Policy Board.--Section 
113(c) of title 10, United States Code, is amended--
            (1) by striking out paragraph (3);
            (2) by redesignating paragraphs (1), (2), and (4) 
        as subparagraphs (A), (B), and (C), respectively;
            (3) by inserting ``(1)'' after ``(c)'';
            (4) by inserting ``and'' at the end of subparagraph 
        (B), as redesignated by paragraph (2); and
            (5) by adding at the end the following:
    ``(2) At the same time that the Secretary submits the 
annual report under paragraph (1), the Secretary shall transmit 
to the President and Congress a separate report from the 
Reserve Forces Policy Board on the reserve programs of the 
Department of Defense and on any other matters that the Reserve 
Forces Policy Board considers appropriate to include in the 
report.''.

SEC. 1256. REPORT ON PARITY OF BENEFITS FOR ACTIVE DUTY SERVICE AND 
                    RESERVE SERVICE.

    No later than six months after the date of the enactment of 
this Act, the Secretary of Defense shall submit to Congress a 
report providing recommendations for changes in law that the 
Secretary considers necessary, feasible, and affordable to 
reduce the disparities in pay and benefits that occur between 
active component members of the Armed Forces and reserve 
component members as a result of eligibility based on length of 
time on active duty.

SEC. 1257. INFORMATION ON PROPOSED FUNDING FOR THE GUARD AND RESERVE 
                    COMPONENTS IN FUTURE-YEARS DEFENSE PROGRAMS.

    (a) In General.--(1) Chapter 1013 of title 10, United 
States Code, is amended by adding at the end the following new 
section:

``Sec. 10543. National Guard and reserve component equipment 
                    procurement and military construction funding: 
                    inclusion in future-years defense program

    ``The Secretary of Defense shall specify in each future-
years defense program submitted to Congress under section 221 
of this title the estimated expenditures and the proposed 
appropriations, for each fiscal year of the period covered by 
that program, for the procurement of equipment and for military 
construction for each of the reserve components of the armed 
forces.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``10543. National Guard and reserve component equipment procurement and 
          military construction funding: inclusion in future-years 
          defense program.''.

    (b) Effective Date.--Section 10543 of title 10, United 
States Code, as added by subsection (a), shall apply with 
respect to each future-years defense program submitted to 
Congress after the date of the enactment of this Act.

              TITLE XIII--ARMS CONTROL AND RELATED MATTERS

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

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

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

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

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

SEC. 1301. EXTENSION OF COUNTERPROLIFERATION AUTHORITIES.

    (a) One-Year Extension of Authority.--Section 1505 of the 
Weapons of Mass Destruction Control Act of 1992 (title XV of 
Public Law 102-484; 22 U.S.C. 5859a) is amended--
            (1) in subsection (d)(3), by striking out ``or'' 
        after ``fiscal year 1995,'' and by inserting ``, or 
        $15,000,000 for fiscal year 1997'' before the period at 
        the end; and
            (2) in subsection (f), by striking out ``1996'' and 
        inserting in lieu thereof ``1997''.
    (b) Funding Flexibility.--Subsection (d) of such section is 
further amended by adding at the end the following new 
paragraph:
    ``(4)(A) In the event of a significant unforeseen 
development related to the activities of the United Nations 
Special Commission on Iraq for which the Secretary of Defense 
determines that financial assistance under this section is 
required at a level which would result in the total amount of 
assistance provided under this section during the then-current 
fiscal year exceeding the amount specified with respect to that 
year under paragraph (3), the Secretary of Defense may provide 
such assistance notwithstanding the limitation with respect to 
that fiscal year under paragraph (3). Funds for such purpose 
may be derived from any funds available to the Department of 
Defense for that fiscal year.
    ``(B) Financial assistance may be provided under 
subparagraph (A) only after the Secretary of Defense provides 
notice in writing to the committees of Congress named in 
subsection (e)(2) of the significant unforeseen development and 
of the Secretary's intent to provide assistance in excess of 
the limitation for that fiscal year under paragraph (3). 
However, if the Secretary determines in any case that under the 
specific circumstances of that case advance notice is not 
possible, such notice shall be provided as soon as possible and 
not later than 15 days after the date on which the assistance 
is provided. Any notice under this subparagraph shall include a 
description of the development, the amount of assistance 
provided or to be provided, and the source of the funds for 
that assistance.''.

SEC. 1302. LIMITATION ON RETIREMENT OR DISMANTLEMENT OF STRATEGIC 
                    NUCLEAR DELIVERY SYSTEMS.

    (a) Funding Limitation.--Funds available to the Department 
of Defense may not be obligated or expended during fiscal year 
1997 for retiring or dismantling, or for preparing to retire or 
dismantle, any of the following strategic nuclear delivery 
systems:
            (1) B-52H bomber aircraft.
            (2) Trident ballistic missile submarines.
            (3) Minuteman III intercontinental ballistic 
        missiles.
            (4) Peacekeeper intercontinental ballistic 
        missiles.
    (b) Waiver Authority.--If the START II Treaty enters into 
force during fiscal year 1996 or fiscal year 1997, the 
Secretary of Defense may waive the application of the 
limitation under paragraphs (2), (3), and (4) of subsection (a) 
to Trident ballistic missile submarines, Minuteman III 
intercontinental ballistic missiles, and Peacekeeper 
intercontinental ballistic missiles, respectively, to the 
extent that the Secretary determines necessary in order to 
implement the treaty.
    (c) Funding Limitation on Early Deactivation.--(1) If the 
limitation under paragraphs (2), (3), and (4) of subsection (a) 
ceases to apply by reason of a waiver under subsection (b), 
funds available to the Department of Defense may nevertheless 
not be obligated or expended during fiscal year 1997 to 
implement any agreement or understanding to undertake 
substantial early deactivation of a strategic nuclear delivery 
system specified in subsection (b) until 30 days after the date 
on which the President submits to Congress a report concerning 
such actions.
    (2) For purposes of this subsection, a substantial early 
deactivation is an action during fiscal year 1997 to deactivate 
a substantial number of strategic nuclear delivery systems 
specified in subsection (b) by--
            (A) removing nuclear warheads from those systems; 
        or
            (B) taking other steps to remove those systems from 
        combat status.
    (3) A report under this subsection shall include the 
following:
            (A) The text of any understanding or agreement 
        between the United States and the Russian Federation 
        concerning substantial early deactivation of strategic 
        nuclear delivery systems under the START II Treaty.
            (B) The plan of the Department of Defense for 
        implementing the agreement.
            (C) An assessment of the Secretary of Defense of 
        the adequacy of the provisions contained in the 
        agreement for monitoring and verifying compliance of 
        Russia with the terms of the agreement.
            (D) A determination by the President as to whether 
        the deactivations to occur under the agreement will be 
        carried out in a symmetrical, reciprocal, or equivalent 
        manner.
            (E) An assessment by the President of the effect of 
        the proposed early deactivation on the stability of the 
        strategic balance and relative strategic nuclear 
        capabilities of the United States and the Russian 
        Federation at various stages during deactivation and 
        upon completion.
    (d) START II Treaty Defined.--For purposes of this section, 
the term ``START II Treaty'' means the Treaty Between the 
United States of America and the Russian Federation on Further 
Reduction and Limitation of Strategic Offensive Arms, signed at 
Moscow on January 3, 1993, including the following protocols 
and memorandum of understanding, all such documents being 
integral parts of and collectively referred to as the ``START 
II Treaty'' (contained in Treaty Document 103-1):
            (1) The Protocol on Procedures Governing 
        Elimination of Heavy ICBMs and on Procedures Governing 
        Conversion of Silo Launchers of Heavy ICBMs Relating to 
        the Treaty Between the United States of America and the 
        Russian Federation on Further Reduction and Limitation 
        of Strategic Offensive Arms (also known as the 
        ``Elimination and Conversion Protocol'').
            (2) The Protocol on Exhibitions and Inspections of 
        Heavy Bombers Relating to the Treaty Between the United 
        States and the Russian Federation on Further Reduction 
        and Limitation of Strategic Offensive Arms (also known 
        as the ``Exhibitions and Inspections Protocol'').
            (3) The Memorandum of Understanding on Warhead 
        Attribution and Heavy Bomber Data Relating to the 
        Treaty Between the United States of America and the 
        Russian Federation on Further Reduction and Limitation 
        of Strategic Offensive Arms (also known as the 
        ``Memorandum on Attribution'').
    (e) Retention of B-52H Aircraft on Active Status.--(1) The 
Secretary of the Air Force shall maintain in active status 
(including the performance of standard maintenance and 
upgrades) the current fleet of B-52H bomber aircraft.
    (2) For purposes of carrying out upgrades of B-52H bomber 
aircraft during fiscal year 1997, the Secretary shall treat the 
entire current fleet of such aircraft as aircraft expected to 
be maintained in active status during the six-year period 
beginning on October 1, 1996.

SEC. 1303. STRENGTHENING CERTAIN SANCTIONS AGAINST NUCLEAR 
                    PROLIFERATION ACTIVITIES.
    (a) Sanctions.--Section 2(b)(4) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635(b)(4)) is amended to read as 
follows:
            ``(4)(A) If the Secretary of State determines 
        that--
                    ``(i) any country that has agreed to 
                International Atomic Energy Agency nuclear 
                safeguards materially violates, abrogates, or 
                terminates, after October 26, 1977, such 
                safeguards;
                    ``(ii) any country that has entered into an 
                agreement for cooperation concerning the civil 
                use of nuclear energy with the United States 
                materially violates, abrogates, or terminates, 
                after October 26, 1977, any guarantee or other 
                undertaking to the United States made in such 
                agreement;
                    ``(iii) any country that is not a nuclear-
                weapon state detonates, after October 26, 1977, 
                a nuclear explosive device;
                    ``(iv) any country willfully aids or abets, 
                after June 29, 1994, any non-nuclear-weapon 
                state to acquire any such nuclear explosive 
                device or to acquire unsafeguarded special 
                nuclear material; or
                    ``(v) any person knowingly aids or abets, 
                after the date of enactment of the National 
                Defense Authorization Act for Fiscal Year 1997, 
                any non-nuclear-weapon state to acquire any 
                such nuclear explosive device or to acquire 
                unsafeguarded special nuclear material,
        then the Secretary of State shall submit a report to 
        the appropriate committees of the Congress and to the 
        Board of Directors of the Bank stating such 
        determination and identifying each country or person 
        the Secretary determines has so acted.
            ``(B)(i) If the Secretary of State makes a 
        determination under subparagraph (A)(v) with respect to 
        a foreign person, the Congress urges the Secretary to 
        initiate consultations immediately with the government 
        with primary jurisdiction over that person with respect 
        to the imposition of the prohibition contained in 
        subparagraph (C).
            ``(ii) In order that consultations with that 
        government may be pursued, the Board of Directors of 
        the Bank shall delay imposition of the prohibition 
        contained in subparagraph (C) for up to 90 days if the 
        Secretary of State requests the Board to make such 
        delay. Following these consultations, the prohibition 
        contained in subparagraph (C) shall apply immediately 
        unless the Secretary determines and certifies to the 
        Congress that that government has taken specific and 
        effective actions, including appropriate penalties, to 
        terminate the involvement of the foreign person in the 
        activities described in subparagraph (A)(v). The Board 
        of Directors of the Bank shall delay the imposition of 
        the prohibition contained in subparagraph (C) for up to 
        an additional 90 days if the Secretary requests the 
        Board to make such additional delay and if the 
        Secretary determines and certifies to the Congress that 
        that government is in the process of taking the actions 
        described in the preceding sentence.
            ``(iii) Not later than 90 days after making a 
        determination under subparagraph (A)(v), the Secretary 
        of State shall submit to the appropriate committees of 
        the Congress a report on the status of consultations 
        with the appropriate government under this 
        subparagraph, and the basis for any determination under 
        clause (ii) that such government has taken specific 
        corrective actions.
            ``(C) The Board of Directors of the Bank shall not 
        give approval to guarantee, insure, or extend credit, 
        or participate in the extension of credit in support of 
        United States exports to any country, or to or by any 
        person, identified in the report described in 
        subparagraph (A).
            ``(D) The prohibition in subparagraph (C) shall not 
        apply to approvals to guarantee, insure, or extend 
        credit, or participate in the extension of credit in 
        support of United States exports to a country with 
        respect to which a determination is made under clause 
        (i), (ii), (iii), or (iv) of subparagraph (A) regarding 
        any specific event described in such clause if the 
        President determines and certifies in writing to the 
        Congress not less than 45 days prior to the date of the 
        first approval following the determination that it is 
        in the national interest for the Bank to give such 
        approvals.
            ``(E) The prohibition in subparagraph (C) shall not 
        apply to approvals to guarantee, insure, or extend 
        credit, or participate in the extension of credit in 
        support of United States exports to or by a person with 
        respect to whom a determination is made under clause 
        (v) of subparagraph (A) regarding any specific event 
        described in such clause if--
                    ``(i) the Secretary of State determines and 
                certifies to the Congress that the appropriate 
                government has taken the corrective actions 
                described in subparagraph (B)(ii); or
                    ``(ii) the President determines and 
                certifies in writing to the Congress not less 
                than 45 days prior to the date of the first 
                approval following the determination that--
                            ``(I) reliable information 
                        indicates that--
                                    ``(aa) such person has 
                                ceased to aid or abet any non-
                                nuclear-weapon state to acquire 
                                any nuclear explosive device or 
                                to acquire unsafeguarded 
                                special nuclear material; and
                                    ``(bb) steps have been 
                                taken to ensure that the 
                                activities described in item 
                                (aa) will not resume; or
                            ``(II) the prohibition would have a 
                        serious adverse effect on vital United 
                        States interests.
            ``(F) For purposes of this paragraph:
                    ``(i) The term `country' has the meaning 
                given to `foreign state' in section 1603(a) of 
                title 28, United States Code.
                    ``(ii) The term `knowingly' is used within 
                the meaning of the term `knowing' in section 
                104(h)(3) of the Foreign Corrupt Practices Act 
                (15 U.S.C. 78dd-2(h)(3)).
                    ``(iii) The term `person' means a natural 
                person as well as a corporation, business 
                association, partnership, society, trust, any 
                other nongovernmental entity, organization, or 
                group, and any governmental entity operating as 
                a business enterprise, and any successor of any 
                such entity.
                    ``(iv) The term `nuclear-weapon state' has 
                the meaning given the term in Article IX(3) of 
                the Treaty on the Non-Proliferation of Nuclear 
                Weapons, signed at Washington, London, and 
                Moscow on July 1, 1968.
                    ``(v) The term `non-nuclear-weapon state' 
                has the meaning given the term in section 
                830(5) of the Nuclear Proliferation Prevention 
                Act of 1994 (Public Law 103-236; 108 Stat. 
                521).
                    ``(vi) The term `nuclear explosive device' 
                has the meaning given the term in section 
                830(4) of the Nuclear Proliferation Prevention 
                Act of 1994 (Public Law 103-236; 108 Stat. 
                521).
                    ``(vii) The term `unsafeguarded special 
                nuclear material' has the meaning given the 
                term in section 830(8) of the Nuclear 
                Proliferation Prevention Act of 1994.''.
    (b) Recommendations To Make Nonproliferation Laws More 
Effective.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the 
Congress his recommendations on ways to make the laws of the 
United States more effective in controlling and preventing the 
proliferation of weapons of mass destruction and missiles. The 
report shall identify all sources of Government funds used for 
such nonproliferation activities.

SEC. 1304. AUTHORITY TO PAY CERTAIN EXPENSES RELATING TO HUMANITARIAN 
                    AND CIVIC ASSISTANCE FOR CLEARANCE OF LANDMINES.

    (a) Authority To Pay Expenses.--Section 401(c) of title 10, 
United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph 
        (4); and
            (2) by inserting after paragraph (1) the following 
        new paragraphs:
    ``(2) Expenses covered by paragraph (1) include the 
following expenses incurred in providing assistance described 
in subsection (e)(5):
            ``(A) Travel, transportation, and subsistence 
        expenses of Department of Defense personnel providing 
        such assistance.
            ``(B) The cost of any equipment, services, or 
        supplies acquired for the purpose of carrying out or 
        supporting the activities described in subsection 
        (e)(5), including any nonlethal, individual, or small-
        team landmine clearing equipment or supplies that are 
        to be transferred or otherwise furnished to a foreign 
        country in furtherance of the provision of assistance 
        under this section.
    ``(3) The cost of equipment, services, and supplies 
provided in any fiscal year under paragraph (2)(B) may not 
exceed $5,000,000.''.
    (b) Coordination With Other Laws.--Section 401(b) of such 
title is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2) Any authority provided under any other provision of 
law to provide assistance that is described in subsection 
(e)(5) to a foreign country shall be carried out in accordance 
with, and subject to the limitations prescribed in, this 
section. Any such provision may be construed as superseding a 
provision of this section only if, and to the extent that, such 
provision specifically refers to this section and specifically 
identifies the provision of this section that is to be 
considered superseded or otherwise inapplicable under such 
provision.''.

SEC. 1305. REPORT ON MILITARY CAPABILITIES OF PEOPLE'S REPUBLIC OF 
                    CHINA.

    (a) Report.--The Secretary of Defense shall prepare a 
report, in both classified and unclassified form, on the future 
pattern of military modernization of the People's Republic of 
China. The report shall address both the probable course of 
military-technological development in the People's Liberation 
Army and the development of Chinese military strategy and 
operational concepts.
    (b) Matters To Be Included.--The report shall include 
analyses and forecasts of the following:
            (1) Trends that would lead the People's Republic of 
        China toward advanced intelligence, surveillance, and 
        reconnaissance capabilities, either through a 
        development program or by gaining access to commercial 
        or third-party systems with militarily significant 
        capabilities.
            (2) Efforts by the People's Republic of China to 
        develop highly accurate and low-observable ballistic 
        and cruise missiles, and the investments in 
        infrastructure that would allow for production of such 
        weapons in militarily significant quantities, 
        particularly in numbers sufficient to conduct attacks 
        capable of overwhelming projected defense capabilities 
        in the region.
            (3) Development by the People's Republic of China 
        of enhanced command and control networks, particularly 
        those capable of battle management that would include 
        long-range precision strikes.
            (4) Programs of the People's Republic of China 
        involving unmanned aerial vehicles, particularly those 
        with extended ranges or loitering times.
            (5) Exploitation by the People's Republic of China 
        of the Global Positioning System or other similar 
        systems, including commercial land surveillance 
        satellites, for significant military purposes, 
        including particularly for increasing the accuracy of 
        weapons or the situational awareness of operating 
        forces.
            (6) Development by the People's Republic of China 
        of capabilities for denial of sea control, such as 
        advanced sea mines or improved submarine capabilities.
            (7) Continued development by the People's Republic 
        of China of follow-on forces, particularly those 
        capable of rapid air or amphibious assault.
    (c) Submission of Report.--The report shall be submitted to 
Congress not later than February 1, 1997.

SEC. 1306. PRESIDENTIAL REPORT REGARDING WEAPONS PROLIFERATION AND 
                    POLICIES OF THE PEOPLE'S REPUBLIC OF CHINA.

    (a) Findings.--The Congress finds that--
            (1) the People's Republic of China acceded to the 
        Treaty on the Non-Proliferation of Nuclear Weapons 
        (hereafter in this section referred to as the ``NPT'') 
        on March 9, 1992;
            (2) the People's Republic of China is not a member 
        of the Nuclear Suppliers Group and remains the only 
        major nuclear supplier that continues to transfer 
        nuclear technology, equipment, and materials to 
        countries that have not agreed to the application of 
        safeguards of the International Atomic Energy Agency 
        (hereafter in this section referred to as the ``IAEA'') 
        over all of their nuclear materials;
            (3) on June 30, 1995, the United States and 29 
        other members of the Nuclear Suppliers Group notified 
        the Director General of the IAEA that the Government of 
        each respective country has decided that the controls 
        of that Group should not be defeated by the transfer of 
        component parts;
            (4) a state-owned entity in the People's Republic 
        of China, the China Nuclear Energy Industry 
        Corporation, has knowingly transferred specially 
        designed ring magnets to an unsafeguarded uranium 
        enrichment facility in the Islamic Republic of 
        Pakistan;
            (5) ring magnets are identified on the Trigger List 
        of the Nuclear Suppliers Group as a component of 
        magnetic suspension bearings which are to be exported 
        only to countries that have safeguards of the IAEA over 
        all of their nuclear materials;
            (6) these ring magnets could contribute 
        significantly to the ability of the Islamic Republic of 
        Pakistan to produce additional unsafeguarded enriched 
        uranium, a nuclear explosive material;
            (7) the Government of the People's Republic of 
        China has transferred nuclear equipment and technology 
        to the Islamic Republic of Iran, despite repeated 
        claims by the Government of the United States that the 
        Islamic Republic of Iran is engaged in clandestine 
        efforts to acquire a nuclear explosive device;
            (8) representatives of the Government of the 
        People's Republic of China have repeatedly assured the 
        Government of the United States that the People's 
        Republic of China would abide by the guidelines of the 
        Missile Technology Control Regime (hereafter in this 
        section referred to as the ``MTCR'');
            (9) the Government of China has transferred M-11 
        missiles to the Islamic Republic of Pakistan; and
            (10) the M-11 missile conforms to the definition of 
        a nuclear-capable missile under the MTCR.
    (b) Sense of the Congress.--It is the sense of the Congress 
that--
            (1) the assistance that the People's Republic of 
        China has provided to the Islamic Republic of Iran and 
        to the Islamic Republic of Pakistan could contribute to 
        the ability of such countries to manufacture nuclear 
        weapons;
            (2) the recent transfer by the People's Republic of 
        China of ring magnets to an unsafeguarded uranium 
        enrichment facility in the Islamic Republic of Pakistan 
        conflicts with China's obligations under Articles I and 
        III of the NPT, as well as the official 
        nonproliferation policies and assurances by the 
        People's Republic of China and the Islamic Republic of 
        Pakistan with respect to the nonproliferation of 
        nuclear weapons and nuclear-capable missiles;
            (3) the transfer of M-11 missiles from the People's 
        Republic of China to the Islamic Republic of Pakistan 
        is inconsistent with longstanding United States 
        Government interpretations of assurances from the 
        Government of the People's Republic of China with 
        respect to that country's intent to abide by the 
        guidelines of the MTCR;
            (4) violations by the People's Republic of China of 
        the standards and objectives of the MTCR and global 
        nuclear nonproliferation regimes have jeopardized the 
        credibility of the MTCR and such regimes;
            (5) the MTCR and global nuclear nonproliferation 
        regimes require collective international action to 
        impose costs against and to withhold benefits from any 
        country, including the People's Republic of China, that 
        engages in activities that are contrary to the 
        objectives of those regimes;
            (6) the President should explore with the 
        governments of other countries new opportunities for 
        collective action in response to activities of any 
        country, including the People's Republic of China, that 
        aid or abet the global proliferation of weapons of mass 
        destruction or their means of delivery; and
            (7) the President should communicate to the 
        Government of the People's Republic of China the sense 
        of the Congress that the stability and growth of future 
        relations between the people, the economies, and the 
        Governments of the United States and the People's 
        Republic of China will significantly depend upon 
        substantive evidence of cooperation by the Government 
        of the People's Republic of China in efforts to halt 
        the global proliferation of weapons of mass destruction 
        and their means of delivery.
    (c) Report.--Not later than 60 days after the date of the 
enactment of this Act, the President shall submit to the 
Congress a report, in both classified and unclassified form, 
concerning the transfer from the People's Republic of China to 
the Islamic Republic of Pakistan of technology, equipment, or 
materials important to the production of nuclear weapons and 
their means of delivery. The President shall include in the 
report the following:
            (1) The specific justification of the Secretary of 
        State for determining that there was not a sufficient 
        basis for imposing sanctions under section 2(b)(4) of 
        the Export-Import Bank Act of 1945, as amended by 
        section 825 of the Nuclear Proliferation Prevention Act 
        of 1994, by reason of the transfer of ring magnets and 
        other technology, equipment, or materials from the 
        People's Republic of China to the Islamic Republic of 
        Pakistan.
            (2) What commitment the United States Government is 
        seeking from the People's Republic of China to ensure 
        that the People's Republic of China establishes a fully 
        effective export control system that will prevent 
        transfers (such as the Pakistan sale) from taking place 
        in the future.
            (3) A description of the pledges, assurances, and 
        other commitments made by representatives of the 
        Governments of the People's Republic of China and the 
        Islamic Republic of Pakistan to the Government of the 
        United States since January 1, 1991, with respect to 
        the nonproliferation of nuclear weapons or nuclear-
        capable missiles, and an assessment of the record of 
        compliance with such undertakings.
            (4) Whether, in light of the recent assurances 
        provided by the People's Republic of China, the 
        President intends to make the certification and submit 
        the report required by section 902(a)(6)(B) of the 
        Foreign Relations Authorization Act, Fiscal Years 1990 
        and 1991 (22 U.S.C. 2151 note), and make the 
        certification and submit the report required by Public 
        Law 99-183, relating to the approval and implementation 
        of the agreement for nuclear cooperation between the 
        United States and the People's Republic of China, and, 
        if not, why not.
            (5) Whether the Secretary of State considers the 
        recent assurances and clarifications provided by the 
        People's Republic of China to have provided sufficient 
        information to allow the United States to determine 
        that the People's Republic of China is not in violation 
        of paragraph (2) of section 129 of the Atomic Energy 
        Act of 1954, as required by Public Law 99-183.
            (6) If the President is unable or unwilling to make 
        the certifications and reports referred to in paragraph 
        (4), a description of what the President considers to 
        be the significance of the clarifications and 
        assurances provided by the People's Republic of China 
        in the course of the recent discussions regarding the 
        transfer by the People's Republic of China of nuclear-
        weapon-related equipment to the Islamic Republic of 
        Pakistan.
            (7) A description of the laws, regulations, and 
        procedures currently used by the People's Republic of 
        China to regulate exports of nuclear technology, 
        equipment, or materials, including dual-use goods, and 
        an assessment of the effectiveness of such 
        arrangements.
            (8) A description of the current policies and 
        practices of other countries in response to the 
        transfer of nuclear and missile technology by the 
        People's Republic of China to the Islamic Republic of 
        Pakistan and the Islamic Republic of Iran.

SEC. 1307. UNITED STATES-PEOPLE'S REPUBLIC OF CHINA JOINT DEFENSE 
                    CONVERSION COMMISSION.

    None of the funds appropriated or otherwise available for 
the Department of Defense for fiscal year 1997 or any prior 
fiscal year may be obligated or expended for any activity 
associated with the United States-People's Republic of China 
Joint Defense Conversion Commission until 15 days after the 
date on which the first semiannual report required by section 
1343 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 487) is received by 
Congress.

SEC. 1308. SENSE OF CONGRESS CONCERNING EXPORT CONTROLS.

    (a) Findings.--The Congress makes the following findings:
            (1) Export controls are a part of a comprehensive 
        response to national security threats. The export of a 
        United States commodity or technology should be 
        restricted in cases in which the export of the 
        commodity or technology would increase the threat to 
        the national security of the United States or would be 
        contrary to the nonproliferation goals or foreign 
        policy interests of the United States.
            (2) The export of certain commodities and 
        technology may adversely affect the national security 
        and foreign policy of the United States by making a 
        significant contribution to the military potential of 
        countries or by enhancing the capability of countries 
        to design, develop, test, produce, stockpile, or use 
        weapons of mass destruction and missile delivery 
        systems, and other significant military capabilities. 
        Therefore, the administration of export controls should 
        emphasize the control of these exports.
            (3) The acquisition of sensitive commodities and 
        technologies by those countries and end users whose 
        actions or policies run counter to United States 
        national security or foreign policy interests may 
        enhance the military capabilities of those countries, 
        particularly their ability to design, develop, test, 
        produce, stockpile, use, and deliver nuclear, chemical, 
        and biological weapons and missile delivery systems, 
        and other significant military capabilities. This 
        enhancement threatens the security of the United States 
        and its allies. The availability to countries and end 
        users of items that contribute to military capabilities 
        or the proliferation of weapons of mass destruction is 
        a fundamental concern of the United States and should 
        be eliminated through deterrence, negotiations, and 
        other appropriate means whenever possible.
            (4) The national security of the United States 
        depends not only on wise foreign policies and a strong 
        defense, but also a vibrant national economy. To be 
        truly effective, export controls should be applied 
        uniformly by all suppliers.
            (5) On November 8, 1995, the President continued 
        the national emergency declared in Executive Order No. 
        12938 of November 14, 1994, ``with respect to the 
        unusual and extraordinary threat to the national 
        security, foreign policy, and economy of the United 
        States posed by the proliferation of nuclear, 
        biological, and chemical weapons and the means of 
        delivering such weapons''.
            (6) A successor regime to COCOM (the Coordinating 
        Committee for Multilateral Export Controls) has not 
        been established. Currently, each nation is determining 
        independently which dual-use military items, if any, 
        will be controlled for export.
            (7) The United States should play a leading role in 
        promoting transparency and responsibility with regard 
        to the transfers of sensitive dual-use goods and 
        technologies.
    (b) Sense of Congress.--It is the sense of the Congress 
that--
            (1) establishing an international export control 
        regime, empowered to control exports of dual-use 
        technology, is critically important and should be a top 
        priority for the United States; and
            (2) the United States should strongly encourage its 
        allies and other friendly countries to--
                    (A) adopt export controls that are the same 
                or similar to the export controls imposed by 
                the United States on items on the Commerce 
                Control List;
                    (B) strengthen enforcement of their export 
                controls; and
                    (C) explore the use of unilateral export 
                controls where the possibility exists that an 
                export could contribute to the enhancement of 
                military capabilities or proliferation 
                described in paragraphs (3) and (5) of 
                subsection (a).

SEC. 1309. COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

    (a) Composition of the Committee.--Subsection (a) of 
section 1605 of the National Defense Authorization Act for 
Fiscal Year 1994 (22 U.S.C. 2751 note) is amended by adding at 
the end the following new paragraph:
    ``(5) The Assistant to the Secretary of Defense for Nuclear 
and Chemical and Biological Defense Programs shall serve as 
executive secretary to the committee.''.
    (b) Additional Purpose of the Committee.--Subsection 
(b)(1)(A) of such section is amended by inserting ``and 
efforts, including efforts to stem the proliferation of weapons 
of mass destruction and to negate paramilitary and terrorist 
threats involving weapons of mass destruction'' after 
``counterproliferation policy''.
    (c) Four-Year Extension of the Committee.--Subsection (f) 
of such section is amended by striking out ``September 30, 
1996'' and inserting in lieu thereof ``September 30, 2000''.
    (d) Reports on Counterproliferation Activities and 
Programs.--Section 1503 of the National Defense Authorization 
Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``Report Required.--(1) 
                Not later than May 1, 1995 and May 1, 1996, the 
                Secretary'' and inserting in lieu thereof 
                ``Annual Report Required.--Not later than May 1 
                of each year, the Secretary''; and
                    (B) by striking out paragraph (2); and
            (2) by adding at the end the following new 
        subsections:
    ``(d) Review Committee Charter Defined.--For purposes of 
this section, the term `Review Committee charter' means section 
1605 of the National Defense Authorization Act for Fiscal Year 
1994 (22 U.S.C. 2751 note).
    ``(e) Termination of Requirement.--The final report 
required under subsection (a) is the report for the year 
following the year in which the Counterproliferation Program 
Review Committee established under the Review Committee Charter 
ceases to exist.''.

SEC. 1310. SENSE OF CONGRESS CONCERNING ASSISTING OTHER COUNTRIES TO 
                    IMPROVE SECURITY OF FISSILE MATERIAL.

    (a) Findings.--Congress finds the following:
            (1) With the end of the Cold War, the world is 
        faced with the need to manage the dismantling of vast 
        numbers of nuclear weapons and the disposition of the 
        fissile materials that they contain.
            (2) If recently agreed reductions in nuclear 
        weapons are fully implemented, tens of thousands of 
        nuclear weapons, containing a hundred tons or more of 
        plutonium and many hundreds of tons of highly enriched 
        uranium, will no longer be needed for military 
        purposes.
            (3) Plutonium and highly enriched uranium are the 
        essential ingredients of nuclear weapons.
            (4) Limits on access to plutonium and highly 
        enriched uranium are the primary technical barrier to 
        acquiring nuclear weapons capability in the world 
        today.
            (5) Several kilograms of plutonium, or several 
        times that amount of highly enriched uranium, are 
        sufficient to make a nuclear weapon.
            (6) Plutonium and highly enriched uranium will 
        continue to pose a potential threat for as long as they 
        exist.
            (7) Action is required to secure and account for 
        plutonium and highly enriched uranium.
            (8) It is in the national interest of the United 
        States to--
                    (A) minimize the risk that fissile 
                materials could be obtained by unauthorized 
                parties;
                    (B) minimize the risk that fissile 
                materials could be reintroduced into the 
                arsenals from which they came, halting or 
                reversing the arms reduction process; and
                    (C) strengthen the national and 
                international control mechanisms and incentives 
                designed to ensure continued arms reductions 
                and prevent the spread of nuclear weapons.
    (b) Sense of Congress.--In light of the findings contained 
in subsection (a), it is the sense of Congress that the United 
States has a national security interest in assisting other 
countries to improve the security of their stocks of fissile 
material.

SEC. 1311. REVIEW BY DIRECTOR OF CENTRAL INTELLIGENCE OF NATIONAL 
                    INTELLIGENCE ESTIMATE 95-19.

    (a) Review.--The Director of Central Intelligence shall 
conduct a review of the underlying assumptions and conclusions 
of the National Intelligence Estimate designated as NIE 95-19 
and entitled ``Emerging Missile Threats to North America During 
the Next 15 Years'', released by the Director in November 1995.
    (b) Methodology for Review.--The Director shall carry out 
the review under subsection (a) through a panel of independent, 
nongovernmental individuals with appropriate expertise and 
experience. Such a panel shall be convened by the Director not 
later than 45 days after the date of the enactment of this Act.
    (c) Report.--The Director shall submit the findings 
resulting from the review under subsection (a), together with 
any comments of the Director on the review and the findings, to 
Congress not later than three months after the appointment of 
the Commission under section 1321.

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

SEC. 1321. ESTABLISHMENT OF COMMISSION.

    (a) Establishment.--There is hereby established a 
commission to be known as the ``Commission to Assess the 
Ballistic Missile Threat to the United States'' (hereinafter in 
this subtitle referred to as the ``Commission'').
    (b) Composition.--The Commission shall be composed of nine 
members appointed by the Director of Central Intelligence. In 
selecting individuals for appointment to the Commission, the 
Director should consult with--
            (1) the Speaker of the House of Representatives 
        concerning the appointment of three of the members of 
        the Commission;
            (2) the majority leader of the Senate concerning 
        the appointment of three of the members of the 
        Commission; and
            (3) the minority leader of the House of 
        Representatives and the minority leader of the Senate 
        concerning the appointment of three of the members of 
        the Commission.
    (c) Qualifications.--Members of the Commission shall be 
appointed from among private United States citizens with 
knowledge and expertise in the political and military aspects 
of proliferation of ballistic missiles and the ballistic 
missile threat to the United States.
    (d) Chairman.--The Speaker of the House of Representatives, 
after consultation with the majority leader of the Senate and 
the minority leaders of the House of Representatives and the 
Senate, shall designate one of the members of the Commission to 
serve as chairman of the Commission.
    (e) Period of Appointment; Vacancies.--Members shall be 
appointed for the life of the Commission. Any vacancy in the 
Commission shall be filled in the same manner as the original 
appointment.
    (f) Security Clearances.--All members of the Commission 
shall hold appropriate security clearances.
    (g) Initial Organization Requirements.--(1) All 
appointments to the Commission shall be made not later than 45 
days after the date of the enactment of this Act.
    (2) The Commission shall convene its first meeting not 
later than 30 days after the date as of which all members of 
the Commission have been appointed, but not earlier than 
October 15, 1996.

SEC. 1322. DUTIES OF COMMISSION.

    (a) Review of Ballistic Missile Threat.--The Commission 
shall assess the nature and magnitude of the existing and 
emerging ballistic missile threat to the United States.
    (b) Cooperation From Government Officials.--In carrying out 
its duties, the Commission should receive the full and timely 
cooperation of the Secretary of Defense, the Director of 
Central Intelligence, and any other United States Government 
official responsible for providing the Commission with 
analyses, briefings, and other information necessary for the 
fulfillment of its responsibilities.

SEC. 1323. REPORT.

    The Commission shall, not later than six months after the 
date of its first meeting, submit to the Congress a report on 
its findings and conclusions.

SEC. 1324. POWERS.

    (a) Hearings.--The Commission or, at its direction, any 
panel or member of the Commission, may, for the purpose of 
carrying out the provisions of this subtitle, hold hearings, 
sit and act at times and places, take testimony, receive 
evidence, and administer oaths to the extent that the 
Commission or any panel or member considers advisable.
    (b) Information.--The Commission may secure directly from 
the Department of Defense, the Central Intelligence Agency, and 
any other Federal department or agency information that the 
Commission considers necessary to enable the Commission to 
carry out its responsibilities under this subtitle.

SEC. 1325. COMMISSION PROCEDURES.

    (a) Meetings.--The Commission shall meet at the call of the 
Chairman.
    (b) Quorum.--(1) Five members of the Commission shall 
constitute a quorum other than for the purpose of holding 
hearings.
    (2) The Commission shall act by resolution agreed to by a 
majority of the members of the Commission.
    (c) Commission.--The Commission may establish panels 
composed of less than full membership of the Commission for the 
purpose of carrying out the Commission's duties. The actions of 
each such panel shall be subject to the review and control of 
the Commission. Any findings and determinations made by such a 
panel shall not be considered the findings and determinations 
of the Commission unless approved by the Commission.
    (d) Authority of Individuals To Act for Commission.--Any 
member or agent of the Commission may, if authorized by the 
Commission, take any action which the Commission is authorized 
to take under this subtitle.

SEC. 1326. PERSONNEL MATTERS.

    (a) Pay of Members.--Members of the Commission shall serve 
without pay by reason of their work on the Commission.
    (b) Travel Expenses.--The members of the Commission shall 
be allowed travel expenses, including per diem in lieu of 
subsistence, at rates authorized for employees of agencies 
under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business 
in the performance of services for the Commission.
    (c) Staff.--(1) The chairman of the Commission may, without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, appoint a 
staff director and such additional personnel as may be 
necessary to enable the Commission to perform its duties. The 
appointment of a staff director shall be subject to the 
approval of the Commission.
    (2) The chairman of the Commission may fix the pay of the 
staff director and other personnel without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of 
title 5, United States Code, relating to classification of 
positions and General Schedule pay rates, except that the rate 
of pay fixed under this paragraph for the staff director may 
not exceed the rate payable for level V of the Executive 
Schedule under section 5316 of such title and the rate of pay 
for other personnel may not exceed the maximum rate payable for 
grade GS-15 of the General Schedule.
    (d) Detail of Government Employees.--Upon request of the 
chairman of the Commission, the head of any Federal department 
or agency may detail, on a nonreimbursable basis, any personnel 
of that department or agency to the Commission to assist it in 
carrying out its duties.
    (e) Procurement of Temporary and Intermittent Services.--
The chairman of the Commission may procure temporary and 
intermittent services under section 3109(b) of title 5, United 
States Code, at rates for individuals which do not exceed the 
daily equivalent of the annual rate of basic pay payable for 
level V of the Executive Schedule under section 5316 of such 
title.

SEC. 1327. MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

    (a) Postal and Printing Services.--The Commission may use 
the United States mails and obtain printing and binding 
services in the same manner and under the same conditions as 
other departments and agencies of the Federal Government.
    (b) Miscellaneous Administrative and Support Services.--The 
Director of Central Intelligence shall furnish the Commission, 
on a reimbursable basis, any administrative and support 
services requested by the Commission.

SEC. 1328. FUNDING.

    Funds for activities of the Commission shall be provided 
from amounts appropriated for the Department of Defense for 
operation and maintenance for Defense-wide activities for 
fiscal year 1997. Upon receipt of a written certification from 
the Chairman of the Commission specifying the funds required 
for the activities of the Commission, the Secretary of Defense 
shall promptly disburse to the Commission, from such amounts, 
the funds required by the Commission as stated in such 
certification.

SEC. 1329. TERMINATION OF THE COMMISSION.

    The Commission shall terminate 60 days after the date of 
the submission of its report under section 1323.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

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

                    Subtitle A--Domestic Preparedness

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

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

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

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

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

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

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

                        Subtitle E--Miscellaneous

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

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of 
Mass Destruction Act of 1996''.

SEC. 1402. FINDINGS.

    Congress makes the following findings:
            (1) Weapons of mass destruction and related 
        materials and technologies are increasingly available 
        from worldwide sources. Technical information relating 
        to such weapons is readily available on the Internet, 
        and raw materials for chemical, biological, and 
        radiological weapons are widely available for 
        legitimate commercial purposes.
            (2) The former Soviet Union produced and maintained 
        a vast array of nuclear, biological, and chemical 
        weapons of mass destruction.
            (3) Many of the states of the former Soviet Union 
        retain the facilities, materials, and technologies 
        capable of producing additional quantities of weapons 
        of mass destruction.
            (4) The disintegration of the former Soviet Union 
        was accompanied by disruptions of command and control 
        systems, deficiencies in accountability for weapons, 
        weapons-related materials and technologies, economic 
        hardships, and significant gaps in border control among 
        the states of the former Soviet Union. The problems of 
        organized crime and corruption in the states of the 
        former Soviet Union increase the potential for 
        proliferation of nuclear, radiological, biological, and 
        chemical weapons and related materials.
            (5) The conditions described in paragraph (4) have 
        substantially increased the ability of potentially 
        hostile nations, terrorist groups, and individuals to 
        acquire weapons of mass destruction and related 
        materials and technologies from within the states of 
        the former Soviet Union and from unemployed scientists 
        who worked on those programs.
            (6) As a result of such conditions, the capability 
        of potentially hostile nations and terrorist groups to 
        acquire nuclear, radiological, biological, and chemical 
        weapons is greater than any time in history.
            (7) The President has identified North Korea, Iraq, 
        Iran, and Libya as hostile states which already possess 
        some weapons of mass destruction and are developing 
        others.
            (8) The acquisition or the development and use of 
        weapons of mass destruction is well within the 
        capability of many extremist and terrorist movements, 
        acting independently or as proxies for foreign states.
            (9) Foreign states can transfer weapons to or 
        otherwise aid extremist and terrorist movements 
        indirectly and with plausible deniability.
            (10) Terrorist groups have already conducted 
        chemical attacks against civilian targets in the United 
        States and Japan, and a radiological attack in Russia.
            (11) The potential for the national security of the 
        United States to be threatened by nuclear, 
        radiological, chemical, or biological terrorism must be 
        taken seriously.
            (12) There is a significant and growing threat of 
        attack by weapons of mass destruction on targets that 
        are not military targets in the usual sense of the 
        term.
            (13) Concomitantly, the threat posed to the 
        citizens of the United States by nuclear, radiological, 
        biological, and chemical weapons delivered by 
        unconventional means is significant and growing.
            (14) Mass terror may result from terrorist 
        incidents involving nuclear, radiological, biological, 
        or chemical materials.
            (15) Facilities required for production of 
        radiological, biological, and chemical weapons are much 
        smaller and harder to detect than nuclear weapons 
        facilities, and biological, and chemical weapons can be 
        deployed by alternative delivery means other than long-
        range ballistic missiles.
            (16) Covert or unconventional means of delivery of 
        nuclear, radiological, biological, and chemical weapons 
        include cargo ships, passenger aircraft, commercial and 
        private vehicles and vessels, and commercial cargo 
        shipments routed through multiple destinations.
            (17) Traditional arms control efforts assume large 
        state efforts with detectable manufacturing programs 
        and weapons production programs, but are ineffective in 
        monitoring and controlling smaller, though potentially 
        more dangerous, unconventional proliferation efforts.
            (18) Conventional counterproliferation efforts 
        would do little to detect or prevent the rapid 
        development of a capability to suddenly manufacture 
        several hundred chemical or biological weapons with 
        nothing but commercial supplies and equipment.
            (19) The United States lacks adequate planning and 
        countermeasures to address the threat of nuclear, 
        radiological, biological, and chemical terrorism.
            (20) The Department of Energy has established a 
        Nuclear Emergency Response Team which is available in 
        case of nuclear or radiological emergencies, but no 
        comparable units exist to deal with emergencies 
        involving biological, or chemical weapons or related 
        materials.
            (21) State and local emergency response personnel 
        are not adequately prepared or trained for incidents 
        involving nuclear, radiological, biological, or 
        chemical materials.
            (22) Exercises of the Federal, State, and local 
        response to nuclear, radiological, biological, or 
        chemical terrorism have revealed serious deficiencies 
        in preparedness and severe problems of coordination.
            (23) The development of, and allocation of 
        responsibilities for, effective countermeasures to 
        nuclear, radiological, biological, or chemical 
        terrorism in the United States requires well-
        coordinated participation of many Federal agencies, and 
        careful planning by the Federal Government and State 
        and local governments.
            (24) Training and exercises can significantly 
        improve the preparedness of State and local emergency 
        response personnel for emergencies involving nuclear, 
        radiological, biological, or chemical weapons or 
        related materials.
            (25) Sharing of the expertise and capabilities of 
        the Department of Defense, which traditionally has 
        provided assistance to Federal, State, and local 
        officials in neutralizing, dismantling, and disposing 
        of explosive ordnance, as well as radiological, 
        biological, and chemical materials, can be a vital 
        contribution to the development and deployment of 
        countermeasures against nuclear, biological, and 
        chemical weapons of mass destruction.
            (26) The United States lacks effective policy 
        coordination regarding the threat posed by the 
        proliferation of weapons of mass destruction.

SEC. 1403. DEFINITIONS.

    In this title:
            (1) The term ``weapon of mass destruction'' means 
        any weapon or device that is intended, or has the 
        capability, to cause death or serious bodily injury to 
        a significant number of people through the release, 
        dissemination, or impact of--
                    (A) toxic or poisonous chemicals or their 
                precursors;
                    (B) a disease organism; or
                    (C) radiation or radioactivity.
            (2) The term ``independent states of the former 
        Soviet Union'' has the meaning given that term in 
        section 3 of the FREEDOM Support Act (22 U.S.C. 5801).
            (3) The term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235.

                   Subtitle A--Domestic Preparedness

SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS 
                    DESTRUCTION.

    (a) Enhanced Response Capability.--In light of the 
potential for terrorist use of weapons of mass destruction 
against the United States, the President shall take immediate 
action--
            (1) to enhance the capability of the Federal 
        Government to prevent and respond to terrorist 
        incidents involving weapons of mass destruction; and
            (2) to provide enhanced support to improve the 
        capabilities of State and local emergency response 
        agencies to prevent and respond to such incidents at 
        both the national and the local level.
    (b) Report Required.--Not later than January 31, 1997, the 
President shall transmit to Congress a report containing--
            (1) an assessment of the capabilities of the 
        Federal Government to prevent and respond to terrorist 
        incidents involving weapons of mass destruction and to 
        support State and local prevention and response 
        efforts;
            (2) requirements for improvements in those 
        capabilities; and
            (3) the measures that should be taken to achieve 
        such improvements, including additional resources and 
        legislative authorities that would be required.

SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

    (a) Program Required.--(1) The Secretary of Defense shall 
carry out a program to provide civilian personnel of Federal, 
State, and local agencies with training and expert advice 
regarding emergency responses to a use or threatened use of a 
weapon of mass destruction or related materials.
    (2) The President may designate the head of an agency other 
than the Department of Defense to assume the responsibility for 
carrying out the program on or after October 1, 1999, and 
relieve the Secretary of Defense of that responsibility upon 
the assumption of the responsibility by the designated 
official.
    (3) In this section, the official responsible for carrying 
out the program is referred to as the ``lead official''.
    (b) Coordination.--In carrying out the program, the lead 
official shall coordinate with each of the following officials 
who is not serving as the lead official:
            (1) The Director of the Federal Emergency 
        Management Agency.
            (2) The Secretary of Energy.
            (3) The Secretary of Defense.
            (4) The heads of any other Federal, State, and 
        local government agencies that have an expertise or 
        responsibilities relevant to emergency responses 
        described in subsection (a)(1).
    (c) Eligible Participants.--The civilian personnel eligible 
to receive assistance under the program are civilian personnel 
of Federal, State, and local agencies who have emergency 
preparedness responsibilities.
    (d) Involvement of Other Federal Agencies.--(1) The lead 
official may use personnel and capabilities of Federal agencies 
outside the agency of the lead official to provide training and 
expert advice under the program.
    (2)(A) Personnel used under paragraph (1) shall be 
personnel who have special skills relevant to the particular 
assistance that the personnel are to provide.
    (B) Capabilities used under paragraph (1) shall be 
capabilities that are especially relevant to the particular 
assistance for which the capabilities are used.
    (3) If the lead official is not the Secretary of Defense, 
and requests assistance from the Department of Defense that, in 
the judgment of the Secretary of Defense would affect military 
readiness or adversely affect national security, the Secretary 
of Defense may appeal the request for Department of Defense 
assistance by the lead official to the President.
    (e) Available Assistance.--Assistance available under this 
program shall include the following:
            (1) Training in the use, operation, and maintenance 
        of equipment for--
                    (A) detecting a chemical or biological 
                agent or nuclear radiation;
                    (B) monitoring the presence of such an 
                agent or radiation;
                    (C) protecting emergency personnel and the 
                public; and
                    (D) decontamination.
            (2) Establishment of a designated telephonic link 
        (commonly referred to as a ``hot line'') to a 
        designated source of relevant data and expert advice 
        for the use of State or local officials responding to 
        emergencies involving a weapon of mass destruction or 
        related materials.
            (3) Use of the National Guard and other reserve 
        components for purposes authorized under this section 
        that are specified by the lead official (with the 
        concurrence of the Secretary of Defense if the 
        Secretary is not the lead official).
            (4) Loan of appropriate equipment.
    (f) Limitations on Department of Defense Assistance to Law 
Enforcement Agencies.--Assistance provided by the Department of 
Defense to law enforcement agencies under this section shall be 
provided under the authority of, and subject to the 
restrictions provided in, chapter 18 of title 10, United States 
Code.
    (g) Administration of Department of Defense Assistance.--
The Secretary of Defense shall designate an official within the 
Department of Defense to serve as the executive agent of the 
Secretary for the coordination of the provision of Department 
of Defense assistance under this section.
    (h) Funding.--(1) Of the total amount authorized to be 
appropriated under section 301, $35,000,000 is available for 
the program required under this section.
    (2) Of the amount available for the program pursuant to 
paragraph (1), $10,500,000 is available for use by the 
Secretary of Defense to assist the Secretary of Health and 
Human Services in the establishment of metropolitan emergency 
medical response teams (commonly referred to as ``Metropolitan 
Medical Strike Force Teams'') to provide medical services that 
are necessary or potentially necessary by reason of a use or 
threatened use of a weapon of mass destruction.
    (3) The amount available for the program under paragraph 
(1) is in addition to any other amounts authorized to be 
appropriated for the program under section 301.

SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY RESPONSE.

    (a) Department of Defense.--The Secretary of Defense shall 
designate an official within the Department of Defense as the 
executive agent for--
            (1) the coordination of Department of Defense 
        assistance to Federal, State, and local officials in 
        responding to threats involving biological or chemical 
        weapons or related materials or technologies, including 
        assistance in identifying, neutralizing, dismantling, 
        and disposing of biological and chemical weapons and 
        related materials and technologies; and
            (2) the coordination of Department of Defense 
        assistance to the Department of Energy in carrying out 
        that department's responsibilities under subsection 
        (b).
    (b) Department of Energy.--The Secretary of Energy shall 
designate an official within the Department of Energy as the 
executive agent for--
            (1) the coordination of Department of Energy 
        assistance to Federal, State, and local officials in 
        responding to threats involving nuclear, chemical, and 
        biological weapons or related materials or 
        technologies, including assistance in identifying, 
        neutralizing, dismantling, and disposing of nuclear 
        weapons and related materials and technologies; and
            (2) the coordination of Department of Energy 
        assistance to the Department of Defense in carrying out 
        that department's responsibilities under subsection 
        (a).
    (c) Funding.--Of the total amount authorized to be 
appropriated under section 301, $15,000,000 is available for 
providing assistance described in subsection (a).

SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.

    (a) Department of Defense Rapid Response Team.--The 
Secretary of Defense shall develop and maintain at least one 
domestic terrorism rapid response team composed of members of 
the Armed Forces and employees of the Department of Defense who 
are capable of aiding Federal, State, and local officials in 
the detection, neutralization, containment, dismantlement, and 
disposal of weapons of mass destruction containing chemical, 
biological, or related materials.
    (b) Addition to Federal Response Plan.--Not later than 
December 31, 1997, the Director of the Federal Emergency 
Management Agency shall develop and incorporate into existing 
Federal emergency response plans and programs prepared under 
section 611(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on the 
use and deployment of the rapid response teams established 
under this section to respond to emergency involving weapons of 
mass destruction. The Director shall carry out this subsection 
in consultation with the Secretary of Defense and the heads of 
other Federal agencies involved with the emergency response 
plans.

SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR, 
                    RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL WEAPONS.

    (a) Emergencies Involving Chemical or Biological Weapons.--
(1) The Secretary of Defense shall develop and carry out a 
program for testing and improving the responses of Federal, 
State, and local agencies to emergencies involving biological 
weapons and related materials and emergencies involving 
chemical weapons and related materials.
    (2) The program shall include exercises to be carried out 
during each of five successive fiscal years beginning with 
fiscal year 1997.
    (3) In developing and carrying out the program, the 
Secretary shall coordinate with the Director of the Federal 
Bureau of Investigation, the Director of the Federal Emergency 
Management Agency, the Secretary of Energy, and the heads of 
any other Federal, State, and local government agencies that 
have an expertise or responsibilities relevant to emergencies 
described in paragraph (1).
    (b) Emergencies Involving Nuclear and Radiological 
Weapons.--(1) The Secretary of Energy shall develop and carry 
out a program for testing and improving the responses of 
Federal, State, and local agencies to emergencies involving 
nuclear and radiological weapons and related materials.
    (2) The program shall include exercises to be carried out 
during each of five successive fiscal years beginning with 
fiscal year 1997.
    (3) In developing and carrying out the program, the 
Secretary shall coordinate with the Director of the Federal 
Bureau of Investigation, the Director of the Federal Emergency 
Management Agency, the Secretary of Defense, and the heads of 
any other Federal, State, and local government agencies that 
have an expertise or responsibilities relevant to emergencies 
described in paragraph (1).
    (c) Annual Revisions of Programs.--The official responsible 
for carrying out a program developed under subsection (a) or 
(b) shall revise the program not later than June 1 in each 
fiscal year covered by the program. The revisions shall include 
adjustments that the official determines necessary or 
appropriate on the basis of the lessons learned from the 
exercise or exercises carried out under the program in the 
fiscal year, including lessons learned regarding coordination 
problems and equipment deficiencies.
    (d) Option To Transfer Responsibility.--(1) The President 
may designate the head of an agency outside the Department of 
Defense to assume the responsibility for carrying out the 
program developed under subsection (a) beginning on or after 
October 1, 1999, and relieve the Secretary of Defense of that 
responsibility upon the assumption of the responsibility by the 
designated official.
    (2) The President may designate the head of an agency 
outside the Department of Energy to assume the responsibility 
for carrying out the program developed under subsection (b) 
beginning on or after October 1, 1999, and relieve the 
Secretary of Energy of that responsibility upon the assumption 
of the responsibility by the designated official.
    (e) Funding.--Of the total amount authorized to be 
appropriated under section 301, $15,000,000 is available for 
the development and execution of the programs required by this 
section, including the participation of State and local 
agencies in exercises carried out under the programs.

SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT OFFICIALS IN 
                    EMERGENCY SITUATIONS INVOLVING BIOLOGICAL OR 
                    CHEMICAL WEAPONS.

    (a) Assistance Authorized.--(1) Chapter 18 of title 10, 
United States Code, is amended by adding at the end the 
following new section:

``Sec. 382. Emergency situations involving chemical or biological 
                    weapons of mass destruction

    ``(a) In General.--The Secretary of Defense, upon the 
request of the Attorney General, may provide assistance in 
support of Department of Justice activities relating to the 
enforcement of section 175 or 2332c of title 18 during an 
emergency situation involving a biological or chemical weapon 
of mass destruction. Department of Defense resources, including 
personnel of the Department of Defense, may be used to provide 
such assistance if--
            ``(1) the Secretary of Defense and the Attorney 
        General jointly determine that an emergency situation 
        exists; and
            ``(2) the Secretary of Defense determines that the 
        provision of such assistance will not adversely affect 
        the military preparedness of the United States.
    ``(b) Emergency Situations Covered.--In this section, the 
term `emergency situation involving a biological or chemical 
weapon of mass destruction' means a circumstance involving a 
biological or chemical weapon of mass destruction--
            ``(1) that poses a serious threat to the interests 
        of the United States; and
            ``(2) in which--
                    ``(A) civilian expertise and capabilities 
                are not readily available to provide the 
                required assistance to counter the threat 
                immediately posed by the weapon involved;
                    ``(B) special capabilities and expertise of 
                the Department of Defense are necessary and 
                critical to counter the threat posed by the 
                weapon involved; and
                    ``(C) enforcement of section 175 or 2332c 
                of title 18 would be seriously impaired if the 
                Department of Defense assistance were not 
                provided.
    ``(c) Forms of Assistance.--The assistance referred to in 
subsection (a) includes the operation of equipment (including 
equipment made available under section 372 of this title) to 
monitor, contain, disable, or dispose of the weapon involved or 
elements of the weapon.
    ``(d) Regulations.--(1) The Secretary of Defense and the 
Attorney General shall jointly prescribe regulations concerning 
the types of assistance that may be provided under this 
section. Such regulations shall also describe the actions that 
Department of Defense personnel may take in circumstances 
incident to the provision of assistance under this section.
    ``(2)(A) Except as provided in subparagraph (B), the 
regulations may not authorize the following actions:
            ``(i) Arrest.
            ``(ii) Any direct participation in conducting a 
        search for or seizure of evidence related to a 
        violation of section 175 or 2332c of title 18.
            ``(iii) Any direct participation in the collection 
        of intelligence for law enforcement purposes.
    ``(B) The regulations may authorize an action described in 
subparagraph (A) to be taken under the following conditions:
            ``(i) The action is considered necessary for the 
        immediate protection of human life, and civilian law 
        enforcement officials are not capable of taking the 
        action.
            ``(ii) The action is otherwise authorized under 
        subsection (c) or under otherwise applicable law.
    ``(e) Reimbursements.--The Secretary of Defense shall 
require reimbursement as a condition for providing assistance 
under this section to the extent required under section 377 of 
this title.
    ``(f) Delegations of Authority.--(1) Except to the extent 
otherwise provided by the Secretary of Defense, the Deputy 
Secretary of Defense may exercise the authority of the 
Secretary of Defense under this section. The Secretary of 
Defense may delegate the Secretary's authority under this 
section only to an Under Secretary of Defense or an Assistant 
Secretary of Defense and only if the Under Secretary or 
Assistant Secretary to whom delegated has been designated by 
the Secretary to act for, and to exercise the general powers 
of, the Secretary.
    ``(2) Except to the extent otherwise provided by the 
Attorney General, the Deputy Attorney General may exercise the 
authority of the Attorney General under this section. The 
Attorney General may delegate that authority only to the 
Associate Attorney General or an Assistant Attorney General and 
only if the Associate Attorney General or Assistant Attorney 
General to whom delegated has been designated by the Attorney 
General to act for, and to exercise the general powers of, the 
Attorney General.
    ``(g) Relationship to Other Authority.--Nothing in this 
section shall be construed to restrict any executive branch 
authority regarding use of members of the armed forces or 
equipment of the Department of Defense that was in effect 
before the date of the enactment of the National Defense 
Authorization Act for Fiscal Year 1997.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``382. Emergency situations involving chemical or biological weapons of 
          mass destruction.''.

    (b) Conforming Amendment to Condition for Providing 
Equipment and Facilities.--Section 372(b)(1) of title 10, 
United States Code, is amended by adding at the end the 
following new sentence: ``The requirement for a determination 
that an item is not reasonably available from another source 
does not apply to assistance provided under section 382 of this 
title pursuant to a request of the Attorney General for the 
assistance.''.
    (c) Conforming Amendments Relating to Authority To Request 
Assistance.--(1)(A) Chapter 10 of title 18, United States Code, 
is amended by inserting after section 175 the following new 
section:

``Sec. 175a. Requests for military assistance to enforce prohibition in 
                    certain emergencies

    ``The Attorney General may request the Secretary of Defense 
to provide assistance under section 382 of title 10 in support 
of Department of Justice activities relating to the enforcement 
of section 175 of this title in an emergency situation 
involving a biological weapon of mass destruction. The 
authority to make such a request may be exercised by another 
official of the Department of Justice in accordance with 
section 382(f)(2) of title 10.''.
    (B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 175 
the following new item:

``175a. Requests for military assistance to enforce prohibition in 
          certain emergencies.''.

    (2)(A) The chapter 133B of title 18, United States Code, 
that relates to terrorism is amended by inserting after section 
2332c the following new section:

``Sec. 2332d. Requests for military assistance to enforce prohibition 
                    in certain emergencies

    ``The Attorney General may request the Secretary of Defense 
to provide assistance under section 382 of title 10 in support 
of Department of Justice activities relating to the enforcement 
of section 2332c of this title during an emergency situation 
involving a chemical weapon of mass destruction. The authority 
to make such a request may be exercised by another official of 
the Department of Justice in accordance with section 382(f)(2) 
of title 10.''.
    (B) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 
2332c the following new item:

``2332d. Requests for military assistance to enforce prohibition in 
          certain emergencies.''.

    (d) Civilian Expertise.--The President shall take 
reasonable measures to reduce the reliance of civilian law 
enforcement officials on Department of Defense resources to 
counter the threat posed by the use or potential use of 
biological and chemical weapons of mass destruction within the 
United States. The measures shall include--
            (1) actions to increase civilian law enforcement 
        expertise to counter such a threat; and
            (2) actions to improve coordination between 
        civilian law enforcement officials and other civilian 
        sources of expertise, within and outside the Federal 
        Government, to counter such a threat.
    (e) Reports.--The President shall submit to Congress the 
following reports:
            (1) Not later than 90 days after the date of the 
        enactment of this Act, a report describing the 
        respective policy functions and operational roles of 
        Federal agencies in countering the threat posed by the 
        use or potential use of biological and chemical weapons 
        of mass destruction within the United States.
            (2) Not later than one year after such date, a 
        report describing--
                    (A) the actions planned to be taken to 
                carry out subsection (d); and
                    (B) the costs of such actions.
            (3) Not later than three years after such date, a 
        report updating the information provided in the reports 
        submitted pursuant to paragraphs (1) and (2), including 
        the measures taken pursuant to subsection (d).

SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

    (a) Inventory of Rapid Response Assets.--(1) The head of 
each Federal Response Plan agency shall develop and maintain an 
inventory of physical equipment and assets under the 
jurisdiction of that agency that could be made available to aid 
State and local officials in search and rescue and other 
disaster management and mitigation efforts associated with an 
emergency involving weapons of mass destruction. The agency 
head shall submit a copy of the inventory, and any updates of 
the inventory, to the Director of the Federal Emergency 
Management Agency for inclusion in the master inventory 
required under subsection (b).
    (2) Each inventory shall include a separate listing of any 
equipment that is excess to the needs of that agency and could 
be considered for disposal as excess or surplus property for 
use for response and training with regard to emergencies 
involving weapons of mass destruction.
    (b) Master Inventory.--The Director of the Federal 
Emergency Management Agency shall compile and maintain a 
comprehensive listing of all inventories prepared under 
subsection (a). The first such master list shall be completed 
not later than December 31, 1997, and shall be updated annually 
thereafter.
    (c) Addition to Federal Response Plan.--Not later than 
December 31, 1997, the Director of the Federal Emergency 
Management Agency shall develop and incorporate into existing 
Federal emergency response plans and programs prepared under 
section 611(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on 
accessing and using the physical equipment and assets included 
in the master list developed under subsection to respond to 
emergencies involving weapons of mass destruction.
    (d) Database on Chemical and Biological Materials.--The 
Director of the Federal Emergency Management Agency, in 
consultation with the Secretary of Defense, shall prepare a 
database on chemical and biological agents and munitions 
characteristics and safety precautions for civilian use. The 
initial design and compilation of the database shall be 
completed not later than December 31, 1997.
    (e) Access to Inventory and Database.--The Director of the 
Federal Emergency Management Agency shall design and maintain a 
system to give Federal, State, and local officials access to 
the inventory listing and database maintained under this 
section in the event of an emergency involving weapons of mass 
destruction or to prepare and train to respond to such an 
emergency. The system shall include a secure but accessible 
emergency response hotline to access information and request 
assistance.

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

SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT--UNITED STATES BORDER 
                    SECURITY.

    Of the amount authorized to be appropriated by section 301, 
$15,000,000 is available for the procurement of--
            (1) equipment capable of detecting the movement of 
        weapons of mass destruction and related materials into 
        the United States;
            (2) equipment capable of interdicting the movement 
        of weapons of mass destruction and related materials 
        into the United States; and
            (3) materials and technologies related to use of 
        equipment described in paragraph (1) or (2).

SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY ECONOMIC 
                    POWERS ACT.

    Section 206 of the International Emergency Economic Powers 
Act (50 U.S.C. 1705) is amended--
            (1) in subsection (a), by inserting ``, or attempts 
        to violate,'' after ``violates''; and
            (2) in subsection (b), by inserting ``, or 
        willfully attempts to violate,'' after ``violates''.

SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

    (a) Sense of Congress Concerning Inadequacy of Sentencing 
Guidelines.--It is the sense of Congress that the sentencing 
guidelines prescribed by the United States Sentencing 
Commission for the offenses of importation, attempted 
importation, exportation, and attempted exportation of nuclear, 
biological, and chemical weapons materials constitute 
inadequate punishment for such offenses.
    (b) Urging of Revision to Guidelines.--Congress urges the 
United States Sentencing Commission to revise the relevant 
sentencing guidelines to provide for increased penalties for 
offenses relating to importation, attempted importation, 
exportation, and attempted exportation of nuclear, biological, 
or chemical weapons or related materials or technologies under 
the following provisions of law:
            (1) Section 11 of the Export Administration Act of 
        1979 (50 U.S.C. App. 2410).
            (2) Sections 38 and 40 the Arms Export Control Act 
        (22 U.S.C. 2778 and 2780).
            (3) The International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.).
            (4) Section 309(c) of the Nuclear Non-Proliferation 
        Act of 1978 (22 U.S.C. 2156a(c).

SEC. 1424. INTERNATIONAL BORDER SECURITY.

    (a) Secretary of Defense Responsibility.--The Secretary of 
Defense, in consultation and cooperation with the Commissioner 
of Customs, shall carry out programs for assisting customs 
officials and border guard officials in the independent states 
of the former Soviet Union, the Baltic states, and other 
countries of Eastern Europe in preventing unauthorized transfer 
and transportation of nuclear, biological, and chemical weapons 
and related materials. Training, expert advice, maintenance of 
equipment, loan of equipment, and audits may be provided under 
or in connection with the programs.
    (b) Funding.--Of the total amount authorized to be 
appropriated by section 301, $15,000,000 is available for 
carrying out the programs referred to in subsection (a).
    (c) Assistance to States of the Former Soviet Union.--
Assistance under programs referred to in subsection (a) may 
(notwithstanding any provision of law prohibiting the extension 
of foreign assistance to any of the newly independents state of 
the former Soviet Union) be extended to include an independent 
state of the former Soviet Union if the President certifies to 
Congress that it is in the national interest of the United 
States to extend assistance under this section to that state.

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

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN COOPERATIVE 
                    THREAT REDUCTION PROGRAMS ON ELIMINATION OR 
                    TRANSPORTATION OF NUCLEAR WEAPONS.

    Section 1201(b)(1) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22 
U.S.C. 5955 note) is amended by inserting ``, fissile material 
suitable for use in nuclear weapons,'' after ``other weapons''.

SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

    (a) Replacement Program.--The Secretary of Energy, in 
consultation with the Secretary of Defense, shall develop a 
cooperative program with the Government of Russia to eliminate 
the production of weapons grade plutonium by modifying or 
replacing the reactor cores at Tomsk-7 and Krasnoyarsk-26 with 
reactor cores that are less suitable for the production of 
weapons-grade plutonium.
    (b) Program Requirements.--(1) The program shall be 
designed to achieve completion of the modifications or 
replacements of the reactor cores within three years after the 
modification or replacement activities under the program are 
begun.
    (2) The plan for the program shall--
            (A) specify--
                    (i) successive steps for the modification 
                or replacement of the reactor cores; and
                    (ii) clearly defined milestones to be 
                achieved; and
            (B) include estimates of the costs of the program.
    (c) Submission of Program Plan to Congress.--Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to Congress--
            (1) a plan for the program under subsection (a);
            (2) an estimate of the United States funding that 
        is necessary for carrying out the activities under the 
        program for each fiscal year covered by the program; 
        and
            (3) a comparison of the benefits of the program 
        with the benefits of other nonproliferation programs.

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

SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

    (a) Designation of Position.--The President shall designate 
an individual to serve in the Executive Office of the President 
as the National Coordinator for Nonproliferation Matters.
    (b) Duties.--The Coordinator, under the direction of the 
National Security Council, shall advise and assist the 
President by--
            (1) advising the President on nonproliferation of 
        weapons of mass destruction, including issues related 
        to terrorism, arms control, and international organized 
        crime.
            (2) chairing the Committee on Nonproliferation 
        established under section 1342; and
            (3) taking such actions as are necessary to ensure 
        that there is appropriate emphasis in, cooperation on, 
        and coordination of, nonproliferation research efforts 
        of the United States, including activities of Federal 
        agencies as well as activities of contractors funded by 
        the Federal Government.
    (c) Allocation of Funds.--Of the total amount authorized to 
be appropriated under section 301, $2,000,000 is available to 
the Department of Defense for carrying out research referred to 
in subsection (b)(3).

SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.

    (a) Establishment.--The Committee on Nonproliferation (in 
this section referred to as the ``Committee'') is established 
as a committee of the National Security Council.
    (b) Membership.--(1) The Committee shall be composed of 
representatives of the following:
            (A) The Secretary of State.
            (B) The Secretary of Defense.
            (C) The Director of Central Intelligence.
            (D) The Attorney General.
            (E) The Secretary of Energy.
            (F) The Administrator of the Federal Emergency 
        Management Agency.
            (G) The Secretary of the Treasury.
            (H) The Secretary of Commerce.
            (I) Such other members as the President may 
        designate.
    (2) The National Coordinator for Nonproliferation Matters 
shall chair the Committee on Nonproliferation.
    (c) Responsibilities.--The Committee has the following 
responsibilities:
            (1) To review and coordinate Federal programs, 
        policies, and directives relating to the proliferation 
        of weapons of mass destruction and related materials 
        and technologies, including matters relating to 
        terrorism and international organized crime.
            (2) To make recommendations through the National 
        Security Council to the President regarding the 
        following:
                    (A) Integrated national policies for 
                countering the threats posed by weapons of mass 
                destruction.
                    (B) Options for integrating Federal agency 
                budgets for countering such threats.
                    (C) Means to ensure that the Federal, 
                State, and local governments have adequate 
                capabilities to manage crises involving 
                nuclear, radiological, biological, or chemical 
                weapons or related materials or technologies, 
                and to manage the consequences of a use of such 
                a weapon or related materials or technologies, 
                and that use of those capabilities is 
                coordinated.
                    (D) Means to ensure appropriate cooperation 
                on, and coordination of, the following:
                            (i) Preventing the smuggling of 
                        weapons of mass destruction and related 
                        materials and technologies.
                            (ii) Promoting domestic and 
                        international law enforcement efforts 
                        against proliferation-related efforts.
                            (iii) Countering the involvement of 
                        organized crime groups in 
                        proliferation-related activities.
                            (iv) Safeguarding weapons of mass 
                        destruction materials and related 
                        technologies.
                            (v) Improving coordination and 
                        cooperation among intelligence 
                        activities, law enforcement, and the 
                        Departments of Defense, State, 
                        Commerce, and Energy in support of 
                        nonproliferation and 
                        counterproliferation efforts.
                            (vi) Improving export controls over 
                        materials and technologies that can 
                        contribute to the acquisition of 
                        weapons of mass destruction.
                            (vii) Reducing proliferation of 
                        weapons of mass destruction and related 
                        materials and technologies.

SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

    (a) Program Required.--The President, acting through the 
Committee on Nonproliferation established under section 1442, 
shall develop a comprehensive program for carrying out this 
title.
    (b) Content of Program.--The program set forth in the 
report shall include specific plans as follows:
            (1) Plans for countering proliferation of weapons 
        of mass destruction and related materials and 
        technologies.
            (2) Plans for training and equipping Federal, 
        State, and local officials for managing a crisis 
        involving a use or threatened use of a weapon of mass 
        destruction, including the consequences of the use of 
        such a weapon.
            (3) Plans for providing for regular sharing of 
        information among intelligence, law enforcement, and 
        customs agencies.
            (4) Plans for training and equipping law 
        enforcement units, customs services, and border 
        security personnel to counter the smuggling of weapons 
        of mass destruction and related materials and 
        technologies.
            (5) Plans for establishing appropriate centers for 
        analyzing seized nuclear, radiological, biological, and 
        chemical weapons, and related materials and 
        technologies.
            (6) Plans for establishing in the United States 
        appropriate legal controls and authorities relating to 
        the exporting of nuclear, radiological, biological, and 
        chemical weapons, and related materials and 
        technologies.
            (7) Plans for encouraging and assisting governments 
        of foreign countries to implement and enforce laws that 
        set forth appropriate penalties for offenses regarding 
        the smuggling of weapons of mass destruction and 
        related materials and technologies.
            (8) Plans for building the confidence of the United 
        States and Russia in each other's controls over United 
        States and Russian nuclear weapons and fissile 
        materials, including plans for verifying the 
        dismantlement of nuclear weapons.
            (9) Plans for reducing United States and Russian 
        stockpiles of excess plutonium, reflecting--
                    (A) consideration of the desirability and 
                feasibility of a United States-Russian 
                agreement governing fissile material 
                disposition and the specific technologies and 
                approaches to be used for disposition of excess 
                plutonium; and
                    (B) an assessment of the options for United 
                States cooperation with Russia in the 
                disposition of Russian plutonium.
            (10) Plans for studying the merits and costs of 
        establishing a global network of means for detecting 
        and responding to terroristic or other criminal use of 
        biological agents against people or other forms of life 
        in the United States or any foreign country.
    (c) Report.--(1) At the same time that the President 
submits the budget for fiscal year 1998 to Congress pursuant to 
section 1105(a) of title 31, United States Code, the President 
shall submit to Congress a report that sets forth the 
comprehensive program developed under subsection (a).
    (2) The report shall include the following:
            (A) The specific plans for the program that are 
        required under subsection (b).
            (B) Estimates of the funds necessary, by agency or 
        department, for carrying out such plans in fiscal year 
        1998 and the following five fiscal years.
    (3) The report shall be in an unclassified form. If there 
is a classified version of the report, the President shall 
submit the classified version at the same time.

SEC. 1444. TERMINATION.

    After September 30, 1999, the President--
            (1) is not required to maintain a National 
        Coordinator for Nonproliferation Matters under section 
        1341; and
            (2) may terminate the Committee on Nonproliferation 
        established under section 1342.

                       Subtitle E--Miscellaneous

SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

    It is the sense of Congress that the Secretary of Defense, 
the Secretary of Energy, the Secretary of the Treasury, and the 
Secretary of State, to the extent authorized by law, should--
            (1) contract directly with suppliers in independent 
        states of the former Soviet Union when such action 
        would--
                    (A) result in significant savings of the 
                programs referred to in subtitle C; and
                    (B) substantially expedite completion of 
                the programs referred to in subtitle C; and
            (2) seek means to use innovative contracting 
        approaches to avoid delay and increase the 
        effectiveness of such programs and of the exercise of 
        such authorities.

SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT REDUCTION 
                    PROGRAMS.

    Congress finds that--
            (1) the various Cooperative Threat Reduction 
        programs are being carried out at different rates in 
        the various countries covered by such programs; and
            (2) it is necessary to authorize transfers of 
        funding allocations among the various programs in order 
        to maximize the effectiveness of United States efforts 
        under such programs.

SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO STATES OF FORMER 
                    SOVIET UNION.

    It is the sense of Congress that--
            (1) the Cooperative Threat Reduction programs and 
        other United States programs authorized in the National 
        Defense Authorization Act for Fiscal Years 1993 and 
        1994 should be expanded by offering assistance under 
        those programs to other independent states of the 
        former Soviet Union in addition to Russia, Ukraine, 
        Kazakstan, and Belarus; and
            (2) the President should offer assistance to 
        additional independent states of the former Soviet 
        Union in each case in which the participation of such 
        states would benefit national security interests of the 
        United States by improving border controls and 
        safeguards over materials and technology associated 
        with weapons of mass destruction.

SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM RUSSIAN HIGHLY 
                    ENRICHED URANIUM.

    (a) Sense of Congress.--It is the sense of Congress that 
the allies of the United States and other nations should 
participate in efforts to ensure that stockpiles of weapons-
grade nuclear material are reduced.
    (b) Actions by the Secretary of State.--Congress urges the 
Secretary of State to encourage, in consultation with the 
Secretary of Energy, other countries to purchase low-enriched 
uranium that is derived from highly enriched uranium extracted 
from Russian nuclear weapons.

SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, AND 
                    TRANSPORTATION OF FISSILE MATERIALS AT RISK OF 
                    THEFT.

    It is the sense of Congress that--
            (1) the Secretary of Defense, the Secretary of 
        Energy, the Secretary of the Treasury, and the 
        Secretary of State should purchase, package, and 
        transport to secure locations weapons-grade nuclear 
        materials from a stockpile of such materials if such 
        officials determine that--
                    (A) there is a significant risk of theft of 
                such materials; and
                    (B) there is no reasonable and economically 
                feasible alternative for securing such 
                materials; and
            (2) if it is necessary to do so in order to secure 
        the materials, the materials should be imported into 
        the United States, subject to the laws and regulations 
        that are applicable to the importation of such 
        materials into the United States.

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

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

SEC. 1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

    (a) In General.--For purposes of section 301 and other 
provisions of this Act, Cooperative Threat Reduction programs 
are the programs specified in subsection (b).
    (b) Specified Programs.--The programs referred to in 
subsection (a) are the following programs with respect to 
states of the former Soviet Union:
            (1) Programs to facilitate the elimination, and the 
        safe and secure transportation and storage, of nuclear, 
        chemical, and other weapons and their delivery 
        vehicles.
            (2) Programs to facilitate the safe and secure 
        storage of fissile materials derived from the 
        elimination of nuclear weapons.
            (3) Programs to prevent the proliferation of 
        weapons, weapons components, and weapons-related 
        technology and expertise.
            (4) Programs to expand military-to-military and 
        defense contacts.

SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

    (a) In General.--Of the amount appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative 
Threat Reduction programs, not more than the following amounts 
may be obligated for the purposes specified:
            (1) For planning and design of a chemical weapons 
        destruction facility in Russia, $78,500,000.
            (2) For elimination of strategic offensive arms in 
        Russia, $52,000,000.
            (3) For strategic nuclear arms elimination in 
        Ukraine, $47,000,000.
            (4) For planning and design of a storage facility 
        for Russian fissile material, $66,000,000.
            (5) For fissile material containers in Russia, 
        $38,500,000.
            (6) For weapons storage security in Russia, 
        $15,000,000.
            (7) For activities designated as Defense and 
        Military-to-Military Contacts in Russia, Ukraine, 
        Belarus, and Kazakhstan, $10,000,000.
            (8) For activities designated as Other Assessments/
        Administrative Support $20,900,000.
            (9) For materials protection, control, and 
        accounting assistance or for destruction of nuclear, 
        radiological, biological, or chemical weapons or 
        related materials at any site within the former Soviet 
        Union, $10,000,000.
            (10) For transfer to the Secretary of Energy to 
        develop a cooperative program with the Government of 
        Russia to eliminate the production of weapons grade 
        plutonium at Russian reactors, $10,000,000.
            (11) For dismantlement of biological and chemical 
        weapons facilities in the former Soviet Union, 
        $15,000,000.
            (12) For expanding military-to-military programs of 
        the United States that focus on countering the threat 
        of proliferation of weapons of mass destruction to 
        include the security forces of the independent states 
        of the former Soviet Union, particularly states in the 
        Caucasus region and Central Asia, $2,000,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If 
the Secretary of Defense determines that it is necessary to do 
so in the national interest, the Secretary may, subject to 
paragraph (2), obligate amounts for the purposes stated in any 
of the paragraphs of subsection (a) in excess of the amount 
specified for those purposes in that paragraph, but not in 
excess of 115 percent of that amount. However, the total amount 
obligated for the purposes stated in the paragraphs in 
subsection (a) may not by reason of the use of the authority 
provided in the preceding sentence exceed the sum of the 
amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the 
paragraphs in subsection (a) in excess of the amount specified 
in that paragraph may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress a 
        notification of the intent to do so together with a 
        complete discussion of the justification for doing so; 
        and
            (B) 15 days have elapsed following the date of the 
        notification.

SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--None of the funds appropriated pursuant to 
the authorization in section 301 for Cooperative Threat 
Reduction programs, or appropriated for such programs for any 
prior fiscal year and remaining available for obligation, may 
be obligated or expended for any of the following purposes:
            (1) Conducting with Russia any peacekeeping 
        exercise or other peacekeeping-related activity.
            (2) Provision of housing.
            (3) Provision of assistance to promote 
        environmental restoration.
            (4) Provision of assistance to promote job 
        retraining.
    (b) Limitation With Respect to Defense Conversion 
Assistance.--None of the funds appropriated to the Department 
of Defense for fiscal year 1997 may be obligated or expended 
for defense conversion.

SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE 
                    SUBMITTED.

    None of the funds appropriated pursuant to the 
authorization in section 301 for Cooperative Threat Reduction 
programs may be obligated or expended until 15 days after the 
date which is the latest of the following:
            (1) The date on which the President submits to 
        Congress the determinations required under subsection 
        (c) of section 211 of Public Law 102-228 (22 U.S.C. 
        2551 note) with respect to any certification 
        transmitted to Congress under subsection (b) of that 
        section before the date of the enactment of this Act.
            (2) The date on which the Secretary of Defense 
        submits to Congress the first report under section 
        1206(a) of the National Defense Authorization Act for 
        Fiscal Year 1996 (Public Law 104-106; 110 Stat. 471).
            (3) The date on which the Secretary of Defense 
        submits to Congress the report for fiscal year 1996 
        required under section 1205(c) of the National Defense 
        Authorization Act for Fiscal Year 1995 (Public Law 103-
        337; 108 Stat. 2883).

SEC. 1505. AVAILABILITY OF FUNDS.

    Funds appropriated pursuant to the authorization of 
appropriations in section 301 for Cooperative Threat Reduction 
programs shall be available for obligation for three fiscal 
years.

          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

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

     Subtitle B--Department of Defense Intelligence Personnel Policy

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

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

SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF MILITARY 
                    POSITIONS TO CIVILIAN POSITIONS.

    (a) Elimination of Requirement for Fiscal Year 1997 
Conversions.--Paragraph (1) of section 1032(a) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 429; 10 U.S.C. 129a note) is amended--
            (1) by striking out ``September 30, 1997'' and 
        inserting in lieu thereof ``September 30, 1996''; and
            (2) by striking out ``10,000'' and inserting in 
        lieu thereof ``3,000''.
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) by striking out paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph 
        (2).
    (c) Effective Date.--(1) The amendments made by this 
section shall take effect 30 days after the date on which the 
Secretary of Defense submits to Congress a certification that 
at least 3,000 military positions have been converted to 
civilian positions during fiscal year 1996 as required by 
section 1032(a) of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429).
    (2) The Secretary shall publish in the Federal Register a 
notice of the submission of any certification to Congress under 
paragraph (1), including the date on which the certification 
was submitted to Congress.

SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY 
                    TRAINING BASES TRANSFERRED TO NATIONAL GUARD.

    (a) Retention of Employee Positions.--In the case of a 
military training installation described in subsection (b), the 
Secretary of Defense shall retain civilian employee positions 
of the Department of Defense at the installation after transfer 
to the National Guard to facilitate active and reserve 
component training at the installation. The Secretary shall 
determine the extent to which positions at the installation are 
to be retained as positions of the Department of Defense in 
consultation with the Adjutant General of the National Guard of 
the State in which the installation is located.
    (b) Military Training Installations Affected.--This section 
applies with respect to each military training installation 
that--
            (1) was approved for closure in 1995 under the 
        Defense Base Closure and Realignment Act of 1990 (part 
        A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note);
            (2) is scheduled for transfer to National Guard 
        operation and control; and
            (3) will continue to be used, after such transfer, 
        to provide training support to active and reserve 
        components of the Armed Forces.
    (c) Maximum Positions Retained.--The number of civilian 
employee positions retained at an installation under this 
section may not exceed 20 percent of the Federal civilian 
workforce employed at the installation as of September 8, 1995.
    (d) Removal of Position.--The requirement to maintain a 
civilian employee position at an installation under this 
section terminates upon the later of the following:
            (1) The date of the departure or retirement from 
        that position by the civilian employee initially 
        employed or retained in the position as a result of 
        this section.
            (2) The date on which the Secretary certifies to 
        Congress that the position is no longer required to 
        ensure that effective support is provided at the 
        installation for active and reserve component training.

SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT 
                    CONSTRAINTS ON MAJOR RANGE AND TEST FACILITY BASE 
                    STRUCTURE.

    Section 129 of title 10, United States Code, is amended--
            (1) in subsection (c)(1), by inserting ``, the 
        Major Range and Test Facility Base,'' after 
        ``industrial-type activities''; and
            (2) by adding at the end the following:
    ``(e) Subsections (a), (b), and (c) apply to the Major 
Range and Test Facility Base (MRTFB) at the installation level. 
With respect to the MRTFB structure, the term `funds made 
available' includes both direct appropriated funds and funds 
provided by MRTFB customers.''.

SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN EMPLOYEES OF 
                    THE DEPARTMENT OF DEFENSE ABROAD.

    (a) In General.--Chapter 81 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 1599b. Employees abroad: travel expenses; health care

    ``(a) In General.--The Secretary of Defense may provide 
civilian employees, and members of their families, abroad with 
benefits that are comparable to certain benefits that are 
provided by the Secretary of State to members of the Foreign 
Service and their families abroad as described in subsections 
(b) and (c). The Secretary may designate the employees and 
members of families who are eligible to receive the benefits.
    ``(b) Travel and Related Expenses.--The Secretary of 
Defense may pay travel expenses and related expenses for 
purposes and in amounts that are comparable to the purposes for 
which, and the amounts in which, travel and related expenses 
are paid by the Secretary of State under section 901 of the 
Foreign Service Act of 1980 (22 U.S.C. 4081).
    ``(c) Health Care Program.--The Secretary of Defense may 
establish a health care program that is comparable to the 
health care program established by the Secretary of State under 
section 904 of the Foreign Service Act of 1980 (22 U.S.C. 
4084).
    ``(d) Assistance.--The Secretary of Defense may enter into 
agreements with the heads of other departments and agencies of 
the Government in order to facilitate the payment of expenses 
authorized by subsection (b) and to carry out a health care 
program authorized by subsection (c).
    ``(e) Abroad Defined.--In this section, the term `abroad' 
means outside--
            ``(1) the United States; and
            ``(2) the territories and possessions of the United 
        States.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``1599b. Employees abroad: travel expenses; health care.''.

SEC. 1605. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOWANCES FOR 
                    CERTAIN FORMER NONAPPROPRIATED FUND EMPLOYEES.

    (a) In General.--(1) Subchapter II of chapter 57 of title 
5, United States Code, is amended by adding at the end the 
following new section:

``Sec. 5736. Travel, transportation, and relocation expenses of certain 
                    nonappropriated fund employees

    ``An employee of a nonappropriated fund instrumentality of 
the Department of Defense or the Coast Guard described in 
section 2105(c) of this title who moves, without a break in 
service of more than 3 days, to a position in the Department of 
Defense or the Coast Guard, respectively, may be authorized 
travel, transportation, and relocation expenses and allowances 
under the same conditions and to the same extent authorized by 
this subchapter for transferred employees.''.
    (2) The table of sections at the beginning of chapter 57 of 
such title is amended by inserting after the item relating to 
section 5735 the following new item:

``5736. Travel, transportation, and relocation expenses of certain 
          nonappropriated fund employees.''.

    (b) Applicability.--Section 5736 of title 5, United States 
Code (as added by subsection (a)(1)), shall apply to moves 
between positions as described in such section that are 
effective on or after October 1, 1996.

SEC. 1606. EMPLOYMENT AND SALARY PRACTICES APPLICABLE TO DEPARTMENT OF 
                    DEFENSE OVERSEAS TEACHERS.

    (a) Expansion of Scope of Educators Covered.--Section 2 of 
the Defense Department Overseas Teachers Pay and Personnel 
Practices Act (20 U.S.C. 901) is amended--
            (1) in subparagraph (A) of paragraph (1), by 
        inserting ``, or are performed by an individual who 
        carried out certain teaching activities identified in 
        regulations prescribed by the Secretary of Defense'' 
        after ``Defense,''; and
            (2) by striking out subparagraph (C) of paragraph 
        (2) and inserting in lieu thereof the following:
                    ``(C) who is employed in a teaching 
                position described in paragraph (1).''.
    (b) Transfer of Responsibility for Employment and Salary 
Practices.--Section 5 of such Act (20 U.S.C. 903) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``secretary of each 
                military department in the Department of 
                Defense'' and inserting in lieu thereof 
                ``Secretary of Defense''; and
                    (B) by striking out ``his military 
                department'' and inserting in lieu thereof 
                ``the Department of Defense'';
            (2) in subsection (b)--
                    (A) in the matter preceding paragraph (1), 
                by striking out ``secretary of each military 
                department--'' and inserting in lieu thereof 
                ``Secretary of Defense--''; and
                    (B) in paragraph (1), by striking out ``his 
                military department,'' and inserting in lieu 
                thereof ``the Department of Defense'';
            (3) in subsection (c)--
                    (A) by striking out ``Secretary of each 
                military department'' and inserting in lieu 
                thereof ``Secretary of Defense''; and
                    (B) by striking out ``his military 
                department'' and inserting in lieu thereof 
                ``the Department of Defense''; and
            (4) in subsection (d), by striking out ``Secretary 
        of each military department'' and inserting in lieu 
        thereof ``Secretary of Defense''.

SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY MEMBERS AT 
                    CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

    (a) Faculties.--Subsection (c) of section 1595 of title 10, 
United States Code, is amended by adding at the end the 
following new paragraphs:
            ``(4) The English Language Center of the Defense 
        Language Institute.
            ``(5) The Asia-Pacific Center for Security 
        Studies.''.
    (b) Certain Administrators.--Such section is further 
amended by adding at the end the following new subsection:
    ``(f) Application to Director and Deputy Director at Asia-
Pacific Center for Security Studies.--In the case of the Asia-
Pacific Center for Security Studies, this section also applies 
with respect to the Director and the Deputy Director.''.

SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT 
                    SCHOOL BOARD MEMBERS FOR CERTAIN EXPENSES.

    Section 2164(d) of title 10, United States Code, is amended 
by adding at the end the following new paragraph:
    ``(7) The Secretary may provide for reimbursement of a 
school board member for expenses incurred by the member for 
travel, transportation, lodging, meals, program fees, activity 
fees, and other appropriate expenses that the Secretary 
determines are reasonable and necessary for the performance of 
school board duties by the member.''.

SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF 
                    DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUNTARILY IN 
                    REDUCTIONS IN FORCE.

    Subsection (f) of section 3502 of title 5, United States 
Code, is amended to read as follows:
    ``(f)(1) The Secretary of Defense or the Secretary of a 
military department may--
            ``(A) separate from service any employee who 
        volunteers to be separated under this subparagraph even 
        though the employee is not otherwise subject to 
        separation due to a reduction in force; and
            ``(B) for each employee voluntarily separated under 
        subparagraph (A), retain an employee in a similar 
        position who would otherwise be separated due to a 
        reduction in force.
    ``(2) The separation of an employee under paragraph (1)(A) 
shall be treated as an involuntary separation due to a 
reduction in force.
    ``(3) An employee with critical knowledge and skills (as 
defined by the Secretary concerned) may not participate in a 
voluntary separation under paragraph (1)(A) if the Secretary 
concerned determines that such participation would impair the 
performance of the mission of the Department of Defense or the 
military department concerned.
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) No authority under paragraph (1) may be exercised 
after September 30, 2001.''.

SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

    (a) In General.--Section 5543 of title 5, United States 
Code, is amended--
            (1) by redesignating subsection (b) as subsection 
        (c); and
            (2) by inserting after subsection (a) the following 
        new subsection (b):
    ``(b) The head of an agency may, on request of an employee, 
grant the employee compensatory time off from the employee's 
scheduled tour of duty instead of payment under section 5544 or 
section 7 of the Fair Labor Standards Act of 1938 for an equal 
amount of time spent in irregular or occasional overtime work. 
An agency head may not require an employee to be compensated 
for overtime work with an equivalent amount of compensatory 
time-off from the employee's tour of duty.''.
    (b) Conforming Amendment.--Section 5544(c) of title 5, 
United States Code, is amended by inserting ``and the 
provisions of section 5543(b)'' after ``the last two sentences 
of subsection (a)''.

SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT REMAINS UNUSED 
                    UPON TRANSFER OF EMPLOYEE FROM INSTALLATION BEING 
                    CLOSED OR REALIGNED.

    (a) Lump-Sum Payment Required.--Section 5551 of title 5, 
United States Code, is amended by adding at the end the 
following:
    ``(c)(1) Annual leave that is restored to an employee of 
the Department of Defense under section 6304(d) of this title 
by reason of the operation of paragraph (3) of such section and 
remains unused upon the transfer of the employee to a position 
described in paragraph (2) shall be liquidated by payment of a 
lump-sum for such leave to the employee upon the transfer.
    ``(2) A position referred to in paragraph (1) is a position 
in a department or agency of the Federal Government outside the 
Department of Defense or a Department of Defense position that 
is not located at a Department of Defense installation being 
closed or realigned as described in section 6304(d)(3) of this 
title.''.
    (b) Applicability.--Subsection (c) of section 5551 of title 
5, United States Code (as added by subsection (a)), shall apply 
with respect to transfers described in such subsection (c) that 
take effect on or after the date of the enactment of this Act.

SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY SEPARATION 
                    INCENTIVE PAY BY FORMER DEPARTMENT OF DEFENSE 
                    EMPLOYEES REEMPLOYED BY THE GOVERNMENT WITHOUT PAY.

    (a) In General.--Section 5597(g) of title 5, United States 
Code, is amended by adding at the end the following new 
paragraph:
    ``(5) If the employment is without compensation, the 
appointing official may waive the repayment.''.
    (b) Applicability.--The amendment made by subsection (a) 
shall apply with respect to employment accepted on or after the 
date of the enactment of this Act.

SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE OF 
                    CERTAIN HOLIDAYS.

    Section 6103 of title 5, United States Code, is amended by 
adding at the end the following new subsection:
    ``(d)(1) For purposes of this subsection--
            ``(A) the term `compressed schedule' has the 
        meaning given such term by section 6121(5); and
            ``(B) the term `adverse agency impact' has the 
        meaning given such term by section 6131(b).
    ``(2) An agency may prescribe rules under which employees 
on a compressed schedule may, in the case of a holiday that 
occurs on a regularly scheduled non-workday for such employees, 
and notwithstanding any other provision of law or the terms of 
any collective bargaining agreement, be required to observe 
such holiday on a workday other than as provided by subsection 
(b), if the agency head determines that it is necessary to do 
so in order to prevent an adverse agency impact.''.

SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT AUTHORITIES.

    (a) Repeal of Requirements Relating to Fire-Safe 
Accommodations.--(1) Section 5707 of title 5, United States 
Code, is amended by striking out subsection (d).
    (2) Subsection (b) of section 5 of the Hotel and Motel Fire 
Safety Act of 1990 (Public Law 101-391; 104 Stat. 751; 5 U.S.C. 
5707 note) is repealed.
    (b) Repeal of Prohibition on Payment of Lodging Expenses of 
Department of Defense Employees and Other Civilians When 
Adequate Government Quarters Are Available.--(1) Section 1589 
of title 10, United States Code, is repealed.
    (2) The table of sections at the beginning of chapter 81 of 
such title is amended by striking out the item relating to such 
section.

SEC. 1615. FAILURE TO COMPLY WITH VETERANS' PREFERENCE REQUIREMENTS TO 
                    BE TREATED AS A PROHIBITED PERSONNEL PRACTICE.

    (a) In General.--(1) Chapter 81 of title 10, United States 
Code, as amended by section 1604, is further amended by adding 
at the end the following new section:

``Sec. 1599c. Veterans' preference requirements: Department of Defense 
                    failure to comply treated as a prohibited personnel 
                    practice

    ``(a) Prohibited Personnel Practice.--It is a prohibited 
personnel practice for a person referred to in subsection (b) 
who has authority described in that subsection--
            ``(1) knowingly to take, recommend, or approve any 
        personnel action with respect to such authority if the 
        taking of such action violates a veterans' preference; 
        or
            ``(2) knowingly to fail to take, recommend, or 
        approve any personnel action with respect to such 
        authority, if the failure to take such action violates 
        a veterans' preference.
    ``(b) Persons Covered.--Subsection (a) applies with respect 
to--
            ``(1) an officer or employee of the Department of 
        Defense who has authority to take, direct others to 
        take, recommend, or approve a personnel action with 
        respect to an employee of the Department of Defense; 
        and
            ``(2) a member of the armed forces who has such 
        authority.
    ``(c) Veterans' Preference Defined.--(1) In this section, 
the term `veterans' preference' means any of the following 
provisions of law:
            ``(A) Sections 2108, 3305(b), 3309, 3310, 3311, 
        3312, 3313, 3314, 3315, 3316, 3317(b), 3318, 3320, 
        3351, 3352, 3363, 3501, 3502(b), 3504, and 4303(e) of 
        title 5 and (with respect to a preference eligible 
        referred to in section 7511(a)(1)(B) of such title) 
        subchapter II of chapter 75 and section 7701 of such 
        title.
            ``(B) Sections 943(c)(2) and 1784(c) of this title.
            ``(C) Section 1308(b) of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3198(b)).
            ``(D) Section 301(c) of the Foreign Service Act of 
        1980 (22 U.S.C. 3941(c)).
            ``(E) Section 3(a)(11) of the Administrative Office 
        of the United States Courts Personnel Act of 1990 (28 
        U.S.C. 602 note).
            ``(F) Sections 106(f), 7281(e), and 7802(5) of 
        title 38.
            ``(G) Section 1005(a) of title 39.
            ``(H) Any other provision of law that the Director 
        of the Office of Personnel Management designates in 
        regulations as being a veterans' preference for the 
        purposes of this section.
    ``(2) For the purposes of this section, such term includes 
any regulation prescribed under subsection (b) or (c) of 
section 1302 of title 5 and any other regulation that 
implements a provision of law referred to in paragraph (1).
    ``(d) Personnel Action Defined.--In this section, the term 
`personnel action' has the meaning given that term in section 
2302 of title 5.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``1599c. Veterans' preference requirements: Department of Defense 
          failure to comply treated as a prohibited personnel 
          practice.''.

    (b) Applicability of Title 5 Procedures and Sanctions.--
Paragraph (1) of section 2302(a) of title 5, United States 
Code, is amended to read as follows:
    ``(1) For purposes of this title, `prohibited personnel 
practice' means the following:
            ``(A) Any action described in subsection (b) of 
        this section.
            ``(B) Any action or failure to act that is 
        designated as a prohibited personnel action under 
        section 1599c(a) of title 10.''.
    (c) Reporting Requirement.--Not later than six months after 
the date of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a written report on--
            (1) the implementation of--
                    (A) section 1599c of title 10, United 
                States Code, as added by subsection (a); and
                    (B) subparagraph (B) of section 2302(a)(1) 
                of title 5, United States Code, as added by 
                subsection (b); and
            (2) the administration of veterans' preference 
        requirements by the Department of Defense generally.

SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED TO CONTRACTOR 
                    EMPLOYEES DUE TO PRIVATIZATION AT CLOSED MILITARY 
                    INSTALLATIONS.

    (a) Pilot Programs Authorized.--(1) The Secretary of 
Defense, after consultation with the Director of the Office of 
Personnel Management, may establish one or more pilot programs 
under which Federal retirement benefits are provided in 
accordance with this section to persons who convert from 
Federal employment to employment by a Department of Defense 
contractor in connection with the privatization of the 
performance of functions at selected military installations 
being closed under the base closure and realignment process.
    (2) The Secretary of Defense shall select the military 
installations to be covered by a pilot program under this 
section.
    (b) Eligible Converted Employees.--(1) A person is a 
converted employee eligible for Federal retirement benefits 
under this section if the person is a former employee of the 
Department of Defense (other than a temporary employee) who--
            (A) while employed by the Department of Defense at 
        a military installation selected to participate in a 
        pilot program, performed a function that was 
        recommended, in a report of the Defense Base Closure 
        and Realignment Commission submitted to the President 
        under the Defense Base Closure and Realignment Act of 
        1990 (title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), to be privatized for performance by a defense 
        contractor at the same installation or in the vicinity 
        of the installation;
            (B) while so employed, separated from Federal 
        service after being notified that the employee would be 
        separated in a reduction in force resulting from such 
        privatization;
            (C) at the time separated from Federal service, was 
        covered under the Civil Service Retirement System, but 
        was not eligible for an immediate annuity under the 
        Civil Service Retirement System;
            (D) does not withdraw retirement contributions 
        under section 8342 of title 5, United States Code;
            (E) within 60 days following such separation, is 
        employed by the defense contractor selected to 
        privatize the function to perform substantially the 
        same function performed by the person before the 
        separation; and
            (F) remains employed by the defense contractor (or 
        a successor defense contractor) or subcontractor of the 
        defense contractor (or successor defense contractor) 
        until attaining early deferred retirement age (unless 
        the employment is sooner involuntarily terminated for 
        reasons other than performance or conduct of the 
        employee).
    (2) A person who, under paragraph (1), would otherwise be 
eligible for an early deferred annuity under this section shall 
not be eligible for such benefits if the person received 
separation pay or severance pay due to a separation described 
in subparagraph (B) of that paragraph unless the person repays 
the full amount of such pay with interest (computed at a rate 
determined appropriate by the Director of the Office of 
Personnel Management) to the Department of Defense before 
attaining early deferred retirement age.
    (c) Retirement Benefits of Converted Employees.--In the 
case of a converted employee covered by a pilot program, 
payment of a deferred annuity for which the converted employee 
is eligible under section 8338(a) of title 5, United States 
Code, shall commence on the first day of the first month that 
begins after the date on which the converted employee attains 
early deferred retirement age, notwithstanding the age 
requirement under that section. If the employment of a 
converted employee is involuntarily terminated by the defense 
contractor or subcontractor as described in subsection 
(b)(1)(F) and the converted employee resumes Federal service 
before the converted employee attains early deferred retirement 
age, the converted employee shall once again be covered under 
the Civil Service Retirement System instead of the pilot 
program.
    (d) Computation of Average Pay.--(1)(A) This paragraph 
applies to a converted employee who was employed in a position 
classified under the General Schedule immediately before the 
employee's covered separation from Federal service.
    (B) Subject to subparagraph (C), for purposes of computing 
the deferred annuity for a converted employee referred to in 
subparagraph (A), the average pay of the converted employee, 
computed under section 8331(4) of title 5, United States Code, 
as of the date of the employee's covered separation from 
Federal service, shall be adjusted at the same time and by the 
same percentage that rates of basic pay are increased under 
section 5303 of such title during the period beginning on that 
date and ending on the date on which the converted employee 
attains early deferred retirement age.
    (C) The average pay of a converted employee, as adjusted 
under subparagraph (B), may not exceed the amount to which an 
annuity of the converted employee could be increased under 
section 8340 of title 5, United States Code, in accordance with 
the limitation in subsection (g)(1) of such section (relating 
to maximum pay, final pay, or average pay).
    (2)(A) This paragraph applies to a converted employee who 
was a prevailing rate employee (as defined under section 
5342(2) of title 5, United States Code) immediately before the 
employee's covered separation from Federal service.
    (B) For purposes of computing the deferred annuity for a 
converted employee referred to in subparagraph (A), the average 
pay of the converted employee, computed under section 8331(4) 
of title 5, United States Code, as of the date of the 
employee's covered separation from Federal service, shall be 
adjusted at the same time and by the same percentage that pay 
rates for positions that are in the same area as, and are 
comparable to, the last position the converted employee held as 
a prevailing rate employee, are increased under section 5343(a) 
of such title during the period beginning on that date and 
ending on the date on which the converted employee attains 
early deferred retirement age.
    (e) Payment of Unfunded Liability.--(1) The military 
department concerned shall be liable for that portion of any 
estimated increase in the unfunded liability of the Civil 
Service Retirement and Disability Fund established under 
section 8348 of title 5, United States Code, which is 
attributable to any benefits payable from such Fund to a 
converted employee, and any survivor of a converted employee, 
when the increase results from--
            (A) an increase in the average pay of the converted 
        employee under subsection (d) upon which such benefits 
        are computed; and
            (B) the commencement of an early deferred annuity 
        in accordance with this section before the attainment 
        of 62 years of age by the converted employee.
    (2) The estimated increase in the unfunded liability for 
each department referred to in paragraph (1) shall be 
determined by the Director of the Office of Personnel 
Management. In making the determination, the Director shall 
consider any savings to the Fund as a result of a pilot program 
established under this section. The Secretary of the military 
department concerned shall pay the amount so determined to the 
Director in 10 equal annual installments with interest computed 
at the rate used in the most recent valuation of the Civil 
Service Retirement System, with the first payment thereof due 
at the end of the fiscal year in which an increase in average 
pay under subsection (d) becomes effective.
    (f) Contractor Service Not Creditable.--Service performed 
by a converted employee for a defense contractor after the 
employee's covered separation from Federal service is not 
creditable service for purposes of subchapter III of chapter 83 
of title 5, United States Code.
    (g) Receipt of Benefits While Employed by a Defense 
Contractor.--A converted employee may commence receipt of an 
early deferred annuity in accordance with this section while 
continuing to work for a defense contractor.
    (h) Lump-Sum Credit Payment.--If a converted employee dies 
before attaining early deferred retirement age, such employee 
shall be treated as a former employee who dies not retired for 
purposes of payment of the lump-sum credit under section 
8342(d) of title 5, United States Code.
    (i) Continued Federal Health Benefits Coverage.--
Notwithstanding section 8905a(e)(1)(A) of title 5, United 
States Code, the continued coverage of a converted employee for 
health benefits under chapter 89 of such title by reason of the 
application of section 8905a of such title to such employee 
shall terminate 90 days after the date of the employee's 
covered separation from Federal employment. For the purposes of 
the preceding sentence, a person who, except for subsection 
(b)(2), would be a converted employee shall be considered a 
converted employee.
    (j) Report by General Accounting Office.--The Comptroller 
General shall conduct a study of each pilot program, if any, 
established under this section and submit a report on the pilot 
program to Congress not later than two years after the date on 
which the program is established. The report shall contain the 
following:
            (1) A review and evaluation of the program, 
        including--
                    (A) an evaluation of the success of the 
                privatization outcomes of the program;
                    (B) a comparison and evaluation of such 
                privatization outcomes with the privatization 
                outcomes with respect to facilities at other 
                military installations closed or realigned 
                under the base closure laws;
                    (C) an evaluation of the impact of the 
                program on the Federal workforce and whether 
                the program results in the maintenance of a 
                skilled workforce for defense contractors at an 
                acceptable cost to the military department 
                concerned; and
                    (D) an assessment of the extent to which 
                the program is a cost-effective means of 
                facilitating privatization of the performance 
                of Federal activities.
            (2) Recommendations relating to the expansion of 
        the program to other installations and employees.
            (3) Any other recommendation relating to the 
        program.
    (k) Implementing Regulations.--Not later than 30 days after 
the Secretary of Defense notifies the Director of the Office of 
Personnel Management of a decision to establish a pilot program 
under this section, the Director shall prescribe regulations to 
carry out the provisions of this section with respect to that 
pilot program. Before prescribing the regulations, the Director 
shall consult with the Secretary.
    (l) Definitions.--In this section:
            (1) The term ``converted employee'' means a person 
        who, pursuant to subsection (b), is eligible for 
        benefits under this section.
            (2) The term ``covered separation from Federal 
        service'' means a separation from Federal service as 
        described under subsection (b)(1)(B).
            (3) The term ``Civil Service Retirement System'' 
        means the retirement system under subchapter III of 
        chapter 83 of title 5, United States Code.
            (4) The term ``defense contractor'' means any 
        entity that--
                    (A) contracts with the Department of 
                Defense to perform a function previously 
                performed by Department of Defense employees;
                    (B) performs that function at the same 
                installation at which such function was 
                previously performed by Department of Defense 
                employees or in the vicinity of that 
                installation; and
                    (C) is the employer of one or more 
                converted employees.
            (5) The term ``early deferred retirement age'' 
        means the first age at which a converted employee would 
        have been eligible for immediate retirement under 
        subsection (a) or (b) of section 8336 of title 5, 
        United States Code, if such converted employee had 
        remained an employee within the meaning of section 
        8331(1) of such title continuously until attaining such 
        age.
            (6) The term ``severance pay'' means severance pay 
        payable under section 5595 of title 5, United States 
        Code.
            (7) The term ``separation pay'' means separation 
        pay payable under section 5597 of title 5, United 
        States Code.
    (m) Application of Pilot Program.--In the event that a 
pilot program is established for a military installation, the 
pilot program shall apply to a covered separation from Federal 
service by an employee of the Department of Defense at the 
installation occurring on or after August 1, 1996.

    Subtitle B--Department of Defense Intelligence Personnel Policy

SEC. 1631. SHORT TITLE.

    This subtitle may be cited as the ``Department of Defense 
Civilian Intelligence Personnel Policy Act of 1996''.

SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

    (a) Consolidation and Standardization of Civilian Personnel 
Policy.--Chapter 83 of title 10, United States Code, is 
amended--
            (1) by redesignating section 1602 as section 1621 
        and transferring that section so as to appear after 
        section 1605;
            (2) by redesignating sections 1606 and 1608 as 
        section 1622 and 1623, respectively; and
            (3) by striking out the chapter heading, the table 
        of sections, and sections 1601, 1603, and 1604 and 
        inserting in lieu thereof the following:

         ``CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

  ``Subchapter                                                      Sec.
``I. Defense-Wide Intelligence Personnel Policy...................  1601
``II. Defense Intelligence Agency Personnel.......................  1621

       ``SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

  ``Sec.
``1601. Civilian intelligence personnel: general authority to establish 
          excepted positions, appoint personnel, and fix rates of pay.
``1602. Basic pay.
``1603. Additional compensation, incentives, and allowances.
``1605. Benefits for certain employees assigned outside the United 
          States.
``1606. Defense Intelligence Senior Executive Service.
``1607. Intelligence Senior Level positions.
``1608. Time-limited appointments.
``1609. Termination of defense intelligence employees.
``1610. Reductions and other adjustments in force.
``1611. Postemployment assistance: certain terminated intelligence 
          employees.
``1612. Merit system principles and civil service protections: 
          applicability.
``1613. Miscellaneous provisions.
``1614. Definitions.

``Sec. 1601. Civilian intelligence personnel: general authority to 
                    establish excepted positions, appoint personnel, 
                    and fix rates of pay

    ``(a) General Authority.--The Secretary of Defense may--
            ``(1) establish, as positions in the excepted 
        service, such defense intelligence positions in the 
        intelligence components of the Department of Defense 
        and the military departments as the Secretary 
        determines necessary to carry out the intelligence 
        functions of those components and departments, 
        including--
                    ``(A) Intelligence Senior Level positions 
                designated under section 1607 of this title; 
                and
                    ``(B) positions in the Defense Intelligence 
                Senior Executive Service;
            ``(2) appoint individuals to those positions (after 
        taking into consideration the availability of 
        preference eligibles for appointment to those 
        positions); and
            ``(3) fix the compensation of such individuals for 
        service in those positions.
    ``(b) Construction With Other Laws.--The authority of the 
Secretary of Defense under subsection (a) applies without 
regard to the provisions of any other law relating to the 
appointment, number, classification, or compensation of 
employees.

``Sec. 1602. Basic pay

    ``(a) Authority To Fix Rates of Basic Pay.--The Secretary 
of Defense (subject to the provisions of this section) shall 
fix the rates of basic pay for positions established under 
section 1601 of this title in relation to the rates of basic 
pay provided in subpart D of part III of title 5 for positions 
subject to that subpart which have corresponding levels of 
duties and responsibilities.
    ``(b) Maximum Rates.--A rate of basic pay fixed under 
subsection (a) for a position established under section 1601 of 
this title may not (except as otherwise provided by law) 
exceed--
            ``(1) in the case of a Defense Intelligence Senior 
        Executive Service position, the maximum rate provided 
        in section 5382 of title 5;
            ``(2) in the case of an Intelligence Senior Level 
        position, the maximum rate provided in section 5382 of 
        title 5; and
            ``(3) in the case of any other position, the 
        maximum rate provided in section 5306(e) of title 5.
    ``(c) Prevailing Rate Systems.--The Secretary of Defense 
may, consistent with section 5341 of title 5, adopt such 
provisions of that title as provide for prevailing rate systems 
of basic pay and may apply those provisions to positions for 
civilian employees in or under which the Department of Defense 
may employ individuals described by section 5342(a)(2)(A) of 
that title.

``Sec. 1603. Additional compensation, incentives, and allowances

    ``(a) Additional Compensation Based on Title 5 
Authorities.--The Secretary of Defense may provide employees in 
defense intelligence positions compensation (in addition to 
basic pay), including benefits, incentives, and allowances, 
consistent with, and not in excess of the level authorized for, 
comparable positions authorized by title 5.
    ``(b) Allowances Based on Living Costs and Environment.--
(1) In addition to basic pay, employees in defense intelligence 
positions who are citizens or nationals of the United States 
and are stationed outside the continental United States or in 
Alaska may be paid an allowance, in accordance with regulations 
prescribed by the Secretary of Defense, while they are so 
stationed.
    ``(2) An allowance under this subsection shall be based 
on--
            ``(A) living costs substantially higher than in the 
        District of Columbia;
            ``(B) conditions of environment which (i) differ 
        substantially from conditions of environment in the 
        continental United States, and (ii) warrant an 
        allowance as a recruitment incentive; or
            ``(C) both of the factors specified in 
        subparagraphs (A) and (B).
    ``(3) An allowance under this subsection may not exceed the 
allowance authorized to be paid by section 5941(a) of title 5 
for employees whose rates of basic pay are fixed by statute.''.
    (b) Matters Other Than Pay and Benefits.--Such chapter is 
further amended by inserting after section 1605 the following 
new sections:

``Sec. 1606. Defense Intelligence Senior Executive Service

    ``(a) Establishment.--The Secretary of Defense may 
establish a Defense Intelligence Senior Executive Service for 
defense intelligence positions established pursuant to section 
1601(a) of this title that are equivalent to Senior Executive 
Service positions. The number of positions in the Defense 
Intelligence Senior Executive Service may not exceed 492.
    ``(b) Regulations Consistent With Title 5 Provisions.--The 
Secretary of Defense shall prescribe regulations for the 
Defense Intelligence Senior Executive Service which are 
consistent with the requirements set forth in sections 3131, 
3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title 5, 
subsections (a), (b), and (c) of section 7543 of such title 
(except that any hearing or appeal to which a member of the 
Defense Intelligence Senior Executive Service is entitled shall 
be held or decided pursuant to those regulations), and 
subchapter II of chapter 43 of such title. To the extent that 
the Secretary determines it practicable to apply to members of, 
or applicants for, the Defense Intelligence Senior Executive 
Service other provisions of title 5 that apply to members of, 
or applicants for, the Senior Executive Service, the Secretary 
shall also prescribe regulations to implement those provisions 
with respect to the Defense Intelligence Senior Executive 
Service.
    ``(c) Award of Rank to Members of the Defense Intelligence 
Senior Executive Service.--The President, based on the 
recommendations of the Secretary of Defense, may award a rank 
referred to in section 4507 of title 5 to members of the 
Defense Intelligence Senior Executive Service. The award of 
such rank shall be made in a manner consistent with the 
provisions of that section.

``Sec. 1607. Intelligence Senior Level positions

    ``(a) Designation of Positions.--The Secretary of Defense 
may designate as an Intelligence Senior Level position any 
defense intelligence position that, as determined by the 
Secretary--
            ``(1) is classifiable above grade GS-15 of the 
        General Schedule;
            ``(2) does not satisfy functional or program 
        management criteria for being designated a Defense 
        Intelligence Senior Executive Service position; and
            ``(3) has no more than minimal supervisory 
        responsibilities.
    ``(b) Regulations.--Subsection (a) shall be carried out in 
accordance with regulations prescribed by the Secretary of 
Defense.

``Sec. 1608. Time-limited appointments

    ``(a) Authority for Time-Limited Appointments.--The 
Secretary of Defense may by regulation authorize appointing 
officials to make time-limited appointments to defense 
intelligence positions specified in the regulations.
    ``(b) Review of Use of Authority.--The Secretary of Defense 
shall review each time-limited appointment in a defense 
intelligence position at the end of the first year of the 
period of the appointment and determine whether the appointment 
should be continued for the remainder of the period. The 
continuation of a time-limited appointment after the first year 
shall be subject to the approval of the Secretary.
    ``(c) Condition on Permanent Appointment to Defense 
Intelligence Senior Executive Service.--An employee serving in 
a defense intelligence position pursuant to a time-limited 
appointment is not eligible for a permanent appointment to a 
Defense Intelligence Senior Executive Service position 
(including a position in which the employee is serving) unless 
the employee is selected for the permanent appointment on a 
competitive basis.
    ``(d) Time-Limited Appointment Defined.--In this section, 
the term `time-limited appointment' means an appointment 
(subject to the condition in subsection (b)) for a period not 
to exceed two years.

``Sec. 1609. Termination of defense intelligence employees

    ``(a) Termination Authority.--Notwithstanding any other 
provision of law, the Secretary of Defense may terminate the 
employment of any employee in a defense intelligence position 
if the Secretary--
            ``(1) considers that action to be in the interests 
        of the United States; and
            ``(2) determines that the procedures prescribed in 
        other provisions of law that authorize the termination 
        of the employment of such employee cannot be invoked in 
        a manner consistent with the national security.
    ``(b) Finality.--A decision by the Secretary of Defense to 
terminate the employment of an employee under this section is 
final and may not be appealed or reviewed outside the 
Department of Defense.
    ``(c) Notification to Congressional Committees.--Whenever 
the Secretary of Defense terminates the employment of an 
employee under the authority of this section, the Secretary 
shall promptly notify the congressional oversight committees of 
such termination.
    ``(d) Preservation of Right To Seek Other Employment.--Any 
termination of employment under this section does not affect 
the right of the employee involved to seek or accept employment 
with any other department or agency of the United States if 
that employee is declared eligible for such employment by the 
Director of the Office of Personnel Management.
    ``(e) Limitation on Delegation.--The authority of the 
Secretary of Defense under this section may be delegated only 
to the Deputy Secretary of Defense, the head of an intelligence 
component of the Department of Defense (with respect to 
employees of that component), or the Secretary of a military 
department (with respect to employees of that department). An 
action to terminate employment of such an employee by any such 
official may be appealed to the Secretary of Defense.

``Sec. 1610. Reductions and other adjustments in force

    ``(a) In General.--The Secretary of Defense shall prescribe 
regulations for the separation of employees in defense 
intelligence positions, including members of the Defense 
Intelligence Senior Executive Service and employees in 
Intelligence Senior Level positions, during a reduction in 
force or other adjustment in force. The regulations shall apply 
to such a reduction in force or other adjustment in force 
notwithstanding sections 3501(b) and 3502 of title 5.
    ``(b) Matters To Be Given Effect.--The regulations shall 
give effect to the following:
            ``(1) Tenure of employment.
            ``(2) Military preference, subject to sections 
        3501(a)(3) and 3502(b) of title 5.
            ``(3) The veteran's preference under section 
        3502(b) of title 5.
            ``(4) Performance.
            ``(5) Length of service computed in accordance with 
        the second sentence of section 3502(a) of title 5.
    ``(c) Regulations Relating to Defense Intelligence SES.--
The regulations relating to removal from the Defense 
Intelligence Senior Executive Service in a reduction in force 
or other adjustment in force shall be consistent with section 
3595(a) of title 5.
    ``(d) Right of Appeal.--(1) The regulations shall provide a 
right of appeal regarding a personnel action under the 
regulations. The appeal shall be determined within the 
Department of Defense. An appeal determined at the highest 
level provided in the regulations shall be final and not 
subject to review outside the Department of Defense. A 
personnel action covered by the regulations is not subject to 
any other provision of law that provides appellate rights or 
procedures.
    ``(2) Notwithstanding paragraph (1), a preference eligible 
referred to in section 7511(a)(1)(B) of title 5 may elect to 
have an appeal of a personnel action taken against the 
preference eligible under the regulation determined by the 
Merit Systems Protection Board instead of having the appeal 
determined within the Department of Defense. Section 7701 of 
title 5 shall apply to any such appeal to the Merit Systems 
Protection Board.
    ``(e) Consultation With OPM.--Regulations under this 
section shall be prescribed in consultation with the Director 
of the Office of Personnel Management.''.
    (c) Transfer of Section 1599.--Subtitle A of title 10, 
United States Code, is amended by transferring section 1599 to 
chapter 83 of such title, inserting such section after section 
1610 (as added by subsection (b)), redesignating such section 
as section 1611, and in subsection (f) striking out ``means'' 
and all that follows and inserting in lieu thereof ``includes 
the National Reconnaissance Office and any intelligence 
component of a military department.''.
    (d) Additional Provisions.--Such chapter is further amended 
by inserting after section 1611 (as so transferred and 
redesignated) the following new sections:

``Sec. 1612. Merit system principles and civil service protections: 
                    applicability

    ``(a) Applicability of Merit System Principles.--Section 
2301 of title 5 shall apply to the exercise of authority under 
this subchapter (other than sections 1605 and 1611).
    ``(b) Civil Service Protections.--(1) If, in the case of a 
position established under authority other than section 
1601(a)(1) of this title that is reestablished as an excepted 
service position under that section, the provisions of law 
referred to in paragraph (2) applied to the person serving in 
that position immediately before the position is so 
reestablished and such provisions of law would not otherwise 
apply to the person while serving in the position as so 
reestablished, then such provisions of law shall, subject to 
paragraph (3), continue to apply to the person with respect to 
service in that position for as long as the person continues to 
serve in the position without a break in service.
    ``(2) The provisions of law referred to in paragraph (1) 
are the following provisions of title 5:
            ``(A) Section 2302, relating to prohibited 
        personnel practices.
            ``(B) Chapter 75, relating to adverse actions.
    ``(3)(A) Notwithstanding any provision of chapter 75 of 
title 5, an appeal of an adverse action by an individual 
employee covered by paragraph (1) shall be determined within 
the Department of Defense if the employee so elects.
    ``(B) The Secretary of Defense shall prescribe the 
procedures for initiating and determining appeals of adverse 
actions pursuant to elections made under subparagraph (A).

``Sec. 1613. Miscellaneous provisions

    ``(a) Collective Bargaining Agreements.--Nothing in 
sections 1601 through 1604 and 1606 through 1610 may be 
construed to impair the continued effectiveness of a collective 
bargaining agreement with respect to an agency or office that 
is a successor to an agency or office covered by the agreement 
before the succession.
    ``(b) Notice to Congress of Regulations.--The Secretary of 
Defense shall notify Congress of any regulations prescribed to 
carry out this subchapter (other than sections 1605 and 1611). 
Such notice shall be provided by submitting a copy of the 
regulations to the congressional oversight committees not less 
than 60 days before such regulations take effect.

``Sec. 1614. Definitions

    ``In this subchapter:
            ``(1) The term `defense intelligence position' 
        means a civilian position as an intelligence officer or 
        intelligence employee of an intelligence component of 
        the Department of Defense or of a military department.
            ``(2) The term `intelligence component of the 
        Department of Defense' means any of the following:
                    ``(A) The National Security Agency.
                    ``(B) The Defense Intelligence Agency.
                    ``(C) The National Imagery and Mapping 
                Agency.
                    ``(D) Any other component of the Department 
                of Defense that performs intelligence functions 
                and is designated by the Secretary of Defense 
                as an intelligence component of the Department 
                of Defense.
                    ``(E) Any successor to a component 
                specified in, or designated pursuant to, this 
                paragraph.
            ``(3) The term `congressional oversight committees' 
        means--
                    ``(A) the Committee on Armed Services and 
                the Select Committee on Intelligence of the 
                Senate; and
                    ``(B) the Committee on National Security 
                and the Permanent Select Committee on 
                Intelligence of the House of Representatives.
            ``(4) The term `excepted service' has the meaning 
        given such term in section 2103 of title 5.
            ``(5) The term `preference eligible' has the 
        meaning given such term in section 2108(3) of title 5.
            ``(6) The term `Senior Executive Service position' 
        has the meaning given such term in section 3132(a)(2) 
        of title 5.
            ``(7) The term `collective bargaining agreement' 
        has the meaning given such term in section 7103(8) of 
        title 5.''.
    (e) Designation of New Subchapter II.--Chapter 83 of such 
title is further amended by inserting after section 1614 (as 
added by subsection (d)) the following:

         ``SUBCHAPTER II--DEFENSE INTELLIGENCE AGENCY PERSONNEL

  ``Sec.
``1621. Defense Intelligence Agency merit pay system.
``1622. Uniform allowance: civilian employees.
``1623. Financial assistance to certain employees in acquisition of 
          critical skills.''.

SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND CONFORMING 
                    AMENDMENTS.

    (a) Repeal of Separate Military Department Authorities.--
Section 1590 of title 10, United States Code, is repealed.
    (b) Repeal of Separate National Security Agency 
Authorities.--The following provisions of law are repealed:
            (1) Sections 2 and 4 of the National Security 
        Agency Act of 1959 (50 U.S.C. 402 note).
            (2) Section 303 of the Internal Security Act of 
        1950 (50 U.S.C. 833).
    (c) Clerical Amendments.--Title 10, United States Code, is 
amended as follows:
            (1) The heading for section 1605 is amended to read 
        as follows:

``Sec. 1605. Benefits for certain employees assigned outside the United 
                    States''.

            (2) The table of sections at the beginning of 
        chapter 81 is amended by striking out the items 
        relating to sections 1590 and 1599.
            (3) The tables of chapters at the beginning of 
        subtitle A, and at the beginning of part II of subtitle 
        A, are amended by striking out the item relating to 
        chapter 83 and inserting in lieu thereof the following:

``83. Civilian Defense Intelligence Employees....................1601''.

    (d) Conforming Amendment.--Section 1621 of such title, as 
transferred and redesignated by section 1632(a)(1), is amended 
by striking out ``and Central Imagery Office''.
    (e) Cross Reference Amendments.--Chapter 81 of title 10, 
United States Code, is amended as follows:
            (1) Section 1593(a)(3) is amended by striking out 
        ``section 1606'' and inserting in lieu thereof 
        ``section 1622''.
            (2) Section 1596(c) is amended by striking out 
        ``section 1604(b)'' and inserting in lieu thereof 
        ``section 1602''.

SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

    (a) Applicability of Federal Labor-Management Relations 
System.--Section 7103(a)(3) of title 5, United States Code is 
amended--
            (1) by inserting ``or'' at the end of subparagraph 
        (F);
            (2) by striking out ``; or'' at the end of 
        subparagraph (G) and inserting in lieu thereof a 
        period; and
            (3) by striking out subparagraph (H).
    (b) Applicability of Authority and Procedures for Imposing 
Certain Adverse Actions.--Section 7511(b)(8) of such title is 
amended by striking out ``the National Security Agency'' and 
all that follows through ``title 10'' and inserting in lieu 
thereof ``an intelligence component of the Department of 
Defense (as defined in section 1614 of title 10), or an 
intelligence activity of a military department covered under 
subchapter I of chapter 83 of title 10''.

SEC. 1635. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle 
shall take effect on October 1, 1996.

               TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

                     Subtitle A--Relocation Benefits

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

                  Subtitle B--Miscellaneous Provisions

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

SEC. 1701. SHORT TITLE.

    This title may be cited as the ``Federal Employee Travel 
Reform Act of 1996''.

                    Subtitle A--Relocation Benefits

SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE QUARTERS.

    Section 5724a of title 5, United States Code, is amended to 
read as follows:

``Sec. 5724a. Relocation expenses of employees transferred or 
                    reemployed

    ``(a) An agency shall pay to or on behalf of an employee 
who transfers in the interest of the Government, a per diem 
allowance or the actual subsistence expenses, or a combination 
thereof, of the immediate family of the employee for en route 
travel of the immediate family between the employee's old and 
new official stations.
    ``(b)(1) An agency may pay to or on behalf of an employee 
who transfers in the interest of the Government between 
official stations located within the United States--
            ``(A) the expenses of transportation of the 
        employee and the employee's spouse for travel to seek 
        permanent residence quarters at a new official station; 
        and
            ``(B) either--
                    ``(i) a per diem allowance or the actual 
                subsistence expenses (or a combination of 
                both); or
                    ``(ii) an amount for subsistence expenses.
    ``(2) Expenses may be allowed under paragraph (1) only for 
one round trip in connection with each change of station of the 
employee.''.

SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES ALLOWANCE.

    Section 5724a of title 5, United States Code, as amended by 
section 1712, is further amended by adding at the end the 
following new subsection:
    ``(c)(1) An agency may pay to or on behalf of an employee 
who transfers in the interest of the Government--
            ``(A) actual subsistence expenses of the employee 
        and the employee's immediate family for a period of up 
        to 60 days while the employee or family is occupying 
        temporary quarters when the new official station is 
        located within the United States; or
            ``(B) an amount for subsistence expenses instead of 
        the actual subsistence expenses authorized in 
        subparagraph (A) of this paragraph.
    ``(2) The period authorized in paragraph (1) of this 
subsection for payment of expenses for residence in temporary 
quarters may be extended up to an additional 60 days if the 
head of the agency concerned or the designee of such head of 
the agency determines that there are compelling reasons for the 
continued occupancy of temporary quarters.
    ``(3) The regulations implementing paragraph (1)(A) shall 
prescribe daily rates and amounts for subsistence expenses per 
individual.''.

SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES ALLOWANCE.

    (a) Expenses of Sale.--Section 5724a of title 5, United 
States Code, as amended by section 1712, is further amended by 
adding at the end the following new subsection:
    ``(d)(1) An agency shall pay to or on behalf of an employee 
who transfers in the interest of the Government, expenses of 
the sale of the residence (or the settlement of an unexpired 
lease) of the employee at the old official station and purchase 
of a residence at the new official station that are required to 
be paid by the employee, when the old and new official stations 
are located within the United States.
    ``(2) An agency shall pay to or on behalf of an employee 
who transfers in the interest of the Government from a post of 
duty located outside the United States to an official station 
within the United States (other than the official station 
within the United States from which the employee was 
transferred when assigned to the foreign tour of duty)--
            ``(A) expenses required to be paid by the employee 
        for the sale of the residence (or the settlement of an 
        unexpired lease) of the employee at the old official 
        station from which the employee was transferred when 
        the employee was assigned to the post of duty located 
        outside the United States; and
            ``(B) expenses required to be paid by the employee 
        for the purchase of a residence at the new official 
        station within the United States.
    ``(3) Reimbursement of expenses under paragraph (2) of this 
subsection shall not be allowed for any sale (or settlement of 
an unexpired lease) or purchase transaction that occurs prior 
to official notification that the employee's return to the 
United States would be to an official station other than the 
official station from which the employee was transferred when 
assigned to the post of duty outside the United States.
    ``(4) Reimbursement for brokerage fees on the sale of the 
residence and other expenses under this subsection may not 
exceed those customarily charged in the locality where the 
residence is located.
    ``(5) Reimbursement may not be made under this subsection 
for losses incurred by the employee on the sale of the 
residence.
    ``(6) This subsection applies regardless of whether title 
to the residence or the unexpired lease is--
            ``(A) in the name of the employee alone;
            ``(B) in the joint names of the employee and a 
        member of the employee's immediate family; or
            ``(C) in the name of a member of the employee's 
        immediate family alone.
    ``(7)(A) In connection with the sale of the residence at 
the old official station, reimbursement under this subsection 
shall not exceed 10 percent of the sale price.
    ``(B) In connection with the purchase of a residence at the 
new official station, reimbursement under this subsection shall 
not exceed 5 percent of the purchase price.''.
    (b) Relocation Services.--Section 5724c of title 5, United 
State Code, is amended to read as follows:

``Sec. 5724c. Relocation services

    ``Under regulations prescribed under section 5738 of this 
title, each agency may enter into contracts to provide 
relocation services to agencies and employees for the purpose 
of carrying out this subchapter. An agency may pay a fee for 
such services. Such services include arranging for the purchase 
of a transferred employee's residence.''.

SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT SERVICES.

    Section 5724a of title 5, United States Code, as amended by 
section 1713, is further amended--
            (1) in subsection (d), by adding at the end the 
        following:
    ``(8) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government expenses of 
property management services, instead of expenses under 
paragraph (2) or (3) of this subsection for sale of the 
employee's residence, when the agency determines that such 
transfer is advantageous and cost-effective for the 
Government.''; and
            (2) by adding at the end the following new 
        subsection:
    ``(e) An agency may pay to or on behalf of an employee who 
transfers in the interest of the Government, the expenses of 
property management services when the employee transfers to a 
post of duty outside the United States. Such payment shall 
terminate upon return of the employee to an official station 
within the United States.''.

SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR VEHICLE 
                    WITHIN THE CONTINENTAL UNITED STATES.

    (a) In General.--Section 5727 of title 5, United States 
Code, is amended--
            (1) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively;
            (2) by inserting after subsection (b) the following 
        new subsection:
    ``(c) Under regulations prescribed under section 5738 of 
this title, the privately owned motor vehicle or vehicles of an 
employee, including a new appointee or a student trainee for 
whom travel and transportation expenses are authorized under 
section 5723 of this title, may be transported at Government 
expense to a new official station of the employee when the 
agency determines that such transport is advantageous and cost-
effective to the Government.''; and
            (3) in subsection (e) (as so redesignated), by 
        inserting ``or (c)'' after ``subsection (b)''.
    (b) Availability of Appropriations.--(1) Section 5722(a) of 
title 5, United States Code, is amended--
            (A) by striking out ``and'' at the end of paragraph 
        (1);
            (B) by striking out the period at the end of 
        paragraph (2) and inserting in lieu thereof ``; and''; 
        and
            (C) by adding at the end the following:
            ``(3) the expenses of transporting a privately 
        owned motor vehicle as authorized under section 5727(c) 
        of this title.''.
    (2) Section 5723(a) of title 5, United States Code, is 
amended--
            (A) by striking out ``and'' at the end of paragraph 
        (1);
            (B) by inserting ``and'' after the semicolon at the 
        end of paragraph (2); and
            (C) by adding at the end the following:
            ``(3) the expenses of transporting a privately 
        owned motor vehicle as authorized under section 5727(c) 
        of this title;''.

SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO AN 
                    EMPLOYEE WHO IS PERFORMING AN EXTENDED ASSIGNMENT.

    Subchapter II of chapter 57 of title 5, United States Code, 
as amended by section 1605, is further amended by adding at the 
end the following new section:

``Sec. 5737. Relocation expenses of an employee who is performing an 
                    extended assignment

    ``(a) Under regulations prescribed under section 5738 of 
this title, an agency may pay to or on behalf of an employee 
assigned from the employee's official station to a duty station 
for a period of not less than six months and not greater than 
30 months, the following expenses in lieu of payment of 
expenses authorized under subchapter I of this chapter:
            ``(1) Travel expenses to and from the assignment 
        location in accordance with section 5724 of this title.
            ``(2) Transportation expenses of the immediate 
        family and household goods and personal effects to and 
        from the assignment location in accordance with section 
        5724 of this title.
            ``(3) A per diem allowance for en route travel of 
        the employee's immediate family to and from the 
        assignment location in accordance with section 5724a(a) 
        of this title.
            ``(4) Travel and transportation expenses of the 
        employee and spouse to seek new residence quarters at 
        the assignment location in accordance with section 
        5724a(b) of this title.
            ``(5) Subsistence expenses of the employee and the 
        employee's immediate family while occupying temporary 
        quarters upon commencement and termination of the 
        assignment in accordance with section 5724a(c) of this 
        title.
            ``(6) An amount, in accordance with section 
        5724a(f), to be used by the employee for miscellaneous 
        expenses of this title.
            ``(7) The expenses of transporting a privately 
        owned motor vehicle or vehicles to the assignment 
        location in accordance with section 5727 of this title.
            ``(8) An allowance as authorized under section 
        5724b of this title for Federal, State, and local 
        income taxes incurred on reimbursement of expenses paid 
        under this section or on services provided in kind 
        under this section.
            ``(9) Expenses of nontemporary storage of household 
        goods and personal effects as defined in section 
        5726(a) of this title, subject to the limitation that 
        the weight of the household goods and personal effects 
        stored, together with the weight of property 
        transported under section 5724(a) of this title, may 
        not exceed the total maximum weight which could be 
        transported in accordance with section 5724(a) of this 
        title.
            ``(10) Expenses of property management services.
    ``(b) An agency shall not make payment under this section 
to or on behalf of the employee for expenses incurred after 
termination of the temporary assignment.''.

SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

    Subchapter IV of chapter 57 of title 5, United States Code, 
is amended by adding at the end the following new section:

``Sec. 5756. Home marketing incentive payment

    ``(a) Under regulations prescribed under subsection (b), an 
agency may pay to an employee who transfers in the interest of 
the Government an amount to encourage the employee to 
aggressively market the employee's residence at the official 
station from which transferred when--
            ``(1) the residence is entered into a relocation 
        services program established under a contract in 
        accordance with section 5724c of this title to arrange 
        for the purchase of the residence;
            ``(2) the employee finds a buyer who completes the 
        purchase of the residence through the program; and
            ``(3) the sale of the residence results in a 
        reduced cost to the Government.
    ``(b)(1) The Administrator of General Services shall 
prescribe regulations to carry out this section.
    ``(2) The regulations shall include a limitation on the 
maximum amount payable with respect to an employee's residence. 
The Administrator shall establish the limitation in 
consultation with the Director of the Office of Management and 
Budget. For fiscal years 1997 and 1998, the maximum amount 
shall be the amount equal to five percent of the sale price of 
the residence.''.

SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS RELATING 
                    TO RELOCATION EXPENSES.

    Section 5724a of title 5, United States Code, as amended by 
section 1714, is further amended by adding at the end the 
following new subsections:
    ``(f)(1) Subject to paragraph (2), an employee who is 
reimbursed under subsections (a) through (e) of this section or 
section 5724(a) of this title is entitled to an amount for 
miscellaneous expenses--
            ``(A) not to exceed two weeks' basic pay, if such 
        employee has an immediate family; or
            ``(B) not to exceed one week's basic pay, if such 
        employee does not have an immediate family.
    ``(2) Amounts paid under paragraph (1) may not exceed 
amounts determined at the maximum rate payable for a position 
at GS-13 of the General Schedule.
    ``(g) A former employee separated by reason of reduction in 
force or transfer of function who within one year after the 
separation is reemployed by a nontemporary appointment at a 
different geographical location from that where the separation 
occurred, may be allowed and paid the expenses authorized by 
sections 5724, 5725, 5726(b), and 5727 of this title, and may 
receive the benefits authorized by subsections (a) through (f) 
of this section, in the same manner as though the employee had 
been transferred in the interest of the Government without a 
break in service to the location of reemployment from the 
location where separated.
    ``(h) Payments for subsistence expenses, including amounts 
in lieu of per diem or actual subsistence expenses or a 
combination thereof, authorized under this section may not 
exceed the maximum payment allowed under regulations which 
implement section 5702 of this title.
    ``(i) Subsections (a), (b), and (c) shall be implemented 
under regulations issued under section 5738 of this title.
    ``(j) For purposes of subsections (c), (d), and (e), the 
term `United States' includes the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of the Northern 
Mariana Islands, the territories and possessions of the United 
States, and the areas and installations in the Republic of 
Panama that are made available to the United States pursuant to 
the Panama Canal Treaty of 1977 and related agreements (as 
described in section 3(a) of the Panama Canal Act of 1979 (22 
U.S.C. 3602(a))).''.

                  Subtitle B--Miscellaneous Provisions

SEC. 1721. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL CERTIFICATION 
                    REQUIREMENT.

    Section 1348 of title 31, United States Code, is amended--
            (1) by striking the last sentence of subsection 
        (a)(2);
            (2) by striking subsection (b); and
            (3) by redesignating subsections (c) and (d) as 
        subsections (b) and (c), respectively.

SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

    Subchapter II of chapter 57 of title 5, United States Code, 
as amended by section 1716, is further amended by adding at the 
end the following new section:

``Sec. 5738. Regulations

    ``(a)(1) Except as specifically provided in this 
subchapter, the Administrator of General Services shall 
prescribe regulations necessary for the administration of this 
subchapter.
    ``(2) The Administrator of General Services shall include 
in the regulations authority for the head of an agency or his 
designee to waive any limitation of this subchapter or in any 
implementing regulation for any employee relocating to or from 
a remote or isolated location who would suffer hardship if the 
limitation were not waived. A waiver of a limitation under 
authority provided in the regulations pursuant to this 
paragraph shall be effective notwithstanding any other 
provision of this subchapter.
    ``(b) In prescribing regulations for the implementation of 
section 5724b of this title, the Administrator of General 
Services shall consult with the Secretary of the Treasury.
    ``(c) The Secretary of Defense shall prescribe regulations 
necessary for the implementation of section 5735 of this 
title.''.

SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Cross References.--(1) Title 5, United States Code, is 
amended as follows:
            (A) Section 3375 is amended--
                    (i) in subsection (a)(3), by striking out 
                ``section 5724a(a)(1)'' and inserting in lieu 
                thereof ``section 5724a(a)'';
                    (ii) in subsection (a)(4), by striking out 
                ``section 5724a(a)(3)'' and inserting in lieu 
                thereof ``section 5724a(c)''; and
                    (iii) in subsection (a)(5), by striking out 
                ``section 5724a(b)'' and inserting in lieu 
                thereof ``section 5724a(g)''; and
            (B) Section 5724(e) is amended by striking out 
        ``section 5724a(a), (b)'' and inserting in lieu thereof 
        ``section 5724a(a) through (f)''.
    (2) Section 707 of title 38, United States Code, is 
amended--
            (A) in subsection (a)(6), by striking out ``Section 
        5724a(a)(3)'' and inserting in lieu thereof ``Section 
        5724a(c)''; and
            (B) in subsection (a)(7), by striking out ``Section 
        5724a(a)(4)'' and inserting in lieu thereof ``Section 
        5724a(d)''.
    (3) The Public Health Service Act is amended as follows:
            (A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A)) 
        is amended by striking out ``5724a(a)(1), 5724a(a)(3)'' 
        and inserting in lieu thereof ``5724a(a), 5724a(c)''.
            (B) Section 925(f)(2)(A) (42 U.S.C. 299c-
        4(f)(2)(A)) is amended by striking out ``5724a(a)(1), 
        5724a(a)(3)'' and inserting in lieu thereof ``5724a(a), 
        5724a(c)''.
    (b) Regulations.--Title 5, United States Code, is amended 
as follows:
            (1) Sections 5722, 5723, 5724, (in subsections (a), 
        (b), and (c)), 5724b, 5726 (in subsections (b) and 
        (c)), 5727(b), 5728 (in subsections (a), (b), and 
        (c)(1)), and 5729 (in subsections (a) and (b)) of title 
        5, United States Code, are amended by striking out 
        ``Under such regulations as the President may 
        prescribe'', and inserting in lieu thereof ``Under 
        regulations prescribed under section 5738 of this 
        title''.
            (2) Section 5724 of title 5, United States Code, is 
        amended--
                    (A) by striking out ``under regulations 
                prescribed by the President'' each place it 
                appears in subsections (c) and (e) and 
                inserting in lieu thereof ``under regulations 
                prescribed under section 5738 of this title''; 
                and
                    (B) in subsection (f), by striking out 
                ``under the regulations of the President'' and 
                inserting in lieu thereof ``under regulations 
                prescribed under section 5738 of this title''.
            (3) Section 5726(a) of title 5, United States Code, 
        is amended by striking out ``as the President may by 
        regulation authorize'' and inserting in lieu thereof 
        ``as authorized under regulations prescribed under 
        section 5738 of this title''.
            (4) Section 5731(a) of title 5, United States Code, 
        is amended by striking out ``in accordance with 
        regulations prescribed by the President'' and inserting 
        in lieu thereof ``in accordance with regulations 
        prescribed under section 5738 of this title''.
    (c) Clerical Amendments.--The table of sections at the 
beginning of chapter 57 of title 5, United States Code, as 
amended by section 1605, is further amended--
            (1) by inserting after the item relating to section 
        5736 the following:

``5737. Relocation expenses of an employee who is performing an extended 
          assignment.
``5738. Regulations.'';

        and
            (2) by inserting at the end the following:

``5756. Home marketing incentive payment.''.

SEC. 1724. ASSESSMENT OF COST SAVINGS.

    No later than one year after the effective date set forth 
in section 1725(a), the Comptroller General shall submit to the 
Committee on Governmental Affairs of the Senate and the 
Committee on Government Reform and Oversight of the House of 
Representatives an assessment of the costs of Federal travel 
administration that are saved as a result of the amendments 
made by this title and the regulations prescribed to carry out 
the amendments.

SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS.

    (a) Effective Date.--The amendments made by this title 
shall take effect 180 days after the date of the enactment of 
this Act.
    (b) Regulations.--The Administrator of General Services 
shall, not later than the effective date set forth under 
subsection (a), issue final regulations implementing the 
amendments made by this title.

     TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

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

SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER.

    The Fleet Reserve Association, a nonprofit corporation 
organized under the laws of the State of Delaware, is 
recognized as such and granted a Federal charter.

SEC. 1802. POWERS.

    The Fleet Reserve Association (in this title referred to as 
the ``association'') shall have only those powers granted to it 
through its bylaws and articles of incorporation filed in the 
State of Delaware and subject to the laws of that State.

SEC. 1803. PURPOSES.

    The purposes of the association are those provided in its 
bylaws and articles of incorporation and shall include the 
following:
            (1) Upholding and defending the Constitution of the 
        United States.
            (2) Aiding and maintaining an adequate naval 
        defense for the United States.
            (3) Assisting the recruitment of the best personnel 
        available for the United States Navy, United States 
        Marine Corps, and United States Coast Guard.
            (4) Providing for the welfare of the personnel who 
        serve in the United States Navy, United States Marine 
        Corps, and United States Coast Guard.
            (5) Continuing to serve loyally the United States 
        Navy, United States Marine Corps, and United States 
        Coast Guard.
            (6) Preserving the spirit of shipmanship by 
        providing assistance to shipmates and their families.
            (7) Instilling love of the United States and the 
        flag and promoting soundness of mind and body in the 
        youth of the United States.

SEC. 1804. SERVICE OF PROCESS.

    With respect to service of process, the association shall 
comply with the laws of the State of Delaware and those States 
in which it carries on its activities in furtherance of its 
corporate purposes.

SEC. 1805. MEMBERSHIP.

    Except as provided in section 1808(g), eligibility for 
membership in the association and the rights and privileges of 
members shall be as provided in the bylaws and articles of 
incorporation of the association.

SEC. 1806. BOARD OF DIRECTORS.

    Except as provided in section 1808(g), the composition of 
the board of directors of the association and the 
responsibilities of the board shall be as provided in the 
bylaws and articles of incorporation of the association and in 
conformity with the laws of the State of Delaware.

SEC. 1807. OFFICERS.

    Except as provided in section 1808(g), the positions of 
officers of the association and the election of members to such 
positions shall be as provided in the bylaws and articles of 
incorporation of the association and in conformity with the 
laws of the State of Delaware.

SEC. 1808. RESTRICTIONS.

    (a) Income and Compensation.--No part of the income or 
assets of the association may inure to the benefit of any 
member, officer, or director of the association or be 
distributed to any such individual during the life of this 
charter. Nothing in this subsection may be construed to prevent 
the payment of reasonable compensation to the officers and 
employees of the association or reimbursement for actual and 
necessary expenses in amounts approved by the board of 
directors.
    (b) Loans.--The association may not make any loan to any 
member, officer, director, or employee of the association.
    (c) Issuance of Stock and Payment of Dividends.--The 
association may not issue any shares of stock or declare or pay 
any dividends.
    (d) Disclaimer of Congressional or Federal Approval.--The 
association may not claim the approval of the Congress or the 
authorization of the Federal Government for any of its 
activities by virtue of this title.
    (e) Corporate Status.--The association shall maintain its 
status as a corporation organized and incorporated under the 
laws of the State of Delaware.
    (f) Corporate Function.--The association shall function as 
an educational, patriotic, civic, historical, and research 
organization under the laws of the State of Delaware.
    (g) Nondiscrimination.--In establishing the conditions of 
membership in the association and in determining the 
requirements for serving on the board of directors or as an 
officer of the association, the association may not 
discriminate on the basis of race, color, religion, sex, 
handicap, age, or national origin.

SEC. 1809. LIABILITY.

    The association shall be liable for the acts of its 
officers, directors, employees, and agents whenever such 
individuals act within the scope of their authority.

SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

    (a) Books and Records of Account.--The association shall 
keep correct and complete books and records of account and 
minutes of any proceeding of the association involving any of 
its members, the board of directors, or any committee having 
authority under the board of directors.
    (b) Names and Addresses of Members.--The association shall 
keep at its principal office a record of the names and 
addresses of all members having the right to vote in any 
proceeding of the association.
    (c) Right To Inspect Books and Records.--All books and 
records of the association may be inspected by any member 
having the right to vote in any proceeding of the association, 
or by any agent or attorney of such member, for any proper 
purpose at any reasonable time.
    (d) Application of State Law.--This section may not be 
construed to contravene any applicable State law.

SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

    The first section of the Act entitled ``An Act to provide 
for audit of accounts of private corporations established under 
Federal law'', approved August 30, 1964 (36 U.S.C. 1101), is 
amended by adding at the end the following:
            ``(77) Fleet Reserve Association.''.

SEC. 1812. ANNUAL REPORT.

    The association shall annually submit to Congress a report 
concerning the activities of the association during the 
preceding fiscal year. The annual report shall be submitted on 
the same date as the report of the audit required by reason of 
the amendment made in section 1811. The annual report shall not 
be printed as a public document.

SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.

    The right to alter, amend, or repeal this title is 
expressly reserved to Congress.

SEC. 1814. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.

    If the association fails to maintain its status as an 
organization exempt from taxation as provided in the Internal 
Revenue Code of 1986 the charter granted in this title shall 
terminate.

SEC. 1815. TERMINATION.

    The charter granted in this title shall expire if the 
association fails to comply with any of the provisions of this 
title.

SEC. 1816. DEFINITION OF STATE.

    For purposes of this title, the term ``State'' includes the 
District of Columbia, the Commonwealth of Puerto Rico, the 
Commonwealth of the Northern Mariana Islands, and the 
territories and possessions of the United States.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1997''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Land acquisition, National Ground Intelligence Center, 
          Charlottesville, Virginia.

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

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(1), and, in the case of the projects described in 
paragraphs (2) and (3) of section 2104(b), other amounts 
appropriated pursuant to authorizations enacted after this Act 
for the projects, the Secretary of the Army may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                     ARMY: INSIDE THE UNITED STATES                     
------------------------------------------------------------------------
            State               Installation or location       Total    
------------------------------------------------------------------------
Alabama......................  Fort Rucker..............      $3,250,000
California...................  Army project, Naval                      
                                Weapons Station, Concord     $27,000,000
                               Camp Roberts.............      $5,500,000
Colorado.....................  Fort Carson..............     $17,550,000
District of Columbia.........  Fort McNair..............      $6,900,000
Georgia......................  Fort Benning.............     $53,400,000
                               Fort McPherson...........      $3,500,000
                               Fort Stewart, Hunter Army      $6,000,000
                                Air Field.                              
Hawaii.......................  Schofield Barracks.......     $16,500,000
Kansas.......................  Fort Riley...............     $26,000,000
Kentucky.....................  Fort Campbell............     $51,100,000
                               Fort Knox................     $45,000,000
New Jersey...................  Picatinny Arsenal........      $5,000,000
New Mexico...................  White Sands Missile Range     $41,000,000
New York.....................  Fort Drum................     $11,400,000
North Carolina...............  Fort Bragg...............     $14,000,000
Texas........................  Fort Hood................     $47,300,000
                               Fort Sam Houston.........      $3,100,000
Virginia.....................  Fort Eustis..............      $3,550,000
                               National Ground                          
                                Intelligence Center,                    
                                Charlottesville.........      $1,000,000
Washington...................  Fort Lewis...............     $54,600,000
CONUS Classified.............  Classified Locations.....      $4,600,000
                                                         ---------------
                                 Total:.................    $447,250,000
------------------------------------------------------------------------

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

                     ARMY: OUTSIDE THE UNITED STATES                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location              Total    
------------------------------------------------------------------------
Germany........................  Lincoln Village,             $7,300,000
                                  Darmstadt.                            
                                 Spinelli Barracks,           $8,100,000
                                  Mannheim.                             
                                 Taylor Barracks,             $9,300,000
                                  Mannheim.                             
Italy..........................  Camp Ederle............      $3,100,000
Korea..........................  Camp Casey.............     $16,000,000
                                 Camp Red Cloud.........     $14,000,000
Overseas Classified............  Classified Locations...     $64,000,000
                                                         ---------------
                                   Total:...............    $121,800,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

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

                                              ARMY: FAMILY HOUSING                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose                Total    
----------------------------------------------------------------------------------------------------------------
Hawaii..................................  Schofield Barracks........  54 Units..................     $10,000,000
North Carolina..........................  Fort Bragg................  88 Units..................      $9,800,000
Pennsylvania............................  Tobyhanna Army Depot......  200 Units.................        $890,000
Texas...................................  Fort Bliss................  64 Units..................     $11,000,000
                                          Fort Hood.................  140 Units.................     $18,500,000
                                                                                                 ---------------
                                                                        Total:..................     $50,190,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $2,963,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(5)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $105,350,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1996, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of $1,942,557,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $394,250,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $121,800,000.
            (3) For unspecified minor military construction 
        projects authorized by section 2805 of title 10, United 
        States Code, $5,000,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $50,538,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $158,503,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,212,466,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $31,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of the National Range Control Center at White Sands 
        Missile Range, New Mexico); and
            (3) $22,000,000 (the balance of the amount 
        authorized under section 2101(a) for the whole barracks 
        complex renewal at Fort Knox, Kentucky).

SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE CENTER, 
                    CHARLOTTESVILLE, VIRGINIA.

    (a) Acquisition Authorized.--Subject to subsection (b), the 
Secretary of the Army may acquire real property for the 
National Ground Intelligence Center, Charlottesville, Virginia.
    (b) Requirement Relating to Acquisition.--The Secretary may 
not acquire real property pursuant to the authorization in 
subsection (a) until the Secretary certifies to the 
congressional defense committees, based on the results of an 
assessment of property currently owned or operated by the 
Federal Government in the vicinity of Charlottesville, 
Virginia, that the acquisition of the property would provide 
the most cost-effective means of securing a location for the 
National Ground Intelligence Center that satisfies the mission 
requirements of the center.
    (c) Funding.--Of the amounts authorized to be appropriated 
by section 2104(a)(1), $1,000,000 shall be available for the 
acquisition of real property pursuant to the authorization in 
subsection (a).

                            TITLE XXII--NAVY

Sec. 2201.  Authorized Navy construction and land acquisition projects.
Sec. 2202.  Family housing.
Sec. 2203.  Improvements to military family housing units.
Sec. 2204.  Authorization of appropriations, Navy.
Sec. 2205.  Beach replenishment, Naval Air Station, North Island, 
          California.

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

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(1), and, in the case of the projects described in 
paragraphs (2) and (3) of section 2204(b), other amounts 
appropriated pursuant to authorizations enacted after this Act 
for the projects, the Secretary of the Navy may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

                     NAVY: INSIDE THE UNITED STATES                     
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Arizona........................  Navy Detachment, Camp        $3,920,000
                                  Navajo.                               
California.....................  Marine Corps Air-Ground                
                                  Combat Center,                        
                                  Twentynine Palms......      $4,020,000
                                 Marine Corps Air                       
                                  Station, Camp                         
                                  Pendleton.............      $6,240,000
                                 Marine Corps Base, Camp                
                                  Pendleton.............     $51,630,000
                                 Marine Corps Recruit                   
                                  Detachment, San Diego.      $8,150,000
                                 Naval Air Station,          $86,502,000
                                  North Island.                         
                                 Naval Command Control &                
                                  Ocean Surveillance                    
                                  Center, San Diego.....      $1,960,000
                                 Naval Facility, San         $17,000,000
                                  Clemente Island.                      
                                 Naval Station, San           $7,050,000
                                  Diego.                                
Connecticut....................  Naval Submarine Base,       $13,830,000
                                  New London.                           
District of Columbia...........  Naval District,             $19,300,000
                                  Washington.                           
Florida........................  Naval Air Station, Key       $2,250,000
                                  West.                                 
                                 Naval Station, Mayport.      $2,800,000
Georgia........................  Naval Submarine Base,        $1,550,000
                                  Kings Bay.                            
Hawaii.........................  Marine Corps, Air           $20,080,000
                                  Station, Kaneohe Bay.                 
                                 Naval Station, Pearl        $19,600,000
                                  Harbor.                               
                                 Naval Submarine Base,       $35,890,000
                                  Pearl Harbor.                         
Idaho..........................  Naval Surface Warfare        $7,150,000
                                  Center, Bayview.                      
Illinois.......................  Naval Hospital, Great       $15,200,000
                                  Lakes.                                
                                 Naval Training Center,      $22,900,000
                                  Great Lakes.                          
Indiana........................  Naval Surface Warfare        $5,000,000
                                  Center, Crane.                        
Maryland.......................  Naval Air Warfare                      
                                  Center, Patuxent River      $1,270,000
                                 United States Naval         $10,480,000
                                  Academy.                              
Mississippi....................  Navy Project, Stennis        $7,960,000
                                  Space Center.                         
Nevada.........................  Naval Air Station,          $21,630,000
                                  Fallon.                               
North Carolina.................  Marine Corps Air             $1,630,000
                                  Station, Cherry Point.                
                                 Marine Corps Air            $20,290,000
                                  Station, New River.                   
                                 Marine Corps Base, Camp     $20,750,000
                                  Lejeune.                              
Pennsylvania...................  Philadelphia Naval           $8,300,000
                                  Shipyard.                             
South Carolina.................  Marine Corps Recruit                   
                                  Depot, Parris Island..      $2,540,000
Texas..........................  Naval Air Station,           $1,810,000
                                  Kingsville.                           
                                 Naval Station,              $16,850,000
                                  Ingleside.                            
Virginia.......................  Armed Forces Staff                     
                                  College, Norfolk......     $12,900,000
                                 Marine Corps Combat                    
                                  Development Command,                  
                                  Quantico..............     $14,570,000
                                 Naval Station, Norfolk.     $56,120,000
                                 Naval Surface Warfare        $8,030,000
                                  Center, Dahlgren.                     
Washington.....................  Naval Station, Everett.     $25,740,000
                                 Naval Undersea Warfare                 
                                  Center, Keyport.......      $6,800,000
CONUS Various..................  Defense access roads...        $300,000
                                                         ---------------
                                   Total:...............    $589,992,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(2), and, in the case of the project described in 
section 2204(b)(4), other amounts appropriated pursuant to 
authorizations enacted after this Act for the project, the 
Secretary of the Navy may acquire real property and carry out 
military construction projects for the installations and 
locations outside the United States, and in the amounts, set 
forth in the following table:

                     NAVY: OUTSIDE THE UNITED STATES                    
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Bahrain........................  Administrative Support       $5,980,000
                                  Unit, Bahrain.                        
Greece.........................  Naval Support Activity,      $7,050,000
                                  Souda Bay.                            
Italy..........................  Naval Air Station,          $15,700,000
                                  Sigonella.                            
                                 Naval Support Activity,      $8,620,000
                                  Naples.                               
Puerto Rico....................  Naval Station,              $23,600,000
                                  Roosevelt Roads.                      
United Kingdom.................  Joint Maritime                         
                                  Communications Center,                
                                  St. Mawgan............      $4,700,000
                                                         ---------------
                                   Total:...............     $65,650,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

                                              NAVY: FAMILY HOUSING                                              
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Arizona.................................  Marine Corps Air Station,                                             
                                           Yuma.....................  Ancillary Facility........        $709,000
California..............................  Marine Corps Air-Ground                                               
                                           Combat Center, Twentynine                                            
                                           Palms....................  Ancillary Facilities......      $2,938,000
                                          Marine Corps Base, Camp                                               
                                           Pendleton................  202 Units.................     $29,483,000
                                          Naval Air Station, Lemoore  276 Units.................     $39,837,000
                                          Navy Public Works Center,                                             
                                           San Diego................  366 Units.................     $48,719,000
Florida.................................  Naval Station, Mayport....  100 Units.................     $10,000,000
Hawaii..................................  Marine Corps Air Station,                                             
                                           Kaneohe Bay..............  54 Units..................     $11,676,000
                                          Navy Public Works Center,                                             
                                           Pearl Harbor.............  264 Units.................     $52,586,000
Maine...................................  Naval Air Station                                                     
                                           Brunswick................  92 Units..................     $10,925,000
Maryland................................  Naval Air Warfare Center,                                             
                                           Patuxent River...........  Ancillary Facility........      $1,233,000
North Carolina..........................  Marine Corps Base, Camp                                               
                                           Lejeune..................  Ancillary Facility........        $845,000
                                          Marine Corps Base, Camp                                               
                                           Lejeune..................  94 Units..................     $10,110,000
South Carolina..........................  Marine Corps Air Station,                                             
                                           Beaufort.................  140 Units.................     $14,000,000
Texas...................................  Corpus Christi Naval                                                  
                                           Complex..................  104 Units.................     $11,675,000
                                          Naval Air Station,                                                    
                                           Kingsville...............  48 Units..................      $7,550,000
Virginia................................  AEGIS Combat Systems                                                  
                                           Center, Wallops Island...  20 Units..................      $2,975,000
                                          Naval Security Group                                                  
                                           Activity, Northwest......  Ancillary Facility........        $741,000
Washington..............................  Naval Station, Everett....  100 Units.................     $15,015,000
                                          Naval Submarine Base,                                                 
                                           Bangor...................  Ancillary Facility........        $934,000
                                                                                                 ---------------
                                                                        Total:..................    $281,951,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$22,552,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $205,383,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1996, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of $2,213,731,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $579,312,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $51,550,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $5,115,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $49,927,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $499,886,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), 
                $1,014,241,000.
            (6) For the construction of a bachelor enlisted 
        quarters at the Naval Construction Battalion Center, 
        Port Hueneme, California, authorized by section 2201(a) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1996 (division B of Public Law 104-106; 110 
        Stat. 525), $7,700,000.
            (7) For the construction of a Strategic Maritime 
        Research Center at the Naval War College, Newport, 
        Rhode Island, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1995 (division B of Public Law 103-337; 108 Stat. 
        3031), $8,000,000.
            (8) For the construction of the large anachoic 
        chamber facility at the Patuxent River Naval Warfare 
        Center, Aircraft Division, Maryland, authorized by 
        section 2201(a) of the Military Construction 
        Authorization Act for Fiscal Year 1993 (division B of 
        Public Law 102-484; 106 Stat. 2590), $10,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $5,200,000 (the balance of the amount 
        authorized under section 2201(a) for the construction 
        of a bachelors enlisted quarters at Naval Hospital, 
        Great Lakes, Illinois);
            (3) $5,480,000 (the balance of the amount 
        authorized under section 2201(a) for the construction 
        of a chiller system upgrade at the United States Naval 
        Academy, Maryland); and
            (4) $14,100,000 (the balance of the amount 
        authorized under section 2201(b) for the construction 
        of a bachelor enlisted quarters at Naval Station, 
        Roosevelt Roads, Puerto Rico).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (8) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $12,000,000, which 
represents the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due 
to force structure changes.

SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH ISLAND, 
                    CALIFORNIA.

    (a) Cost-Sharing Agreement.--With regard to the portion of 
the military construction project for Naval Air Station, North 
Island, California, authorized by section 2201(a) and involving 
on-shore and near-shore beach replenishment, the Secretary of 
the Navy shall enter into an agreement with the State of 
California and local governments in the vicinity of the 
project, under which the State and local governments agree to 
cover not less than 50 percent of the cost incurred by the 
Secretary to carry out the beach replenishment portion of the 
project. Within amounts appropriated for the project, Federal 
expenditures may not exceed $9,630,000 for beach replenishment.
    (b) Activities Pending Agreement.--The Secretary shall not 
delay commencement of, or activities under, the construction 
project described in subsection (a), including the beach 
replenishment portion of the project, pending the execution of 
the cost-sharing agreement.

                         TITLE XXIII--AIR FORCE

Sec. 2301.  Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302.  Family housing.
Sec. 2303.  Improvements to military family housing units.
Sec. 2304.  Authorization of appropriations, Air Force.
Sec. 2305. Elimination of authority to carry out fiscal year 1995 
          project, Spangdahlem Air Force Base, Germany.

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

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

                   AIR FORCE: INSIDE THE UNITED STATES                  
------------------------------------------------------------------------
                                     Installation or                    
             State                       location             Amount    
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.      $7,875,000
Alaska.........................  Elmendorf Air Force         $21,530,000
                                  Base.                                 
                                 Eielson Air Force Base.      $3,900,000
                                 King Salmon Air Force        $5,700,000
                                  Base.                                 
Arizona........................  Davis-Monthan Air Force      $9,920,000
                                  Base.                                 
                                 Luke Air Force Base....      $6,700,000
Arkansas.......................  Little Rock Air Force       $18,105,000
                                  Base.                                 
California.....................  Beale Air Force Base...     $14,425,000
                                 Edwards Air Force Base.     $20,080,000
                                 Travis Air Force Base..     $14,980,000
                                 Vandenberg Air Force         $3,290,000
                                  Base.                                 
Colorado.......................  Buckley Air National        $17,960,000
                                  Guard Base.                           
                                 Falcon Air Force             $2,095,000
                                  Station.                              
                                 Peterson Air Force Base     $20,720,000
                                 United States Air Force     $12,165,000
                                  Academy.                              
Delaware.......................  Dover Air Force Base...     $19,980,000
Florida........................  Eglin Air Force Base...      $4,590,000
                                 Eglin Auxiliary Field 9      $6,825,000
                                 Patrick Air Force Base.      $2,595,000
                                 Tyndall Air Force Base.      $3,600,000
Georgia........................  Moody Air Force Base...      $3,350,000
                                 Robins Air Force Base..     $25,045,000
Idaho..........................  Mountain Home Air Force     $15,945,000
                                  Base.                                 
Kansas.........................  McConnell Air Force         $19,130,000
                                  Base.                                 
Louisiana......................  Barksdale Air Force          $4,890,000
                                  Base.                                 
Maryland.......................  Andrews Air Force Base.      $8,140,000
Mississippi....................  Keesler Air Force Base.     $14,465,000
Montana........................  Malstrom Air Force Base      $6,300,000
Nevada.........................  Indian Springs Air                     
                                  Force Auxiliary Air                   
                                  Field.................      $4,690,000
                                 Nellis Air Force Base..      $9,900,000
New Mexico.....................  Cannon Air Force Base..      $7,100,000
                                 Kirtland Air Force Base     $10,000,000
New Jersey.....................  McGuire Air Force Base.      $8,080,000
North Carolina.................  Pope Air Force Base....      $5,915,000
                                 Seymour Johnson Air         $11,280,000
                                  Force Base.                           
North Dakota...................  Grand Forks Air Force       $12,470,000
                                  Base.                                 
                                 Minot Air Force Base...      $3,940,000
Ohio...........................  Wright-Patterson Air         $7,400,000
                                  Force Base.                           
Oklahoma.......................  Tinker Air Force Base..      $9,880,000
South Carolina.................  Charleston Air Force        $37,410,000
                                  Base.                                 
                                 Shaw Air Force Base....     $14,465,000
South Dakota...................  Ellsworth Air Force          $4,150,000
                                  Base.                                 
Tennessee......................  Arnold Engineering                     
                                  Development Center....     $12,481,000
Texas..........................  Brooks Air Force Base..      $5,400,000
                                 Dyess Air Force Base...     $12,295,000
                                 Kelly Air Force Base...      $3,250,000
                                 Lackland Air Force Base      $9,413,000
                                 Sheppard Air Force Base      $9,400,000
Utah...........................  Hill Air Force Base....      $3,690,000
Virginia.......................  Langley Air Force Base.      $8,005,000
Washington.....................  Fairchild Air Force         $18,155,000
                                  Base.                                 
                                 McChord Air Force Base.     $57,065,000
Wyoming........................  F.E. Warren Air Force        $3,700,000
                                  Base.                                 
                                                         ---------------
                                   Total:...............    $603,834,000
------------------------------------------------------------------------

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

                  AIR FORCE: OUTSIDE THE UNITED STATES                  
------------------------------------------------------------------------
                                     Installation or                    
            Country                      location             Amount    
------------------------------------------------------------------------
Germany........................  Ramstein Air Force Base      $5,370,000
                                 Spangdahlem Air Base...      $1,890,000
Italy..........................  Aviano Air Base........     $10,060,000
Korea..........................  Osan Air Base..........      $9,780,000
Turkey.........................  Incirlik Air Base......      $7,160,000
United Kingdom.................  Croughton Royal Air          $1,740,000
                                  Force Base.                           
                                 Lakenheath Royal Air        $17,525,000
                                  Force Base.                           
                                 Mildenhall Royal Air         $6,195,000
                                  Force Base.                           
Overseas Classified............  Classified Locations...     $18,395,000
                                                         ---------------
                                   Total:...............     $78,115,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

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

                                            AIR FORCE: FAMILY HOUSING                                           
----------------------------------------------------------------------------------------------------------------
                  State                          Installation                   Purpose               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  72 units..................     $21,127,000
                                          Eielson Air Force Base....  Ancillary Facility........      $2,950,000
California..............................  Beale Air Force Base......  56 Units..................      $8,893,000
                                          Los Angeles Air Force Base  25 units..................      $6,425,000
                                          Travis Air Force Base.....  70 Units..................      $8,631,000
                                          Vandenberg Air Force Base.  112 Units.................     $20,891,000
District of Columbia....................  Bolling Air Force Base....  40 units..................      $5,000,000
Florida.................................  Eglin Auxiliary Field 9...  1 Unit....................        $249,000
                                          MacDill Air Force Base....  56 Units..................      $8,822,000
                                          Patrick Air Force Base....  Ancillary Facility........      $2,430,000
                                          Tyndall Air Force Base....  42 Units..................      $6,000,000
Georgia.................................  Robins Air Force Base.....  46 Units..................      $5,252,000
Louisiana...............................  Barksdale Air Force Base..  80 Units..................      $9,570,000
Massachusetts...........................  Hanscom Air Force Base....  32 Units..................      $5,100,000
Missouri................................  Whiteman Air Force Base...  68 Units..................      $9,600,000
Montana.................................  Malstrom Air Force Base...  98 Units..................     $15,688,000
Nevada..................................  Nellis Air Force Base.....  50 Units..................      $7,955,000
New Mexico..............................  Kirtland Air Force Base...  50 Units..................      $5,450,000
North Dakota............................  Grand Forks Air Force Base  66 Units..................      $7,784,000
                                          Minot Air Force Base......  46 Units..................      $8,740,000
Texas...................................  Lackland Air Force Base...  82 Units..................     $11,500,000
                                          Lackland Air Force Base...  Ancillary Facility........        $800,000
Washington..............................  McChord Air Force Base....  50 Units..................      $5,659,000
                                                                                                 ---------------
                                                                        Total:..................    $184,516,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$9,590,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(5)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $123,650,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1996, for military construction, land acquisition, and military 
family housing functions of the Department of the Air Force in 
the total amount of $1,894,594,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $603,834,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $78,115,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $9,328,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $50,687,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $317,756,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $829,474,000.
            (6) For the construction of a corrosion control 
        facility at Tinker Air Force Base, Oklahoma, authorized 
        by section 2301(a) of the Military Construction 
        Authorization Act for Fiscal Year 1996 (division B of 
        Public Law 104-106; 110 Stat. 530), $5,400,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).

SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1995 
                    PROJECT, SPANGDAHLEM AIR FORCE BASE, GERMANY.

    (a) Elimination of Project.--The table in section 2301(b) 
of the Military Construction Authorization Act for Fiscal Year 
1995 (division B of Public Law 103-337; 108 Stat. 3037) is 
amended in the item relating to Spangdahlem Air Base, Germany, 
by striking out ``$9,473,000'' in the amount column and 
inserting in lieu thereof ``$7,373,000'', such reduction 
corresponding to the project to upgrade the sewage and storm 
water system at the installation.
    (b) Conforming Amendment to Authorization of 
Appropriations.--Section 2304(a) of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3038) is amended--
            (1) in the matter preceding paragraph (1), by 
        striking out ``$1,601,602,000'' and inserting in lieu 
        thereof ``$1,599,502,000''; and
            (2) in paragraph (2), by striking out 
        ``$38,273,000'' and inserting in lieu thereof 
        ``$36,173,000''.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401.  Authorized Defense Agencies construction and land 
          acquisition projects.
Sec. 2402.  Military housing planning and design.
Sec. 2403.  Improvements to military family housing units.
Sec. 2404.  Military housing improvement program.
Sec. 2405.  Energy conservation projects.
Sec. 2406.  Authorization of appropriations, Defense Agencies.
Sec. 2407. Reduction in amounts authorized to be appropriated for fiscal 
          year 1996 Defense Agencies military construction, land 
          acquisition, and military family housing functions.

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

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2406(a)(1), and, in the case of the projects described in 
paragraphs (2) and (3) of section 2406(b), other amounts 
appropriated pursuant to authorizations enacted after this Act 
for the projects, the Secretary of Defense may acquire real 
property and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:

               DEFENSE AGENCIES: INSIDE THE UNITED STATES               
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Chemical Demilitarization                                               
 Program.......................  Pueblo Chemical                        
                                  Activity, Colorado....    $179,000,000
Defense Finance & Accounting                                            
 Service.......................  Charleston, South                      
                                  Carolina..............      $6,200,000
                                 Fort Sill, Oklahoma....     $12,864,000
                                 Gentile Air Force                      
                                  Station, Ohio.........     $11,400,000
                                 Griffiss Air Force                     
                                  Base, New York........     $10,200,000
                                 Loring Air Force Base,                 
                                  Maine.................      $6,900,000
                                 Naval Training Center,                 
                                  Orlando, Florida......      $2,600,000
                                 Norton Air Force Base,                 
                                  California............     $13,800,000
                                 Offutt Air Force Base,                 
                                  Nebraska..............      $7,000,000
                                 Rock Island Arsenal,                   
                                  Illinois..............     $14,400,000
Defense Intelligence Agency....  Bolling Air Force Base,                
                                  District of Columbia..      $6,790,000
Defense Logistics Agency.......  Altus Air Force Base,                  
                                  Oklahoma..............      $3,200,000
                                 Andrews Air Force Base,                
                                  Maryland..............     $12,100,000
                                 Barksdale Air Force                    
                                  Base, Louisiana.......      $4,300,000
                                 Defense Construction                   
                                  Supply Center,                        
                                  Columbus, Ohio........        $600,000
                                 Defense Distribution,                  
                                  San Diego, California.     $15,700,000
                                 Elmendorf Air Force                    
                                  Base, Alaska..........     $21,000,000
                                 McConnell Air Force                    
                                  Base, Kansas..........      $2,200,000
                                 Naval Air Facility, El                 
                                  Centro, California....      $5,700,000
                                 Naval Air Station,                     
                                  Fallon, Nevada........      $2,100,000
                                 Naval Air Station,                     
                                  Oceana, Virginia......      $1,500,000
                                 Shaw Air Force Base,                   
                                  South Carolina........      $2,900,000
                                 Travis Air Force Base,                 
                                  California............     $15,200,000
Defense Medical Facility Office  Andrews Air Force Base,                
                                  Maryland..............     $15,500,000
                                 Charleston Air Force                   
                                  Base, South Carolina..      $1,800,000
                                 Fort Bliss, Texas......      $6,600,000
                                 Fort Bragg, North                      
                                  Carolina..............     $11,400,000
                                 Fort Hood, Texas.......      $1,950,000
                                 Marine Corps Base, Camp                
                                  Pendleton, California.      $3,300,000
                                 Maxwell Air Force Base,                
                                  Alabama...............     $25,000,000
                                 Naval Air Station, Key                 
                                  West, Florida.........     $15,200,000
                                 Naval Air Station,                     
                                  Norfolk, Virginia.....      $1,250,000
                                 Naval Air Station,                     
                                  Lemoore, California...     $38,000,000
Special Operations Command.....  Fort Bragg, North                      
                                  Carolina..............     $14,000,000
                                 Fort Campbell, Kentucky      $4,200,000
                                 MacDill Air Force Base,                
                                  Florida...............      $9,600,000
                                 Naval Amphibious Base,                 
                                  Coronado, California..      $7,700,000
                                 Naval Station, Ford                    
                                  Island, Pearl Harbor,                 
                                  Hawaii................     $12,800,000
                                                         ---------------
                                   Total................    $525,454,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2406(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:

               DEFENSE AGENCIES: OUTSIDE THE UNITED STATES              
------------------------------------------------------------------------
                                     Installation or                    
             Agency                      location             Amount    
------------------------------------------------------------------------
Defense Logistics Agency.......  Moron Air Base, Spain..     $12,958,000
                                 Naval Air Station,                     
                                  Sigonella, Italy......      $6,100,000
Defense Medical Facility Office  Administrative Support                 
                                  Unit, Bahrain, Bahrain      $4,600,000
                                                         ---------------
                                   Total................     $23,658,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

    Using amounts appropriated pursuant to the authorization of 
appropriation in section 2406(a)(14)(A), the Secretary of 
Defense may carry out architectural and engineering services 
and construction design activities with respect to the 
construction or improvement of military family housing units in 
an amount not to exceed $500,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriation in section 2406(a)(14)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $3,871,000.

SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) Availability of Funds for Credit to Family Housing 
Improvement Fund.--(1) Of the amount authorized to be 
appropriated pursuant to section 2406(a)(14)(C), $25,000,000 
shall be available for credit to the Department of Defense 
Family Housing Improvement Fund established by section 
2883(a)(1) of title 10, United States Code.
    (2) Of the amount authorized to be appropriated pursuant to 
section 2406(a)(14)(D), $5,000,000 shall be available for 
credit to the Department of Defense Military Unaccompanied 
Housing Improvement Fund established by section 2883(a)(2) of 
such title.
    (b) Use of Funds.--(1) The Secretary of Defense may use 
funds credited to the Department of Defense Family Housing 
Improvement Fund under subsection (a)(1) to carry out any 
activities authorized by subchapter IV of chapter 169 of such 
title with respect to military family housing.
    (2) The Secretary of Defense may use funds credited to the 
Department of Defense Military Unaccompanied Housing 
Improvement Fund under subsection (a)(2) to carry out any 
activities authorized by subchapter IV of chapter 169 of such 
title with respect to military unaccompanied housing.

SEC. 2405. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2406(a)(12), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code.

SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1996, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments), in the total amount of 
$3,379,703,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $344,854,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(b), 
        $23,658,000.
            (3) For military construction projects at Naval 
        Hospital, Portsmouth, Virginia, hospital replacement, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Years 1990 
        and 1991 (division B of Public Law 101-189; 103 Stat. 
        1640), $24,000,000.
            (4) For military construction projects at Walter 
        Reed Army Institute of Research, Maryland, hospital 
        replacement, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal Year 
        1993 (division B of Public Law 102-484; 106 Stat. 
        2599), $72,000,000.
            (5) For military construction projects at Fort 
        Bragg, North Carolina, hospital replacement, authorized 
        by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 1993 (106 Stat. 
        2599), $89,000,000.
            (6) For military construction projects at Pine 
        Bluff Arsenal, Arkansas, authorized by section 2401(a) 
        of the Military Construction Authorization Act for 
        Fiscal Year 1995 (division B of the Public Law 103-337; 
        108 Stat. 3040), $46,000,000.
            (7) For military construction projects at Umatilla 
        Army Depot, Oregon, authorized by section 2401(a) of 
        the Military Construction Authorization Act for Fiscal 
        Year 1995 (108 Stat. 3040), $64,000,000.
            (8) For military construction projects at the 
        Defense Finance and Accounting Service, Columbus, Ohio, 
        authorized by section 2401(a) of the Military 
        Construction Authorization Act of Fiscal Year 1996 
        (division B of Public Law 104-106; 110 Stat. 535), 
        $20,822,000.
            (9) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $4,500,000.
            (10) For unspecified minor construction projects 
        under section 2805 of title 10, United States Code, 
        $21,874,000.
            (11) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $12,239,000.
            (12) For energy conservation projects under section 
        2865 of title 10, United States Code, $47,765,000.
            (13) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $2,507,476,000.
            (14) For military family housing functions:
                    (A) For improvement and planning of 
                military family housing and facilities, 
                $4,371,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $30,963,000, 
                of which not more than $25,637,000 may be 
                obligated or expended for the leasing of 
                military family housing units worldwide.
                    (C) For credit to the Department of Defense 
                Family Housing Improvement Fund as authorized 
                by section 2404(a)(1) of this Act, $25,000,000.
                    (D) For credit to the Department of Defense 
                Military Unaccompanied Housing Improvement Fund 
                as authorized by section 2404(a)(2) of this 
                Act, $5,000,000.
                    (E) For the Homeowners Assistance Program 
                as authorized by section 2832 of title 10, 
                United States Code, $36,181,000, to remain 
                available until expended.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 
of title 10, United States Code, and any other cost variations 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $179,000,000 (the balance of the amount 
        authorized under section 2401(a) of this Act for the 
        construction of a chemical demilitarization facility at 
        Pueblo Army Depot, Colorado); and
            (3) $1,600,000 (the balance of the amount 
        authorized under section 2401(a) of this Act for the 
        construction of a replacement facility for the medical 
        and dental clinic, Key West Naval Air Station, 
        Florida).

SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR 
                    FISCAL YEAR 1996 DEFENSE AGENCIES MILITARY 
                    CONSTRUCTION, LAND ACQUISITION, AND MILITARY FAMILY 
                    HOUSING FUNCTIONS.

    Section 2405 of the Military Construction Authorization Act 
for Fiscal Year 1996 (division B of Public Law 104-106; 110 
Stat. 537) is amended by adding at the end the following new 
subsection:
    ``(c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (11) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $7,000,000, which 
represents the combination of project savings resulting from 
favorable bids, reduced overhead costs, and cancellations due 
to force structure changes.''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

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

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

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 1996, for contributions by 
the Secretary of Defense under section 2806 of title 10, United 
States Code, for the share of the United States of the cost of 
projects for the North Atlantic Treaty Security Investment 
program as authorized by section 2501, in the amount of 
$172,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Authorization and funding for construction and improvement of 
          Naval Reserve Centers.
Sec. 2603. Upgrade Air National Guard facilities, Bangor International 
          Airport, Maine.

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

    There are authorized to be appropriated for fiscal years 
beginning after September 30, 1996, for the costs of 
acquisition, architectural and engineering services, and 
construction of facilities for the Guard and Reserve Forces, 
and for contributions therefor, under chapter 1803 of title 10, 
United States Code (including the cost of acquisition of land 
for those facilities), the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $59,194,000; and
                    (B) for the Army Reserve, $55,543,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $32,779,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $188,505,000; and
                    (B) for the Air Force Reserve, $52,805,000.

SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND IMPROVEMENT 
                    OF NAVAL RESERVE CENTERS.

    (a) Army Reserve Centers.--Using amounts appropriated under 
the heading ``Military Construction, Naval Reserve'' in the 
Military Construction Appropriations Act, 1995 (Public Law 103-
307; 108 Stat. 1661), for the construction of a Naval Reserve 
Center in Seattle, Washington, the Secretary of the Army may 
carry out a military construction project for the construction 
of an Army Reserve Center at Fort Lawton, Washington, in the 
total amount of $5,200,000, of which $700,000 may be used for 
program and design activities relating to such construction.
    (b) Naval Reserve Facilities.--Using amounts appropriated 
under the heading ``Military Construction, Naval Reserve'' in 
the Military Construction Appropriations Act, 1995 (Public Law 
103-307; 108 Stat. 1661), for the construction of a Naval 
Reserve Center in Seattle, Washington, the Secretary of the 
Navy may carry out--
            (1) a military construction project for the 
        construction of an addition to the Naval Reserve Center 
        in Tacoma, Washington, in the total amount of 
        $4,200,000;
            (2) unspecified minor construction at Naval Reserve 
        facilities in the total amount of $500,000; and
            (3) planning and design activities with respect to 
        improvements at Naval Reserve facilities in the total 
        amount of $500,000.

SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR INTERNATIONAL 
                    AIRPORT, MAINE.

    (a) Project Authorized.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2601(3)(A) and amounts appropriated pursuant to authorizations 
of appropriations enacted after the date of the enactment of 
this Act, the Secretary of the Air Force may carry out a 
construction project to upgrade Air National Guard base and 
support facilities at Bangor International Airport, Maine. The 
Secretary may contract for architectural and engineering 
services and construction design services in connection with 
the construction project.
    (b) Limitation on Total Cost of Project.--The total cost of 
the construction project authorized by subsection (a) may not 
exceed $13,000,000.
    (c) Fiscal Year 1997 Funding.--Of the amount authorized to 
be appropriated in section 2601(3)(A), $7,000,000 shall be 
available to carry out the construction project authorized by 
subsection (a).

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

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

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) shall expire on the later of--
            (1) October 1, 1999; or
            (2) the date of the enactment of an Act authorizing 
        funds for military construction for fiscal year 2000.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have 
been obligated before the later of--
            (1) October 1, 1999; or
            (2) the date of the enactment of an Act authorizing 
        funds for fiscal year 2000 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1994 
(division B of Public Law 103-160; 107 Stat. 1880), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101, 2102, 2201, 2301, 
or 2601 of that Act, shall remain in effect until October 1, 
1997, or the date of the enactment of an Act authorizing funds 
for military construction for fiscal year 1998, whichever is 
later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                 ARMY: EXTENSION OF 1994 PROJECT AUTHORIZATIONS                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
New Jersey..............................  Picatinny Arsenal.........  Advance Warhead                           
                                                                       Development Facility.....      $4,400,000
North Carolina..........................  Fort Bragg................  Land Acquisition..........     $15,000,000
Wisconsin...............................  Fort McCoy................  Family Housing                            
                                                                       Construction (16 units)..      $2,950,000
----------------------------------------------------------------------------------------------------------------



                                 NAVY: EXTENSION OF 1994 PROJECT AUTHORIZATIONS                                 
----------------------------------------------------------------------------------------------------------------
            State or Location              Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
California..............................  Camp Pendleton Marine                                                 
                                           Corps Base...............  Sewage Facility...........      $7,930,000
Connecticut.............................  New London Naval Submarine                                            
                                           Base.....................  Hazardous Waste Transfer                  
                                                                       Facility.................      $1,450,000
New Jersey..............................  Earle Naval Weapons                                                   
                                           Station..................  Explosives Holding Yard...      $1,290,000
Virginia................................  Oceana Naval Air Station..  Jet Engine Test Cell                      
                                                                       Replacement..............      $5,300,000
Various Locations.......................  Various Locations.........  Land Acquisition Inside                   
                                                                       the United States........        $540,000
Various Locations.......................  Various Locations.........  Land Acquisition Outside                  
                                                                       the United States........        $800,000
----------------------------------------------------------------------------------------------------------------



                               AIR FORCE: EXTENSION OF 1994 PROJECT AUTHORIZATIONS                              
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alaska..................................  Eielson Air Force Base....  Upgrade Water Treatment                   
                                                                       Plant....................      $3,750,000
                                          Elmendorf Air Force Base..  Corrosion Control Facility      $5,975,000
California..............................  Beale Air Force Base......  Educational Center........      $3,150,000
Florida.................................  Tyndall Air Force Base....  Base Supply Logistics                     
                                                                       Center...................      $2,600,000
Mississippi.............................  Keesler Air Force Base....  Upgrade Student Dormitory.      $4,500,000
North Carolina..........................  Pope Air Force Base.......  Add To and Alter                          
                                                                       Dormitories..............      $4,300,000
Virginia................................  Langley Air Force Base....  Fire Station..............      $3,850,000
----------------------------------------------------------------------------------------------------------------



                          ARMY NATIONAL GUARD: EXTENSION OF 1994 PROJECT AUTHORIZATIONS                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Birmingham................  Aviation Support Facility.      $4,907,000
Arizona.................................  Marana....................  Organizational Maintenance                
                                                                       Shop.....................        $553,000
                                          Marana....................  Dormitory/Dining Facility.      $2,919,000
California..............................  Fresno....................  Organizational Maintenance                
                                                                       Shop Modification........        $905,000
                                          Van Nuys..................  Armory Addition...........      $6,518,000
New Mexico..............................  White Sands Missile Range.  Organizational Maintenance                
                                                                       Shop.....................      $2,940,000
                                                                      Tactical Site.............      $1,995,000
                                                                      MATES.....................      $3,570,000
Pennsylvania............................  Indiantown Gap............  State Military Building...      $9,200,000
                                          Johnstown.................  Armory Addition/Flight                    
                                                                       Facility.................      $5,004,000
                                          Johnstown.................  Armory....................      $3,000,000
South Carolina..........................  Summerville...............  Organizational Maintenance                
                                                                       Shop.....................        $834,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1993 
(division B of Public Law 102-484; 106 Stat. 2602), 
authorizations for the projects set forth in the tables in 
subsection (b), as provided in section 2101, 2301, or 1601 of 
that Act and extended by section 2702 of the Military 
Construction Authorization Act for Fiscal Year 1996 (division B 
of Public Law 104-106; 110 Stat. 541), shall remain in effect 
until October 1, 1997, or the date of the enactment of an Act 
authorizing funds for military construction for fiscal year 
1998, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:

                                  ARMY: EXTENSION OF 1993 PROJECT AUTHORIZATION                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Arkansas................................  Pine Bluff Arsenal........  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................     $15,000,000
----------------------------------------------------------------------------------------------------------------


                               AIR FORCE: EXTENSION OF 1993 PROJECT AUTHORIZATION                               
----------------------------------------------------------------------------------------------------------------
                 Country                   Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Portugal................................  Lajes Field...............  Water Wells...............        $865,000
----------------------------------------------------------------------------------------------------------------


                          ARMY NATIONAL GUARD: EXTENSION OF 1993 PROJECT AUTHORIZATIONS                         
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Alabama.................................  Tuscaloosa................  Armory....................      $2,273,000
                                          Union Springs.............  Armory....................        $813,000
New Mexico..............................  Clayton...................  Armory....................      $1,400,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1992 
(division B of Public Law 102-190; 105 Stat. 1535), 
authorizations for the projects set forth in the table in 
subsection (b), as provided in section 2201 of that Act and 
extended by section 2702(a) of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3047) and section 2703(a) of the 
Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 543), shall remain 
in effect until October 1, 1997, or the date of the enactment 
of an Act authorizing funds for military construction for 
fiscal year 1998, whichever is later.
    (b) Table.--The table referred to in subsection (a) is as 
follows:

                                 ARMY: EXTENSION OF 1992 PROJECT AUTHORIZATIONS                                 
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Project               Amount    
----------------------------------------------------------------------------------------------------------------
Oregon..................................  Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization Support                 
                                                                       Facility.................      $3,600,000
                                          Umatilla Army Depot.......  Ammunition                                
                                                                       Demilitarization                         
                                                                       Utilities................      $7,500,000
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
effect on the later of--
            (1) October 1, 1996; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

            Subtitle B--Defense Base Closure and Realignment

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

                      Subtitle C--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                       Part IV--Other Conveyances

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

                        Subtitle D--Other Matters

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

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

SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED MINOR 
                    CONSTRUCTION PROJECTS.

    (a) O&M Funding for Projects.--Section 2805(c)(1)(B) of 
title 10, United States Code, is amended by striking out 
``$300,000'' and inserting in lieu thereof ``$500,000''.
    (b) O&M Funding for Reserve Component Facilities.--
Subsection (b) of section 18233a of such title is amended by 
striking out ``$300,000'' and inserting in lieu thereof 
``$500,000''.
    (c) Notification for Expenditures and Contributions for 
Reserve Component Facilities.--Subsection (a)(1) of such 
section 18233a is amended by striking out ``$400,000'' and 
inserting in lieu thereof ``$1,500,000''.

SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZATION 
                    INFRASTRUCTURE PROGRAM.

    (a) Redesignation.--Subsection (b) of section 2806 of title 
10, United States Code, is amended by striking out ``North 
Atlantic Treaty Organization Infrastructure program'' and 
inserting in lieu thereof ``North Atlantic Treaty Organization 
Security Investment program''.
    (b) References.--Any reference to the North Atlantic Treaty 
Organization Infrastructure program in any Federal law, 
Executive order, regulation, delegation of authority, or 
document of or pertaining to the Department of Defense shall be 
deemed to refer to the North Atlantic Treaty Organization 
Security Investment program.
    (c) Clerical Amendments.--(1) The section heading of such 
section is amended to read as follows:

``Sec. 2806. Contributions for North Atlantic Treaty Organizations 
                    Security Investment''.

    (2) The table of sections at the beginning of subchapter I 
of chapter 169 of title 10, United States Code, is amended by 
striking out the item relating to section 2806 and inserting in 
lieu thereof the following new item:

``2806. Contributions for North Atlantic Treaty Organizations Security 
          Investment.''.

    (d) Conforming Amendments.--(1) Section 2861(b)(3) of title 
10, United States Code, is amended by striking out ``North 
Atlantic Treaty Organization Infrastructure program'' and 
inserting in lieu thereof ``North Atlantic Treaty Organization 
Security Investment program''.
    (2) Section 21(h)(1)(B) of the Arms Export Control Act (22 
U.S.C. 2761(h)(1)(B)) is amended by striking out ``North 
Atlantic Treaty Organization Infrastructure Program'' and 
inserting in lieu thereof ``North Atlantic Treaty Organization 
Security Investment program''.

SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

    (a) Authorized Improvements.--Subsection (a)(2) of section 
2825 of title 10, United States Code, is amended--
            (1) by inserting ``major'' before ``maintenance''; 
        and
            (2) by adding at the end the following: ``Such term 
        does not include day-to-day maintenance and repair 
        work.''.
    (b) Limitation.--Subsection (b) of such section is amended 
by striking out paragraph (2) and inserting in lieu thereof the 
following new paragraph:
    ``(2) In determining the applicability of the limitation 
contained in paragraph (1), the Secretary concerned shall 
include as part of the cost of the improvement of the unit or 
units concerned the following:
            ``(A) The cost of major maintenance or repair work 
        undertaken in connection with the improvement.
            ``(B) Any cost, other than the cost of activities 
        undertaken beyond a distance of five feet from the unit 
        or units concerned, in connection with--
                    ``(i) the furnishing of electricity, gas, 
                water, and sewage disposal;
                    ``(ii) the construction or repair of roads, 
                drives, and walks; and
                    ``(iii) grading and drainage work.''.

SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND 
                    ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING AND 
                    UNACCOMPANIED HOUSING.

    (a) Contracts for Family Housing.--Paragraph (1) of section 
2883(d) of title 10, United States Code, is amended by adding 
at the end the following: ``The Secretary may also use for 
expenses of activities required in connection with the 
planning, execution, and administration of such contracts funds 
that are otherwise available to the Department of Defense for 
such types of expenses.''.
    (b) Contracts for Unaccompanied Housing.--Paragraph (2) of 
such section is amended by adding at the end the following: 
``The Secretary may also use for expenses of activities 
required in connection with the planning, execution, and 
administration of such contracts funds that are otherwise 
available to the Department of Defense for such types of 
expenses.''.

            Subtitle B--Defense Base Closure and Realignment

SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRAGOVERNMENT 
                    TRANSFERS UNDER 1988 BASE CLOSURE LAW.

    Section 204(b)(2) of the Defense Authorization Amendments 
and Base Closure and Realignment Act (Public Law 100-526; 10 
U.S.C. 2687 note), is amended--
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively; and
            (2) by inserting after subparagraph (C) the 
        following new subparagraph (D):
    ``(D) The Secretary of Defense may transfer real property 
or facilities located at a military installation to be closed 
or realigned under this title, with or without reimbursement, 
to a military department or other entity (including a 
nonappropriated fund instrumentality) within the Department of 
Defense or the Coast Guard.''.

SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES REMAINING ON 
                    CLOSED INSTALLATIONS.

    (a) 1988 Law.--Section 204(b)(8)(A) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by 
inserting ``, or at facilities not yet transferred or otherwise 
disposed of in the case of installations closed under this 
title,'' after ``under this title''.
    (b) 1990 Law.--Section 2905(b)(8)(A) of the Defense Base 
Closure and Realignment Act of 1990 (part A of title XXIX of 
Public Law 101-510; 10 U.S.C. 2687 note) is amended by 
inserting ``, or at facilities not yet transferred or otherwise 
disposed of in the case of installations closed under this 
part,'' after ``under this part''.

SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED HOUSING.

    (a) 1988 Law.--Section 204 of the Defense Authorization 
Amendments and Base Closure and Realignment Act (Public Law 
100-526; 10 U.S.C. 2687 note), is amended by adding at the end 
the following new subsection:
    ``(f) Acquisition of Manufactured Housing.--(1) In closing 
or realigning any military installation under this title, the 
Secretary may purchase any or all right, title, and interest of 
a member of the Armed Forces and any spouse of the member in 
manufactured housing located at a manufactured housing park 
established at an installation closed or realigned under this 
title, or make a payment to the member to relocate the 
manufactured housing to a suitable new site, if the Secretary 
determines that--
            ``(A) it is in the best interests of the Federal 
        Government to eliminate or relocate the manufactured 
        housing park; and
            ``(B) the elimination or relocation of the 
        manufactured housing park would result in an 
        unreasonable financial hardship to the owners of the 
        manufactured housing.
    ``(2) Any payment made under this subsection shall not 
exceed 90 percent of the purchase price of the manufactured 
housing, as paid by the member or any spouse of the member, 
plus the cost of any permanent improvements subsequently made 
to the manufactured housing by the member or spouse of the 
member.
    ``(3) The Secretary shall dispose of manufactured housing 
acquired under this subsection through resale, donation, trade 
or otherwise within one year of acquisition.''.
    (b) 1990 Law.--Section 2905 of the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note), is amended by adding at the end 
the following new subsection:
    ``(g) Acquisition of Manufactured Housing.--(1) In closing 
or realigning any military installation under this part, the 
Secretary may purchase any or all right, title, and interest of 
a member of the Armed Forces and any spouse of the member in 
manufactured housing located at a manufactured housing park 
established at an installation closed or realigned under this 
part, or make a payment to the member to relocate the 
manufactured housing to a suitable new site, if the Secretary 
determines that--
            ``(A) it is in the best interests of the Federal 
        Government to eliminate or relocate the manufactured 
        housing park; and
            ``(B) the elimination or relocation of the 
        manufactured housing park would result in an 
        unreasonable financial hardship to the owners of the 
        manufactured housing.
    ``(2) Any payment made under this subsection shall not 
exceed 90 percent of the purchase price of the manufactured 
housing, as paid by the member or any spouse of the member, 
plus the cost of any permanent improvements subsequently made 
to the manufactured housing by the member or spouse of the 
member.
    ``(3) The Secretary shall dispose of manufactured housing 
acquired under this subsection through resale, donation, trade 
or otherwise within one year of acquisition.''.

SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND DIVERSIFICATION 
                    ASSISTANCE IS AUTHORIZED.

    Section 2391(b)(5) of title 10, United States Code, is 
amended--
            (1) by inserting ``(A)'' after ``(5)''; and
            (2) by adding at the end the following new 
        subparagraph:
    ``(B) The Secretary of Defense may also make grants, 
conclude cooperative agreements, and supplement other Federal 
funds in order to assist a State in enhancing its capacities--
            ``(i) to assist communities, businesses, and 
        workers adversely affected by an action described in 
        paragraph (1);
            ``(ii) to support local adjustment and 
        diversification initiatives; and
            ``(iii) to stimulate cooperation between statewide 
        and local adjustment and diversification efforts.''.

SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN 
                    CONNECTION WITH LORING AIR FORCE BASE, MAINE.

    From amounts in the Department of Defense Base Closure 
Account 1990 established by section 2906(a)(1) of the Defense 
Base Closure and Realignment Act of 1990 (part A of title XXIX 
of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of 
Defense may expend not more than $50,000 to pay stipulated 
civil penalties assessed under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.) against Loring Air Force Base, Maine.

SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF 
                    MISSISSIPPI ARMY AMMUNITION PLANT.

    Not later than 180 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to the 
congressional defense committees a plan for the utilization, 
reutilization, or disposal of the Mississippi Army Ammunition 
Plant, Hancock County, Mississippi.

                      Subtitle C--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY, ARLINGTON, 
                    VIRGINIA.

    (a) Requirement for Secretary of Interior To Transfer 
Certain Section  29 Lands.--(1) Subject to paragraph (2), the 
Secretary of the Interior shall transfer to the Secretary of 
the Army administrative jurisdiction over the following lands 
located in section 29 of the National Park System at Arlington 
National Cemetery, Virginia:
            (A) The lands known as the Arlington National 
        Cemetery Interment Zone.
            (B) All lands in the Robert E. Lee Memorial 
        Preservation Zone, other than those lands in the 
        Preservation Zone that the Secretary of the Interior 
        determines must be retained because of the historical 
        significance of such lands or for the maintenance of 
        nearby lands or facilities.
    (2)(A) The Secretary of the Interior may not make the 
transfer referred to in paragraph (1)(B) until 60 days after 
the date on which the Secretary submits to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives--
            (i) a summary of the document entitled ``Cultural 
        Landscape and Archaeological Study, Section 29, 
        Arlington House, The Robert E. Lee Memorial'';
            (ii) a summary of any environmental analysis 
        required with respect to the transfer under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.);
            (iii) an accounting of the effect of the transfer 
        that satisfies the requirements of section 106 of the 
        National Historic Preservation Act (16 U.S.C. 470f); 
        and
            (iv) the proposal of the Secretary and the 
        Secretary of the Army setting forth the lands to be 
        transferred and the general manner in which the 
        Secretary of the Army will develop such lands after 
        transfer.
    (B) The Secretary of the Interior shall submit the 
information required under subparagraph (A) not later than 
October 31, 1997.
    (3) The transfer of lands under paragraph (1) shall be 
carried out in accordance with the Interagency Agreement 
Between the Department of the Interior, the National Park 
Service, and the Department of the Army, dated February 22, 
1995.
    (4) The exact acreage and legal descriptions of the lands 
to be transferred under paragraph (1) shall be determined by 
surveys satisfactory to the Secretary of the Interior and the 
Secretary of the Army.
    (b) Requirement for Additional Transfers.--(1) The 
Secretary of the Interior shall transfer to the Secretary of 
the Army administrative jurisdiction over a parcel of land, 
including any improvements thereon, consisting of approximately 
2.43 acres, located in the Memorial Drive entrance area to 
Arlington National Cemetery.
    (2)(A) The Secretary of the Army shall transfer to the 
Secretary of the Interior administrative jurisdiction over a 
parcel of land, including any improvements thereon, consisting 
of approximately 0.17 acres, located at Arlington National 
Cemetery, and known as the Old Administrative Building site. 
The site is part of the original reservation of Arlington 
National Cemetery.
    (B) In connection with the transfer under subparagraph (A), 
the Secretary of the Army shall grant to the Secretary of the 
Interior a perpetual right of ingress and egress to the parcel 
transferred under that subparagraph.
    (3) The exact acreage and legal descriptions of the lands 
to be transferred pursuant to this subsection shall be 
determined by surveys satisfactory to the Secretary of the 
Interior and the Secretary of the Army. The costs of such 
surveys shall be borne by the Secretary of the Army.

SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA.

    (a) Transfer of Land for National Cemetery.--The Secretary 
of the Army may transfer, without reimbursement, to the 
administrative jurisdiction of the Secretary of Veterans 
Affairs a parcel of real property, including any improvements 
thereon, consisting of approximately 400 acres and comprising a 
portion of Fort Sill, Oklahoma.
    (b) Use of Property.--The Secretary of Veterans Affairs 
shall use the real property transferred under subsection (a) as 
a national cemetery under chapter 24 of title 38, United States 
Code.
    (c) Return of Unused Portion.--If the Secretary of Veterans 
Affairs determines that any portion of the real property 
transferred under subsection (a) is not needed for use as a 
national cemetery, the Secretary shall return such portion to 
the administrative jurisdiction of the Secretary of the Army.
    (d) Legal Description.--The exact acreage and legal 
description of the real property to be transferred under this 
section shall be determined by a survey satisfactory to the 
Secretary of the Army. The cost of the survey shall be borne by 
the Secretary of Veterans Affairs.

SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE, INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the City of Rushville, 
Indiana (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to a 
parcel of excess real property, including improvements thereon, 
that is located in Rushville, Indiana, and contains the 
Rushville Army Reserve Center.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
City retain the conveyed property for the use and benefit of 
the Rushville Police Department.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON, SOUTH 
                    CAROLINA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the County of Anderson, South 
Carolina (in this section referred to as the ``County''), all 
right, title, and interest of the United States in and to a 
parcel of real property, including improvements thereon, that 
is located at 805 East Whitner Street in Anderson, South 
Carolina, and contains an Army Reserve Center.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
County retain the conveyed property for the use and benefit of 
the Anderson County Department of Education.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
County.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER, VERMONT.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the City of Montpelier, 
Vermont (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to a 
parcel of real property, including improvements thereon, 
consisting of approximately 4.3 acres and located on Route 2 in 
Montpelier, Vermont, the site of the Army Reserve Center, 
Montpelier, Vermont.
    (b) Condition.--The conveyance authorized under subsection 
(a) shall be subject to the condition that the City agree to 
lease to the Civil Air Patrol, at no rental charge to the Civil 
Air Patrol, the portion of the real property and improvements 
located on the parcel to be conveyed that the Civil Air Patrol 
leases from the Secretary as of the date of the enactment of 
this Act.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING CENTER, 
                    MANCHESTER, NEW HAMPSHIRE.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to Saint Anselm College, 
Manchester, New Hampshire, all right, title, and interest of 
the United States in and to a parcel of real property, 
including improvements thereon, consisting of approximately 3.5 
acres and located on Rockland Avenue in Manchester, New 
Hampshire, the site of the Crafts Brothers Reserve Training 
Center.
    (b) Requirement Relating to Conveyance.--The Secretary may 
not make the conveyance authorized by subsection (a) until the 
Army Reserve units currently housed at the Crafts Brothers 
Reserve Training Center are relocated to the Joint Service 
Reserve Center to be constructed at the Manchester Airport, New 
Hampshire.
    (c) Requirement for Federal Screening of Property.--The 
Secretary may not carry out the conveyance of property 
authorized by subsection (a) unless the Secretary determines 
that no department or agency of the Federal Government will 
accept the transfer of the property.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Economic Development 
Alliance of Jefferson County, Arkansas (in this section 
referred to as the ``Alliance''), all right, title, and 
interest of the United States in and to a parcel of real 
property, together with any improvements thereon, consisting of 
approximately 1,500 acres and comprising a portion of the Pine 
Bluff Arsenal, Arkansas.
    (b) Requirements Relating to Conveyance.--The Secretary may 
not carry out the conveyance of property authorized under 
subsection (a) until--
            (1) the completion by the Secretary of any 
        environmental restoration and remediation that is 
        required with the respect to the property under 
        applicable law;
            (2) the Secretary secures all permits required 
        under law applicable regarding the conduct of the 
        proposed chemical demilitarization mission at the 
        arsenal; and
            (3) the Secretary of Defense submits to the 
        Committee on Armed Services of the Senate and the 
        Committee on National Security of the House of 
        Representatives a certification that the conveyance 
        will not adversely affect the ability of the Department 
        of Defense to conduct that chemical demilitarization 
        mission.
    (c) Conditions of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the following 
conditions:
            (1) That the Alliance agree not to carry out any 
        activities on the property to be conveyed that 
        interfere with the construction, operation, and 
        decommissioning of the chemical demilitarization 
        facility to be constructed at Pine Bluff Arsenal. If 
        the Alliance fails to comply with its agreement in 
        paragraph (1) the property conveyed under this section, 
        all rights, title, and interest in and to the property 
        shall revert to the United States, and the United 
        States shall have immediate rights of entry thereon.
            (2) That the property be used during the 25-year 
        period beginning on the date of the conveyance only as 
        the site of the facility known as the ``Bioplex'', and 
        for activities related thereto.
    (d) Costs of Conveyance.--The Alliance shall be responsible 
for any costs of the Army associated with the conveyance of 
property under this section, including administrative costs, 
the costs of an environmental baseline survey with respect to 
the property, and the cost of any protection services required 
by the Secretary in order to secure operations of the chemical 
demilitarization facility from activities on the property after 
the conveyance.
    (e) Reversionary Interests.--If the Secretary determines at 
any time during the 25-year period referred to in subsection 
(c)(2) that the property conveyed under this section is not 
being used in accordance with that subsection, all right, 
title, and interest in and to the property shall revert to the 
United States, and the United States shall have immediate right 
of entry thereon.
    (f) Sale of Property by Alliance.--If at any time during 
the 25-year period referred to in subsection (c)(2) the 
Alliance sells all or a portion of the property conveyed under 
this section, the Alliance shall pay the United States an 
amount equal to the lesser of--
            (1) the amount of the sale of the property sold; or
            (2) the fair market value of the property sold at 
        the time of the sale, excluding the value of any 
        improvements to the property sold that have been made 
        by the Alliance.
    (g) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall 
be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the Alliance.
    (h) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN, ILLINOIS.

    As soon as practicable after the date of the enactment of 
this Act, the Secretary of the Army shall complete the land 
conveyances involving Fort Sheridan, Illinois, required or 
authorized under section 125 of the Military Construction 
Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 290).

                       PART II--NAVY CONVEYANCES

SEC. 2831. LAND TRANSFER, POTOMAC ANNEX, DISTRICT OF COLUMBIA.

    (a) Transfer Authorized.--The Secretary of the Navy may 
transfer, without consideration other than the reimbursement 
provided for in subsection (d), to the United States Institute 
of Peace (in this section referred to as the ``Institute'') 
administrative jurisdiction over a parcel of real property, 
including any improvements thereon, consisting of approximately 
3 acres, at the northwest corner of Twenty-third Street and 
Constitution Avenue, Northwest, District of Columbia, the site 
of the Potomac Annex.
    (b) Condition.--The Secretary may not make the transfer 
specified in subsection (a) unless the Institute agrees to 
provide the Navy a number of parking spaces at or in the 
vicinity of the headquarters to be constructed on the parcel 
transferred equal to the number of parking spaces available to 
the Navy on the parcel as of the date of the transfer.
    (c) Requirement Relating to Transfer.--The transfer 
specified in subsection (a) may not occur until the Institute 
obtains all permits, approvals, and site plan reviews required 
by law with respect to the construction on the parcel of a 
headquarters for operations of the Institute.
    (d) Costs.--The Institute shall reimburse the Secretary for 
the costs incurred by the Secretary in carrying out the 
transfer specified in subsection (a).
    (e) Description of Property.--The exact acreage and legal 
description of the property to be transferred under subsection 
(a) shall be determined by a survey that is satisfactory to the 
Secretary. The cost of the survey shall be borne by the 
Institute.

SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL SHIPYARD, 
                    VIRGINIA.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy 
may convey to such private person as the Secretary considers 
appropriate (in this section referred to as the ``transferee'') 
all right, title, and interest of the United States in and to a 
parcel of real property that is located at the Norfolk Naval 
Shipyard, Virginia, and, as of the date of the enactment of 
this Act, is a portion of the property leased to the Norfolk 
Shipbuilding and Drydock Company pursuant to the Department of 
the Navy lease N00024-84-L-0004, effective October 1, 1984, as 
extended.
    (2) Pending completion of the conveyance authorized by 
paragraph (1), the Secretary may lease the real property to the 
transferee upon such terms as the Secretary considers 
appropriate.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), including any interim lease authorized by 
such subsection, the transferee shall--
            (1) convey to the United States all right, title, 
        and interest to a parcel or parcels of real property, 
        together with any improvements thereon, located in the 
        area of Portsmouth, Virginia, which are determined to 
        be acceptable to the Secretary; and
            (2) pay to the Secretary an amount equal to the 
        amount, if any, by which the fair market value of the 
        parcel conveyed by the Secretary under subsection (a) 
        exceeds the fair market value of the parcel conveyed to 
        the United States under paragraph (1).
    (c) Use of Rental Amounts.--The Secretary may use the 
amounts received as rent from any lease entered into under the 
authority of subsection (a)(2) to fund environmental studies of 
the parcels of real property to be conveyed under this section.
    (d) In-Kind Consideration.--The Secretary and the 
transferee may agree that, in lieu of all or any part of the 
consideration required by subsection (b)(2), the transferee may 
provide and the Secretary may accept the improvement, 
maintenance, protection, repair, or restoration of real 
property under the control of the Secretary in the area of 
Hampton Roads, Virginia.
    (e) Determination of Fair Market Value and Property 
Description.--The Secretary shall determine the fair market 
value of the parcels of real property to be conveyed under 
subsections (a) and (b)(1). The exact acreage and legal 
description of the parcels shall be determined by a survey 
satisfactory to the Secretary. The cost of the survey shall be 
borne by the transferee.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyances under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL WEAPONS 
                    INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the Department of 
Environmental Conservation of the State of New York (in this 
section referred to as the ``Department''), all right, title, 
and interest of the United States in and to the Calverton Pine 
Barrens located at the Naval Weapons Industrial Reserve Plant, 
Calverton, New York.
    (b) Effect on Other Conveyance Authority.--The conveyance 
authorized by this subsection shall not affect the transfer of 
jurisdiction of a portion of the Calverton Pine Barrens 
authorized by section 2865 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106; 110 Stat. 576).
    (c) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the 
Department agree--
            (1) to maintain the conveyed property as a nature 
        preserve, as required by section 2854 of the Military 
        Construction Authorization Act for Fiscal Year 1993 
        (division B of Public Law 102-484; 106 Stat. 2626), as 
        amended by section 2823 of the Military Construction 
        Authorization Act for Fiscal Year 1995 (division B of 
        Public Law 103-337; 108 Stat. 3058);
            (2) to designate the conveyed property as the 
        ``Otis G. Pike Preserve''; and
            (3) to continue to allow the level of sporting 
        activities on the conveyed property as permitted at the 
        time of the conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Department.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
    (f) Calverton Pine Barrens Defined.--In this section, the 
term ``Calverton Pine Barrens'' has the meaning given that term 
in section 2854(d)(1) of the Military Construction 
Authorization Act for Fiscal Year 1993 (division B of Public 
Law 102-484; 106 Stat. 2626).

SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, LEWES, 
                    DELAWARE.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the State of Delaware (in 
this section referred to as the ``State''), all right, title, 
and interest of the United States in and to a parcel of real 
property, including any improvements thereon, consisting of 
approximately 16.8 acres at the site of the former Naval 
Reserve Facility, Lewes, Delaware.
    (b) Condition of Conveyance.--The conveyance under 
subsection (a) shall be subject to the condition that the State 
use the real property conveyed under that subsection in 
perpetuity solely for public park or recreational purposes.
    (c) Reversion.--If the Secretary of the Navy determines at 
any time that the real property conveyed pursuant to this 
section is not being used for a purpose specified in subsection 
(b), all right, title, and interest in and to such real 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry thereon.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed pursuant to 
this section shall be determined by a survey satisfactory to 
the Secretary of the Navy. The cost of such survey shall be 
borne by the State.
    (e) Additional Terms and Conditions.--The Secretary of the 
Navy may require such additional terms and conditions in 
connection with the conveyance under this section as the 
Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL RESERVE 
                    CENTER, SEATTLE, WASHINGTON.

    Paragraph (2) of section 127(d) of the Military 
Construction Appropriations Act, 1995 (Public Law 103-307; 108 
Stat. 1666), is amended to read as follows:
    ``(2) Before commencing construction of a facility to be 
the replacement facility for the Naval Reserve Center under 
paragraph (1), the Secretary shall comply with the requirements 
of the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) with respect to such facility.''.

SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANSFERRED LAND, 
                    GUAM.

    (a) In General.--Section 818(b)(2) of the Military 
Construction Authorization Act, 1981 (Public Law 96-418; 94 
Stat. 1782), relating to a condition on disposal by Guam of 
lands conveyed to Guam by the United States, shall have no 
force or effect and is repealed.
    (b) Execution of Instruments.--The Secretary of the Navy 
and the Administrator of General Services shall execute all 
instruments necessary to implement this section.

SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE CENTER, NAVAL 
                    AIR STATION, MERIDIAN, MISSISSIPPI.

    (a) Lease of Property for Construction of Reserve Center.--
(1) The Secretary of the Navy may lease, without reimbursement, 
to the State of Mississippi (in this section referred to as the 
``State''), approximately five acres of real property located 
at Naval Air Station, Meridian, Mississippi. The State shall 
use the property to construct a reserve center of approximately 
22,000 square feet and ancillary supporting facilities.
    (2) The term of the lease under this subsection shall 
expire on the same date that the lease authorized by subsection 
(b) expires.
    (b) Leaseback of Reserve Center.--(1) The Secretary may 
lease from the State the property and improvements constructed 
pursuant to subsection (a) for a five-year period. The term of 
the lease shall begin on the date on which the improvements are 
available for occupancy, as determined by the Secretary.
    (2) Rental payments under the lease under paragraph (1) may 
not exceed $200,000 per year, and the total amount of the 
rental payments for the entire period may not exceed 20 percent 
of the total cost of constructing the reserve center and 
ancillary supporting facilities.
    (3) Subject to the availability of appropriations for this 
purpose, the Secretary may use funds appropriated pursuant to 
an authorization of appropriations for the operation and 
maintenance of the Naval Reserve to make rental payments 
required under this subsection.
    (c) Effect of Termination of Leases.--At the end of the 
lease term under subsection (b), the State shall convey, 
without reimbursement, to the United States all right, title, 
and interest of the State in the reserve center and ancillary 
supporting facilities subject to the lease.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the leases under this section as the Secretary considers 
appropriate to protect the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE FOURCHE, 
                    SOUTH DAKOTA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the Belle Fourche School 
District, Belle Fourche, South Dakota (in this section referred 
to as the ``District''), all right, title, and interest of the 
United States in and to a parcel of real property, together 
with any improvements thereon, consisting of approximately 37 
acres located in Belle Fourche, South Dakota, which has served 
as the location of a support complex and housing facilities for 
Detachment 21 of the 554th Range Squadron, an Air Force Radar 
Bomb Scoring Site located in Belle Fourche, South Dakota. The 
conveyance may not include any portion of the radar bomb 
scoring site located in the State of Wyoming.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
District--
            (1) use the property and facilities conveyed under 
        such subsection for education, economic development, 
        and housing purposes; or
            (2) enter into an agreement with an appropriate 
        public or private entity to sell or lease the property 
        and facilities to such entity for such purposes.
    (c) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall 
be determined by a survey satisfactory to the Secretary. The 
cost of the survey shall be borne by the District.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR FORCE-OWNED 
                    CHIMPANZEES, HOLLOMAN AIR FORCE BASE, NEW MEXICO.

    (a) Disposal Authorized.--Notwithstanding any provision of 
the Federal Property and Administrative Services Act of 1949 
(40 U.S.C. 471 et seq.), or any regulations prescribed 
thereunder, the Secretary of the Air Force may dispose of all 
right, title, and interest of the United States in and to the 
primate research complex at Holloman Air Force Base, New 
Mexico. The disposal may include the chimpanzees owned by the 
Air Force that are housed at or managed from the primate 
research complex. The disposal shall not include the underlying 
real property on which the primate research complex is located. 
The disposal of the primate research complex shall be at no 
cost to the Air Force.
    (b) Competitive, Negotiated Disposal Process Required.--The 
Secretary shall select the persons or entities to which the 
primate research complex and chimpanzees are to be disposed of 
under subsection (a) using a competitive, negotiated process.
    (c) Standards To Be Used in Solicitation of Bids.--The 
Secretary shall develop standards for the care and use of the 
primate research complex, and of the chimpanzees, to be used in 
soliciting bids for the disposal authorized by subsection (a). 
The Secretary shall develop such standards in consultation with 
the Secretary of Agriculture and the Director of the National 
Institutes of Health.
    (d) Conditions of Disposal.--The disposal authorized by 
subsection (a) shall be subject to the followings conditions:
            (1) That a recipient of any chimpanzees--
                    (A) utilize such chimpanzees only for 
                scientific research or medical research 
                purposes; or
                    (B) retire and provide adequate care for 
                such chimpanzees.
            (2) That any recipient of chimpanzees, or the 
        primate research complex, take such chimpanzees, or the 
        primate research complex, subject to any existing 
        leases or other encumbrances at the time of the 
        disposal.
    (e) Description of Complex and Chimpanzees.--The exact 
legal description of the primate research complex and 
chimpanzees to be disposed of under subsection (a) shall be 
determined by a survey or other means satisfactory to the 
Secretary. The cost of any survey or other services performed 
at the direction of the Secretary under the authority in the 
preceding sentence shall be borne by the recipient of the 
property concerned.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the disposal under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                       PART IV--OTHER CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, MISSISSIPPI.

    (a) Conveyance Authorized.--The Secretary of Energy may 
convey, without compensation, to the State of Mississippi (in 
this section referred to as the ``State'') the property known 
as the Tatum Salt Dome Test Site, as generally depicted on the 
map of the Department of Energy numbered 301913.104.02 and 
dated June 25, 1993.
    (b) Condition on Conveyance.--The conveyance under this 
section shall be subject to the condition that the State use 
the conveyed property as a wildlife refuge and working 
demonstration forest.
    (c) Designation.--The property to be conveyed is hereby 
designated as the ``Jamie Whitten Forest Management Area''.
    (d) Retained Rights.--The conveyance under this section 
shall be subject to each of the following rights to be retained 
by the United States:
            (1) Retention by the United States of subsurface 
        estates below the property conveyed.
            (2) Retention by the United States of rights of 
        access, by easement or otherwise, for such purposes as 
        the Secretary considers appropriate, including access 
        to monitoring wells for sampling.
            (3) Retention by the United States of the right to 
        install wells additional to those identified in the 
        remediation plan for the property to the extent such 
        additional wells are considered necessary by the 
        Secretary to monitor potential pathways of contaminant 
        migration. Such wells shall be in such locations as 
        specified by the Secretary.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING PLANT, ROLLA, 
                    NORTH DAKOTA.

    (a) Conveyance Authorized.--The Administrator of General 
Services may convey, without consideration, to the Job 
Development Authority of the City of Rolla, North Dakota (in 
this section referred to as the ``Authority''), all right, 
title, and interest of the United States in and to a parcel of 
real property, with improvements thereon and all associated 
personal property, consisting of approximately 9.77 acres and 
comprising the William Langer Jewel Bearing Plant in Rolla, 
North Dakota.
    (b) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Authority--
            (1) use the real and personal property and 
        improvements conveyed under that subsection for 
        economic development relating to the jewel bearing 
        plant;
            (2) enter into an agreement with an appropriate 
        public or private entity or person to lease such 
        property and improvements to that entity or person for 
        such economic development; or
            (3) enter into an agreement with an appropriate 
        public or private entity or person to sell such 
        property and improvements to that entity or person for 
        such economic development.
    (c) Preference for Domestic Disposal of Jewel Bearings.--
(1) In offering to enter into agreements pursuant to any 
provision of law for the disposal of jewel bearings from the 
National Defense Stockpile, the President shall give a right of 
first refusal on all such offers to the Authority or to the 
appropriate public or private entity or person with which the 
Authority enters into an agreement under subsection (b).
    (2) For the purposes of this section, the term ``National 
Defense Stockpile'' means the stockpile provided for in section 
4 of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98(c)).
    (d) Availability of Funds for Maintenance and Conveyance of 
Plant.--Notwithstanding any other provision of law, funds 
available under the Department of Defense Appropriations Act, 
1995 (Public Law 103-335), in fiscal year 1995 for the 
maintenance of the William Langer Jewel Bearing Plant shall be 
available for the maintenance of the plant pending the 
conveyance of the plant and for the conveyance of the plant 
under this section.
    (e) Description of Property.--The exact acreage and legal 
description of the property conveyed under this section shall 
be determined by a survey satisfactory to the Administrator. 
The cost of the survey shall be borne by the Administrator.
    (f) Additional Terms and Conditions.--The Administrator may 
require such additional terms and conditions in connection with 
the conveyance under this section as the Administrator 
determines appropriate to protect the interests of the United 
States.

SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS, OHIO.

    (a) Conveyance Authorized.--Notwithstanding any other 
provision of law, the Secretary of the Air Force may instruct 
the Administrator of General Services to convey, without 
consideration, to the Columbus Municipal Airport Authority (in 
this section referred to as the ``Authority'') all right, 
title, and interest of the United States in and to a parcel of 
real property, together with improvements thereon, at Air Force 
Plant No. 85, Columbus, Ohio, consisting of approximately 240 
acres that--
            (1) contains the land and buildings referred to as 
        the ``airport parcel'' in the correspondence from the 
        General Services Administration to the Authority dated 
        April 30, 1996; and
            (2) is located adjacent to the Port Columbus 
        International Airport.
    (b) Effect of Change in Administrative Jurisdiction.--If, 
on the date of the enactment of this Act, the Secretary of the 
Air Force does not have administrative jurisdiction over the 
property to be conveyed, the conveyance shall be made by the 
Federal official who has administrative jurisdiction over the 
parcel as of that date.
    (c) Requirement for Federal Screening.--The Federal 
official responsible for making the conveyance authorized in 
subsection (a) may not convey the property unless the Federal 
official determines, in consultation with the Administrator of 
General Services, that no department or agency of the Federal 
Government will accept the transfer of the property.
    (d) Condition of Conveyance.--The conveyance authorized 
under subsection (a) shall be subject to the condition that the 
Authority use the conveyed property for public airport 
purposes.
    (e) Reversion.--If the Federal official making the 
conveyance under subsection (a) determines that any portion of 
the conveyed property is not being utilized in accordance with 
the condition in subsection (d), all right, title, and interest 
in and to such portion shall revert to the United States, and 
the United States shall have immediate right of entry thereon.
    (f) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Federal official responsible for making the conveyance. The 
cost of the survey shall be borne by the Authority.
    (g) Additional Terms and Conditions.--The Federal official 
responsible for making the conveyance of property under 
subsection (a) may require such additional terms and conditions 
in connection with the conveyance as such official considers 
appropriate to protect the interests of the United States.

SEC. 2854. MODIFICATION OF BOUNDARIES OF WHITE SANDS NATIONAL MONUMENT 
                    AND WHITE SANDS MISSILE RANGE.

    (a) Transfer of Lands by Secretary of Army.--The Secretary 
of the Army may transfer to the administrative jurisdiction of 
the Secretary of the Interior the following lands as generally 
depicted on the map entitled ``White Sands National Monument, 
Boundary Proposal'', numbered 142/80,061, and dated January 
1994:
            (1) Lands consisting of approximately 2,524 acres 
        located within White Sands National Monument, New 
        Mexico.
            (2) Lands consisting of approximately 5,758 acres 
        located within White Sands Missile Range, New Mexico, 
        and abutting White Sands National Monument.
    (b) Transfer of Lands by Secretary of Interior.--The 
Secretary of the Interior may transfer to the administrative 
jurisdiction of the Secretary of the Army lands consisting of 
approximately 4,277 acres located in White Sands National 
Monument, which lands are generally depicted on the map 
referred to in subsection (a).
    (c) Boundary Modifications.--(1) The Secretary of the Army 
and the Secretary of the Interior shall jointly modify the 
boundary of White Sands National Monument so as to include 
within the national monument the lands transferred under 
subsection (a) and to exclude from the national monument the 
lands transferred under subsection (b).
    (2) The Secretary of the Army and the Secretary of the 
Interior shall jointly modify the boundary of White Sands 
Missile Range as to include within the missile range the lands 
transferred under subsection (b) and exclude from the missile 
range the lands transferred under subsection (a).
    (d) Administration of Transferred Lands.--(1) The Secretary 
of the Interior shall administer the lands transferred to that 
Secretary under subsection (a) in accordance with the laws 
applicable to the White Sands National Monument.
    (2) The Secretary of the Army shall administer the lands 
transferred to that Secretary under subsection (b) as part of 
White Sands Missile Range.
    (3) The Secretary of the Army shall maintain control of the 
airspace above the lands transferred to that Secretary under 
subsection (b) and administer that airspace in a manner 
consistent with the use of such lands as part of White Sands 
Missile Range.
    (e) Public Availability of Map of Monument.--The Secretary 
of the Interior and the Secretary of the Army shall jointly 
prepare, and the Secretary of the Interior shall keep on file 
for public inspection in the headquarters of White Sands 
National Monument, a map showing the boundary of White Sands 
National Monument as modified by this section.
    (f) Waiver of Limitation Under Prior Law.--Notwithstanding 
section 303(b)(1) of the National Parks and Recreation Act of 
1978 (Public Law 95-625; 92 Stat. 3476), land or an interest in 
land that was deleted from White Sands National Monument by 
section 301(19) of the Act (92 Stat. 3475) may, at the election 
of the Secretary of the Interior, be--
            (1) exchanged for land owned by the State of New 
        Mexico within the boundaries of any unit of the 
        National Park System in the State of New Mexico;
            (2) transferred to the jurisdiction of any other 
        Federal agency without monetary consideration; or
            (3) administered as public land.

                       Subtitle D--Other Matters

SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY.

    (a) Easements for Electric Poles and Lines and for 
Communications Lines and Facilities.--Section 2668(a) of title 
10, United States Code, is amended--
            (1) by striking out ``and'' at the end of paragraph 
        (9);
            (2) by redesignating paragraph (10) as paragraph 
        (13); and
            (3) by inserting after paragraph (9) the following 
        new paragraphs:
            ``(10) poles and lines for the transmission or 
        distribution of electric power;
            ``(11) poles and lines for the transmission or 
        distribution of communications signals (including 
        telephone and telegraph signals);
            ``(12) structures and facilities for the 
        transmission, reception, and relay of such signals; 
        and''.
    (b) Conforming Amendments.--Such section is further 
amended--
            (1) in paragraph (3), by striking out ``, telephone 
        lines, and telegraph lines,''; and
            (2) in paragraph (13), as redesignated by 
        subsection (a)(2), by striking out ``or by the Act of 
        March 4, 1911 (43 U.S.C. 961)''.

SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS FOR THE 
                    MANAGEMENT OF CULTURAL RESOURCES ON MILITARY 
                    INSTALLATIONS.

    (a) Agreements Authorized.--Chapter 159 of title 10, United 
States Code, is amended by inserting after section 2683 the 
following new section:

``Sec. 2684. Cooperative agreements for management of cultural 
                    resources

    ``(a) Authority.--The Secretary of Defense or the Secretary 
of a military department may enter into a cooperative agreement 
with a State or local government or other entity for the 
preservation, management, maintenance, and improvement of 
cultural resources on military installations and for the 
conduct of research regarding the cultural resources. 
Activities under the cooperative agreement shall be subject to 
the availability of funds to carry out the cooperative 
agreement.
    ``(b) Application of Other Laws.--Section 1535 and chapter 
63 of title 31 shall not apply to a cooperative agreement 
entered into under this section.
    ``(c) Cultural Resource Defined.--In this section, the term 
`cultural resource' means any of the following:
            ``(1) A building, structure, site, district, or 
        object eligible for or included in the National 
        Register of Historic Places maintained under section 
        101(a) of the National Historic Preservation Act (16 
        U.S.C. 470a(a)).
            ``(2) Cultural items, as that term is defined in 
        section 2(3) of the Native American Graves Protection 
        and Repatriation Act (25 U.S.C. 3001(3)).
            ``(3) An archaeological resource, as that term is 
        defined in section 3(1) of the Archaeological Resources 
        Protection Act of 1979 (16 U.S.C. 470bb(1)).
            ``(4) An archaeological artifact collection and 
        associated records covered by section 79 of title 36, 
        Code of Federal Regulations.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 2683 the following new item:

``2684. Cooperative agreements for management of cultural resources.''.

SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND OPERATION OF 
                    ELECTRIC POWER DISTRIBUTION SYSTEM AT YOUNGSTOWN 
                    AIR RESERVE STATION, OHIO.

    (a) Authority.--The Secretary of the Air Force may carry 
out a demonstration project to assess the feasibility and 
advisability of permitting private entities to install, 
operate, and maintain electric power distribution systems at 
military installations. The Secretary shall carry out the 
demonstration project through an agreement under subsection 
(b).
    (b) Agreement.--(1) In order to carry out the demonstration 
project, the Secretary shall enter into an agreement with an 
electric utility or other company in the Youngstown, Ohio, 
area, consistent with State law, under which the utility or 
company installs, operates, and maintains (in a manner 
satisfactory to the Secretary and the utility or company) an 
electric power distribution system at Youngstown Air Reserve 
Station, Ohio.
    (2) The Secretary may not enter into an agreement under 
this subsection until--
            (A) the Secretary submits to Congress a report on 
        the agreement to be entered into, including the costs 
        to be incurred by the United States under the 
        agreement; and
            (B) a period of 30 days has elapsed from the date 
        of the receipt of the report by the committees.
    (c) Licenses and Easements.--In order to facilitate the 
installation, operation, and maintenance of the electric power 
distribution system under the agreement under subsection (b), 
the Secretary may grant the utility or company with which the 
Secretary enters into the agreement such licenses, easements, 
and rights-of-way, consistent with State law, as the Secretary 
and the utility or company jointly determine necessary for such 
purposes.
    (d) Ownership of System.--The agreement between the 
Secretary and the utility or company under subsection (b) may 
provide that the utility or company shall own the electric 
power distribution system installed under the agreement.
    (e) Rate.--The rate charged by the utility or company for 
providing or distributing electric power at Youngstown Air 
Reserve Station through the electric power distribution system 
installed under the agreement under subsection (b) shall be the 
rate established by the appropriate Federal or State regulatory 
authority.
    (f) Reports.--Not later than February 1, 1997, and February 
1 of each year following a year in which the Secretary carries 
out the demonstration project under this section, the Secretary 
shall submit to Congress a report on the project. The report 
shall include the Secretary's current assessment of the project 
and the recommendations, if any, of the Secretary of extending 
the authority with respect to the project to other facilities 
and installations of the Department of Defense.
    (g) Funding.--In order to pay the costs of the United 
States under the agreement under subsection (b), the Secretary 
may use funds authorized to be appropriated by section 
2601(3)(B) of the Military Construction Authorization Act for 
Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat. 
540) for the purpose of rebuilding the electric power 
distribution system at the Youngstown Air Reserve Station that 
were appropriated for that purpose by the Military Construction 
Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 283), 
and that remain available for obligation for that purpose as of 
the date of the enactment of this Act.
    (h) Application of Other Law.--Nothing in this section 
shall authorize actions which are inconsistent with Federal or 
State law.
    (i) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in the agreement 
under subsection (b) as the Secretary considers appropriate to 
protect the interests of the United States.

SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

    The Secretary of Defense shall take such actions as are 
necessary to ensure that the total cost of the renovation of 
the Pentagon Reservation does not exceed $1,118,000,000.

SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC DISTRICT 
                    AT THE FOREST GLEN ANNEX OF WALTER REED MEDICAL 
                    CENTER, MARYLAND.

    Not later than 120 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to the 
congressional defense committees a comprehensive plan for basic 
repairs and stabilization measures throughout the historic 
district at the Forest Glen Annex of Walter Reed Army Medical 
Center, Maryland, together with funding options for the 
implementation of the plan.

SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI.

    (a) Name.--The Multi Purpose Range Complex (Heavy) at Camp 
Shelby, Mississippi, shall after the date of the enactment of 
this Act be known and designated as the ``G.V. (Sonny) 
Montgomery Range''. Any reference to such range in any law, 
regulation, map, document, record, or other paper of the United 
States shall be considered to be a reference to the G. V. 
(Sonny) Montgomery Range.
    (b) Effective Date.--Subsection (a) shall take effect at 
noon on January 3, 1997, or the first day on which G. V. 
(Sonny) Montgomery otherwise ceases to be a Member of the House 
of Representatives.

SEC. 2867. DESIGNATION OF MICHAEL O'CALLAGHAN MILITARY HOSPITAL.

    (a) Designation.--The Nellis Federal Hospital, a Federal 
building located at 4700 North Las Vegas Boulevard, Las Vegas, 
Nevada, shall be known and designated as the ``Michael 
O'Callaghan Military Hospital''.
    (b) References.--Any reference in a law, map, regulation, 
document, paper, or other record of the United States to the 
Federal building referred to in subsection (a) shall be deemed 
to be a reference to the ``Michael O'Callaghan Military 
Hospital''.

SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES UNIVERSITY OF 
                    THE HEALTH SCIENCES.

    It is the sense of Congress that the Secretary of Defense 
should name Building A at the Uniformed Services University of 
the Health Sciences as the ``David Packard Building''.

                 TITLE XXIX--MILITARY LAND WITHDRAWALS

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

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

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

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

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

SEC. 2901. SHORT TITLE.

    This subtitle may be cited as the ``Fort Carson-Pinon 
Canyon Military Lands Withdrawal Act''.

SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT CARSON MILITARY 
                    RESERVATION.

    (a) Withdrawal.--Subject to valid existing rights and 
except as otherwise provided in this subtitle, the lands at the 
Fort Carson Military Reservation, Colorado, that are described 
in subsection (c) are hereby withdrawn from all forms of 
appropriation under the public land laws, including the mining 
laws, the mineral and geothermal leasing laws, and the mineral 
materials disposal laws.
    (b) Reservation.--The lands withdrawn under subsection (a) 
are reserved for use by the Secretary of the Army--
            (1) for military maneuvering, training and weapons 
        firing; and
            (2) for other defense related purposes consistent 
        with the uses specified in paragraph (1).
    (c) Land Description.--The lands referred to in subsection 
(a) comprise 3,133.02 acres of public land and 11,415.16 acres 
of federally-owned minerals in El Paso, Pueblo, and Fremont 
Counties, Colorado, as generally depicted on the map entitled 
``Fort Carson Proposed Withdrawal--Fort Carson Base'', dated 
February 6, 1992, and published in accordance with section 
2904.

SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON CANYON MANEUVER 
                    SITE.

    (a) Withdrawal.--Subject to valid existing rights and 
except as otherwise provided in this subtitle, the lands at the 
Pinon Canyon Maneuver Site, Colorado, that are described in 
subsection (c) are hereby withdrawn from all forms of 
appropriation under the public land laws, including the mining 
laws, the mineral and geothermal leasing laws, and the mineral 
materials disposal laws.
    (b) Reservation.--The lands withdrawn under subsection (a) 
are reserved for use by the Secretary of the Army--
            (1) for military maneuvering and training; and
            (2) for other defense related purposes consistent 
        with the uses specified in paragraph (1).
    (c) Land Description.--The lands referred to in subsection 
(a) comprise 2,517.12 acres of public lands and 130,139 acres 
of federally-owned minerals in Las Animas County, Colorado, as 
generally depicted on the map entitled ``Fort Carson Proposed 
Withdrawal--Fort Carson Maneuver Area--Pinon Canyon site'', 
dated February 6, 1992, and published in accordance with 
section 2904.

SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

    (a) Preparation of Maps and Legal Description.--As soon as 
practicable after the date of the enactment of this subtitle, 
the Secretary of the Interior shall prepare maps depicting the 
lands withdrawn and reserved by this subtitle and publish in 
the Federal Register a notice containing the legal description 
of such lands.
    (b) Legal Effect.--Such maps and legal descriptions shall 
have the same force and effect as if they were included in this 
subtitle, except that the Secretary of the Interior may correct 
clerical and typographical errors in such maps and legal 
descriptions.
    (c) Availability of Maps and Legal Description.--Copies of 
such maps and legal descriptions shall be available for public 
inspection in the offices of the Colorado State Director and 
the Canon City District Manager of the Bureau of Land 
Management and in the offices of the Commander of Fort Carson, 
Colorado.
    (d) Costs.--The Secretary of the Army shall reimburse the 
Secretary of the Interior for the costs of implementing this 
section.

SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

    (a) Management Guidelines.--
            (1) Management by secretary of the army.--Except as 
        provided in section 2906, during the period of 
        withdrawal, the Secretary of the Army shall manage for 
        military purposes the lands covered by this subtitle 
        and may authorize use of the lands by the other 
        military departments and agencies of the Department of 
        Defense, and the National Guard, as appropriate.
            (2) Access restrictions.--When military operations, 
        public safety, or national security, as determined by 
        the Secretary of the Army, require the closure of roads 
        and trails on the lands withdrawn by this subtitle 
        commonly in public use, the Secretary of the Army is 
        authorized to take such action, except that such 
        closures shall be limited to the minimum areas and 
        periods required for the purposes specified in this 
        subsection. Appropriate warning notices shall be kept 
        posted during closures.
            (3) Suppression of fires.--The Secretary of the 
        Army shall take necessary precautions to prevent and 
        suppress brush and range fires occurring within and 
        outside the lands as a result of military activities 
        and may seek assistance from the Bureau of Land 
        Management in suppressing such fires. The memorandum of 
        understanding required by this section shall provide 
        for Bureau of Land Management assistance in the 
        suppression of such fires, and for a transfer of funds 
        from the Department of the Army to the Bureau of Land 
        Management as compensation for such assistance.
    (b) Management Plan.--
            (1) Development required.--The Secretary of the 
        Army, with the concurrence of the Secretary of the 
        Interior, shall develop a plan for the management of 
        acquired lands and lands withdrawn under sections 2902 
        and 2903 for the period of withdrawal. The plan shall--
                    (A) be consistent with applicable law;
                    (B) include such provisions as may be 
                necessary for proper resource management and 
                protection of the natural, cultural, and other 
                resources and values of such lands; and
                    (C) identify those withdrawn and acquired 
                lands, if any, which are to be open to mining 
                or mineral and geothermal leasing, including 
                mineral materials disposal.
            (2) Time for development.--The management plan 
        required by this subsection shall be developed not 
        later than 5 years after the date of the enactment of 
        this subtitle.
    (c) Implementation of Management Plan.--
            (1) Memorandum of understanding required.--The 
        Secretary of the Army and the Secretary of the Interior 
        shall enter into a memorandum of understanding to 
        implement the management plan developed under 
        subsection (b).
            (2) Duration.--The duration of any such memorandum 
        of understanding shall be the same as the period of 
        withdrawal specified in section 2908(a).
            (3) Amendment.--The memorandum of understanding may 
        be amended by agreement of both Secretaries.
    (d) Use of Certain Resources.--The Secretary of the Army is 
authorized to utilize sand, gravel, or similar mineral or 
mineral material resources from the lands withdrawn by this 
subtitle when the use of such resources is required for 
construction needs of the Fort Carson Reservation or Pinon 
Canyon Maneuver Site.

SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

    Except as provided in section 2905(d), the Secretary of the 
Interior shall manage all withdrawn and acquired mineral 
resources within the boundaries of the Fort Carson Military 
Reservation and Pinon Canyon Maneuver Site in the same manner 
as provided in section 12 of the Military Lands Withdrawal Act 
of 1986 (Public Law 99-606; 100 Stat. 3466) for mining and 
mineral leasing on certain lands withdrawn by that Act from all 
forms of appropriation under the public land laws.

SEC. 2907. HUNTING, FISHING, AND TRAPPING.

    All hunting, fishing, and trapping on the lands withdrawn 
and reserved by this subtitle shall be conducted in accordance 
with section 2671 of title 10, United States Code.

SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

    (a) Termination Date.--The withdrawal and reservation made 
by this subtitle shall terminate 15 years after the date of the 
enactment of this subtitle.
    (b) Determination of Continuing Military Need.--
            (1) Determination required.--At least three years 
        before the termination under subsection (a) of the 
        withdrawal and reservation established by this 
        subtitle, the Secretary of the Army shall advise the 
        Secretary of the Interior as to whether or not the 
        Department of the Army will have a continuing military 
        need for any of the lands after the termination date.
            (2) Method of making determination.--If the 
        Secretary of the Army concludes under paragraph (1) 
        that there will be a continuing military need for any 
        of the lands after the termination date established by 
        subsection (a), the Secretary of the Army, in 
        accordance with applicable law, shall--
                    (A) evaluate the environmental effects of 
                renewal of such withdrawal and reservation;
                    (B) hold at least one public hearing in 
                Colorado concerning such evaluation; and
                    (C) file, after completing the requirements 
                of subparagraphs (A) and (B), an application 
                for extension of the withdrawal and reservation 
                of such lands in accordance with the 
                regulations and procedures of the Department of 
                the Interior applicable to the extension of 
                withdrawals for military uses.
            (3) Notification.--The Secretary of the Interior 
        shall notify the Congress concerning a filing under 
        paragraph (3)(C).
    (c) Early Relinquishment of Withdrawal.--If the Secretary 
of the Army concludes under subsection (b) that before the 
termination date established by subsection (a) there will be no 
military need for all or any part of the lands withdrawn and 
reserved by this subtitle, or if, during the period of 
withdrawal, the Secretary of the Army otherwise decides to 
relinquish any or all of the lands withdrawn and reserved under 
this subtitle, the Secretary of the Army shall file with the 
Secretary of the Interior a notice of intention to relinquish 
such lands.
    (d) Acceptance of Lands Proposed for Relinquishment.--
Notwithstanding any other provision of law, the Secretary of 
the Interior, upon deciding that it is in the public interest 
to accept jurisdiction over the lands proposed for 
relinquishment, may revoke the withdrawal and reservation 
established by this subtitle as it applies to the lands 
proposed for relinquishment. Should the decision be made to 
revoke the withdrawal and reservation, the Secretary of the 
Interior shall publish in the Federal Register an appropriate 
order which shall--
            (1) terminate the withdrawal and reservation;
            (2) constitute official acceptance of full 
        jurisdiction over the lands by the Secretary of the 
        Interior; and
            (3) state the date upon which the lands will be 
        opened to the operation of the public land laws, 
        including the mining laws if appropriate.

SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND EFFECT OF 
                    CONTAMINATION.

    (a) Determination of Presence of Contamination.--
            (1) Before relinquishment notice.--Before filing a 
        relinquishment notice under section 2908(c), the 
        Secretary of the Army shall prepare a written 
        determination as to whether and to what extent the 
        lands to be relinquished are contaminated with 
        explosive, toxic, or other hazardous materials. A copy 
        of the determination made by the Secretary of the Army 
        shall be supplied with the relinquishment notice. 
        Copies of both the relinquishment notice and the 
        determination under this subsection shall be published 
        in the Federal Register by the Secretary of the 
        Interior.
            (2) Upon termination of withdrawal.--At the 
        expiration of the withdrawal period made by this Act, 
        the Secretary of the Interior shall determine whether 
        and to what extent the lands withdrawn by this subtitle 
        are contaminated to an extent which prevents opening 
        such contaminated lands to operation of the public land 
        laws.
    (b) Program of Decontamination.--
            (1) In general.--Throughout the duration of the 
        withdrawal and reservation made by this subtitle, the 
        Secretary of the Army, to the extent funds are made 
        available, shall maintain a program of decontamination 
        of the lands withdrawn by this subtitle at least at the 
        level of effort carried out during fiscal year 1992.
            (2) Decontamination of lands to be relinquished.--
        In the case of lands subject to a relinquishment notice 
        under section 2908(c) that are contaminated, the 
        Secretary of the Army shall decontaminate the land to 
        the extent that funds are appropriated for such purpose 
        if the Secretary of the Interior, in consultation with 
        the Secretary of the Army, determines that--
                    (A) decontamination of the lands is 
                practicable and economically feasible, taking 
                into consideration the potential future use and 
                value of the land; and
                    (B) upon decontamination, the land could be 
                opened to the operation of some or all of the 
                public land laws, including the mining laws.
    (c) Authority of Secretary of the Interior To Refuse 
Contaminated Lands.--The Secretary of the Interior shall not be 
required to accept lands proposed for relinquishment if the 
Secretary of the Army and the Secretary of the Interior 
conclude that--
            (1) decontamination of any or all of the lands 
        proposed for relinquishment is not practicable or 
        economically feasible;
            (2) the lands cannot be decontaminated sufficiently 
        to allow them to be opened to the operation of the 
        public land laws; or
            (3) insufficient funds are appropriated for the 
        purpose of decontaminating the lands.
    (d) Effect of Continued Contamination.--If the Secretary of 
the Interior declines under subsection (c) to accept 
jurisdiction of lands proposed for relinquishment or if the 
Secretary of the Interior determines under subsection (a)(2) 
that some of the lands withdrawn by this subtitle are 
contaminated to an extent that prevents opening the 
contaminated lands to operation of the public land laws--
            (1) the Secretary of the Army shall take 
        appropriate steps to warn the public of the 
        contaminated state of such lands and any risks 
        associated with entry onto such lands;
            (2) after the expiration of the withdrawal, the 
        Secretary of the Army shall undertake no activities on 
        such lands except in connection with decontamination of 
        such lands; and
            (3) the Secretary of the Army shall report to the 
        Secretary of the Interior and to the Congress 
        concerning the status of such lands and all actions 
        taken under paragraphs (1) and (2).
    (e) Effect of Subsequent Decontamination.--If the lands 
described in subsection (d) are subsequently decontaminated, 
upon certification by the Secretary of the Army that the lands 
are safe for all nonmilitary uses, the Secretary of the 
Interior shall reconsider accepting jurisdiction over the 
lands.
    (f) Effect on Other Laws.--Nothing in this subtitle shall 
affect, or be construed to affect, the obligations of the 
Secretary of the Army, if any, to decontaminate lands withdrawn 
by this subtitle pursuant to applicable law, including the 
Comprehensive Environmental Response Compensation and Liability 
Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid Waste 
Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2910. DELEGATION.

    The functions of the Secretary of the Army under this 
subtitle may be delegated. The functions of the Secretary of 
the Interior under this subtitle may be delegated, except that 
the order referred to in section 2908(d) may be approved and 
signed only by the Secretary of the Interior, the Deputy 
Secretary of the Interior, or an Assistant Secretary of the 
Department of the Interior.

SEC. 2911. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal 
leasing activity on lands comprising the Fort Carson 
Reservation or Pinon Canyon Maneuver Site shall indemnify the 
United States against any costs, fees, damages, or other 
liabilities (including costs of litigation) incurred by the 
United States and arising from or relating to such mining 
activities, including costs of mineral materials disposal, 
whether arising under the Comprehensive Environmental Response 
Compensation and Liability Act of 1980, the Solid Waste 
Disposal Act, or otherwise.

SEC. 2912. AMENDMENT TO MILITARY LANDS WITHDRAWAL ACT OF 1986.

    (a) Use of Certain Resources.--Section 3(f) of the Military 
Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 
3461) is amended by adding at the end the following new 
paragraph:
    ``(2) Subject to valid existing rights, the Secretary of 
the military department concerned may utilize sand, gravel, or 
similar mineral or material resources when the use of such 
resources is required for construction needs on the respective 
lands withdrawn by this Act.''.
    (b) Technical Correction.--Section 9(b) of the Military 
Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat. 
3466) is amended by striking ``section 7(f)'' and inserting in 
lieu thereof ``section 8(f)''.

SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

    There are hereby authorized to be appropriated such sums as 
may be necessary to carry out the purposes of this subtitle.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

SEC. 2921. SHORT TITLE AND DEFINITIONS.

    (a) Short Title.--This subtitle may be cited as the ``El 
Centro Naval Air Facility Ranges Withdrawal Act''.
    (b) Definitions.--In this subtitle:
            (1) The term ``El Centro'' means the Naval Air 
        Facility, El Centro, California.
            (2) The term ``cooperative agreement'' means the 
        cooperative agreement entered into between the Bureau 
        of Land Management, the Bureau of Reclamation, and the 
        Department of the Navy, dated June 29, 1987, with 
        regard to the defense-related uses of Federal lands to 
        further the mission of El Centro.
            (3) The term ``relinquishment notice'' means a 
        notice of intention by the Secretary of the Navy under 
        section 2928(a) to relinquish, before the termination 
        date specified in section 2925, the withdrawal and 
        reservation of certain lands withdrawn under this 
        subtitle.

SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL CENTRO.

    (a) Withdrawals.--Subject to valid existing rights, and 
except as otherwise provided in this subtitle, the Federal 
lands utilized in the mission of the Naval Air Facility, El 
Centro, California, that are described in subsection (c) are 
hereby withdrawn from all forms of appropriation under the 
public land laws, including the mining laws, but not the 
mineral leasing or geothermal leasing laws or the mineral 
materials sales laws.
    (b) Reservation.--The lands withdrawn under subsection (a) 
are reserved for the use by the Secretary of the Navy--
            (1) for defense-related purposes in accordance with 
        the cooperative agreement; and
            (2) subject to notice to the Secretary of the 
        Interior under section 2924(e), for other defense-
        related purposes determined by the Secretary of the 
        Navy.
    (c) Description of Withdrawn Lands.--The lands withdrawn 
and reserved under subsection (a) are--
            (1) the Federal lands comprising approximately 
        46,600 acres in Imperial County, California, as 
        generally depicted in part on a map entitled ``Exhibit 
        A, Naval Air Facility, El Centro, California, Land 
        Acquisition Map, Range 2510 (West Mesa)'' and dated 
        March 1993 and in part on a map entitled ``Exhibit B, 
        Naval Air Facility, El Centro, California, Land 
        Acquisition Map Range 2512 (East Mesa)'' and dated 
        March 1993; and
            (2) and all other areas within the boundaries of 
        such lands as depicted on such maps that may become 
        subject to the operation of the public land laws.

SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

    (a) Publication and Filing Requirements.--As soon as 
practicable after the date of the enactment of this subtitle, 
the Secretary of the Interior shall--
            (1) publish in the Federal Register a notice 
        containing the legal description of the lands withdrawn 
        and reserved under this subtitle; and
            (2) file maps and the legal description of the 
        lands withdrawn and reserved under this subtitle with 
        the Committee on Energy and Natural Resources of the 
        Senate and with the Committee on Resources of the House 
        of Representatives.
    (b) Legal Effect.--The maps and legal description prepared 
under subsection (a) shall have the same force and effect as if 
they were included in this subtitle, except that the Secretary 
of the Interior may correct clerical and typographical errors 
in the maps and legal description.
    (c) Availability for Public Inspection.--Copies of the maps 
and legal description prepared under subsection (a) shall be 
available for public inspection in--
            (1) the Office of the State Director, California 
        State Office of the Bureau of Land Management, 
        Sacramento, California;
            (2) the Office of the District Manager, California 
        Desert District of the Bureau of Land Management, 
        Riverside, California; and
            (3) the Office of the Commanding Officer, Marine 
        Corps Air Station, Yuma, Arizona.
    (d) Reimbursement.--The Secretary of Navy shall reimburse 
the Secretary of the Interior for the cost of implementing this 
section.

SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

    (a) Management Consistent With Cooperative Agreement.--The 
lands and resources shall be managed in accordance with the 
cooperative agreement, revised as necessary to conform to the 
provisions of this subtitle. The parties to the cooperative 
agreement shall review the cooperative agreement for 
conformance with this subtitle and amend the cooperative 
agreement, if appropriate, within 120 days after the date of 
the enactment of this subtitle. The term of the cooperative 
agreement shall be amended so that its duration is at least 
equal to the duration of the withdrawal made by section 2925. 
The cooperative agreement may be reviewed and amended by the 
managing agencies as necessary.
    (b) Management by Secretary of the Interior.--
            (1) General management authority.--During the 
        period of withdrawal, the Secretary of the Interior 
        shall manage the lands withdrawn and reserved under 
        this subtitle pursuant to the Federal Land Policy and 
        Management Act of 1976 (43 U.S.C. 1701 et seq.) and 
        other applicable laws, including this subtitle.
            (2) Specific authorities.--To the extent consistent 
        with applicable laws, Executive orders, and the 
        cooperative agreement, the lands withdrawn and reserved 
        under this subtitle may be managed in a manner 
        permitting--
                    (A) protection of wildlife and wildlife 
                habitat;
                    (B) control of predatory and other animals;
                    (C) the prevention and appropriate 
                suppression of brush and range fires resulting 
                from nonmilitary activities; and
                    (D) geothermal leasing and development and 
                related power production, mineral leasing and 
                development, and mineral material sales.
            (3) Effect of withdrawal.--The Secretary of the 
        Interior shall manage the lands withdrawn and reserved 
        under this subtitle, in coordination with the Secretary 
        of the Navy, such that all nonmilitary use of such 
        lands, including the uses described in paragraph (2), 
        shall be subject to such conditions and restrictions as 
        may be necessary to permit the military use of such 
        lands for the purposes specified in the cooperative 
        agreement or authorized pursuant to this subtitle.
    (c) Certain Activities Subject to Concurrence of Navy.--The 
Secretary of the Interior may issue a lease, easement, right-
of-way, or other authorization with respect to the nonmilitary 
use of the withdrawn lands only with the concurrence of the 
Secretary of the Navy and under the terms of the cooperative 
agreement.
    (d) Access Restrictions.--If the Secretary of the Navy 
determines that military operations, public safety, or national 
security require the closure to public use of any road, trail, 
or other portion of the lands withdrawn under this subtitle, 
the Secretary may take such action as the Secretary determines 
necessary or desirable to effect and maintain such closure. Any 
such closure shall be limited to the minimum areas and periods 
which the Secretary of the Navy determines are required to 
carry out this subsection. Before and during any closure under 
this subsection, the Secretary of the Navy shall keep 
appropriate warning notices posted and take appropriate steps 
to notify the public concerning such closures.
    (e) Additional Military Uses.--Lands withdrawn under this 
subtitle may be used for defense-related uses other than those 
specified in the cooperative agreement. The Secretary of the 
Navy shall promptly notify the Secretary of the Interior in the 
event that the lands withdrawn under this subtitle will be used 
for additional defense-related purposes. Such notification 
shall indicate the additional use or uses involved, the 
proposed duration of such uses, and the extent to which such 
additional military uses of the withdrawn lands will require 
that additional or more stringent conditions or restrictions be 
imposed on otherwise-permitted nonmilitary uses of all or any 
portion of the withdrawn lands.

SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

    The withdrawal and reservation made under this subtitle 
shall terminate 25 years after the date of the enactment of 
this subtitle.

SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION ACTIVITIES.

    Throughout the duration of the withdrawal and reservation 
made under this subtitle, and subject to the availability of 
funds, the Secretary of the Navy shall maintain a program of 
decontamination of the lands withdrawn under this subtitle at 
least at the level of decontamination activities performed on 
such lands in fiscal year 1995. Such activities shall be 
subject to applicable laws, such as the amendments made by the 
Federal Facility Compliance Act of 1992 (Public Law 102-386; 
106 Stat. 1505) and the Defense Environmental Restoration 
Program established under section 2701 of title 10, United 
States Code.

SEC. 2927. REQUIREMENTS FOR EXTENSION.

    (a) Notice of Continued Military Need.--Not later than five 
years before the termination date specified in section 2925, 
the Secretary of the Navy shall advise the Secretary of the 
Interior as to whether or not the Navy will have a continuing 
military need for any or all of the lands withdrawn and 
reserved under this subtitle after the termination date.
    (b) Application for Extension.--If the Secretary of the 
Navy determines that there will be a continuing military need 
for any or all of the withdrawn lands after the termination 
date specified in section 2925, the Secretary of the Navy shall 
file an application for extension of the withdrawal and 
reservation of the lands in accordance with the then existing 
regulations and procedures of the Department of the Interior 
applicable to extension of withdrawal of lands for military 
purposes and that are consistent with this subtitle. Such 
application shall be filed with the Department of the Interior 
not later than four years before the termination date.
    (c) Extension Process.--The withdrawal and reservation 
established by this subtitle may not be extended except by an 
Act or Joint Resolution of Congress.

SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

    (a) Filing of Relinquishment Notice.--If, during the period 
of withdrawal and reservation specified in section 2925, the 
Secretary of the Navy decides to relinquish all or any portion 
of the lands withdrawn and reserved under this subtitle, the 
Secretary of the Navy shall file a notice of intention to 
relinquish with the Secretary of the Interior.
    (b) Determination of Presence of Contamination.--Before 
transmitting a relinquishment notice under subsection (a), the 
Secretary of the Navy, in consultation with the Secretary of 
the Interior, shall prepare a written determination concerning 
whether and to what extent the lands to be relinquished are 
contaminated with explosive, toxic, or other hazardous wastes 
and substances. A copy of such determination shall be 
transmitted with the relinquishment notice.
    (c) Decontamination and Remediation.--In the case of 
contaminated lands which are the subject of a relinquishment 
notice, the Secretary of the Navy shall decontaminate or 
remediate the land to the extent that funds are appropriated 
for such purpose if the Secretary of the Interior, in 
consultation with the Secretary of the Navy, determines that--
            (1) decontamination or remediation of the lands is 
        practicable and economically feasible, taking into 
        consideration the potential future use and value of the 
        land; and
            (2) upon decontamination or remediation, the land 
        could be opened to the operation of some or all of the 
        public land laws, including the mining laws.
    (d) Decontamination and Remediation Activities Subject to 
Other Laws.--The activities of the Secretary of the Navy under 
subsection (c) are subject to applicable laws and regulations, 
including the Defense Environmental Restoration Program 
established under section 2701 of title 10, United States Code, 
the Comprehensive Environmental Response Compensation and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.), and the Solid 
Waste Disposal Act (42 U.S.C. 6901 et seq.).
    (e) Authority of Secretary of the Interior To Refuse 
Contaminated Lands.--The Secretary of the Interior shall not be 
required to accept lands specified in a relinquishment notice 
if the Secretary of the Interior, after consultation with the 
Secretary of the Navy, concludes that--
            (1) decontamination or remediation of any land 
        subject to the relinquishment notice is not practicable 
        or economically feasible;
            (2) the land cannot be decontaminated or remediated 
        sufficiently to be opened to operation of some or all 
        of the public land laws; or
            (3) a sufficient amount of funds are not 
        appropriated for the decontamination of the land.
    (f) Status of Contaminated Lands.--If, because of the 
condition of the lands, the Secretary of the Interior declines 
to accept jurisdiction of lands proposed for relinquishment or, 
if at the expiration of the withdrawal made under this 
subtitle, the Secretary of the Interior determines that some of 
the lands withdrawn under this subtitle are contaminated to an 
extent which prevents opening such contaminated lands to 
operation of the public land laws--
            (1) the Secretary of the Navy shall take 
        appropriate steps to warn the public of the 
        contaminated state of such lands and any risks 
        associated with entry onto such lands;
            (2) after the expiration of the withdrawal, the 
        Secretary of the Navy shall retain jurisdiction over 
        the withdrawn lands, but shall undertake no activities 
        on such lands except in connection with the 
        decontamination or remediation of such lands; and
            (3) the Secretary of the Navy shall report to the 
        Secretary of the Interior and to the Congress 
        concerning the status of such lands and all actions 
        taken under paragraphs (1) and (2).
    (g) Subsequent Decontamination or Remediation.--If lands 
covered by subsection (f) are subsequently decontaminated or 
remediated and the Secretary of the Navy certifies that the 
lands are safe for nonmilitary uses, the Secretary of the 
Interior shall reconsider accepting jurisdiction over the 
lands.
    (h) Revocation Authority.--Notwithstanding any other 
provision of law, upon deciding that it is in the public 
interest to accept jurisdiction over lands specified in a 
relinquishment notice, the Secretary of the Interior may revoke 
the withdrawal and reservation made under this subtitle as it 
applies to such lands. If the decision be made to accept the 
relinquishment and to revoke the withdrawal and reservation, 
the Secretary of the Interior shall publish in the Federal 
Register an appropriate order which shall--
            (1) terminate the withdrawal and reservation;
            (2) constitute official acceptance of full 
        jurisdiction over the lands by the Secretary of the 
        Interior; and
            (3) state the date upon which the lands will be 
        opened to the operation of the public land laws, 
        including the mining laws, if appropriate.

SEC. 2929. DELEGATION OF AUTHORITY.

    (a) Department of the Navy.--The functions of the Secretary 
of the Navy under this subtitle may be delegated.
    (b) Department of Interior.--The functions of the Secretary 
of the Interior under this subtitle may be delegated, except 
that an order described in section 2928(h) may be approved and 
signed only by the Secretary of the Interior, the Deputy 
Secretary of the Interior, or an Assistant Secretary of the 
Department of the Interior.

SEC. 2930. HUNTING, FISHING, AND TRAPPING.

    All hunting, fishing, and trapping on the lands withdrawn 
under this subtitle shall be conducted in accordance with 
section 2671 of title 10, United States Code.

SEC. 2931. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal 
leasing activity on lands withdrawn and reserved under this 
subtitle shall indemnify the United States against any costs, 
fees, damages, or other liabilities (including costs of 
litigation) incurred by the United States and arising from or 
relating to such mining activities, including costs of mineral 
materials disposal, whether arising under the Comprehensive 
Environmental Response Compensation and Liability Act of 1980, 
the Solid Waste Disposal Act, or otherwise.

               DIVISION C--DEPARTMENT OF ENERGY NATIONAL

            SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

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

    Subtitle C--Program Authorizations, Restrictions, and Limitations

Sec. 3131. Stockpile stewardship program.
Sec. 3132. Manufacturing infrastructure for nuclear weapons stockpile.
Sec. 3133. Tritium production.
Sec. 3134. Modernization and consolidation of tritium recycling 
          facilities.
Sec. 3135. Production of high explosives.
Sec. 3136. Limitation on use of funds for certain research and 
          development purposes.
Sec. 3137. Prohibition on funding nuclear weapons activities with 
          People's Republic of China.
Sec. 3138. International cooperative stockpile stewardship programs.
Sec. 3139. Temporary authority relating to transfers of defense 
          environmental management funds.
Sec. 3140. Management structure for nuclear weapons production 
          facilities and nuclear weapons laboratories.
Sec. 3141. Accelerated schedule for isolating high-level nuclear waste 
          at the defense waste processing facility, Savannah River Site.
Sec. 3142. Processing and treatment of high-level nuclear waste and 
          spent nuclear fuel rods.
Sec. 3143. Projects to accelerate closure activities at defense nuclear 
          facilities.
Sec. 3144. Payment of costs of operation and maintenance of 
          infrastructure at Nevada Test Site.

                        Subtitle D--Other Matters

Sec. 3151. Report on plutonium pit production and remanufacturing plans.
Sec. 3152. Amendments relating to baseline environmental management 
          reports.
Sec. 3153. Requirement to develop future use plans for environmental 
          management program.
Sec. 3154. Report on Department of Energy liability at Department 
          superfund sites.
Sec. 3155. Requirement for annual five-year budget for the national 
          security programs of the Department of Energy.
Sec. 3156. Requirements for Department of Energy weapons activities 
          budgets for fiscal years after fiscal year 1997.
Sec. 3157. Repeal of requirement relating to accounting procedures for 
          Department of Energy funds.
Sec. 3158. Update of report on nuclear test readiness postures.
Sec. 3159. Reports on critical difficulties at nuclear weapons 
          laboratories and nuclear weapons production plants.
Sec. 3160. Extension of applicability of notice-and-wait requirement 
          regarding proposed cooperation agreements.
Sec. 3161. Sense of Senate relating to redesignation of defense 
          environmental restoration and waste management program.
Sec. 3162. Commission on maintaining United States nuclear weapons 
          expertise.
Sec. 3163. Sense of Congress regarding reliability and safety of 
          remaining nuclear forces.
Sec. 3164. Study on worker protection at the Mound facility.
Sec. 3165. Fiscal year 1998 funding for Greenville Road Improvement 
          Project, Livermore, California.
Sec. 3166. Fellowship program for development of skills critical to 
          Department of Energy nuclear weapons complex.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

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

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

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

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) Stockpile Stewardship.--Subject to subsection (d), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for stockpile 
stewardship in carrying out weapons activities necessary for 
national security programs in the amount of $1,661,767,000, to 
be allocated as follows:
            (1) For core stockpile stewardship, $1,235,907,000, 
        to be allocated as follows:
                    (A) For operation and maintenance, 
                $1,147,570,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $88,337,000, to be allocated 
                as follows:
                            Project 96-D-102, stockpile 
                        stewardship facilities revitalization, 
                        Phase VI, various locations, 
                        $19,250,000.
                            Project 96-D-103, ATLAS, Los Alamos 
                        National Laboratory, Los Alamos, New 
                        Mexico, $15,100,000.
                            Project 96-D-104, processing and 
                        environmental technology laboratory 
                        (PETL), Sandia National Laboratories, 
                        Albuquerque, New Mexico, $14,100,000.
                            Project 96-D-105, contained firing 
                        facility addition, Lawrence Livermore 
                        National Laboratory, Livermore, 
                        California, $17,100,000.
                            Project 95-D-102, Chemical and 
                        Metallurgy Research Building upgrades 
                        project, Los Alamos National 
                        Laboratory, Los Alamos, New Mexico, 
                        $15,000,000.
                            Project 94-D-102, nuclear weapons 
                        research, development, and testing 
                        facilities revitalization, Phase V, 
                        various locations, $7,787,000.
            (2) For inertial fusion, $366,460,000, to be 
        allocated as follows:
                    (A) For operation and maintenance, 
                $234,560,000.
                    (B) For the following plant project 
                (including maintenance, restoration, planning, 
                construction, acquisition, and modification of 
                facilities, and land acquisition related 
                thereto), $131,900,000 to be allocated as 
                follows:
                            Project 96-D-111, national ignition 
                        facility, location to be determined, 
                        $131,900,000.
            (3) For technology transfer and education, 
        $59,400,000.
    (b) Stockpile Management.--Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for stockpile management in 
carrying out weapons activities necessary for national security 
programs in the amount of $1,962,831,000, to be allocated as 
follows:
            (1) For operation and maintenance, $1,868,470,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $94,361,000, to be 
        allocated as follows:
                    Project 97-D-121, consolidated pit 
                packaging system, Pantex Plant, Amarillo, 
                Texas, $870,000.
                    Project 97-D-122, nuclear materials storage 
                facility renovation, Los Alamos National 
                Laboratory, Los Alamos, New Mexico, $4,000,000.
                    Project 97-D-123, structural upgrades, 
                Kansas City Plant, Kansas City, Missouri, 
                $1,400,000.
                    Project 97-D-124, steam plant wastewater 
                treatment facility upgrade, Y-12 Plant, Oak 
                Ridge, Tennessee, $600,000.
                    Project 96-D-122, sewage treatment quality 
                upgrade (STQU), Pantex Plant, Amarillo, Texas, 
                $100,000.
                    Project 96-D-123, retrofit heating, 
                ventilation, and air conditioning and chillers 
                for ozone protection, Y-12 Plant, Oak Ridge, 
                Tennessee, $7,000,000.
                    Project 96-D-125, Washington measurements 
                operations facility, Andrews Air Force Base, 
                Camp Springs, Maryland, $3,825,000.
                    Project 95-D-122, sanitary sewer upgrade, 
                Y-12 Plant, Oak Ridge, Tennessee, $10,900,000.
                    Project 94-D-124, hydrogen fluoride supply 
                system, Y-12 Plant, Oak Ridge, Tennessee, 
                $4,900,000.
                    Project 94-D-125, upgrade life safety, 
                Kansas City Plant, Kansas City, Missouri, 
                $5,200,000.
                    Project 94-D-127, emergency notification 
                system, Pantex Plant, Amarillo, Texas, 
                $2,200,000.
                    Project 93-D-122, life safety upgrades, Y-
                12 Plant, Oak Ridge, Tennessee, $7,200,000.
                    Project 93-D-123, complex-21, various 
                locations, $14,487,000.
                    Project 88-D-122, facilities capability 
                assurance program, various locations, 
                $21,940,000.
                    Project 88-D-123, security enhancement, 
                Pantex Plant, Amarillo, Texas, $9,739,000.
    (c) Program Direction.--Subject to subsection (d), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for program direction in carrying 
out weapons activities necessary for national security programs 
in the amount of $313,404,000.
    (d) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in subsections (a) through (c) 
reduced by $20,000,000 for use of prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) Environmental Restoration.--Subject to subsection (j), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for environmental 
restoration in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $1,762,194,000, of which $376,648,000 shall be 
allocated to the uranium enrichment decontamination and 
decommissioning fund.
    (b) Waste Management.--Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for waste management in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$1,578,653,000, to be allocated as follows:
            (1) For operation and maintenance, $1,490,326,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $88,327,000, to be 
        allocated as follows:
                    Project 97-D-402, tank farm restoration and 
                safe operations, Richland, Washington, 
                $7,584,000.
                    Project 96-D-408, waste management 
                upgrades, various locations, $11,246,000.
                    Project 95-D-402, install permanent 
                electrical service, Waste Isolation Pilot 
                Plant, Carlsbad, New Mexico, $752,000.
                    Project 95-D-405, industrial landfill V and 
                construction/demolition landfill VII, Y-12 
                Plant, Oak Ridge, Tennessee, $200,000.
                    Project 94-D-404, Melton Valley storage 
                tank capacity increase, Oak Ridge National 
                Laboratory, Oak Ridge, Tennessee, $6,345,000.
                    Project 94-D-407, initial tank retrieval 
                systems, Richland, Washington, $12,600,000.
                    Project 93-D-182, replacement of cross-site 
                transfer system, Richland, Washington, 
                $8,100,000.
                    Project 93-D-187, high-level waste removal 
                from filled waste tanks, Savannah River Site, 
                Aiken, South Carolina, $20,000,000.
                    Project 89-D-174, replacement high-level 
                waste evaporator, Savannah River Site, Aiken, 
                South Carolina, $11,500,000.
                    Project 86-D-103, decontamination and waste 
                treatment facility, Lawrence Livermore National 
                Laboratory, Livermore, California, $10,000,000.
    (c) Nuclear Materials and Facilities Stabilization.--
Subject to subsection (j), funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1997 
for nuclear materials and facilities stabilization in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$1,291,290,000 to be allocated as follows:
            (1) For operation and maintenance, $1,173,718,000.
            (2) For plant projects (including maintenance, 
        restoration, planning, construction, acquisition, 
        modification of facilities, and the continuation of 
        projects authorized in prior years, and land 
        acquisition related thereto), $117,572,000, to be 
        allocated as follows:
                    Project 97-D-450, Actinide packaging and 
                storage facility, Savannah River Site, Aiken, 
                South Carolina, $7,900,000.
                    Project 97-D-451, B-Plant safety class 
                ventilation upgrades, Richland, Washington, 
                $1,500,000.
                    Project 97-D-470, environmental monitoring 
                laboratory, Savannah River Site, Aiken, South 
                Carolina, $2,500,000.
                    Project 97-D-473, health physics site 
                support facility, Savannah River Site, Aiken, 
                South Carolina, $2,000,000.
                    Project 96-D-406, spent nuclear fuels 
                canister storage and stabilization facility, 
                Richland, Washington, $60,672,000.
                    Project 96-D-461, electrical distribution 
                upgrade, Idaho National Engineering Laboratory, 
                Idaho, $6,790,000.
                    Project 96-D-464, electrical and utility 
                systems upgrade, Idaho Chemical Processing 
                Plant, Idaho National Engineering Laboratory, 
                Idaho, $10,440,000.
                    Project 96-D-471, chlorofluorocarbon 
                heating, ventilation, and air conditioning and 
                chiller retrofit, Savannah River Site, Aiken, 
                South Carolina, $8,541,000.
                    Project 95-E-600, hazardous materials 
                management and emergency response training 
                center, Richland, Washington, $7,900,000.
                    Project 95-D-155, upgrade site road 
                infrastructure, Savannah River Site, South 
                Carolina, $4,137,000.
                    Project 95-D-456, security facilities 
                consolidation, Idaho Chemical Processing Plant, 
                Idaho National Engineering Laboratory, Idaho, 
                $4,645,000.
                    Project 94-D-401, emergency response 
                facility, Idaho National Engineering 
                Laboratory, Idaho, $547,000.
    (d) Program Direction.--Subject to subsection (j), funds 
are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for program direction in carrying 
out environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$411,511,000.
    (e) Technology Development.--Subject to subsection (j), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for technology 
development in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $303,771,000.
    (f) Policy and Management.--Subject to subsection (j), 
funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for policy and 
management in carrying out environmental restoration and waste 
management activities necessary for national security programs 
in the amount of $23,155,000.
    (g) Environmental Science Program.--Subject to subsection 
(j), funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for the environmental 
science program in carrying out environmental restoration and 
waste management activities necessary for national security 
programs in the amount of $62,136,000.
    (h) Environmental Management Privatization.--Subject to 
subsection (j), funds are hereby authorized to be appropriated 
to the Department of Energy for fiscal year 1997 for 
environmental management privatization in carrying out 
environmental restoration and waste management activities 
necessary for national security programs in the amount of 
$185,000,000.
    (i) Closure Projects.--Subject to subsection (j), funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for closure projects selected under 
section 3143 in the amount of $50,000,000.
    (j) Adjustments.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in subsections (a) through (i) 
reduced by the sum of--
            (1) $150,400,000, for use of prior year balances; 
        and
            (2) $8,000,000, for Savannah River Pension Refund.

SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for the defense fixed 
asset acquisition/privatization program in the amount of 
$182,000,000.

SEC. 3104. OTHER DEFENSE ACTIVITIES.

    (a) In General.--Subject to subsection (b), funds are 
hereby authorized to be appropriated to the Department of 
Energy for fiscal year 1997 for other defense activities in 
carrying out programs necessary for national security in the 
amount of $1,590,231,000, to be allocated as follows:
            (1) For verification and control technology, 
        $456,348,000, to be allocated as follows:
                    (A) For nonproliferation and verification 
                research and development, $204,919,000.
                    (B) For arms control, $216,244,000.
                    (C) For intelligence, $35,185,000.
            (2) For nuclear safeguards and security, 
        $47,208,000.
            (3) For security investigations, $22,000,000.
            (4) For emergency management, $16,794,000.
            (5) For program direction, $88,122,000.
            (6) For international nuclear safety, $15,200,000.
            (7) For environment, safety, and health, defense, 
        $63,800,000.
            (8) For worker and community transition assistance, 
        $67,000,000.
            (9) For fissile materials disposition, $93,796,000, 
        to be allocated as follows:
                    (A) For operation and maintenance, 
                $76,796,000.
                    (B) For the following plant project 
                (including maintenance, restoration, planning, 
                construction, acquisition, and modification of 
                facilities, and land acquisition related 
                thereto):
                            Project 97-D-140, consolidated 
                        special nuclear materials storage 
                        facility, site to be determined, 
                        $17,000,000.
            (10) For nuclear security/Russian production 
        reactor shutdown, $6,000,000.
            (11) For naval reactors development, $681,932,000, 
        to be allocated as follows:
                    (A) For operation and infrastructure, 
                $649,330,000.
                    (B) For program direction, $18,902,000.
                    (C) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $13,700,000, to be allocated 
                as follows:
                            Project 97-D-201, advanced test 
                        reactor secondary coolant 
                        refurbishment, Idaho National 
                        Engineering Laboratory, Idaho, 
                        $400,000.
                            Project 95-D-200, laboratory 
                        systems and hot cell upgrades, various 
                        locations, $4,800,000.
                            Project 95-D-201, advanced test 
                        reactor radioactive waste system 
                        upgrades, Idaho National Engineering 
                        Laboratory, Idaho, $500,000.
                            Project 90-N-102, expended core 
                        facility dry cell project, Naval 
                        Reactors Facility, Idaho, $8,000,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in paragraphs (1) through (10) of 
subsection (a) reduced by $25,500,000 for use of prior year 
balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1997 for payment to the 
Nuclear Waste Fund established in section 302(c) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$200,000,000.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

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

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects 
authorized by this title if the total estimated cost of the 
construction project does not exceed $2,000,000.
    (b) Report to Congress.--If, at any time during the 
construction of any general plant project authorized by this 
title, the estimated cost of the project is revised because of 
unforeseen cost variations and the revised cost of the project 
exceeds $2,000,000, the Secretary shall immediately furnish a 
complete report to the congressional defense committees 
explaining the reasons for the cost variation.
    (c) Report on Permanent Authorization of Appropriations for 
General Plant Projects.--(1) Not later than February 1, 1997, 
the Secretary of Energy shall submit to the congressional 
defense committees a report on the desirability of a permanent 
authorization of appropriations for the defense general plant 
projects and civilian general plant projects of the Department 
of Energy.
    (2) If the Secretary determines for purposes of the report 
under paragraph (1) that a permanent authorization of 
appropriations is desirable, the report shall include--
            (A) recommendations for legislation to provide for 
        a permanent authorization of appropriations, including 
        a formula for adjusting for inflation the amount 
        authorized to be appropriated for the projects to be 
        covered by such authorization of appropriations; and
            (B) a description of the actions to be undertaken 
        by the Secretary to control costs with respect to such 
        projects, including any actions that may depend on the 
        size, nature, or scope of the project concerned.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

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

SEC. 3124. FUND TRANSFER AUTHORITY.

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

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

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

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

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

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

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

SEC. 3128. AVAILABILITY OF FUNDS.

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

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. STOCKPILE STEWARDSHIP PROGRAM.

    (a) Purpose.--The purpose of this section is to provide for 
the enhanced implementation of the Department of Energy 
stockpile stewardship and management program, in order to 
provide greater confidence in the safety and continuing 
reliability of the nuclear weapons stockpile.
    (b) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101, $85,000,000 
shall be available to enhance the Department's stockpile 
stewardship and management program for activities determined 
appropriate by the Secretary of Energy, including the 
following:
            (1) Enhanced surveillance of the nuclear weapons 
        stockpile.
            (2) Dual revalidation of the warheads in the 
        nuclear weapons stockpile.
            (3) Stockpile life extension programs.
            (4) Production capability assurance programs for 
        critical non-nuclear components.
            (5) Accelerating capability to produce prototype 
        war reserve-quality plutonium pits.
            (6) Conducting subcritical tests.
    (c) Report.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Energy shall submit to 
the congressional defense committees a report on the 
obligations the Secretary has incurred, and plans to incur, 
during fiscal year 1997 for the funds made available by 
subsection (b).

SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR WEAPONS STOCKPILE.

    (a) General Program Requirements.--Subsection (a) of 
section 3137 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 620; 42 U.S.C. 
2121 note) is amended--
            (1) by inserting ``(1)'' before ``The Secretary of 
        Energy'';
            (2) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively; and
            (3) by adding at the end the following:
    ``(2) The purpose of the program carried out under 
paragraph (1) shall also be to develop manufacturing 
capabilities and capacities necessary to meet the requirements 
specified in the annual Nuclear Weapons Stockpile Review.''.
    (b) Required Capabilities.--Subsection (b)(3) of such 
section is amended to read as follows:
            ``(3) The capabilities of the Savannah River Site 
        relating to tritium recycling and fissile materials 
        components processing and fabrication.''.
    (c) Plan and Report.--Not later than March 1, 1997, the 
Secretary of Energy shall submit to Congress a report 
containing a plan for carrying out the program established 
under section 3137(a) of the National Defense Authorization Act 
for Fiscal Year 1996, as amended by this section. The report 
shall set forth the obligations that the Secretary has 
incurred, and proposes to incur, during fiscal year 1997 in 
carrying out the program.
    (d) Funding.--Of the funds authorized to be appropriated 
pursuant to section 3101, $90,000,000 shall be available for 
carrying out the program established under section 3137(a) of 
the National Defense Authorization Act for Fiscal Year 1996, as 
so amended.

SEC. 3133. TRITIUM PRODUCTION.

    (a) Acceleration of Tritium Production.--(1) The Secretary 
of Energy shall, during fiscal year 1997, make a final decision 
on the technologies to be utilized, and the accelerated 
schedule to be adopted, for tritium production in order to meet 
the requirements of the Nuclear Weapons Stockpile Memorandum 
relating to tritium production, including the new tritium 
production date of 2005 specified in the Nuclear Weapons 
Stockpile Memorandum.
    (2) In making the final decision, the Secretary shall take 
into account the following:
            (A) The requirements for tritium production 
        specified in the Nuclear Weapons Stockpile Memorandum, 
        including, in particular, the requirements for the 
        ``upload hedge'' component of the nuclear weapons 
        stockpile.
            (B) The ongoing activities of the Department of 
        Energy relating to the evaluation and demonstration of 
        technologies under the accelerator reactor program and 
        the commercial light water reactor program.
    (b) Report.--(1) Not later than April 15, 1997, the 
Secretary shall submit to Congress a report that sets forth the 
final decision of the Secretary under subsection (a)(1). The 
report shall set forth in detail--
            (A) the technologies decided on under that 
        subsection; and
            (B) the accelerated schedule for the production of 
        tritium decided on under that subsection.
    (2) If the Secretary determines that it is not possible to 
make the final decision by the date specified in paragraph (1), 
the Secretary shall submit to Congress on that date a report 
that explains in detail why the final decision cannot be made 
by that date.
    (c) New Tritium Production Facility.--The Secretary shall 
commence planning and design activities and infrastructure 
development for a new tritium production facility.
    (d) In-Reactor Tests.--The Secretary may perform in-reactor 
tests of tritium target rods as part of the activities carried 
out under the commercial light water reactor program.
    (e) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101(b)(1), 
$160,000,000 shall be available for activities related to 
tritium production.

SEC. 3134. MODERNIZATION AND CONSOLIDATION OF TRITIUM RECYCLING 
                    FACILITIES.

    (a) In General.--The Secretary of Energy shall carry out 
activities at the Savannah River Site, South Carolina, to--
            (1) modernize and consolidate the facilities for 
        recycling tritium for weapons; and
            (2) provide a modern tritium extraction facility so 
        as to ensure that such facilities have a capacity to 
        recycle tritium from weapons that is adequate to meet 
        the requirements for tritium for weapons specified in 
        the Nuclear Weapons Stockpile Memorandum.
    (b) Funding.--Of the funds authorized to be appropriated to 
the Department of Energy pursuant to section 3101, not more 
than $9,000,000 shall be available for activities under 
subsection (a).

SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

    No funds appropriated or otherwise made available to the 
Department of Energy for fiscal year 1997 or any prior fiscal 
year may be used to move, or prepare to move, the manufacture 
and fabrication of high explosives and energetic materials for 
use as components in nuclear weapons systems from the Pantex 
Plant, Amarillo, Texas, to any other site or facility.

SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND 
                    DEVELOPMENT PURPOSES.

    (a) Limitation.--No funds authorized to be appropriated or 
otherwise made available to the Department of Energy for fiscal 
year 1997 under section 3101 may be obligated or expended for 
activities under the Department of Energy Laboratory Directed 
Research and Development Program, or under any Department of 
Energy technology transfer program or cooperative research and 
development agreement, unless such activities support the 
national security mission of the Department of Energy.
    (b) Annual Report.--(1) The Secretary of Energy shall 
annually submit to the congressional defense committees a 
report on the funds expended during the preceding fiscal year 
on activities under the Department of Energy Laboratory 
Directed Research and Development Program. The purpose of the 
report is to permit an assessment of the extent to which such 
activities support the national security mission of the 
Department of Energy.
    (2) Each report shall be prepared by the officials 
responsible for Federal oversight of the funds expended on 
activities under the program.
    (3) Each report shall set forth the criteria utilized by 
the officials preparing the report in determining whether or 
not the activities reviewed by such officials support the 
national security mission of the Department.

SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS ACTIVITIES WITH 
                    PEOPLE'S REPUBLIC OF CHINA.

    (a) Funding Prohibition.--No funds authorized to be 
appropriated or otherwise available to the Department of Energy 
for fiscal year 1997 may be obligated or expended for any 
activity associated with the conduct of cooperative programs 
relating to nuclear weapons or nuclear weapons technology, 
including stockpile stewardship, safety, and use control, with 
the People's Republic of China.
    (b) Report.--(1) The Secretary of Energy shall prepare, in 
consultation with the Secretary of Defense, a report containing 
a description of all discussions and activities between the 
United States and the People's Republic of China regarding 
nuclear weapons matters that have occurred before the date of 
the enactment of this Act and that are planned to occur after 
such date. For each such discussion or activity, the report 
shall include--
            (A) the authority under which the discussion or 
        activity took or will take place;
            (B) the subject of the discussion or activity;
            (C) participants or likely participants;
            (D) the source and amount of funds used or to be 
        used to pay for the discussion or activity; and
            (E) a description of the actions taken or to be 
        taken to ensure that no classified information or 
        unclassified controlled information was or will be 
        revealed, and a determination of whether classified 
        information or unclassified controlled information was 
        revealed in previous discussions.
    (2) The report shall be submitted to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives not later than January 15, 
1997.

SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP PROGRAMS.

    (a) Funding Prohibition.--No funds authorized to be 
appropriated or otherwise available to the Department of Energy 
for fiscal year 1997 may be obligated or expended to conduct 
any activities associated with international cooperative 
stockpile stewardship.
    (b) Exception.--Subsection (a) does not apply--
            (1) with respect to such activities conducted 
        between the United States and the United Kingdom and 
        between the United States and France; and
            (2) to activities carried out under title XV of 
        this Act (relating to cooperative threat reduction with 
        states of the former Soviet Union).

SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF DEFENSE 
                    ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of 
each field office of the Department of Energy with the 
authority to transfer defense environmental management funds 
from a program or project under the jurisdiction of the office 
to another such program or project. Any such transfer may be 
made only once in a fiscal year to or from a program or 
project, and the amount transferred to or from a program or 
project may not exceed $5,000,000 in a fiscal year.
    (b) Determination.--A transfer may not be carried out by a 
manager of a field office pursuant to the authority provided 
under subsection (a) unless the manager determines that such 
transfer is necessary to address a risk to health, safety, or 
the environment or to assure the most efficient use of defense 
environmental management funds at that field office.
    (c) Exemption From Reprogramming Requirements.--The 
requirements of section 3121 shall not apply to transfers of 
funds pursuant to subsection (a).
    (d) Notification.--The Secretary of Energy, acting through 
the Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to 
subsection (a) not later than 30 days after such a transfer 
occurs.
    (e) Limitation.--Funds transferred pursuant to subsection 
(a) may not be used for an item for which Congress has 
specifically denied funds or for a new program or project that 
has not been authorized by Congress.
    (f) Definitions.--In this section:
            (1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        any of the following:
                    (A) A project listed in subsection (b) or 
                (c) of section 3102 being carried out by the 
                office.
                    (B) A program referred to in subsection 
                (a), (b), (c), (e), (g), or (h) of section 3102 
                being carried out by the office.
                    (C) A project or program not described in 
                subparagraph (A) or (B) that is for 
                environmental restoration or waste management 
                activities necessary for national security 
                programs of the Department of Energy, that is 
                being carried out by the office, and for which 
                defense environmental management funds have 
                been authorized and appropriated before the 
                date of the enactment of this Act.
            (2) The term ``defense environmental management 
        funds'' means funds appropriated to the Department of 
        Energy pursuant to an authorization for carrying out 
        environmental restoration and waste management 
        activities necessary for national security programs.
    (g) Duration of Authority.--The authority provided under 
subsection (a) to a manager of a field office shall be in 
effect from the date of the enactment of this Act to September 
30, 1997.
    (h) Report.--Not later than September 1, 1997, the 
Secretary of Energy shall submit to the congressional defense 
committees a report on the effectiveness of the authority 
provided under subsection (a) in meeting an objective specified 
in subsection (b). The report shall include recommendations on 
whether the duration of the authority, as provided in 
subsection (g), should be extended.

SEC. 3140. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS PRODUCTION 
                    FACILITIES AND NUCLEAR WEAPONS LABORATORIES.

    (a) Limitation on Delegation of Authority.--(1) The 
Secretary of Energy, in carrying out national security 
programs, may delegate specific management and planning 
authority over matters relating to site operation of the 
facilities and laboratories covered by this section only to the 
Assistant Secretary of Energy for Defense Programs. Such 
Assistant Secretary may redelegate such authority only to 
managers of area offices of the Department of Energy located at 
such facilities and laboratories.
    (2) Nothing in this section may be construed as affecting 
the delegation by the Secretary of Energy of authority relating 
to reporting, management, and oversight of matters relating to 
the Department of Energy generally, or safety, environment, and 
health at such facilities and laboratories.
    (b) Requirement to Consult with Area Offices.--The 
Assistant Secretary of Energy for Defense Programs, in 
exercising any delegated authority to oversee management of 
matters relating to site operation of a facility or laboratory, 
shall exercise such authority only after direct consultation 
with the manager of the area office of the Department of Energy 
located at the facility or laboratory.
    (c) Requirement for Direct Communication from Area 
Offices.--The Secretary of Energy, acting through the Assistant 
Secretary of Energy for Defense Programs, shall require the 
head of each area office of the Department of Energy located at 
each facility and laboratory covered by this section to report 
on matters relating to site operation other than those matters 
set forth in subsection (a)(2) directly to the Assistant 
Secretary of Energy for Defense Programs, without obtaining the 
approval or concurrence of any other official within the 
Department of Energy.
    (d) Defense Programs Reorganization Plan and Report.--(1) 
The Secretary of Energy shall develop a plan to reorganize the 
field activities and management of the national security 
functions of the Department of Energy.
    (2) Not later than 120 days after the date of the enactment 
of this Act, the Secretary shall submit to Congress a report on 
the plan developed under paragraph (1). The report shall 
specifically identify all significant functions performed by 
the operations offices relating to any of the facilities and 
laboratories covered by this section and which of those 
functions could be performed--
            (A) by the area offices of the Department of Energy 
        located at the facilities and laboratories covered by 
        this section; or
            (B) by the Assistant Secretary of Energy for 
        Defense Programs.
    (3) The report also shall address and make recommendations 
with respect to other internal streamlining and reorganization 
initiatives that the Department could pursue with respect to 
military or national security programs.
    (e) Defense Programs Management Council.--The Secretary of 
Energy shall establish a council to be known as the ``Defense 
Programs Management Council''. The Council shall advise the 
Secretary on policy matters, operational concerns, strategic 
planning, and development of priorities relating to the 
national security functions of the Department of Energy. The 
Council shall be composed of the directors of the facilities 
and laboratories covered by this section and shall report 
directly to the Assistant Secretary of Energy for Defense 
Programs.
    (f) Covered Site Operations.--For purposes of this section, 
matters relating to site operation of a facility or laboratory 
include matters relating to personnel, budget, and procurement 
in national security programs.
    (g) Covered Facilities and Laboratories.--This section 
applies to the following facilities and laboratories of the 
Department of Energy:
            (1) The Kansas City Plant, Kansas City, Missouri.
            (2) The Pantex Plant, Amarillo, Texas.
            (3) The Y-12 Plant, Oak Ridge, Tennessee.
            (4) The Savannah River Site, Aiken, South Carolina.
            (5) Los Alamos National Laboratory, Los Alamos, New 
        Mexico.
            (6) Sandia National Laboratories, Albuquerque, New 
        Mexico.
            (7) Lawrence Livermore National Laboratory, 
        Livermore, California.
            (8) The Nevada Test Site, Nevada.

SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL NUCLEAR WASTE 
                    AT THE DEFENSE WASTE PROCESSING FACILITY, SAVANNAH 
                    RIVER SITE.

    The Secretary of Energy shall accelerate the schedule for 
the isolation of high-level nuclear waste in glass canisters at 
the Defense Waste Processing Facility at the Savannah River 
Site, South Carolina, if the Secretary determines that the 
acceleration of such schedule--
            (1) will achieve long-term cost savings to the 
        Federal Government; and
            (2) could accelerate the removal and isolation of 
        high-level nuclear waste from long-term storage tanks 
        at the site.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE AND 
                    SPENT NUCLEAR FUEL RODS.

    (a) In General.--(1) In order to provide for an effective 
response to requirements for managing the spent nuclear fuel 
described in paragraph (2), there shall be available to the 
Secretary of Energy, from amounts authorized to be appropriated 
pursuant to section 3102(c), the following amounts for the 
purposes stated:
            (A) Not more than $43,000,000 for the development 
        and implementation of a program to accelerate the 
        receipt, processing (including the H-canyon restart 
        operations), reprocessing, separation, reduction, 
        deactivation, stabilization, isolation, and interim 
        storage of high-level nuclear waste associated with 
        Department of Energy aluminum clad spent fuel rods, 
        foreign spent fuel rods, and other nuclear materials.
            (B) Not more than $15,000,000 for the development 
        and implementation of a program for the receipt, 
        treatment, preparation, conditioning, interim storage, 
        and final disposition of high-level nuclear waste and 
        spent nuclear fuel (including naval spent nuclear 
        fuel), non-aluminum clad fuel rods, and foreign fuel 
        rods.
    (2) The spent nuclear fuel referred to in paragraph (1) is 
the following:
            (A) Spent nuclear fuel that is sent to Department 
        of Energy consolidation sites pursuant to the 
        Department of Energy Programmatic Spent Nuclear Fuel 
        Management and Idaho National Engineering Laboratory 
        Environmental Restoration and Waste Management Programs 
        Final Environmental Impact Statement, dated April 1995.
            (B) Spent nuclear fuel described in the Interim 
        Management of Nuclear Materials Environmental Impact 
        Statement, dated October 1995.
            (C) Other spent nuclear fuel located at the 
        Savannah River Site as of the date of the enactment of 
        this Act.
    (3) The amounts made available under paragraph (1) are in 
addition to other amounts authorized to be appropriated by 
section 3102(c) for the purposes stated in subparagraphs (A) 
and (B) of that paragraph.
    (b) Use of Funds for Settlement Agreement.--Funds made 
available pursuant to subsection (a)(1)(B) for the Idaho 
National Engineering Laboratory shall be considered to be funds 
made available in partial fulfillment of the terms and 
obligations set forth in the settlement agreement entered into 
by the United States with the State of Idaho in the actions 
captioned Public Service Co. of Colorado v. Batt, Civil No. 91-
0035-S-EJL, and United States v. Batt, Civil No. 91-0054-S-EJL, 
in the United States District Court for the District of Idaho 
and the consent order of the United States District Court for 
the District of Idaho, dated October 17, 1995, that effectuates 
the settlement agreement.
    (c) Amendments to Implementation Plan for Managing Spent 
Nuclear Fuel at Certain Sites.--Section 3142(b) of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 622) is amended--
            (1) by striking out ``April 30, 1996'' and 
        inserting in lieu thereof ``September 30, 1996'';
            (2) by striking out ``and'' at the end of paragraph 
        (3);
            (3) by striking out the period at the end of 
        paragraph (4) and inserting in lieu thereof ``; and''; 
        and
            (4) by adding at the end the following new 
        paragraph:
            ``(5) an assessment of the progress made in 
        implementing the programs.''.
    (d) Near-Term Plan for Processing Spent Fuel Rods at 
Savannah River Site.--(1) Not later than March 15, 1997, the 
Secretary of Energy shall submit to Congress a plan for a near-
term program to process, treat, package, and dispose of spent 
nuclear fuel rods described in paragraph (2) at the Savannah 
River Site. The plan shall include cost projections and 
resource requirements for the program and identify program 
milestones for the program.
    (2) The spent nuclear fuel rods to be included in the 
program referred to in paragraph (1) are the following:
            (A) Spent nuclear fuel rods produced at the 
        Savannah River Site.
            (B) Spent nuclear fuel rods being sent to the site 
        from other Department of Energy facilities for 
        processing, interim storage, and other treatment.
            (C) Foreign spent nuclear fuel rods being sent to 
        the site for processing, interim storage, and other 
        treatment.
    (e) Multi-Year Plan for Clean-Up at Savannah River Site.--
The Secretary shall develop and implement a multi-year plan for 
the clean-up of nuclear waste at the Savannah River Site that 
results, or has resulted, from the following:
            (1) Nuclear weapons activities carried out at the 
        site.
            (2) The processing, treating, packaging, and 
        disposal of Department of Energy domestic and foreign 
        spent nuclear fuel rods at the site.
    (f) Requirement for Continuing Operations at Savannah River 
Site.--The Secretary shall continue operations and maintain a 
high state of readiness at the H-canyon facility and the F-
canyon facility at the Savannah River Site, and shall provide 
technical staff necessary to operate and so maintain such 
facilities, pending the development and implementation of the 
plan referred to in subsection (e).

SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT DEFENSE NUCLEAR 
                    FACILITIES.

    (a) In General.--The Secretary of Energy shall select and 
carry out closure-acceleration projects in accordance with this 
section.
    (b) Purpose.--The purpose of a closure-acceleration project 
shall be, within a fixed period of time, to clean up or 
decommission a Department of Energy defense nuclear facility or 
portion thereof and to make the facility safe by stabilizing, 
consolidating, treating, or removing nuclear materials from the 
facility in order to reduce significantly or eliminate future 
costs at the facility.
    (c) Eligible Projects.--(1) The Secretary of Energy may 
establish a closure-acceleration project as eligible for 
selection under subsection (e) by--
            (A) developing a plan for the project that meets 
        the criteria under paragraph (2); and
            (B) determining that the project will achieve 
        significant long-term cost savings to the Federal 
        Government from the baseline cost estimate made by the 
        Department of Energy for the project.
    (2) A plan for a closure-acceleration project under this 
section shall--
            (A) define a clear, delineated scope of work for 
        completion of the project;
            (B) demonstrate that, with respect to the site of 
        the proposed project, there is a regulatory agreement 
        between the Department of Energy and other appropriate 
        authorities for the implementation of environmental 
        remediation requirements that would allow for 
        successful completion of the project;
            (C) demonstrate, to the maximum extent possible, 
        the support of State and local elected officials and 
        the public for the project;
            (D) contain performance-based provisions to be 
        included in the contract for the project, including--
                    (i) clearly stated and results-oriented 
                performance criteria and measures;
                    (ii) appropriate incentives for the 
                contractor to meet and exceed the performance 
                criteria effectively and efficiently;
                    (iii) appropriate criteria and incentives 
                for the contractor to seek and engage 
                subcontractors who may more effectively and 
                efficiently perform either unique and 
                technologically challenging tasks or routine 
                and interchangeable services;
                    (iv) specific incentives for cost savings;
                    (v) financial accountability; and
                    (vi) when appropriate, reduction of fee for 
                failure to meet minimum performance criteria 
                and standards;
            (E) demonstrate that the project will use new and 
        innovative cleanup and waste management technology with 
        potential for application to other locations and 
        facilities without requiring the development of new 
        technologies; and
            (F) demonstrate that the project can be completed 
        within 10 years from the date of its selection.
    (d) Program Administration.--The Secretary of Energy, 
acting through the Assistant Secretary for Environmental 
Management, shall implement a program to carry out the 
provisions of this section.
    (e) Selection of Projects.--(1) The Secretary of Energy 
shall select closure-acceleration projects to be carried out 
under this section from among those projects established as 
eligible under subsection (c) that will result in the most 
significant long-term costs savings to the Government and the 
most significant reduction of imminent risk.
    (2) For each project selected, the Secretary shall submit 
to Congress a report setting forth the reasons why the project 
was selected, based on the criteria under subsection (c)(2) and 
paragraph (1) of this subsection.
    (f) Multiyear Contracts.--Notwithstanding section 304B(d) 
of the Federal Property and Administrative Services Act of 1949 
(41 U.S.C. 254c(d)), the Secretary of Energy may enter into 
multiyear contracts to carry out projects selected under this 
section for up to 10 program years.
    (g) Funding.--(1) In the budget submitted to Congress under 
section 1105(a) of title 31, United States Code, each year, the 
President shall set forth funds for carrying out closure-
acceleration projects under this section as a separate item in 
the environmental restoration and waste management account of 
the Department of Energy budget.
    (2) Funds appropriated for purposes of carrying out 
projects under this section shall remain available until 
expended.
    (3) If a closure-acceleration project is being carried out 
at a defense nuclear facility with funds appropriated for such 
projects, the Secretary of Energy may not reduce the funds 
otherwise allocated to that defense nuclear facility for 
environmental restoration and waste management by reason of the 
funds being used for the project at that facility.
    (4) Funds appropriated for purposes of carrying out 
projects under this section may not be used for an item for 
which Congress has specifically denied funds or for a new 
program or project that has not been authorized by Congress.
    (h) Annual Report.--The Secretary of Energy shall submit 
each year to Congress a report on the status of each closure-
acceleration project being carried out under this section. The 
report shall include, for each such project, the following:
            (1) A description of the funding already provided 
        for the project.
            (2) A description of the extent of the cleanup, 
        decommissioning, stabilization, consolidation, 
        treatment, or removal activities completed.
            (3) A comparison of the actual results of the 
        project to the original proposal and the actual cost of 
        the project to the originally proposed cost.
            (4) A description of the funding needed in future 
        fiscal years for completion of the project.
    (i) Duration of Program.--No closure-acceleration project 
selected under this section may be carried out after the 
expiration of the 15-year period beginning on the date of the 
enactment of this Act.
    (j) Savings Provision.--Nothing in this section may be 
construed to affect statutory requirements for an environmental 
restoration or waste management activity or project or to 
modify or otherwise affect applicable statutory or regulatory 
environmental restoration and waste management requirements, 
including substantive standards intended to protect public 
health and the environment, nor shall anything in this section 
be construed to preempt or impair any local land use planning 
or zoning authority or State authority.

SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF 
                    INFRASTRUCTURE AT NEVADA TEST SITE.

    Notwithstanding any other provision of law and effective as 
of September 30, 1996, the costs associated with operating and 
maintaining the infrastructure at the Nevada Test Site, Nevada, 
with respect to any activities initiated at the site after that 
date by the Department of Defense pursuant to a work-for-others 
agreement may be paid for from funds authorized to be 
appropriated to the Department of Energy for activities at the 
Nevada Test Site.

                       Subtitle D--Other Matters

SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND REMANUFACTURING 
                    PLANS.

    (a) Report Requirement.--The Secretary of Energy shall 
submit to the congressional defense committees a report on 
plans for achieving the capability to produce and remanufacture 
plutonium pits. The report shall include a description of the 
baseline plan of the Department of Energy for achieving such 
capability, including the following:
            (1) The funding necessary, by fiscal year, to 
        achieve the capability.
            (2) The schedule necessary to achieve the 
        capability, including important technical and 
        programmatic milestones.
            (3) Siting, capacity for expansion, and other 
        issues included in the baseline plan.
    (b) Deadline.--The report required by subsection (a) shall 
be submitted not later than 60 days after the date of the 
enactment of this Act.

SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL MANAGEMENT 
                    REPORTS.

    Section 3153 of the National Defense Authorization Act for 
Fiscal Year 1994 (42 U.S.C. 7274k) is amended--
            (1) in subsection (b)--
                    (A) by striking out the first word in the 
                heading and inserting in lieu thereof 
                ``Biennial''; and
                    (B) in paragraph (2)(B), by inserting 
                before ``year after 1995'' the following: 
                ``odd-numbered''; and
            (2) in subsection (d)--
                    (A) by striking out the first word in the 
                heading and inserting in lieu thereof 
                ``Biennial'';
                    (B) in paragraph (1)(B), by striking out 
                ``in each year thereafter'' and inserting in 
                lieu thereof ``in each odd-numbered year 
                thereafter''; and
                    (C) in paragraph (2)(A)--
                            (i) in the matter preceding clause 
                        (i), by striking out ``fiscal year 
                        immediately'' and inserting in lieu 
                        thereof ``two fiscal years 
                        immediately''; and
                            (ii) in clause (ii), by striking 
                        out ``prior fiscal year'' and inserting 
                        in lieu thereof ``prior fiscal years''.

SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR ENVIRONMENTAL 
                    MANAGEMENT PROGRAM.

    (a) Authority To Develop Future Use Plans.--The Secretary 
of Energy may develop future use plans for any defense nuclear 
facility at which environmental restoration and waste 
management activities are occurring.
    (b) Requirement To Develop Future Use Plans.--The Secretary 
shall develop a future use plan for each of the following 
defense nuclear facilities:
            (1) Hanford Site, Richland, Washington.
            (2) Rocky Flats Plant, Golden, Colorado.
            (3) Savannah River Site, Aiken, South Carolina.
            (4) Idaho National Engineering Laboratory, Idaho.
    (c) Citizen Advisory Board.--(1) At each defense nuclear 
facility for which the Secretary of Energy intends or is 
required to develop a future use plan under this section and 
for which no citizen advisory board has been established, the 
Secretary shall establish a citizen advisory board.
    (2) The Secretary may authorize the manager of a defense 
nuclear facility for which a future use plan is developed under 
this section (or, if there is no such manager, an appropriate 
official of the Department of Energy designated by the 
Secretary) to pay routine administrative expenses of a citizen 
advisory board established for that facility. Such payments 
shall be made from funds available to the Secretary for program 
direction in carrying out environmental restoration and waste 
management activities necessary for national security programs.
    (d) Requirement To Consult With Citizen Advisory Board.--In 
developing a future use plan under this section with respect to 
a defense nuclear facility, the Secretary of Energy shall 
consult with a citizen advisory board established pursuant to 
subsection (c) or a similar advisory board already in existence 
as of the date of the enactment of this Act for such facility, 
affected local governments (including any local future use 
redevelopment authorities), and other appropriate State 
agencies.
    (e) 50-Year Planning Period.--A future use plan developed 
under this section shall cover a period of at least 50 years.
    (f) Deadlines.--For each facility listed in subsection (b), 
the Secretary of Energy shall develop a draft future use plan 
by October 1, 1997, and a final future use plan by March 15, 
1998.
    (g) Report.--Not later than 60 days after completing 
development of a final plan for a site listed in subsection 
(b), the Secretary of Energy shall submit to Congress a report 
on the plan. The report shall describe the plan and contain 
such findings and recommendations with respect to the site as 
the Secretary considers appropriate.
    (h)  Savings Provisions.--(1) Nothing in this section, or 
in a future use plan developed under this section with respect 
to a defense nuclear facility, shall be construed as requiring 
any modification to a future use plan with respect to a defense 
nuclear facility that was developed before the date of the 
enactment of this Act.
    (2) Nothing in this section may be construed to affect 
statutory requirements for an environmental restoration or 
waste management activity or project or to modify or otherwise 
affect applicable statutory or regulatory environmental 
restoration and waste management requirements, including 
substantive standards intended to protect public health and the 
environment, nor shall anything in this section be construed to 
preempt or impair any local land use planning or zoning 
authority or State authority.

SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT DEPARTMENT 
                    SUPERFUND SITES.

    (a) Study.--The Secretary of Energy shall, using funds 
authorized to be appropriated to the Department of Energy by 
section 3102, carry out a study to determine the extent and 
valuation of the injury to, destruction of, or loss of natural 
resources under section 107(a)(4)(C) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980 
(42 U.S.C. 9607(a)(4)(C)) at each site controlled or operated 
by the Department that is or is anticipated to become subject 
to the provisions of that Act.
    (b) Conduct of Study.--(1) The Secretary shall carry out 
the study using personnel of the Department or by contract with 
an appropriate private entity.
    (2) In determining the extent and valuation of the injury 
to, destruction of, or loss of natural resources for purposes 
of the study, the Secretary shall--
            (A) treat the Department as a private person liable 
        for response, removal, and remediation costs and 
        damages under section 107(a)(4) of that Act (42 U.S.C. 
        9607(a)(4)) and subject to an action for damages by 
        public trustees of natural resources under section 
        107(f) of that Act (42 U.S.C. 9607(f)) or by any other 
        person pursuant to section 107(e) or 113(f) of that Act 
        (42 U.S.C. 9607(e) and 9613(f)); and
            (B) determine the value of natural resource damages 
        associated with each site in accordance with all 
        regulations promulgated under section 301(c) of that 
        Act (42 U.S.C. 9651(c)).
    (c) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall submit a report on 
the study carried out under subsection (a) to the following 
committees:
            (1) The Committees on Environment and Public Works, 
        Armed Services, and Energy and Natural Resources of the 
        Senate.
            (2) The Committees on Commerce, National Security, 
        Transportation and Infrastructure, and Resources of the 
        House of Representatives.

SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE NATIONAL 
                    SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.

    (a) Requirement.--The Secretary of Energy shall prepare 
each year a budget for the national security programs of the 
Department of Energy for the five-year period beginning in the 
year the budget is prepared. Each budget shall contain the 
estimated expenditures and proposed appropriations necessary to 
support the programs, projects, and activities of the national 
security programs during the five-year period covered by the 
budget and shall be at a level of detail comparable to that 
contained in the budget submitted by the President to Congress 
under section 1105 of title 31, United States Code.
    (b) Submittal.--The Secretary shall submit each year to the 
congressional defense committees the budget required under 
subsection (a) in that year at the same time as the President 
submits to Congress the budget for the coming fiscal year 
pursuant to such section 1105.

SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS ACTIVITIES 
                    BUDGETS FOR FISCAL YEARS AFTER FISCAL YEAR 1997.

    (a) In General.--The weapons activities budget of the 
Department of Energy for any fiscal year after fiscal year 1997 
shall--
            (1) set forth with respect to each of the 
        activities under the budget (including stockpile 
        stewardship, stockpile management, and program 
        direction) the funding requested to carry out each 
        project or activity that is necessary to meet the 
        requirements of the Nuclear Weapons Stockpile 
        Memorandum; and
            (2) identify specific infrastructure requirements 
        arising from the Nuclear Posture Review, the Nuclear 
        Weapons Stockpile Memorandum, and the programmatic and 
        technical requirements associated with the review and 
        memorandum.
    (b) Required Detail.--The Secretary of Energy shall include 
in the materials that the Secretary submits to Congress in 
support of the budget for any fiscal year after fiscal year 
1997 that is submitted by the President pursuant to section 
1105 of title 31, United States Code, the following:
            (1) A long-term program plan, and a near-term 
        program plan, for the certification and stewardship of 
        the nuclear weapons stockpile.
            (2) An assessment of the effects of the plans 
        referred to in paragraph (1) on each nuclear weapons 
        laboratory and each nuclear weapons production plant.
    (c) Definitions.--In this section:
            (1) The term ``Nuclear Posture Review'' means the 
        Department of Defense Nuclear Posture Review as 
        contained in the report of the Secretary of Defense to 
        the President and Congress dated February 19, 1995, or 
        in subsequent such reports.
            (2) The term ``nuclear weapons laboratory'' means 
        the following:
                    (A) Lawrence Livermore National Laboratory, 
                California.
                    (B) Los Alamos National Laboratory, New 
                Mexico.
                    (C) Sandia National Laboratories.
            (3) The term ``nuclear weapons production plant'' 
        means the following:
                    (A) The Pantex Plant, Texas.
                    (B) The Savannah River Site, South 
                Carolina.
                    (C) The Kansas City Plant, Missouri.
                    (D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING PROCEDURES FOR 
                    DEPARTMENT OF ENERGY FUNDS.

    Section 3151 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3089) is 
repealed.

SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS POSTURES.

    Not later than June 1, 1997, the Secretary of Energy shall 
submit to Congress a report which updates the report submitted 
by the Secretary under section 3152 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 
Stat. 623). The updated report shall include the matters 
specified under such section, current as of the date of the 
updated report.

SEC. 3159. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR WEAPONS 
                    LABORATORIES AND NUCLEAR WEAPONS PRODUCTION PLANTS.

    (a) Reports by Heads of Laboratories and Plants.--In the 
event of a difficulty at a nuclear weapons laboratory or a 
nuclear weapons production plant that has a significant bearing 
on confidence in the safety or reliability of a nuclear weapon 
or nuclear weapon type, the head of the laboratory or plant, as 
the case may be, shall submit to the Assistant Secretary of 
Energy for Defense Programs a report on the difficulty. The 
head of the laboratory or plant shall submit the report as soon 
as practicable after discovery of the difficulty.
    (b) Transmittal by Assistant Secretary.--As soon as 
practicable after receipt of a report under subsection (a), the 
Assistant Secretary shall transmit the report (together with 
the comments of the Assistant Secretary) to the congressional 
defense committees and to the Secretary of Energy and the 
Secretary of Defense.
    (c) Reports by Nuclear Weapons Council.--Section 179 of 
title 10, United States Code, is amended--
            (1) by redesignating subsection (e) as subsection 
        (f); and
            (2) by inserting after subsection (d) the following 
        new subsection (e):
    ``(e) In addition to the responsibilities set forth in 
subsection (d), the Council shall also submit to Congress a 
report on any analysis conducted by the Council with respect to 
difficulties at nuclear weapons laboratories or nuclear weapons 
production plants that have significant bearing on confidence 
in the safety or reliability of nuclear weapons or nuclear 
weapon types.''.
    (d) Definitions.--In this section:
            (1) The term ``nuclear weapons laboratory'' means 
        the following:
                    (A) Lawrence Livermore National Laboratory, 
                California.
                    (B) Los Alamos National Laboratory, New 
                Mexico.
                    (C) Sandia National Laboratories.
            (2) The term ``nuclear weapons production plant'' 
        means the following:
                    (A) The Pantex Plant, Texas.
                    (B) The Savannah River Site, South 
                Carolina.
                    (C) The Kansas City Plant, Missouri.
                    (D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT REQUIREMENT 
                    REGARDING PROPOSED COOPERATION AGREEMENTS.

    Section 3155(b) of the National Defense Authorization Act 
for Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by 
striking out ``October 1, 1996'' and inserting in lieu thereof 
``October 1, 1997''.

SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF DEFENSE 
                    ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT 
                    PROGRAM.

    (a) Sense of Senate.--It is the sense of the Senate that 
the program of the Department of Energy known as the Defense 
Environmental Restoration and Waste Management Program, and 
also known as the Environmental Management Program, be 
redesignated as the Defense Nuclear Waste Management Program of 
the Department of Energy.
    (b) Report on Redesignation.--Not later than January 31, 
1997, the Secretary of Energy shall submit to the congressional 
defense committees a report on the costs and other 
difficulties, if any, associated with the following:
            (1) The redesignation of the program known as the 
        Defense Environmental Restoration and Waste Management 
        Program, and also known as the Environmental Management 
        Program, as the Defense Nuclear Waste Management 
        Program of the Department of Energy.
            (2) The redesignation of the Defense Environmental 
        Restoration and Waste Management Account as the Defense 
        Nuclear Waste Management Account.

SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR WEAPONS 
                    EXPERTISE.

    (a) Establishment.--There is hereby established a 
commission to be known as the ``Commission on Maintaining 
United States Nuclear Weapons Expertise'' (in this section 
referred to as the ``Commission'').
    (b) Organizational Matters.--(1)(A) The Commission shall be 
composed of eight members appointed from among individuals in 
the public and private sectors who have significant experience 
in matters relating to nuclear weapons, as follows:
            (i) Two shall be appointed by the majority leader 
        of the Senate (in consultation with the minority leader 
        of the Senate).
            (ii) One shall be appointed by the minority leader 
        of the Senate (in consultation with the majority leader 
        of the Senate).
            (iii) Two shall be appointed by the Speaker of the 
        House of Representatives (in consultation with the 
        minority leader of the House of Representatives).
            (iv) One shall be appointed by the minority leader 
        of the House of Representatives (in consultation with 
        the Speaker of the House of Representatives).
            (v) Two shall be appointed by the Secretary of 
        Energy.
    (B) Members shall be appointed for the life of the 
Commission. Any vacancy in the Commission shall not affect its 
powers, but shall be filled in the same manner as the original 
appointment.
    (C) The chairman of the Commission shall be designated from 
among the members of the Commission appointed under 
subparagraph (A) by the majority leader of the Senate, in 
consultation with the Speaker of the House of Representatives, 
the minority leader of the Senate, and the minority leader of 
the House of Representatives.
    (D) Members shall be appointed not later than 60 days after 
the date of the enactment of this Act.
    (2) The members of the Commission shall establish 
procedures for the activities of the Commission, including 
procedures for calling meetings, requirements for quorums, and 
the manner of taking votes.
    (c) Duties.--(1) The Commission shall develop a plan for 
recruiting and retaining within the Department of Energy 
nuclear weapons complex such scientific, engineering, and 
technical personnel as the Commission determines appropriate in 
order to permit the Department to maintain over the long term a 
safe and reliable nuclear weapons stockpile without engaging in 
underground testing.
    (2) In developing the plan, the Commission shall--
            (A) identify actions that the Secretary may 
        undertake to attract qualified scientific, engineering, 
        and technical personnel to the nuclear weapons complex 
        of the Department; and
            (B) review and recommend improvements to the on-
        going efforts of the Department to attract such 
        personnel to the nuclear weapons complex.
    (d) Report.--Not later than March 15, 1998, the Commission 
shall submit to the Secretary and to Congress a report 
containing the plan developed under subsection (c). The report 
may include recommendations for legislation and administrative 
action.
    (e) Commission Personnel Matters.--(1) Each member of the 
Commission who is not an officer or employee of the Federal 
Government shall be compensated at a rate equal to the daily 
equivalent of the annual rate of basic pay prescribed for level 
IV of the Executive Schedule under section 5315 of title 5, 
United States Code, for each day (including travel time) during 
which such member is engaged in the performance of the duties 
of the Commission. All members of the Commission who are 
officers or employees of the United States shall serve without 
compensation in addition to that received for their services as 
officers or employees of the United States.
    (2) The members of the Commission shall be allowed travel 
expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Commission.
    (3) The Commission may, without regard to the civil service 
laws and regulations, appoint and terminate such personnel as 
may be necessary to enable the Commission to perform its 
duties. The Commission may fix the compensation of the 
personnel of the Commission without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and 
General Schedule pay rates.
    (4) Any Federal Government employee may be detailed to the 
Commission without reimbursement, and such detail shall be 
without interruption or loss of civil service status or 
privilege.
    (f) Termination.--The Commission shall terminate 30 days 
after the date on which the Commission submits its report under 
subsection (d).
    (g) Applicability of FACA.--The provisions of the Federal 
Advisory Committee Act (5 U.S.C. App.) shall not apply to the 
activities of the Commission.
    (h) Funding.--Of the amounts authorized to be appropriated 
pursuant to section 3101, not more than $1,000,000 shall be 
available for the activities of the Commission under this 
section. Funds made available to the Commission under this 
section shall remain available until expended.

SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND SAFETY OF 
                    REMAINING NUCLEAR FORCES.

    (a) Findings.--Congress makes the following findings:
            (1) The United States is committed to proceeding 
        with a robust, science-based stockpile stewardship 
        program with respect to production of nuclear weapons, 
        and to maintaining nuclear weapons production 
        capabilities and capacities, that are adequate--
                    (A) to ensure the safety, reliability, and 
                performance of the United States nuclear 
                arsenal; and
                    (B) to meet such changing national security 
                requirements as may result from international 
                developments or technical problems with nuclear 
                warheads.
            (2) The United States is committed to 
        reestablishing and maintaining production facilities 
        for nuclear weapons components at levels that are 
        sufficient--
                    (A) to satisfy requirements for the safety, 
                reliability, and performance of United States 
                nuclear weapons; and
                    (B) to demonstrate and sustain production 
                capabilities and capacities.
            (3) The United States is committed to maintaining 
        the nuclear weapons laboratories and protecting core 
        nuclear weapons competencies.
            (4) The United States is committed to ensuring 
        rapid access to a new production source of tritium 
        within the next decade, as it currently has no 
        meaningful capability to produce tritium, a component 
        that is essential to the performance of modern nuclear 
        weapons.
            (5) The United States reserves the right, 
        consistent with United States law, to resume 
        underground nuclear testing to maintain confidence in 
        the United States stockpile of nuclear weapons if 
        warhead design flaws or aging of nuclear weapons result 
        in problems that a robust stockpile stewardship program 
        cannot solve.
            (6) The United States is committed to funding the 
        Nevada Test Site at a level that maintains the ability 
        of the United States to resume underground nuclear 
        testing within one year after a national decision to do 
        so is made.
            (7) The United States reserves the right to invoke 
        the supreme national interest of the United States and 
        withdraw from any future arms control agreement to 
        limit underground nuclear testing.
    (b) Sense of Congress Regarding Presidential Consultation 
With Congress.--It is the sense of Congress that the President 
should consult closely with Congress regarding United States 
policy and practices to ensure confidence in the safety, 
reliability, and performance of the nuclear stockpile of the 
United States.
    (c) Sense of Congress Regarding Notification and 
Consultation.--It is the sense of Congress that, upon a 
determination by the President that a problem with the safety, 
reliability, or performance of the nuclear stockpile has 
occurred and that the problem cannot be corrected within the 
stockpile stewardship program, the President shall--
            (1) immediately notify Congress of the problem; and
            (2) submit to Congress in a timely manner a plan 
        for corrective action with respect to the problem, 
        including--
                    (A) a technical description of the 
                activities required under the plan; and
                    (B) if underground testing of nuclear 
                weapons would assist in such corrective action, 
                an assessment of the advisability of 
                withdrawing from any treaty that prohibits 
                underground testing of nuclear weapons.

SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACILITY.

    (a) Report.--Not later than March 15, 1997, the Secretary 
of Energy shall submit to the congressional defense committees 
a report regarding the status of projects and programs to 
improve worker safety and health at the Mound Facility in 
Miamisburg, Ohio.
    (b) Matters Covered.--The report shall include the 
following:
            (1) The status of actions completed in fiscal year 
        1996.
            (2) The status of actions completed or proposed to 
        be completed in fiscal years 1997 and 1998.
            (3) A description of the fiscal year 1998 budget 
        request for worker safety and health at the Mound 
        Facility.
            (4) An accounting of expenditures for worker safety 
        and health at the Mound Facility by fiscal year from 
        fiscal year 1994 through and including fiscal year 
        1996.

SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD IMPROVEMENT 
                    PROJECT, LIVERMORE, CALIFORNIA.

    (a) Funding.--The Secretary of Energy shall include in the 
budget for fiscal year 1998 submitted by the Secretary of 
Energy to the Office of Management and Budget a request for 
sufficient funds to pay the United States portion of the cost 
of transportation improvements under the Greenville Road 
Improvement Project, Livermore, California.
    (b) Cooperation with Livermore, California.--The Secretary 
shall work with the city of Livermore, California, to determine 
the cost of the transportation improvements referred to in 
subsection (a).

SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL TO 
                    DEPARTMENT OF ENERGY NUCLEAR WEAPONS COMPLEX.

    (a) Funding.--Subject to subsection (b), of the funds 
authorized to be appropriated pursuant to section 3101(b), 
$5,000,000 may be used for conducting the fellowship program 
for the development of skills critical to the ongoing mission 
of the Department of Energy nuclear weapons complex required by 
section 3140 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 621; 42 U.S.C. 
2121 note).
    (b) Notice and Wait.--The Secretary of Energy may not 
obligate or expend funds under subsection (a) for the 
fellowship program referred to in that subsection until--
            (1) the Secretary submits to Congress a report 
        setting forth--
                    (A) the actions the Department has taken to 
                implement the fellowship program;
                    (B) the amount the Secretary proposes to 
                obligate;
                    (C) the purposes for which such amount will 
                be obligated; and
            (2) a period of 21 days elapses from the date of 
        the receipt of the report by Congress.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

SEC. 3171. PURPOSE.

    The purpose of this subtitle is to provide for the 
expedited environmental restoration and waste management of 
defense nuclear facilities through the use of cost-effective 
management mechanisms and innovative technologies.

SEC. 3172. APPLICABILITY.

    (a) In General.--The provisions of this subtitle shall 
apply to the following defense nuclear facilities:
            (1) Any defense nuclear facility for which the 
        fiscal year 1996 environmental management budget was 
        $350,000,000 or more.
            (2) Any other defense nuclear facility if--
                    (A) the chief executive officer of the 
                State in which the facility is located submits 
                to the Secretary a request that the facility be 
                covered by the provisions of this subtitle; and
                    (B) the Secretary approves the request.
    (b) Limitation.--The Secretary may not approve a request 
under subsection (a)(2) until 60 days after the date on which 
the Secretary notifies Congress of the Secretary's receipt of 
the request.

SEC. 3173. SITE MANAGER.

    (a) Appointment.--(1) Subject to paragraph (2), the 
Secretary shall expeditiously appoint a Site Manager for each 
defense nuclear facility (in this subtitle referred to as the 
``Site Manager'').
    (2) In the case of a defense nuclear facility at which 
another program, in addition to environmental management 
operations, is carried out, and such other program is subject 
to management by a site manager, field office manager, or 
operations office manager, the Secretary shall appoint such 
manager to be the Site Manager for such facility for purposes 
of this subtitle.
    (b) Authority.--(1) In addition to other authorities 
provided for in this Act, the Secretary may delegate to the 
Site Manager of a defense nuclear facility authority to oversee 
and direct environmental management operations at the facility, 
including the authority to--
            (A) enter into and modify contractual agreements to 
        enhance environmental restoration and waste management 
        at the facility;
            (B) request that the Department headquarters submit 
        to Congress a reprogramming package shifting funds 
        among accounts in order to facilitate the most 
        efficient and timely environmental restoration and 
        waste management of the facility, and, in the event 
        that the Department headquarters does not act upon the 
        request within 60 days, submit such request to the 
        appropriate congressional committees for review;
            (C) subject to paragraph (2), negotiate amendments 
        to environmental agreements for the Department;
            (D) manage Department personnel at the facility;
            (E) consider the costs, risk reduction benefits, 
        and other benefits for the purposes of ensuring 
        protection of human health and the environment or 
        safety, with respect to any environmental remediation 
        activity the cost of which exceeds $25,000,000; and
            (F) have assessments prepared for environmental 
        restoration activities (in several documents or a 
        single document, as determined by the Site Manager).
    (2) In using the authority described in paragraph (1)(C), a 
Site Manager may not negotiate an amendment that is expected to 
result in additional life cycle costs to the Department without 
the approval of the Secretary.
    (3) In using any authority described in paragraph (1), a 
Site Manager of a facility shall consult with the State where 
the facility is located and the advisory board for the 
facility.
    (4) The delegation of any authority pursuant to this 
subsection shall not be construed as restricting the 
Secretary's authority to delegate other authorities as 
necessary.
    (c) Information to Secretary.--The Site Manager of a 
defense nuclear facility shall regularly inform the Secretary, 
Congress, and the advisory board for the facility of the 
progress made by the Site Manager to achieve the expedited 
environmental restoration and waste management of the facility.

SEC. 3174. DEPARTMENT OF ENERGY ORDERS.

    An order imposed after the date of the enactment of this 
Act relating to the execution of environmental restoration, 
waste management, or technology development activities at a 
defense nuclear facility under the Atomic Energy Act of 1954 
(42 U.S.C. 2011 et seq.) may be imposed by the Secretary at the 
defense nuclear facility only if the Secretary finds that the 
order is necessary for the protection of human health and the 
environment or safety, the fulfillment of current legal 
requirements, or the conduct of critical administrative 
functions.

SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF DEFENSE NUCLEAR 
                    WASTE.

    (a) In General.--The Site Manager of each defense nuclear 
facility shall promote the deployment of innovative 
environmental technologies for remediation of defense nuclear 
waste at the facility.
    (b) Criteria.--To carry out subsection (a), the Site 
Manager of a defense nuclear facility shall establish a program 
at the facility for the testing and deployment of innovative 
environmental technologies for the remediation of defense 
nuclear waste at the facility. In establishing such a program, 
the Site Manager may--
            (1) establish a simplified, standardized, and 
        timely process for the testing, verification, 
        certification, and deployment of environmental 
        technologies;
            (2) solicit applications to test and deploy 
        environmental technologies suitable for environmental 
        restoration and waste management activities at the 
        facility, including prevention, control, 
        characterization, treatment, and remediation of 
        contamination;
            (3) consult and cooperate with the heads of 
        existing programs at the facility for the verification 
        and certification of environmental technologies at the 
        facility;
            (4) pay the costs of the demonstration of such 
        technologies;
            (5) enter into contracts and other agreements with 
        other public and private entities to deploy 
        environmental technologies at the facility; and
            (6) include incentives, such as product performance 
        specifications, in contracts to encourage the 
        implementation of innovative environmental 
        technologies.
    (c) Follow-on Contracts.--(1) If the Secretary and a person 
demonstrating a technology under the program enter into a 
contract for remediation of nuclear waste at a defense nuclear 
facility covered by this subtitle, or at any other Department 
facility, as a follow-on to the demonstration of the 
technology, the Secretary shall ensure that the contract 
provides for the Secretary to recoup from the contractor the 
costs incurred by the Secretary pursuant to subsection (b)(6) 
for the demonstration.
    (2) No contract between the Department and a contractor for 
the demonstration of technology under subsection (b) may 
provide for reimbursement of the costs of the contractor on a 
cost plus fee basis.
    (d) Safe Harbors.--In the case of an environmental 
technology tested, verified, certified, and deployed at a 
defense nuclear facility under a program established under 
subsection (b), the site manager of another defense nuclear 
facility may request the Secretary to waive or limit 
contractual or Department regulatory requirements that would 
otherwise apply in implementing the same environmental 
technology at such other facility.

SEC. 3176. PERFORMANCE-BASED CONTRACTING.

    (a) Program.--The Secretary shall develop and implement a 
program for performance-based contracting for contracts entered 
into for environmental remediation at defense nuclear 
facilities. The program shall ensure that, to the maximum 
extent practicable and appropriate, such contracts include the 
following:
            (1) Clearly stated and results oriented performance 
        criteria and measures.
            (2) Appropriate incentives for contractors to meet 
        or exceed the performance criteria effectively and 
        efficiently.
            (3) Appropriate criteria and incentives for 
        contractors to seek and engage subcontractors who may 
        more effectively and efficiently perform either unique 
        and technologically challenging tasks or routine and 
        interchangeable services.
            (4) Specific incentives for cost savings.
            (5) Financial accountability.
            (6) When appropriate, reduction of fee for failure 
        to meet minimum performance criteria and standards.
    (b) Criteria and Measures.--Performance criteria and 
measures should take into consideration, at a minimum, the 
following: managerial control; elimination or reduction of risk 
to public health and the environment; workplace safety; 
financial control; goal-oriented work scope; use of innovative 
and alternative technologies and techniques that result in 
cleanups being performed less expensively, more quickly, and 
within quality parameters; and performing within benchmark cost 
estimates.
    (c) Consultation.--In implementing this section, the 
Secretary shall consult with interested parties.
    (d) Deadline.--The Secretary shall implement this section 
not later than October 1, 1997, unless the Secretary submits to 
Congress before that date a report with a schedule for 
completion of action under this section.

SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRONMENTAL CLEANUP 
                    DEMONSTRATION AREAS.

    (a) Designation.--Each defense nuclear facility is hereby 
designated as an environmental cleanup demonstration area to 
carry out the purposes of this subtitle, including the 
utilization and evaluation of new technologies to be used in 
environmental restoration and remediation at other defense 
nuclear facilities.
    (b) Sense of Congress.--It is the sense of Congress that 
Federal and State regulatory agencies, members of the 
communities surrounding any defense nuclear facility, and other 
affected parties with respect to the facility should continue 
to--
            (1) develop expedited and streamlined processes and 
        systems for cleaning up such facility;
            (2) eliminate unnecessary administrative complexity 
        and unnecessary duplication of regulation with respect 
        to the clean up of such facility;
            (3) proceed expeditiously and cost-effectively with 
        environmental restoration and remediation activities at 
        such facility;
            (4) consider future land use in selecting 
        environmental clean up remedies at such facility; and
            (5) identify and recommend to Congress changes in 
        law needed to expedite the clean up of such facility.

SEC. 3178. DEFINITIONS.

    In this subtitle:
            (1) The term ``Secretary'' means the Secretary of 
        Energy.
            (2) The term ``Department'' means the Department of 
        Energy.
            (3) The term ``defense nuclear facility'' has the 
        meaning given the term ``Department of Energy defense 
        nuclear facility'' in section 318 of the Atomic Energy 
        Act of 1954 (42 U.S.C. 2286g).

SEC. 3179. TERMINATION.

    This subtitle is repealed effective September 30, 2001.

SEC. 3180. REPORT.

    Not later than September 30, 2000, the Secretary shall 
submit to Congress a report on the effectiveness of this 
subtitle in expediting environmental restoration and waste 
management of defense nuclear facilities. The report shall 
include recommendations on whether this subtitle should remain 
in effect beyond September 30, 2001.

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

SEC. 3181. SHORT TITLE.

    This subtitle may be cited as the ``Waste Isolation Pilot 
Plant Land Withdrawal Amendment Act''.

SEC. 3182. DEFINITIONS.

    Section 2 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (Public Law 102-579; 106 Stat. 4777) is 
amended--
            (1) by striking paragraphs (18) and (19); and
            (2) by redesignating paragraphs (20), (21), and 
        (22), as paragraphs (18), (19), and (20), respectively.

SEC. 3183. MANAGEMENT PLAN.

    Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4781) is amended by striking ``or 
with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)''.

SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS.

    (a) Repeal.--Section 5 of the Waste Isolation Pilot Plant 
Land Withdrawal Act (106 Stat. 4782) is repealed.
    (b) Clerical Amendment.--The table of contents in section 
1(b) of such Act (106 Stat. 4777) is amended by striking out 
the item relating to section 5.

SEC. 3185. TEST PHASE ACTIVITIES.

    Section 6 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4783) is amended--
            (1) by repealing subsections (a) and (b);
            (2) by repealing paragraph (1) of subsection (c);
            (3) by redesignating subsection (c) as subsection 
        (a) and in that subsection--
                    (A) by repealing subparagraph (A) of 
                paragraph (2);
                    (B) by striking the subsection heading and 
                the matter immediately following the subsection 
                heading and inserting ``Study.--The following 
                study shall be conducted:'';
                    (C) by striking ``(2) Remote-handled 
                waste.--'';
                    (D) by striking ``(B) Study.--'';
                    (E) by redesignating clauses (i), (ii), and 
                (iii) as paragraphs (1), (2), and (3), 
                respectively; and
                    (F) by realigning the margins of such 
                clauses to be margins of paragraphs;
            (4) in subsection (d), by striking ``, during the 
        test phase, a biennial'' and inserting ``a'' and by 
        striking ``, consisting of a documented analysis of '' 
        and inserting ``as necessary to demonstrate''; and
            (5) by redesignating subsection (d) as subsection 
        (b).

SEC. 3186. DISPOSAL OPERATIONS.

    Subsection (b) of section 7 of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4785) is amended to read 
as follows:
    ``(b) Requirements for Commencement of Disposal 
Operations.--The Secretary may commence emplacement of 
transuranic waste underground for disposal at WIPP only upon 
completion of--
            ``(1) the Administrator's certification under 
        section 8(d)(1) that the WIPP facility will comply with 
        the final disposal regulations;
            ``(2) the acquisition by the Secretary (whether by 
        purchase, condemnation, or otherwise) of Federal Oil 
        and Gas Leases No. NMNM 02953 and No. NMNM 02953C, 
        unless the Administrator determines under section 
        4(b)(5) that such acquisition is not required; and
            ``(3) the 30-day period beginning on the date on 
        which the Secretary notifies Congress that the 
        requirements of section 9(a)(1) have been met.''.

SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL REGULATIONS.

    (a) Section 8(d)(1).--Section 8(d)(1) of the Waste 
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4786) is 
amended--
            (1) by amending subparagraph (A) to read as 
        follows:
                    ``(A) Application for compliance.--Within 
                30 days after the date of the enactment of the 
                Waste Isolation Pilot Plant Land Withdrawal 
                Amendment Act, the Secretary shall provide to 
                Congress a schedule for the incremental 
                submission of chapters of the application to 
                the Administrator beginning no later than 30 
                days after the date of the submittal of the 
                schedule. The Administrator shall review the 
                submitted chapters and provide requests for 
                additional information from the Secretary as 
                needed for completeness within 45 days of the 
                receipt of each chapter. The Administrator 
                shall notify Congress of such requests. The 
                schedule shall call for the Secretary to submit 
                all chapters to the Administrator no later than 
                October 31, 1996. The Administrator may at any 
                time request additional information from the 
                Secretary as needed to certify, pursuant to 
                subparagraph (B), whether the WIPP facility 
                will comply with the final disposal 
                regulations.''; and
            (2) in subparagraph (D), by striking ``after the 
        application is'' and inserting ``after the full 
        application has been''.
    (b) Section 8(d) (2) and (3).--Section 8(d) of such Act is 
amended by striking paragraphs (2) and (3), by striking ``(1) 
Compliance with disposal regulations.--'' and by redesignating 
subparagraphs (A), (B), (C), and (D) of paragraph (1) as 
paragraph (1), (2), (3), and (4), respectively.
    (c) Section 8(g).--Section 8(g) of such Act is amended to 
read as follows:
    ``(g) Engineered and Natural Barriers, Etc.--The Secretary 
shall use both engineered and natural barriers and any other 
measures (including waste form modifications) to the extent 
necessary at WIPP to comply with the final disposal 
regulations.''.

SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULATIONS.

    (a) Section 9(a)(1).--Section 9(a)(1) of the Waste 
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4788) is 
amended by adding after and below subparagraph (H) the 
following: ``With respect to transuranic mixed waste designated 
by the Secretary for disposal at WIPP, such waste is exempt 
from treatment standards promulgated pursuant to section 
3004(m) of the Solid Waste Disposal Act (42 U.S.C. 6924(m)) and 
shall not be subject to the land disposal prohibitions in 
section 3004 (d), (e), (f), and (g) of the Solid Waste Disposal 
Act.''.
    (b) Section 9(b).--Subsection (b) of section 9 of such Act 
is repealed.
    (c) Section 9(c)(2).--Subsection (c)(2) of section 9 of 
such Act is repealed.
    (d) Section 14.--Section 14 of such Act (106 Stat. 4791) is 
amended--
            (1) in subsection (a), by striking ``No provision'' 
        and inserting ``Except for the exemption from the land 
        disposal restrictions described in section 9(a)(1), no 
        provision''; and
            (2) in subsection (b)(2), by striking ``including 
        all terms and conditions of the No-Migration 
        Determination'' and inserting ``except that the 
        transuranic mixed waste designated by the Secretary for 
        disposal at WIPP is exempt from the land disposal 
        restrictions described in section 9(a)(1)''.

SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF 
                    TRANSURANIC WASTE.

    (a) In General.--Section 10 of the Waste Isolation Pilot 
Plant Land Withdrawal Act (106 Stat. 4789) is amended to read 
as follows:

``SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF 
                    TRANSURANIC WASTE.

    ``It is the sense of Congress that the Secretary should 
complete all actions required under section 7(b) to commence 
emplacement of transuranic waste underground for disposal at 
WIPP not later than November 30, 1997, provided that before 
that date all applicable health and safety standards have been 
met and all applicable laws have been complied with.''.
    (b) Clerical Amendment.--The item relating to section 10 in 
the table of contents in section 1 is amended to read as 
follows:

``Sec. 10. Sense of Congress on commencement of emplacement of 
          transuranic waste.''.

SEC. 3190. DECOMMISSIONING OF WIPP.

    Section 13 of the Waste Isolation Pilot Plant Land 
Withdrawal Act (106 Stat. 4791) is amended--
            (1) by striking subsection (a); and
            (2) by striking ``(b) Management Plan for the 
        Withdrawal After Decommissioning.--Within 5 years after 
        the date of the enactment of this Act, the'' and 
        inserting ``The''.

SEC. 3191. AUTHORIZATIONS FOR ECONOMIC ASSISTANCE AND MISCELLANEOUS 
                    PAYMENTS.

    (a) Authorization Amendment.--Section 15(a) of the Waste 
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4791) is 
amended--
            (1) in the subsection caption, by striking ``15-
        Year'' and inserting ``14-Year''; and
            (2) by striking ``15 fiscal years beginning with 
        the fiscal year in which the transport of transuranic 
        waste to WIPP is initiated'' and inserting ``14 fiscal 
        years beginning with fiscal year 1998''.
    (b) Requirement for Separate Authorizations.--Such section 
15(a) is further amended by adding at the end the following: 
``The authorization of appropriations for funds for payments to 
the State under the preceding sentence shall be separate from 
any authorization of appropriations of funds for WIPP.''.
    (c) Fiscal Year 1997 Funding.--Of the amount authorized to 
be appropriated for the Department of Energy by section 
3102(b), $20,000,000 shall be available for the purpose of a 
payment by the Secretary of Energy to the State of New Mexico 
for road improvements in connection with the Waste Isolation 
Pilot Plant.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
1997, $17,000,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

         Subtitle A--Authorization of Disposals and Use of Funds

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

                     Subtitle B--Programmatic Change

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

        Subtitle A--Authorization of Disposals and Use of Funds

SEC. 3301. DEFINITIONS.

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

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
1997, the National Defense Stockpile Manager may obligate up to 
$60,000,000 of the funds in the National Defense Stockpile 
Transaction Fund for the authorized uses of such funds under 
section 9(b)(2) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h(b)(2)).
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additional obligations described 
in the notification after the end of the 45-day period 
beginning on the date Congress receives the notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

SEC. 3303. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (c), the 
President shall dispose of materials contained in the National 
Defense Stockpile and specified in the table in subsection (b) 
so as to result in receipts to the United States in amounts 
equal to--
            (1) $81,000,000 during fiscal year 1997; and
            (2) $612,000,000 during the ten-fiscal year period 
        ending September 30, 2006.
    (b) Limitation on Disposal Quantity.--The total quantities 
of materials authorized for disposal by the President under 
subsection (a) may not exceed the amounts set forth in the 
following table:

                     Authorized Stockpile Disposals                     
------------------------------------------------------------------------
   Material for disposal                              Quantity          
------------------------------------------------------------------------
Aluminum..................................  62,881 short tons           
Cobalt....................................  26,000,000 pounds contained 
Columbium Ferro...........................  930,911 pounds contained    
Germanium Metal...........................  40,000 kilograms            
Indium....................................  35,000 troy ounces          
Palladium.................................  15,000 troy ounces          
Platinum..................................  10,000 troy ounces          
Rubber, Natural...........................  125,138 long tons           
Tantalum, Carbide Powder..................  6,000 pounds contained      
Tantalum, Minerals........................  750,000 pounds contained    
Tantalum, Oxide...........................  40,000 pounds contained     
------------------------------------------------------------------------

    (c) Minimization of Disruption and Loss.--The President may 
not dispose of materials under subsection (a) to the extent 
that the disposal will result in--
            (1) undue disruption of the usual markets of 
        producers, processors, and consumers of the materials 
        proposed for disposal; or
            (2) avoidable loss to the United States.
    (d) Treatment of Receipts.--Notwithstanding section 9 of 
the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h), funds received as a result of the disposal of 
materials under subsection (a) shall be--
            (1) deposited into the general fund of the 
        Treasury; and
            (2) to the extent necessary, used to offset the 
        revenues that will be lost as a result of execution of 
        the amendments made by section 4303(a) of the National 
        Defense Authorization Act for Fiscal Year 1996 (Public 
        Law 104-106; 110 Stat. 658).
    (e) Qualifying Offsetting Legislation.--This section is 
specifically enacted as qualifying offsetting legislation for 
the purpose of offsetting fully the estimated revenues lost as 
a result of the amendments made by subsection (a) of section 
4303 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106; 110 Stat. 658), and as such is deemed 
to satisfy the conditions in subsection (b) of such section.
    (f) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding the materials specified in 
such subsection.

                    Subtitle B--Programmatic Change

SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

    (a) National Emergency Planning Assumptions.--Section 14 of 
the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h-5) is amended--
            (1) by redesignating subsection (c) as subsection 
        (e); and
            (2) by striking out subsection (b) and inserting in 
        lieu thereof the following new subsection:
    ``(b) Each report under this section shall set forth the 
national emergency planning assumptions used by the Secretary 
in making the Secretary's recommendations under subsection 
(a)(1) with respect to stockpile requirements. The Secretary 
shall base the national emergency planning assumptions on a 
military conflict scenario consistent with the scenario used by 
the Secretary in budgeting and defense planning purposes. The 
assumptions to be set forth include assumptions relating to 
each of the following:
            ``(1) The length and intensity of the assumed 
        military conflict.
            ``(2) The military force structure to be mobilized.
            ``(3) The losses anticipated from enemy action.
            ``(4) The military, industrial, and essential 
        civilian requirements to support the national 
        emergency.
            ``(5) The availability of supplies of strategic and 
        critical materials from foreign sources during the 
        mobilization period, the military conflict, and the 
        subsequent period of replenishment, taking into 
        consideration possible shipping losses.
            ``(6) The domestic production of strategic and 
        critical materials during the mobilization period, the 
        military conflict, and the subsequent period of 
        replenishment, taking into consideration possible 
        shipping losses.
            ``(7) Civilian austerity measures required during 
        the mobilization period and military conflict.
    ``(c) The stockpile requirements shall be based on those 
strategic and critical materials necessary for the United 
States to replenish or replace, within three years of the end 
of the military conflict scenario required under subsection 
(b), all munitions, combat support items, and weapons systems 
that would be required after such a military conflict.
    ``(d) The Secretary shall also include in each report under 
this section an examination of the effect that alternative 
mobilization periods under the military conflict scenario 
required under subsection (b), as well as a range of other 
military conflict scenarios addressing potentially more serious 
threats to national security, would have on the Secretary's 
recommendations under subsection (a)(1) with respect to 
stockpile requirements.''.
    (b) Conforming Amendment.--Section 2 of such Act (50 U.S.C. 
98a) is amended by striking out subsection (c) and inserting in 
lieu thereof the following new subsection:
    ``(c) The purpose of the National Defense Stockpile is to 
serve the interest of national defense only. The National 
Defense Stockpile is not to be used for economic or budgetary 
purposes.''.
    (c) Effective Date.--The amendments made by this section 
shall take effect on October 1, 1996.

SEC. 3312. NOTIFICATION REQUIREMENTS.

    (a) Proposed Changes in Stockpile Quantities.--Section 
3(c)(2) of the Strategic and Critical Materials Stock Piling 
Act (50 U.S.C. 98b(c)(2)) is amended--
            (1) by striking out ``effective on or after the 
        30th legislative day following'' and inserting in lieu 
        thereof ``after the end of the 45-day period beginning 
        on''; and
            (2) by striking out the last sentence.
    (b) Waiver of Acquisition and Disposal Requirements.--
Section 6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended by 
striking out ``thirty days'' and inserting in lieu thereof ``45 
days''.
    (c) Time To Begin Disposal.--Section 6(d)(2) of such Act 
(50 U.S.C. 98e(d)(2)) is amended by striking out ``thirty 
days'' and inserting in lieu thereof ``45 days''.

SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

    Section 13 of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h-4) is amended--
            (1) by striking out ``as a Communist-dominated 
        country or area''; and
            (2) by striking out ``such Communist-dominated 
        countries or areas'' and inserting in lieu thereof ``a 
        country or area listed in such general note''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    There is hereby authorized to be appropriated to the 
Secretary of Energy $149,500,000 for fiscal year 1997 for the 
purpose of carrying out activities under chapter 641 of title 
10, United States Code, relating to the naval petroleum 
reserves (as defined in section 7420(2) of such title). Funds 
appropriated pursuant to such authorization shall remain 
available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL 
                    YEAR 1997.

    Notwithstanding section 7430(b)(2) of title 10, United 
States Code, during fiscal year 1997, any sale of any part of 
the United States share of petroleum produced from Naval 
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a 
price not less than 90 percent of the current sales price, as 
estimated by the Secretary of Energy, of comparable petroleum 
in the same area.

                  TITLE XXXV--PANAMA CANAL COMMISSION

               Subtitle A--Authorization of Appropriations

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

           Subtitle B--Amendments to Panama Canal Act of 1979

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

              Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1997''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama 
Canal Commission is authorized to use amounts in the Panama 
Canal Revolving Fund to make such expenditures within the 
limits of funds and borrowing authority available to it in 
accordance with law, and to make such contracts and 
commitments, as may be necessary under the Panama Canal Act of 
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal 
year 1997.
    (b) Limitations.--For fiscal year 1997, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $73,000 for reception and representation 
expenses, of which--
            (1) not more than $18,000 may be used for official 
        reception and representation expenses of the 
        Supervisory Board of the Commission;
            (2) not more than $10,000 may be used for official 
        reception and representation expenses of the Secretary 
        of the Commission; and
            (3) not more than $45,000 may be used for official 
        reception and representation expenses of the 
        Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provisions of law, the funds 
available to the Commission shall be available for the purchase 
and transportation to the Republic of Panama of passenger motor 
vehicles, including large, heavy-duty vehicles.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

           Subtitle B--Amendments to Panama Canal Act of 1979

SEC. 3521. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the 
``Panama Canal Act Amendments of 1996''.
    (b) References.--Except as otherwise expressly provided, 
whenever in this subtitle an amendment or repeal is expressed 
in terms of an amendment to, or repeal of, a section or other 
provision, the reference shall be considered to be made to a 
section or other provision of the Panama Canal Act of 1979 (22 
U.S.C. 3601 et seq.).

SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

    Section 3 (22 U.S.C. 3602) is amended--
            (1) in subsection (b), by inserting ``and'' after 
        the semicolon at the end of paragraph (4), by striking 
        the semicolon at the end of paragraph (5) and inserting 
        a period, and striking paragraphs (6) and (7); and
            (2) by striking subsection (d).

SEC. 3523. ADMINISTRATOR.

    (a) In General.--Section 1103 (22 U.S.C. 3613) is amended 
to read as follows:


                            ``administrator


    ``Sec. 1103. (a) There shall be an Administrator of the 
Commission who shall be appointed by the President, by and with 
the advice and consent of the Senate, and shall hold office at 
the pleasure of the President.
    ``(b) The Administrator shall be paid compensation in an 
amount, established by the Board, not to exceed level III of 
the Executive Schedule.''.
    (b) Savings Provisions.--Nothing in this section (or 
section 3549(3)) shall be considered to affect--
            (1) the tenure of the individual serving as 
        Administrator of the Commission on the day before 
        subsection (a) takes effect; or
            (2) until modified under section 1103(b) of the 
        Panama Canal Act of 1979, as amended by subsection (a), 
        the compensation of the individual so serving.

SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

    (a) In General.--Section 1104 (22 U.S.C. 3614) is amended 
to read as follows:


                         ``deputy administrator


    ``Sec. 1104. (a) There shall be a Deputy Administrator of 
the Commission who shall be appointed by the President. The 
Deputy Administrator shall perform such duties as may be 
prescribed by the Board.
    ``(b) The Deputy Administrator shall be paid compensation 
at a rate of pay, established by the Board, which does not 
exceed the rate of basic pay in effect for level IV of the 
Executive Schedule, and, if eligible, shall be paid the 
overseas recruitment and retention differential provided for in 
section 1217 of this Act.''.
    (b) Savings Provisions.--Nothing in this section shall be 
considered to affect--
            (1) the tenure of the individual serving as Deputy 
        Administrator of the Commission on the day before 
        subsection (a) takes effect; or
            (2) until modified under section 1104(b) of the 
        Panama Canal Act of 1979, as amended by subsection (a), 
        the compensation of the individual so serving.

SEC. 3525. OFFICE OF OMBUDSMAN.

    Section 1113 (22 U.S.C. 3623) is amended by striking 
subsection (d) and redesignating subsection (e) as subsection 
(d).

SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

    Section 1202 (22 U.S.C. 3642) is amended to read as 
follows:


                 ``appointment and compensation; duties


    ``Sec. 1202. (a) In accordance with this chapter, the 
Commission may appoint, fix the compensation of, and define the 
authority and duties of officers and employees (other than the 
Administrator and Deputy Administrator) necessary for the 
management, operation, and maintenance of the Panama Canal and 
its complementary works, installations, and equipment.
    ``(b) Individuals serving in any Executive agency (other 
than the Commission) or the Smithsonian Institution, including 
individuals in the uniformed services, may, if appointed under 
this section or section 1104 of this Act, serve as officers or 
employees of the Commission.''.

SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

    Section 1209 (22 U.S.C. 3649) is amended to read as 
follows:


                  ``applicability of certain benefits


    ``Sec. 1209. Chapter 81 of title 5, United States Code, 
relating to compensation for work injuries, chapters 83 and 84 
of such title 5, relating to retirement, chapter 87 of such 
title 5, relating to life insurance, and chapter 89 of such 
title 5, relating to health insurance, are applicable to 
Commission employees, except any individual--
            ``(1) who is not a citizen of the United States;
            ``(2) whose initial appointment by the Commission 
        occurs after October 1, 1979; and
            ``(3) who is covered by the Social Security System 
        of the Republic of Panama pursuant to any provision of 
        the Panama Canal Treaty of 1977 and related 
        agreements.''.

SEC. 3528. TRAVEL AND TRANSPORTATION.

    Section 1210 (22 U.S.C. 3650) is amended to read as 
follows:


                      ``travel and transportation


    ``Sec. 1210. (a) Subject to subsections (b) and (c), the 
Commission may pay travel and transportation expenses for 
employees in accordance with subchapter II of chapter 57 of 
title 5, United States Code.
    ``(b) For an employee to whom section 1206 applies, the 
Commission may pay travel and transportation expenses 
associated with vacation leave for the employee and the 
immediate family of the employee notwithstanding requirements 
regarding periods of service established by subchapter II of 
chapter 57 of title 5, United States Code, or the regulations 
promulgated thereunder.
    ``(c) For an employee to whom section 1206 does not apply, 
the Commission may pay travel and transportation expenses 
associated with vacation leave for the employee and the 
immediate family of the employee notwithstanding requirements 
regarding a written agreement concerning the duration of a 
continuing service obligation established by subchapter II of 
chapter 57 of title 5, United States Code, or the regulations 
promulgated thereunder.
    ``(d)(1) Notwithstanding any other provision of law (except 
paragraph (2)), the Commission may contract with Panamanian 
carriers registered under the laws of the Republic of Panama to 
provide air transportation to officials and employees of the 
Commission who are citizens of the Republic of Panama.
    ``(2) Notwithstanding paragraph (1), an official or 
employee of the Commission referred to in paragraph (1) may 
elect, for security or other reasons, to travel by an air 
carrier holding a certificate under section 41102 of title 49, 
United States Code.''.

SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

    Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B)) 
is amended to read as follows:
                    ``(B) any other Executive agency or the 
                Smithsonian Institution, to the extent of any 
                election in effect under section 1212(b) of 
                this Act;''.

SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER EMPLOYMENT 
                    REQUIREMENTS.

    (a) In General.--Section 1212 (22 U.S.C. 3652) is amended 
to read as follows:


     ``panama canal employment system; merit and other employment 
                              requirements


    ``Sec. 1212. (a) The Commission shall establish a Panama 
Canal Employment System and prescribe the regulations necessary 
for its administration. The Panama Canal Employment System 
shall--
            ``(1) be established in accordance with and be 
        subject to the provisions of the Panama Canal Treaty of 
        1977 and related agreements, the provisions of this 
        chapter, and any other applicable provision of law;
            ``(2) be based on the consideration of the merit of 
        each employee or candidate for employment and the 
        qualifications and fitness of the employee to hold the 
        position concerned;
            ``(3) conform, to the extent practicable and 
        consistent with the provisions of this Act, to the 
        policies, principles, and standards applicable to the 
        competitive service;
            ``(4) in the case of employees who are citizens of 
        the United States, provide for the appropriate 
        interchange of those employees between positions under 
        the Panama Canal Employment System and positions in the 
        competitive service; and
            ``(5) not be subject to the provisions of title 5, 
        United States Code, unless specifically made applicable 
        by this Act.
    ``(b)(1) The head of any Executive agency (other than the 
Commission) and the Smithsonian Institution may elect to have 
the Panama Canal Employment System made applicable in whole or 
in part to personnel of that agency in the Republic of Panama.
    ``(2) Any Executive agency (other than the Commission) and 
the Smithsonian Institution, to the extent of any election 
under paragraph (1), shall conduct its employment and pay 
practices relating to employees in accordance with the Panama 
Canal Employment System.
    ``(3) Notwithstanding any other provision of this Act or 
the Panama Canal Act Amendments of 1996, this subchapter, as 
last in effect before the effective date of section 3530 of the 
Panama Canal Act Amendments of 1996, shall continue to apply to 
an Executive agency or the Smithsonian Institution to the 
extent of an election under paragraph (1) by the head of agency 
or the Institution, respectively.
    ``(c) The Commission may exclude any employee or position 
from coverage under any provision of this subchapter, other 
than the interchange rights extended under subsection 
(a)(4).''.
    (b) Savings Provisions.--The Panama Canal Employment System 
and all elections, rules, regulations, and orders relating 
thereto, as last in effect before the amendment made by 
subsection (a) takes effect, shall continue in effect, 
according to their terms, until modified, terminated, or 
superseded under section 1212 of the Panama Canal Act of 1979, 
as amended by subsection (a).

SEC. 3531. EMPLOYMENT STANDARDS.

    Section 1213 (22 U.S.C. 3653) is amended in the first 
sentence by striking ``The head of each agency'' and inserting 
``The Commission''.

SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM APPLICATION 
                    OF CANAL ZONE MERIT SYSTEM.

    Section 1214 (22 U.S.C. 3654) is repealed.

SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND RETENTION 
                    REMUNERATION.

    Section 1217(d) (22 U.S.C. 3657(d)) is repealed.

SEC. 3534. BENEFITS BASED ON BASIC PAY.

    Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as 
follows:
            ``(2) benefits under subchapter III of chapter 83 
        or chapter 84 of title 5, United States Code, relating 
        to retirement;''.

SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF COMMISSION.

    Section 1223 (22 U.S.C. 3663) is amended to read as 
follows:


                       ``central examining office


    ``Sec. 1223. The Commission shall establish a Central 
Examining Office. The purpose of the office shall be to 
implement the provisions of the Panama Canal Treaty of 1977 and 
related agreements with respect to recruitment, examination, 
determination of qualification standards, and similar matters 
relating to employment of the Commission.''.

SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

    Section 1224 (22 U.S.C. 3664) is amended to read as 
follows:


             ``applicability of title 5, united states code


    ``Sec. 1224. The following provisions of title 5, United 
States Code, apply to the Panama Canal Commission:
            ``(1) Part I of title 5 (relating to agencies 
        generally).
            ``(2) Chapter 21 (relating to employee 
        definitions).
            ``(3) Section 2302(b)(8) (relating to whistleblower 
        protection) and all provisions of title 5 relating to 
        the administration or enforcement or any other aspect 
        thereof, as identified in regulations prescribed by the 
        Commission in consultation with the Office of Personnel 
        Management.
            ``(4) All provisions relating to preference 
        eligibles.
            ``(5) Section 5514 (relating to offset from 
        salary).
            ``(6) Section 5520a (relating to garnishments).
            ``(7) Sections 5531-5535 (relating to dual pay and 
        employment).
            ``(8) Subchapter VI of chapter 55 (relating to 
        accumulated and accrued leave).
            ``(9) Subchapter IX of chapter 55 (relating to 
        severance and back pay).
            ``(10) Chapter 57 (relating to travel, 
        transportation, and subsistence).
            ``(11) Chapter 59 (relating to allowances).
            ``(12) Chapter 63 (relating to leave for CONUS 
        employees).
            ``(13) Section 6323 (relating to military leave; 
        Reserves and National Guardsmen).
            ``(14) Chapter 71 (relating to labor relations).
            ``(15) Subchapters II and III of chapter 73 
        (relating to employment limitations and political 
        activities, respectively) and all provisions of title 5 
        relating to the administration or enforcement or any 
        other aspect thereof, as identified in regulations 
        prescribed by the Commission in consultation with the 
        Office of Personnel Management.
            ``(16) Chapter 81 (relating to compensation for 
        work injuries).
            ``(17) Chapters 83 and 84 (relating to retirement).
            ``(18) Chapter 85 (relating to unemployment 
        compensation).
            ``(19) Chapter 87 (relating to life insurance).
            ``(20) Chapter 89 (relating to health 
        insurance).''.

SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR REEMPLOYED 
                    EMPLOYEES.

    Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.

SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

    Section 1245 (22 U.S.C. 3682) is amended by striking so 
much as precedes subsection (b) and inserting the following:


            ``administration of certain disability benefits


    ``Sec. 1245. (a)(1) The Commission, or any other United 
States Government agency or private entity acting pursuant to 
an agreement with the Commission, under the Act entitled `An 
Act authorizing cash relief for certain employees of the Panama 
Canal not coming within the provisions of the Canal Zone 
Retirement Act', approved July 8, 1937 (50 Stat. 478; 68 Stat. 
17), may continue the payments of cash relief to those 
individual former employees of the Canal Zone Government or 
Panama Canal Company or their predecessor agencies not coming 
within the scope of the former Canal Zone Retirement Act whose 
services were terminated prior to October 5, 1958, because of 
unfitness for further useful service by reason of mental or 
physical disability resulting from age or disease.
    ``(2) Subject to subsection (b), cash relief under this 
subsection may not exceed $1.50 per month for each year of 
service of the employees so furnished relief, with a maximum of 
$45 per month, plus the amount of any cost-of-living increases 
in such cash relief granted before October 1, 1979, pursuant to 
section 181 of title 2 of the Canal Zone Code (as in effect on 
September 30, 1979), nor be paid to any employee who, at the 
time of termination for disability prior to October 5, 1958, 
had less than 10 years' service with the Canal Zone Government, 
the Panama Canal Company, or their predecessor agencies on the 
Isthmus of Panama.''.

SEC. 3539. PANAMA CANAL REVOLVING FUND.

    Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
3712) is amended to read as follows:


                     ``panama canal revolving fund


    ``Sec. 1302. (a) There is established in the Treasury of 
the United States a revolving fund to be known as `Panama Canal 
Revolving Fund'. The Panama Canal Revolving Fund shall, subject 
to subsection (b), be available to the Commission to carry out 
the purposes, functions, and powers authorized by this Act, 
including for--
            ``(1) the hire of passenger motor vehicles and 
        aircraft;
            ``(2) uniforms or allowances therefor;
            ``(3) official receptions and representation 
        expenses of the Board, the Secretary of the Commission, 
        and the Administrator;
            ``(4) the operation of guide services;
            ``(5) a residence for the Administrator;
            ``(6) disbursements by the Administrator for 
        employee and community projects;
            ``(7) the procurement of expert and consultant 
        services;
            ``(8) promotional activities, including the 
        preparation, distribution, or use of any kit, pamphlet, 
        booklet, publication, radio, television, film, or other 
        media presentation designed to promote the Panama Canal 
        as a resource of the world shipping industry; and
            ``(9) the purchase and transportation to the 
        Republic of Panama of passenger motor vehicles, 
        including large, heavy-duty vehicles.
    ``(b)(1) There shall be deposited in the Panama Canal 
Revolving Fund, on a continuing basis, toll receipts (other 
than amounts of toll receipts deposited into the Panama Canal 
Commission Dissolution Fund under section 1305) and all other 
receipts of the Commission. Except as provided in section 1303, 
no funds may be obligated or expended by the Commission in any 
fiscal year unless such obligation or expenditure has been 
specifically authorized by law.
    ``(2) No funds may be authorized for the use of the 
Commission, or obligated or expended by the Commission in any 
fiscal year, in excess of--
            ``(A) the amount of revenues deposited in the 
        Panama Canal Revolving Fund and the Panama Canal 
        Commission Dissolution Fund during such fiscal year, 
        plus
            ``(B) the amount of revenues deposited in the 
        Panama Canal Revolving Fund before such fiscal year and 
        remaining unobligated at the beginning of such fiscal 
        year; plus
            ``(C) the $100,000,000 borrowing authority provided 
        for in section 1304 of this Act.
Not later than 30 days after the end of each fiscal year, the 
Secretary of the Treasury shall report to the Congress the 
amount of revenues deposited in the Panama Canal Revolving Fund 
during such fiscal year.
    ``(c) With the approval of the Secretary of the Treasury, 
the Commission may deposit amounts in the Panama Canal 
Revolving Fund in any Federal Reserve bank, any depositary for 
public funds, or such other place and in such manner as the 
Commission and the Secretary may agree.
    ``(d)(1) It is the sense of the Congress that the 
additional costs resulting from the implementation of the 
Panama Canal Treaty of 1977 and related agreements should be 
kept to the absolute minimum level. To this end, the Congress 
declares appropriated costs of implementation to be borne by 
the taxpayers over the life of such Treaty should be kept to a 
level no greater than the March 1979 estimate of those costs 
($870,700,000) presented to the Congress by the executive 
branch during consideration of this Act by the Congress, less 
personnel retirement costs of $205,000,000, which were 
subtracted and charged to tolls, therefore resulting in net 
taxpayer cost of approximately $665,700,000, plus appropriate 
adjustments for inflation.
    ``(2) It is further the sense of the Congress that the 
actual costs of implementation be consistent with the 
obligations of the United States to operate the Panama Canal 
safely and efficiently and keep it secure.''.

SEC. 3540. PRINTING.

    Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by 
adding at the end of subchapter I the following new section:


                               ``printing


    ``Sec. 1306. (a) Section 501 of title 44, United States 
Code, shall not apply to direct purchase by the Commission for 
its use of printing, binding, and blank-book work in the 
Republic of Panama when the Commission determines that such 
direct purchase is in the best interest of the Government.
    ``(b) This section shall not affect the Commission's 
authority, under chapter 5 of title 44, United States Code, to 
operate a field printing plant.''.

SEC. 3541. ACCOUNTING POLICIES.

    (a) Section 1311.--Section 1311(a) (22 U.S.C. 3721(a)) is 
amended by striking out ``the Accounting and Auditing Act of 
1950 (31 U.S.C. 65 et seq.)'' in the first sentence and 
inserting in lieu thereof ``chapter 91 of title 31, United 
States Code,''.
    (b) Section 1313.--Section 1313 (22 U.S.C. 3723) is amended 
by striking out ``the Accounting and Auditing Act of 1950 (31 
U.S.C. 65 et seq.)'' in subsections (a) and (c) and inserting 
in lieu thereof ``chapter 91 of title 31, United States 
Code,''.

SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

    Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at 
the end the following sentence:
``Notwithstanding the provisions relating to the availability 
of adequate schools contained in section 5924(4)(A) of title 5, 
United States Code, the Commission shall by regulation 
determine the extent to which costs of educational services may 
be defrayed under this subsection.''.

SEC. 3543. POSTAL SERVICE.

    Section 1331 (22 U.S.C. 3741) is amended to read as 
follows:


                            ``postal service


    ``Sec. 1331. (a) The Commission shall take possession of 
and administer the funds of the Canal Zone postal service and 
shall assume its obligations.
    ``(b) Effective December 1, 1999, neither the Commission 
nor the United States Government shall be responsible for the 
distribution of any accumulated unpaid balances relating to 
Canal Zone postal-savings deposits, postal-savings 
certificates, and postal money orders.
    ``(c) Mail addressed to the Canal Zone from or through the 
continental United States may be routed by the United States 
Postal Service to the military post offices of the United 
States Armed Forces in the Republic of Panama. Such military 
post offices shall provide the required directory services and 
shall accept such mail to the extent permitted under the Panama 
Canal Treaty of 1977 and related agreements. The Commission 
shall furnish personnel, records, and other services to such 
military post offices to assure wherever appropriate the 
distribution, rerouting, or return of such mail.''.

SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE TO CLAIM.

    Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as 
follows:
            ``(1) an investigation of the accident or injury 
        giving rise to the claim has been completed, which 
        shall include a hearing by the Board of Local 
        Inspectors of the Commission; and''.

SEC. 3545. OPERATIONS REGULATIONS.

    Section 1801 (22 U.S.C. 3811) is amended by striking 
``President'' and inserting ``Commission''.

SEC. 3546. MISCELLANEOUS REPEALS.

    (a) Repeals.--The following provisions are repealed:
            (1) Section 1605 (22 U.S.C. 3795), relating to 
        interim toll adjustment.
            (2) Section 1701 (22 U.S.C. 3801), relating to the 
        authority of the President to prescribe certain 
        regulations.
            (3) Section 1702 (22 U.S.C. 3802), relating to the 
        authority of the Panama Canal Commission to prescribe 
        certain regulations.
            (4) Title II (22 U.S.C. 3841-3852), relating to the 
        Treaty transition period.
            (5) Chapter 1 of title III (22 U.S.C. 3861), 
        relating to cemeteries.
            (6) Section 1246, relating to appliances for 
        certain injured employees.
            (7) Section 1251, relating to leave for jury or 
        witness service.
            (8) Section 1301, relating to Canal Zone Government 
        funds.
            (9) Section 1313(c), relating to audits.
    (b) Conforming Amendments.--Section 1313 is further amended 
by redesignating subsections (d) and (e) as subsections (c) and 
(d), respectively.

SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975.

    Section 3302 is amended to read as follows:


             ``exemption from metric conversion act of 1975


    ``Sec. 3302. The Commission is exempt from the provisions 
of the Metric Conversion Act of 1975 (15 U.S.C. 205a et 
seq.).''.

SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Title 5 Employment Law.--Title 5, United States Code, 
is amended as follows:
            (1) Section 3401(1) is amended--
                    (A) by striking out clause (v); and
                    (B) by redesignating clauses (vi), (vii), 
                and (viii) as clauses (v), (vi), and (vii), 
                respectively.
            (2) Section 5102 is amended--
                    (A) in subsection (a)(1)--
                            (i) by striking out clause (vi); 
                        and
                            (ii) by redesignating clauses 
                        (vii), (viii), (ix), (x), and (xi) as 
                        clauses (vi), (vii), (viii), (ix), and 
                        (x), respectively; and
                    (B) in subsection (c), by striking out 
                paragraph (12).
            (3) Subchapter IV of chapter 53 is amended--
                    (A) in section 5342(a)(1)--
                            (i) by striking out subparagraph 
                        (G); and
                            (ii) by redesignating subparagraphs 
                        (H), (I), (J), (K), and (L) as 
                        subparagraphs (G), (H), (I), (J), and 
                        (K), respectively;
                    (B) in section 5343(a)(5), by striking out 
                ``the areas and installations in the Republic 
                of Panama'' and all that follows through 
                ``Panama Canal Act of 1979),''; and
                    (C) in section 5348--
                            (i) by striking out subsection (b);
                            (ii) by redesignating subsection 
                        (c) as subsection (b); and
                            (iii) in subsection (a), by 
                        striking out ``subsections (b) and 
                        (c)'' and inserting in lieu thereof 
                        ``subsection (b)''.
            (4) Section 5373 is amended--
                    (A) by striking out paragraph (1); and
                    (B) by redesignating paragraphs (2), (3), 
                and (4) as paragraphs (1), (2), and (3), 
                respectively.
            (5) Section 5537(c) is amended by striking out 
        ``the United States District Court for the District of 
        the Canal Zone, the District Court of Guam, and the 
        District Court of the Virgin Islands.'' and inserting 
        in lieu thereof ``the District Court of Guam and the 
        District Court of the Virgin Islands.''.
            (6) Section 5541(2)(xii) is amended--
                    (A) by inserting ``or'' after ``Services 
                Administration,''; and
                    (B) by striking out ``, or a vessel 
                employee of the Panama Canal Commission'';
            (7) Section 5924(3) is amended by striking out the 
        last sentence.
            (8) Section 6322(a) is amended--
                    (A) by striking out ``Puerto Rico,'' and 
                inserting in lieu thereof ``Puerto Rico or''; 
                and
                    (B) by striking out ``, or the Republic of 
                Panama''.
            (9) Section 7901(f) is amended to read as follows:
    ``(f) The health programs conducted by the Tennessee Valley 
Authority are not affected by this section.''.
    (b) Cross References in Panama Canal Act.--
            (1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is 
        amended by striking out ``section 1212(B)(2)'' and 
        inserting in lieu thereof ``section 1212(b)''.
            (2) Section 1303 (22 U.S.C. 3713) is amended by 
        striking out ``section 1302(c)(1)'' both places it 
        appears and inserting in lieu thereof ``section 
        1302(b)(1)''.
            (3) Section 1341(f) (22 U.S.C. 3751(f)) is amended 
        by striking out ``section 1302(c)'' and inserting in 
        lieu thereof ``section 1302(b)''.
    (c) Section Headings.--
            (1) The heading of section 3 (22 U.S.C. 3602) is 
        amended to read as follows:


                            ``definitions''.


            (2) The heading of section 1245 (22 U.S.C. 3682) is 
        amended to read as follows:


           ``administration of certain disability benefits''.


    (d) Table of Contents.--The table of contents in section 1 
is amended as follows:
            (1) The items relating to sections 1101, 1102a, 
        1102b, and 1313 are amended by inserting ``Sec.'' 
        before the section number.
            (2) The item relating to section 3 is amended to 
        read as follows:

``Sec. 3. Definitions.''.

            (3) The item relating to section 1104 is amended to 
        read as follows:

``Sec. 1104. Deputy Administrator.''.

            (4) The items relating to sections 1209 and 1210 
        are amended to read as follows:

``Sec. 1209. Applicability of certain benefits.
``Sec. 1210. Travel and transportation.''.

            (5) The items relating to sections 1223 and 1224 
        are amended to read as follows:

``Sec. 1223. Central Examining Office.
``Sec. 1224. Applicability of title 5, United States Code.''.

            (6) The item relating to section 1245 is amended to 
        read as follows:

``Sec. 1245. Administration of certain disability benefits.''.

            (7) The item relating to section 3302 is amended to 
        read as follows:

``Sec. 3302. Exemption from Metric Conversion Act of 1975.''.

            (8) Such table of contents is further amended by 
        inserting after the item relating to section 1305 the 
        following new item:

``Sec. 1306. Printing.''.

            (9) Such table of contents is further amended--
                    (A) by striking out the items relating to 
                sections 1214, 1246, 1251, 1301, 1605, 1701, 
                1702, 2101, 2201, 2202, 2203, 2204, 2205, 2206, 
                2301, 2401, 2402, and 3101; and
                    (B) by striking out the items relating to 
                the heading of title II, the headings of 
                chapters 1, 2, 3, and 4 of such title, and the 
                heading of chapter 1 of title III.

SEC. 3549. REPEAL OF PANAMA CANAL CODE.

    The Panama Canal Code is repealed.

    And the Senate agree to the same.
    That the Senate recede from its amendment to the title of 
the bill.

                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Randy ``Duke'' Cunningham,
                                   Steve E. Buyer,
                                   Peter G. Torkildsen,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   J.C. Watts, Jr.,
                                   John N. Hostettler,
                                   Saxby Chambliss,
                                   Van Hilleary,
                                   Doc Hastings,
                                   G.V. Montgomery,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Glen Browder,
                                   Gene Taylor,
                                   Frank Tejeda,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Rosa L. DeLauro,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Larry Combest,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Banking and Financial Services, for 
                consideration of sections 1085 and 1089 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael N. Castle,
                                   Spencer Bachus,
                                   Henry Gonzalez,
                As additional conferees from the Committee on 
                Commerce, for consideration of sections 601, 
                741, 742, 2863, 3154, and 3402 of the House 
                bill, and sections 345-47, 561, 562, 601, 1080, 
                2827, 3174, 3175, and 3181-91 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Thomas Bliley,
                                   Michael Bilirakis,
                Provided that Mr. Richardson is appointed in 
                lieu of Mr. Dingell and Mr. Schaefer is 
                appointed in lieu of Mr. Bilirakis for 
                consideration of sections 3181-91 of the Senate 
                amendment:
                                   Dan Schaefer,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Bilirakis for the consideration of section 
                3154 of the House bill, and sections 345-47, 
                3174, and 3175 of the Senate amendment:
                                   Michael G. Oxley,
                Provided that Mr. Schaefer is appointed in lieu 
                of Mr. Bilirakis for the consideration of 
                sections 2863 and 3402 of the House bill, and 
                section 2827 of the Senate amendment:
                                   Dan Schaefer,
                As additional conferees from the Committee on 
                Government Reform and Oversight, for 
                consideration of sections 332-36, 362, 366, 
                807, 821-25, 1047, 3523-39, 3542, and 3548 of 
                the House bill, and sections 636, 809(b), 921, 
                924, 925, 1081, 1082, 1101, 1102, 1104, 1105, 
                1109-34, 1401-34, and 2826 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   W. F. Clinger,
                Provided that Mr. Horn is appointed in lieu of 
                Mr. Mica for consideration of sections 362, 
                366, 807, and 821-25 of the House bill, and 
                sections 809(b), 1081, 1401-34, and 2826 of the 
                Senate amendment:
                                   Stephen Horn,
                Provided that Mr. Zeliff is appointed in lieu 
                of Mr. Mica for consideration of section 1082 
                of the Senate amendment:
                                   Bill Zeliff,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                sections 233-34, 237, 1041, 1043, 1052, 1101-
                05, 1301, 1307, and 1501-53 of the House bill, 
                and sections 234, 1005, 1021, 1031, 1041-43, 
                1045, 1323, 1332-35, 1337, 1341-44, and 1352-54 
                of the Senate amendment, and modifications 
                committee to conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                As additional conferees from the Committee on 
                the Judiciary, for consideration of sections 
                537, 543, 1066, 1080, 1088, 1201-16, and 1313 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Henry Hyde,
                                   Bill McCollum,
                                   John Conyers, Jr.,
                Provided that Mr. Moorhead is appointed in lieu 
                of Mr. McCollum for consideration of sections 
                537 and 1080 of the Senate amendment:
                                   Carlos J. Moorhead,
                Provided that Mr. Smith of Texas is appointed 
                in lieu of Mr. McCollum for consideration of 
                sections 1066 and 1201-16 of the Senate 
                amendment:
                                   Lamar Smith,
                As additional conferees from the Committee on 
                Resources, for consideration of sections 247, 
                601, 2821, 1401-14, 2901-13, and 2921-31 of the 
                House bill, and sections 251-52, 351, 601, 
                1074, 2821, 2836, and 2837 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   James V. Hansen,
                                   Jim Saxton,
                As additional conferees from the Committee on 
                Science, for consideration of sections 203, 
                211, 245, and 247 of the House bill, and 
                sections 211, 251-52, and 1044 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Robert S. Walker,
                                   James Sensenbrenner, Jr.,
                                   Jane Harman,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for 
                consideration of sections 324, 327, 501, and 
                601 of the House bill, and sections 345-48, 
                536, 601, 641, 1004, 1009, 1010, 1311, 1314, 
                and 3162 of the Senate amendment, and 
                modifications committed to conference:
                                   Bud Shuster,
                As additional conferees from the Committee on 
                Veterans' Affairs, for consideration of 
                sections 556, 638, and 2821 of the House bill, 
                and sections 538 and 2828 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bob Stump,
                                   Christopher H. Smith,
                                   G.V. Montgomery,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   Bill Cohen,
                                   John McCain,
                                   Dan Coats
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Sheila Frahm,
                                   Sam Nunn,
                                   Carl Levin,
                                   Ted Kennedy,
                                   Jeff Bingaman,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   J. Lieberman,
                                   Richard H. Bryan,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 3230) to 
authorize appropriations for fiscal year 1997 for defense 
activities of the Department of Defense, for military 
construction, and for defense programs of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

                 Summary Statement of Conference Action

      The conferees recommend authorizations for the Department 
of Defense for procurement, research and development, test and 
evaluation, operation and maintenance, working capital funds, 
military construction and family housing, weapons programs of 
the Department of Energy, and civil defense that have a budget 
authority implication of $265.6 billion.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is generally provided in appropriation acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matters in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the defense function are 
authorized permanently or, in certain instances, authorized in 
other annual legislation. In addition, this authorization bill 
would establish personnel levels and include a number of 
legislative provisions affecting military compensation.
      The following table summarizes authorizations included in 
the bill for fiscal year 1997 and, in addition, summarizes the 
implication of the conference action for the budget totals for 
national defense (budget function 050).


Congressional defense committees
      The term ``congressional defense committees'' is often 
used in this statement of the managers. It means the Defense 
Authorization and Appropriations Committees of the Senate and 
House of Representatives.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

Overview
      The budget request for fiscal year 1997 contained an 
authorization of $39,208.4 million for procurement in the 
Department of Defense. The House bill would authorize $47,164.9 
million. The Senate amendment would authorize $46,900.6 
million. The conferees recommended an authorization of 
$45,272.1 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview
      The budget request for fiscal year 1997 contained an 
authorization of $970.8 million for Aircraft Procurement, Army 
in the Department of Defense. The House bill would authorize 
$1,556.6 million. The Senate amendment would authorize $1,508.5 
million. The conferees recommended an authorization of $1,314.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Airborne Reconnaissance Low (ARL)

      The budget request included $24.7 million to procure the 
final ARL-M aircraft and mission equipment.
      The House bill would authorize an increase of $5.2 
million to complete the moving target indicator (MTI) upgrade.
      The Senate amendment would support the budget request.
      The Senate recedes.
      The conferees understand that the Army reprogrammed 
fiscal year 1996 funds that were authorized and appropriated 
for converting ARL-I and ARL-C aircraft to the ARL-M 
configuration. These funds were applied to incorporate an MTI 
radar into the ARL. Although the reprogramming action was 
within the scope of the Department's authority, the conferees 
are concerned with the Army's failure to notify the appropriate 
committees of what it considers a major shift of the funds. The 
conferees do, however, support the validated requirement for 
MTI on ARL, and are aware that funds have not been budgeted to 
complete the MTI purchase.
      Therefore, the conferees agree to authorize $29.9 million 
to provide the necessary funding to complete the ARL-I/-C 
conversion to ARL-M and complete the MTI radar upgrade. The 
conferees fully expect the Army to budget for completion of the 
ARL-I/-C conversion in future budget requests.

C-XX medium range aircraft

      The budget request did not contain any funds for UC-35A 
(C-XX) aircraft.
      The Army has identified the UC-35A as its highest 
priority fixed-wing program due to the operational efficiencies 
derived from its modern design. The conferees also note the 
savings achieved through the competitive procurement of this 
aircraft. However, the budget request included no funds to 
procure additional aircraft.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $35.0 
million for eight production UC-35A turbofan aircraft.
      The conferees agree to authorize an increase of $22.0 
million to procure five UC-35A aircraft.

CH-47 modifications

      The budget request included $7.8 million to procure 
safety and operational modifications for the CH-47 helicopter 
fleet.
      The conferees remain concerned about the heavy lift 
capability for the Army and the ability of an aging fleet to 
perform this critical mission. Over time, modifications to the 
existing CH-47 airframe have added significant weight to the 
aircraft, requiring an upgrade to the current engine 
configuration. It is expected that the proposed T55-L-714 
engine will increase payload capability by up to 3900 pounds 
and greatly reduce operation and maintenance costs over the 
life cycle of the new engine.
      The House bill would add $52.0 million to accelerate 
engine conversions for contingency corps aircraft. The Senate 
amendment would add $52.3 million for the same purpose.
      The conferees agree to authorize $59.8 million to begin 
the upgrade process for the fleet.

Longbow

      The budget request included $373.9 million to procure 
Apache Longbow (AH-64) systems.
      The House bill and the Senate amendment would authorize 
an increase of $53.0 million to procure training devices for 
these important aircraft.
      The conferees note the outstanding requirement of 
institutional training devices. These devices are an essential 
element of aviation training activities and need to be fielded 
as soon as practicable.
      The conferees agree to authorize $426.9 million to 
accelerate the delivery of these devices in accordance with the 
updated AH-64D fielding review.

OH-58D Kiowa Warrior

      The budget request included $9.1 million to complete 
fielding of previously procured Kiowa Warrior systems.
      The House bill would authorize an increase of $190.0 
million to convert 24 aircraft.
      The Senate amendment would authorize an increase of 
$158.4 million to complete outstanding retrofit requirements 
and convert 15 aircraft.
      The Senate recedes.
      The conferees agree to authorize a total of $199.1 
million.

Aircraft survivability equipment modifications

      The budget request included $4.8 million for aircraft 
survivability equipment.
      The House bill would add $20.0 million to procure 
additional aviation survivability equipment.
      The Senate amendment would add $34.0 million.
      The conferees agree to authorize $25.8 million to support 
vital aircraft survivability modifications as follows:
      (1) $11.0 million for AN/AVR-2A(V) laser detection sets;
      (2) $5.0 million for radar deception and jamming device 
integration; and
      (3) $5.0 million to accelerate procurement of 
installation kits for advanced threat infrared countermeasure 
devices.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $766.3 million for Missile Procurement, Army 
in the Department of Defense. The House bill would authorize 
$1,027.8 million. The Senate amendment would authorize $1,160.8 
million. The conferees recommended an authorization of $1,031.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Avenger

      The budget request included no funding for Avenger fire 
units for the National Guard.
      The House bill would authorize an increase of $59.4 
million to procure 93 Avenger fire units. The House bill 
included a provision (sec. 112) that would grant an extension 
to the Avenger multiyear procurement authorization.
      The Senate amendment would support the budget request.
      The Senate recedes.
      The conferees agree to recommend $59.4 million to 
complete contract buyout of Avenger fire units. The conferees 
agree to a legislative provision that would extend the Avenger 
multiyear procurement authority to accommodate the contract 
buyout.

Javelin medium anti-tank weapon

      The budget request included $162.1 million to procure 
1,020 Javelin missiles.
      The House bill would authorize an increase of $33.9 
million to procure an additional 300 missiles and to accelerate 
production and fielding of command launch units (CLUs).
      The Senate amendment would: authorize the Army to enter 
into a multiyear contract for Javelin missiles; authorize an 
increase of $5.7 million for accelerated production and 
fielding of CLUs; and authorize an additional $34.0 million for 
economic order quantity procurement of material.
      The conferees agree to authorize $196.0 million for the 
Javelin system for economic order quantity procurement of 
material.

Multiple Launch Rocket System (MLRS) rocket

      The budget request included $24.4 million to procure 852 
extended range rockets.
      The House bill and the Senate amendment would authorize 
an additional $17.0 million in order to maintain a stable 
production rate and procure additional rockets.
      The conferees agree to a total of $41.4 million for MLRS 
rocket production.

Multiple Launch Rocket System (MLRS) launcher

      The budget request included $38.0 million for program 
support to fielded launchers.
      The House bill would authorize an increase of $66.2 
million to support Army National Guard (ARNG) efforts to 
convert artillery battalions to MLRS configuration. Of this 
amount, $36.3 million would be available to rebuild 36 MLRS 
launchers and $29.9 million for training equipment and spare 
parts.
      The Senate amendment would add $147.0 million, including 
$110.0 million to procure four of six batteries to restructure 
fire support for heavy divisions, and $37.0 million to 
refurbish four batteries to support ARNG modernization.
      The Senate recedes.
      The conferees agree to a total of $104.2 million for MLRS 
launchers.

Stinger missile modifications

      The budget request included $16.9 million for missile 
hardware and software modifications.
      The House bill would add $15.0 million to retrofit an 
additional 1,000 missiles to the Block I configuration and $5.0 
million to modify both ground and air platforms to employ the 
missiles.
      The Senate amendment would authorize an increase of $7.0 
million to raise the retrofit production rate to an economic 
level and $15.8 million to support production and installation 
of new modules in Force Package 1 and 2 platforms.
      The Senate recedes.
      The conferees agree to authorize $36.9 million for 
Stinger modifications. Of this amount, the conferees recommend 
that $470,000 be used for the qualification and limited 
production proofing of asbestos-free Stinger rocket motors to 
support a future production capability.

Dragon missile

      The budget request included $3.2 million for Dragon 
missile modifications.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $25.0 
million to support lethality enhancements to fielded missiles.
      The Senate recedes.
      The conferees agree to an increase of $25.0 million in 
the Army National Guard modernization authorization for Dragon 
missile lethality enhancements.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $1,102.0 million for Weapons and Tracked 
Combat Vehicles Procurement, Army in the Department of Defense. 
The House bill would authorize $1,334.8 million. The Senate 
amendment would authorize $1,460.1 million. The conferees 
recommended an authorization of $1,409.5 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


Bradley Fighting Vehicle (BFV)

      The budget request included $134.4 million for the 
Bradley base sustainment program.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $57.2 
million to procure Bradley vehicles.
      The House recedes.
      The conferees note the budget request supports the 
procurement of the first low-rate initial production models of 
the A3 version of the BFV. Recognizing the enhanced 
capabilities of the A3 model, as well as the benefit of 
achieving the low rate initial production requirement faster, 
the conferees agree to an increase of $57.2 million to procure 
an additional 18 vehicles.
      The conferees agree to authorize $191.6 million for the 
BFV.

Carrier modifications (M113)

      The budget request included $23.0 million to continue 
modernization of the M113 armored personnel carrier family of 
vehicles.
      The House bill would provide an increase of $29.0 
million.
      The Senate amendment would provide an increase of $20.0 
million.
      The House recedes.
      The conferees agree to authorize $43.0 million for M113 
upgrades.

Bradley modifications

      The budget request included $83.7 million for Bradley 
system modifications.
      The House bill and the Senate amendment would authorize 
an increase of $35.5 million to buy out the requirement for 
reactive armor tiles and establish a domestic production 
capability.
      The conferees agree to authorize an additional $35.5 
million for this purpose.

Paladin/Field Artillery Ammunition Support Vehicle (FAASV)

      The budget request did not include any funds to procure 
Paladins/FAASVs for the Army National Guard.
      The House bill would add $61.0 million to procure one 
battalion set of Paladins/FAASVs.
      The Senate amendment would add $112.0 million to procure 
two battalion sets of Paladins/FAASVs.
      The Senate recedes.
      The conferees agree to authorize $61.0 million for the 
procurement of one battalion set of Paladins/FAASVs (24 of 
each) and direct that these systems be exclusively for the Army 
National Guard.

Improved Recovery Vehicle

      The budget request included $28.6 million to procure 12 
M88A1E1 Hercules Improved Recovery Vehicles.
      The House bill would authorize an increase of $27.1 
million for these vehicles.
      The Senate amendment would authorize an increase of $51.1 
million.
      The Senate recedes.
      The conferees agree to authorize $55.7 million to procure 
Hercules vehicles. The conferees understand the importance of 
procuring these vehicles as soon as possible because the older 
M88A1 lacks the necessary horsepower and braking ability to 
support recovery of the Abrams main battle tank safely.

M1 Abrams tank (modifications)

      The budget request included $50.2 million to procure 
modification kits for the M1 Abrams tank to improve lethality, 
survivability, and safety.
      The House bill would authorize $40.2 million in 
procurement and move $10.0 million to research and development 
to fund development of under-armor auxiliary power units 
(APUs).
      The Senate amendment would authorize an increase of $15.0 
million to procure external APUs and additional pulse-jet air 
systems (PJAS).
      The conferees are concerned about operation and 
maintenance costs for the Abrams fleet and have noted the 
successful application of external APUs in reducing the 
requirement for main engine idling during defensive operations. 
Demand for the external APU by soldiers in Bosnia is a 
significant endorsement for this modification.
      Additionally, the conferees note progress toward 
correcting an established Operation Desert Storm deficiency 
with the air filtration system on the Abrams. Recognizing the 
enhancement to the combat capability of a unit made by 
installing the PJAS, the conferees support an acceleration of 
procurement for these devices.
      The conferees agree to authorize $55.2 million, which 
reflects a $10.0 million transfer to PE 23735A to develop an 
under-armor APU system and a increase of $15.0 million to 
procure external APU and PJAS systems. The conferees encourage 
the Army to ensure future year funding is provided to complete 
the modification required for the Abrams fleet.

Armored combat earthmover (ACE)

      The budget request included no funding for the ACE.
      The House bill would authorize an increase of $50.7 
million to procure 54 vehicles.
      The Senate amendment contained no additional funding.
      The Senate recedes.
      The conferees agree to authorize $50.7 million to procure 
54 vehicles.

Small arms programs

      The budget request included: $5.6 million for the M4 
carbine; 5.6 million for the M16 rifle; $11.1 million for the 
M249 squad automatic weapon; $5.2 million for the MK19 
automatic grenade launcher; and no funds for procurement of 
M240 medium machine guns.
      The conferees are concerned about the production 
capability of the small arms industrial base and agree to 
authorize an increase of $51.0 million to the budget request as 
indicated below:

------------------------------------------------------------------------
                                                             Dollars (M)
                                                Dollars (M)     (Total  
                                                 (Increase)     auth)   
------------------------------------------------------------------------
M240 Machine gun..............................         20.0         20.0
M4 Carbine....................................          1.0          6.6
M16 Rifle.....................................          1.0          6.6
M249 Squad automatic weapon...................          1.0         12.1
MK19 Automatic grenade launcher...............         28.0         33.2
------------------------------------------------------------------------

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $853.4 million for Ammunition Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,160.7 million. The Senate amendment would 
authorize $1,156.7 million. The conferees recommended an 
authorization of $1,003.0 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Overview

      The budget request for fiscal year 1997 contained an 
authorization of $2,627.4 million for Other Procurement, Army 
in the Department of Defense. The House bill would authorize 
$2,802.2 million. The Senate amendment would authorize $3.298.9 
million. The conferees recommended an authorization of $2,990.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


High Mobility Multipurpose Wheeled Vehicle (HMMWV)

      The budget request included $96.8 million to procure 
1,126 HMMWVs.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $41.0 
million to support the production base, for a total of 2,350 
vehicles, and an additional $25.0 million to procure an 
additional 233 up-armored HMMWVs (UAHMMWVs), for a total 
procurement of 360 in fiscal year 1997.
      The House recedes.
      The number of vehicles supported in the budget request 
reflects a significant reduction from previous years, despite 
the fact that there remains a valid requirement for these 
vehicles. The conferees understand that the minimum sustaining 
rate to maintain a viable supply of required vehicles is not 
achieved by the current budget request.
      Additionally, the conferees are concerned about the 
number of UAHMMWVs being produced. In light of lessons learned 
in Bosnia and recognizing the importance of force protection, 
the conferees agree that more UAHMMWVs should be procured in 
order to meet the needs of the military services and maintain 
industrial production capacity at a minimum level.
      The conferees agree to authorize $162.8 million for HMMWV 
vehicles.

Family of Heavy Tactical Vehicles (FHTV)

      The budget request included $163.3 million to procure 
vehicles necessary to support modern and highly mobile combat 
units.
      The House bill would authorize an increase of $33.0 
million for the FHTV program.
      The Senate amendment would authorize an increase of 
$123.0 million for the FHTV program.
      The conferees agree to authorize an increase of $83.0 
million to the budget request to procure the heavy tactical 
vehicles, as indicated below:

------------------------------------------------------------------------
                                                Dollars (M)  Dollars (M)
                                                  Increase    Authorized
------------------------------------------------------------------------
Heavy Expanded Mobility Tactical Transporter                            
 (HEMTT)......................................         33.0         33.0
Palletized Loading System (PLS)...............         50.0        127.4
------------------------------------------------------------------------

Enhanced Position Location Reporting System (EPLRS)

      The budget request included $48.0 million to procure this 
critical battlefield system. The EPLRS provides real-time data 
distribution and serves to enhance situational awareness.
      The House bill would authorize $25.0 million to procure 
additional EPLRS units with installation kits.
      The Senate amendment would authorize $20.0 million to 
procure 485 additional EPLRS units with installation kits.
      The conferees agree to authorize $68.0 million for a 
total procurement in fiscal year 1997 of 1285 systems.

SINCGARS family

      The budget request included $297.5 million to procure 
25,616 ground radios, 593 airborne radios, and 13,405 data 
transfer devices.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $43.3 
million for SINCGARS radios and installation kits.
      The conferees understand that some prior year funding has 
been withdrawn by the Department of Defense due to internal 
budget decisions. These reductions have had an adverse impact 
on the fielding schedule. The conferees believe the original 
schedule should be maintained and are encouraged to note that 
an investment of an additional $30.0 million would procure 
approximately 4,500 radios and save $10.0 million.
      The conferees agree to a total of $327.5 million for 
SINCGARS in fiscal year 1997.

Army communications

      The budget request included $4.1 million to support 
echelon above corps (EAC) communications activities.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $40.0 
million.
      The House recedes.
      The Army continues to modernize the Area Common User 
System and to transition to the Warfighter Information Network 
to capitalize on advances made in information technology. The 
conferees understand that a shortfall exists to continue this 
work in fiscal year 1997 and therefore agree to authorize $44.1 
million for this purpose.

Forward Area Air Defense (FAAD) Ground-Based Sensor

      The budget request included $51.2 million to procure 16 
key radar-based sensors for forward deployed Army units.
      The House bill would authorize an increase of $17.6 
million for FAAD Ground-Based Sensors.
      The Senate amendment would authorize an increase of $29.2 
million.
      The Senate recedes.
      The FAAD sensor serves to acquire targets and alert 
forces of the proximity of fixed wing aircraft, rotary wing 
aircraft, unmanned aerial vehicles and cruise missiles. The 
conferees are aware that the current production rate is 
uneconomical and prevents this key force protection device from 
reaching the field as soon as required.
      The conference agree to authorize $68.8 million for FAAD 
sensors.

Night vision devices

      The budget request included $111.9 million to continue 
fielding critical night vision devices that will allow the Army 
to ``own the night.''
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of 
$134.1 million for night vision devices.
      The conferees agree to authorize the following increases: 
$24.5 million to fill the requirement for approximately 1,000 
thermal weapon sights (TWS) for Special Operations Forces 
(SOF); $24.5 million to procure approximately 7,500 night 
vision goggles (NVG) for critical combat units in the SOF and 
other light units; $9.1 million for aiming lights, including 
$4.1 million to procure 19,260 AN/PAQ-4B&4C aiming lights to 
fill the modified infantry basis of issue plan and upgrade 
existing lights and $5.0 million to procure 5,100 AN/PEQ-2 
illuminator/aiming lights for the Army and 2,500 devices for 
the Marine Corps; and $8.9 million for initial spares and 
facilitization of total package fielding for these devices.
      The conferees agree to authorize $178.9 million for the 
procurement of night vision equipment.

Standardized Integrated Command Post System (SICPS)

      The budget request included $26.3 million to procure 
tents, shelters and kits for SICPS.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $12.7 
million for the SICPS.
      The conferees agree to authorize an increase of $10.3 
million to buy the shelters required through fiscal year 1997 
and to ensure that this fielding occurs on schedule.
      The conferees agree to authorize $36.6 million for new 
shelters.

Total Distribution System (TDS)

      The budget request included $4.4 million for Army 
logistics requirements to distribute, track, and account for 
supplies and equipment in peacetime and in war.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $6.0 
million.
      The conferees agree to authorize an increase of $3.0 
million.
      The conferees support the timely fielding of logistics 
support equipment and note the corresponding increase in 
efficiency and cost savings in managing inventory. The TDS will 
enhance logistics operations and should be fielded throughout 
the Army as soon as practicable.
      The conferees agree to authorize $7.4 million to support 
logistical enhancements.

STAMIS Tactical Computers (STACOMP)

      The budget request included $27.2 million for computer 
equipment.
      The House bill would authorize an increase of $42.0 
million.
      The Senate amendment would authorize an increase of $30.5 
million.
      The conferees agree to authorize an increase of $25.0 
million for computer hardware and software enhancements 
necessary to meet Army efforts to keep pace with rapidly 
changing technology.

Force Provider

      The budget request included $11.7 million for the Force 
Provider program.
      The House bill would authorize an increase of $12.8 
million for the program.
      The Senate amendment would support the budget request.
      The conferees agree to authorize $18.1 million for Force 
Provider.

Generators and associated equipment

      The budget request included $13.2 million for generators 
and associated equipment.
      The House bill would authorize an increase of $58.0 
million to procure generators.
      The Senate amendment would support the budget request.
      The House recedes.

Tranining devices, non-system

      The budget request included $82.7 million for training 
devices.
      The House bill would authorize an increase of $1.5 
million to procure electronically scored targeting systems for 
the U.S. Army marksmanship training unit.
      The Senate amendment would support the budget request.
      The Senate recedes.
      The conferees agree to authorize $84.2 million for 
training devices.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $5,882.0 million for Aircraft Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $6,669.0 million. The Senate amendment would 
authorize $6,911.4 million. The conferees recommended an 
authorization of $7,034.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


AV-8B remanufacture

      The budget request included $282.0 million to procure 10 
remanufactured AV-8B aircraft and $22.9 million for advance 
procurement of 12 aircraft in fiscal year 1998. The planned 
procurement of 12 remanufactured Harrier aircraft in fiscal 
year 1997, which was reflected in last year's budget request, 
was reduced to 10 because of resource constraints. The Harrier 
II Plus configuration provides day/night/adverse weather 
improvements to the AV-8B aircraft.
      The House bill would authorize an additional $112.0 
million to procure four more AV-8B remanufactured aircraft in 
order to accelerate the fielding of this much-needed and 
safety-related improvement.
      The Senate amendment would authorize an increase of $68.0 
million to procure an additional two aircraft and the necessary 
of integrated logistics support for the AV-8B program that the 
future years defense program currently would defer until fiscal 
years 1999 and 2000.
      The House recedes.

Flight simulators

      The budget request included no funding for flight 
simulators for various Marine Corps aircraft.
      The Senate amendment would support the use of flight 
simulators for Marine Corps training by authorizing an increase 
of $60.0 million to procure or upgrade simulators for the V-22, 
AV-8B, and CH-53D.
      The House bill would authorize the requested amount.
      The Senate recedes.

F-14 aircraft modifications

      The budget request included $232.0 million for F-14 
modifications, of which $13.9 million was for continued 
operation and maintenance of the F-14 tactical air 
reconnaissance pod system (TARPS).
      The House bill would authorize an increase of $2.6 
million to fund continued TARPS reliability/supportability 
upgrades.
      The Senate amendment would authorize the request.
      The Senate recedes.
      The conferees are aware of the continued reliance on 
TARPS by the Navy and accordingly agree to authorize the 
addition of $2.6 million for TARPS upgrades.

E-2C airborne early warning aircraft

      The budget request included $169.2 million for 
procurement of two E-2C early warning aircraft.
      The House bill would increase the requested amount by 
$74.0 million to purchase one additional aircraft.
      The Senate amendment would increase the requested amount 
by $139.0 million for two additional aircraft.
      The Navy resumed production in fiscal year 1995 of the E-
2C, with the intent of purchasing four aircraft per year for a 
total of 36 aircraft. That planned acquisition rate has been 
reduced from four aircraft to two in the budget request for 
fiscal year 1997. The conferees understand that procuring two 
more E-2C aircraft would lead to a savings of $13.2 million per 
aircraft. Accordingly, the conferees recommend an increase of 
$139.0 million to acquire a total of four E-2C aircraft in 
fiscal year 1997.

Helicopter crash attenuating seats

      The budget request included no funding for the 
procurement of crash attenuating seats for the H-53 helicopter.
      Section 136 of the National Defense Authorization Act for 
Fiscal Year 1996 directed the initiation of a program to 
provide crash attenuating troop seats for H-53 helicopters, 
using commercially developed, energy absorbing seats. As a 
result of this provision, the Department of Defense initiated 
efforts to define the requirements for a competition for 
procuring such seats as non-developmental items (NDI). The 
necessary program definition has been completed and the program 
is nearing release of the standards needed to begin a full and 
open competition to procure such seats.
      The House bill would authorize an increase of $10.0 
million for the competitive procurement of NDI crash 
attenuating seats for the H-53 helicopter.
      The Senate amendment would authorize an increase of $14.0 
million for the competitive procurement of NDI crash 
attenuating seats for the H-53 helicopter.
      The House recedes.

EP-3 modifications

      The budget request included $35.4 million for EP-3 
modifications.
      The House bill would authorize an increase of $10.0 
million to reinstate a level-of-effort upgrade program for 
those aspects of overall system capabilities not uniquely 
addressed by centrally-directed, joint development programs. 
The House bill would also include a new procurement funding 
line for procurement of the lightweight environmentally sealed 
parachute assembly (LESPA) and authorize an increase of $3.8 
million for LESPA. A portion of this increase would be for 
support of the EP-3 aircraft.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to an increase of $1.0 million for 
procurement of LESPA.

P-3 intelligence support

      The budget request included $17.6 million within the P-3 
aircraft modifications line to procure non-developmental, 
commercial off-the-shelf (COTS), roll-on/roll-off signals 
intelligence (SIGINT) sensors for use aboard P-3C aircraft.
      The House bill and Senate amendment would not authorize 
the $17.6 million included in the budget request for the 
procurement of COTS SIGINT sensors in fiscal year 1997.
      The conferees are concerned that the Navy has not 
developed a sound operational concept for employing the SIGINT 
capability that it proposes to add to the P-3C aircraft. Nor is 
it clear that the Navy's proposal relates well to the 
capability already provided by its existing fleet of EP-3 
aircraft. Important questions that should be answered to 
address the conferees' concerns include:
            (1) To what degree would P-3C aircraft equipped 
        with such a COTS SIGINT package be interoperable with 
        other SIGINT platforms? and
            (2) Are sufficient specially trained personnel 
        available to support both existing SIGINT systems and 
        this one as well?

P-3C modifications

      The budget request included $34.7 million for the P-3C 
anti-surface warfare improvement program (AIP). This amount 
would procure one P-3C AIP kit and additional training 
equipment, support equipment, and logistics support for the P-
3C AIP program.
      The Senate amendment would authorize an increase of $87.0 
million for the procurement of 11 additional P-3C AIP kits and 
associated equipment and support in order to maintain the 
acquisition schedule requested by the operational commanders in 
chief (CINCs) and to procure the kits at a more cost effective 
rate.
      The House bill would authorize the requested amount for 
P-3 modifications but would include a new procurement funding 
line for procurement of the lightweight environmentally sealed 
parachute assembly (LESPA) and authorize an increase of $3.8 
million for LESPA. A portion of this increase would be for 
support of the P-3C aircraft.
      The conferees agree to authorize an increase of $61.0 
million for the procurement of seven additional P-3C AIP kits 
and associated equipment and support. Reporting requirements 
for the P-3C AIP program associated with submission of the 
fiscal year 1998 budget request are contained in the Senate 
report (S. Rept. 104-267). The conferees also agree to 
authorize an increase of $2.8 million for LESPA procurement.

Lightweight environmentally sealed parachute assembly

      The budget request included no funding for procurement of 
(LESPA) units.
      The House bill would establish a new funding line for 
LESPA and authorize an increase of $3.8 million for procurement 
of LESPA units.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to authorize an increase of $3.8 
million for LESPA but distribute this increase to existing 
programs as discussed elsewhere in this statement of managers.

Airborne self protection jammer (ASPJ)

      The Budget request did not include funds for acquisition 
of the ASPJ.
      The House bill would add $50.0 million to Aircraft 
Procurement Navy (APN) line 45, electronics counter-measures 
(ECM) equipment.
      The Senate amendment would add $50 million for 36 sets of 
ASPJ to APN 5 line 24, F-18 series modifications.
      The conferees agree to provide an additional 36 sets of 
ASPJ as a one-time acquisition for contingency deployments, 
realizing that the ASPJ system is available now and that the 
integrated defensive electronic countermeasures (IDECM) system 
is under development and will not be available until fiscal 
year 2002. The conferees recommend an increase of $47.9 million 
in line 45 to buy 36 ASPJ systems, including aircraft interface 
units (racks), spares and additional integrated logistic 
support for three deployed F/A-18C/D squadrons.
      The conferees recognize that the Navy is developing IDECM 
to serve as the long-term ECM system for the F/A-18E/F, and 
expect the Navy to upgrade the 36 sets into an IDECM 
configuration as soon as technically feasible. The conferees 
encourage the Navy to explore long-term solutions for the F/A-
18C/D.
      The conferees continue to support the IDECM program. The 
procurement of 36 ASPJ systems is intended to provide a 
contingency response capability, and does not reflect the 
conferees commitment to additional procurement of ASPJ systems 
or to restarting series production for U.S. government 
customers at this time.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $1,400.4 million for Weapons Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$1,305.2 million. The Senate amendment would authorize $1,513.3 
million. The conferees recommended an authorization of $1,345.4 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Tomahawk land attack missile

      The budget request included $88.5 million for the 
procurement of 120 Tomahawk missiles and no funding for the 
remanufacture of Block IIC Tomahawk missiles to the Block IIIC 
configuration. The budget request also contained $15.8 million 
for recertification of the Tomahawk Block IIC missiles with 
maintenance due dates in fiscal years 1996 and 1997.
      The Senate report (S. Rept. 104-267) noted that tactical 
use of the Tomahawk missile has increased at a time when budget 
reductions have reduced procurement below previously planned 
levels and resulted in inadequate funding for a required five-
year recertification of existing Block IIC missiles. As a 
consequence, the Navy has been forced to rely on the practice 
of transferring missiles from redeploying ships to those that 
are preparing to deploy. Funding at the budget request level 
would be inadequate to permit the Navy to satisfy its 
deployment loadout requirements after fiscal year 1996. The 
Senate report also noted that funding for development of the 
Tomahawk Block IV missile has been reduced substantially from 
the planned level reported in the fiscal year 1996 budget 
request, thereby delaying this important program.
      The Senate amendment would authorize an increase of $32.0 
million above the budget request for the procurement of new 
Block IIIC missiles, $14.4 million for remanufacture of Block 
IIC missiles to the Block IIIC configuration, $40.6 million for 
the recertification of existing Block IIC missiles, and $29.0 
million in PE 24229N for continued development of the Tomahawk 
Block IV missile.
      The House bill would authorize the requested amount.
      The conferees agree to authorize an increase of $14.4 
million for remanufacture of Block IIC missiles to the Block 
IIIC configuration and $40.6 million for the recertification of 
existing Block IIC missiles.

Standard missile procurement

      The budget request included $197.5 million for the 
procurement of Standard missiles for the Navy.
      The Senate amendment would authorize an increase of $40.0 
million above the budget request for the procurement of 
additional SM2 Block IV missiles to help stabilize the 
production base for the Block IV variant and to support 
ballistic missile defense development options.
      The House bill would authorize the requested amount.
      The House recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $4,911.9 million for Shipbuilding and 
Conversion Procurement, Navy in the Department of Defense. The 
House bill would authorize $5,479.9 million. The Senate 
amendment would authorize $6,567.3 million. The conferees 
recommended an authorizaiton of $6,193.3 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.


Oceanographic survey ship

      The National Defense Authorization Act for Fiscal Year 
1996 authorized $15.6 million of advance procurement for an 
oceanographic survey ship, TAGS-64. The budget request did not 
contain the additional increment needed to fully fund this 
ship. The future years defense program would not procure this 
ship until fiscal year 1999. Procurement of this ship through 
an existing contract option, to satisfy a well documented 
requirement, would result in substantial cost savings.
      The House bill would authorize an increase of $54.0 
million to the budget request to complete procurement of TAGS-
64.
      The Senate amendment would authorize an increase of $54.4 
million to the budget request to complete procurement of TAGS-
64.
      The House recedes.

SWATH oceanographic research ship

      The budget request included no funding for the 
procurement of oceanographic research ships.
      The Senate amendment would authorize an increase to the 
budget request of $45.0 million to provide the additional 
funding needed to build a small water plane area, twin-hulled 
(SWATH) oceanographic research vessel based on the TAGOS-23 
class of surveillance ships. In order to resolve a documented 
backlog of additional oceanographic survey work the Senate 
report (S. Rept. 104-267) would direct the Navy to negotiate a 
time sharing agreement with the university or institute that 
will operate the new SWATH oceanographic vessel, whereby a 
certain portion of the ship's annual operating time would be 
dedicated to meeting the Navy's oceanographic survey needs.
      The House bill would authorize the requested amount.
      The House recedes.

Fast patrol craft

      The budget request included no funds for a fast patrol 
craft.
      The House bill would authorize an increase of $20.0 
million to acquire an advanced fast patrol craft for operations 
in littoral waters. The report accompanying the House bill (H. 
Rept. 104-563) noted the need for such craft to avoid the 
current Navy practice of placing cruisers and destroyers in 
areas where they are vulnerable to shore-based cruise missiles, 
mines, and quiet diesel submarines. Such a fast patrol craft 
could provide a highly capable, multi-mission adjunct to the 
Navy's current fleet.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.

Outfitting

      The budget request included $92.0 million for outfitting 
of new construction Navy ships and conversions.
      The House bill and Senate amendment would authorize the 
requested amount.
      The conferees agree to a decrease of $44.0 million from 
the budget request for outfitting of new construction Navy 
ships and conversions.

Post delivery

      The budget request included $141.9 million for post 
delivery of new construction ships and conversions.
      The House bill would reduce the budget request amount by 
$10.0 million.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $0 million for Ammunition Procurement, Navy 
and Marine Corps in the Department of Defense. The House bill 
would authorize $599.2 million. The Senate amendment would 
authorize $0 million. The conferees recommended an 
authorization of $293.2 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1997 contained an 
authorization of $2,714.2 million for Other Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$2,871.5 million. The Senate amendment would authorize $3,005.0 
million. The conferees recommended an authorization of $2,893.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


Reactor power units

      The budget request included $223.4 million for the 
procurement of reactors and associated equipment for nuclear 
powered Navy ships.
      The House bill would reduce the budget request amount by 
$10.0 million.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to reduce the budget request amount 
by $30.0 million. Additional funds authorized for advance 
procurement of components for nuclear powered submarines will 
compensate for this reduction.

Reactor components

      The budget request included $185.6 million for reactor 
components.
      The House bill would reduce the budget request by $2.5 
million.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

AN/BPS-16 submarine navigation radar

      The budget request included no funding for the 
procurement of AN/BPS-16 submarine radar navigation sets or 
mast assemblies.
      The Navy has been procuring a commercial off-the-shelf 
(COTS) variant of the AN/BPS-16 radar navigation set and its 
associated mast assembly for installation on new construction 
submarines and for backfit on SSN-688 class submarines that 
will remain in service in the fleet. Procurement of the COTS 
variant has resulted in a 40 percent savings over a comparable 
system built to military specifications. For SSN-688 class 
submarines, the AN/BPS-16 replaces an existing radar system 
that has proven unreliable in service and is labor intensive to 
maintain. Installation of the AN/BPS-16 will improve the 
operational safety of the SSN-688 fleet by providing a state-
of-the-art, all-weather radar for navigating into and out of 
ports and for performing tactical operations at sea in adverse 
weather conditions. Procurement of additional AN/BPS-16 radar 
sets in fiscal year 1997 will also avoid a production break and 
associated start-up costs for the procurement of additional 
radar sets currently included in the future years defense 
program.
      The House bill would authorize an increase of $16.0 
million for the procurement of additional AN/BPS-16 radar sets 
to complete the backfit of the AN/BPS-16 commercial off-the-
shelf radar into the SSN-688 class submarine fleet.
      The Senate amendment would authorize an increase of $16.9 
million for the procurement of additional AN/BPS-16 radar sets 
to complete the backfit of the AN/BPS-16 commercial off-the-
shelf radar into the SSN-688 class submarine fleet.
      The House recedes.

Mine warfare

      The budget request included $22.9 million for the 
minesweeping replacement program.
      The Senate amendment would authorize an increase of $64.0 
million to accelerate several of the Navy's highest priority 
mine countermeasures (MCM) programs and sustain the 
improvements that have occurred since Desert Storm. A 
discussion of the rationale for this increase is contained in 
the Senate report (S. Rept. 104-267).
      The House bill would authorize the requested amount.
      The conferees agree to authorize an increase of $25.8 
million to accelerate the following MCM programs:

Item:
                                                    Funding ($ millions)
    SQQ-32/SLQ-48/SSQ-94/SYQ-13 Spares........................       6.3
    Integrated Combat Weapons System (ICWS)...................      17.8
    MCM Battle Space Profiler (BSP)...........................       1.7

Inertial navigation, information, and ship control system

      The House bill would authorize an increase of $32.0 
million for procurement and installation of four identical 
integrated navigation, information, and ship control systems on 
CG-47 class cruisers.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to an increase of $32.0 million for 
procurement and installation of integrated navigation, 
condition assessment, and damage control systems on CG-47 class 
cruisers. Procurement of standard monitoring and control 
systems is also authorized, subject to a successful operational 
evaluation as part of the Navy's Smart Ship initiative, which 
is discussed elsewhere in this statement of managers.
      The conferees are aware that the Navy has an urgent 
requirement to modernize, automate, and fully integrate bridge 
and machinery monitoring and control systems on its cruisers 
and other surface ships, employing commercial off-the-shelf, 
military qualified systems. Procurement and installation of 
systems such as an integrated bridge system, an integrated 
condition assessment system, and a damage control system for 
surface ships could provide major improvements in performance, 
lead to reductions in crew size, and reduce the cost of 
operations. Additional crew reduction may also be achieved 
through the acquisition of an improved machinery monitoring and 
control system.

Joint tactical terminal

      The budget request included $2.4 million for procurement 
of the joint tactical terminal (JTT).
      The House bill would authorize an additional $11.0 
million for the immediate procurement of JTT terminals for 
AEGIS, amphibious, and flagship surface vessels. The report to 
accompany the House bill to authorize intelligence programs for 
fiscal year 1977 (H. Rept. 104-578, Part 1) expressed the view 
that there is an urgent need to expeditiously procure the 
functional intelligence support capability provided by the JTT 
for these ships as soon as possible in order to ensure 
interoperability between various intelligence producers and 
users.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Shipboard integrated communications system

      The budget request included no funding for procurement of 
an integrated communications system for installation aboard 
aircraft carriers.
      The Senate amendment would authorize an increase of $4.5 
million above the budget request specifically for the 
competitive procurement of an existing integrated 
communications system that can be installed aboard aircraft 
carriers and other fleet units without delay.
      The Senate report (S. Rept. 104-267) expressed concern at 
the Navy's lack of progress, despite congressional prodding for 
over two years, on procurement of a commercial off-the-shelf 
non-developmental integrated communications system to replace 
obsolete systems now installed on Navy ships. While the Navy 
has made great strides in increasing the capability and 
flexibility of communications systems that deliver information 
to fleet units, a similar emphasis on the internal management 
of that information aboard ship has been lacking. In a report 
submitted to Congress on February 12, 1996, the Navy 
acknowledged that, while current aircraft carrier interior 
integrated communications systems are outdated and there is 
little integration between systems within the ship, the Navy is 
still in the process of defining a baseline system architecture 
that can meet current demands.
      The House bill would authorize the requested amount.
      The House recedes.

Challenge Athena

      The budget request included no funding for the Chief of 
Naval Operation's special project Challenge Athena. This budget 
decision was made despite a series of favorable reports by the 
Navy's operational commanders on the significant contributions 
that Challenge Athena has made to the success of their 
operational deployments.
      The Senate amendment would authorize an increase of $41.7 
million above the budget request for Challenge Athena, $14.7 
million for procurement and $27.0 million for operation of the 
system.
      The House bill would authorize the requested amount.
      The conferees agree to authorize a total increase of 
$28.7 million above the budget request for Challenge Athena, 
$14.7 million for procurement of Challenge Athena equipment, 
and $14.0 million for system operation.

Global broadcast service

      The budget request included $113.2 million for launch 
services for UHF follow-on (UFO) satellites 8, 9, and 10. These 
satellites will support UHF, EHF, and global broadcast service 
(GBS) communications. However, the budget request did not 
contain funding for the ground and sea-based equipment needed 
to implement the GBS capability.
      To ensure that the diverse requirements of the Navy's GBS 
are met in a complementary manner, the Senate amendment would 
authorize an increase of $50.0 million above the budget request 
as follows:
            (1) $39.0 million for the procurement and 
        installation of shipboard GBS satellite terminals;
            (2) $7.0 million for the procurement and 
        installation of shore GBS satellite terminals; and
            (3) $4.5 million to provide for launch services for 
        UFO satellites 8, 9, and 10.
      The House bill would authorize the requested amount.
      The conferees agree to authorize an increase of $10.3 
million for the procurement and installation of shipboard GBS 
satellite terminals.

Sonobuoys

      The budget request included $22.7 million for the 
procurement of AN/SSQ-62 sonobuoys and no funding for the 
procurement of AN/SSQ-53E sonobuoys. It also contained $5.2 
million in PE 63254N for development and demonstration of 
advanced anti-submarine warfare sensors and processors, 
including $2.5 million for the advanced deployable low 
frequency projector (ADLFP). The ADLFP is a candidate for the 
active project source of the advanced explosive echo ranging 
sonobuoy.
      The House bill would authorize an increase of $17.0 
million for the procurement of additional AN/SSQ-62 sonobuoys. 
It would also authorize an increase of $2.5 million in PE 
63254N for the development and demonstration of risk reduction 
technologies for the ADLFP to insure that shallow water 
performance requirements are met and system cost is minimized.
      The Senate amendment would authorize an increase of $12.2 
million for the procurement of additional AN/SSQ-62 sonobuoys 
and $31.8 million for the procurement of AN/SSQ-53E sonobuoys. 
It would also authorize $2.5 million in PE 63254N and $2.5 
million in PE 64261N for development of the ADLFP and advanced 
multi-static processing (AMSP).
      The conferees agree to authorize an increase of $12.2 
million for procurement of AN/SSQ-62 sonobuoys, $18.0 million 
for procurement of AN/SSQ-53E sonobuoys, and $2.5 million in PE 
63254N for development of the ADLFP.

Airborne laser mine detection systems

      The budget request included no funding for the 
procurement of airborne laser mine detection systems.
      The House bill would authorize an increase of $25.0 
million for the procurement of three Magic Lantern systems and 
associated spares.
      The Senate amendment would authorize an increase of $25.0 
million for the procurement of the winner of a competition 
between two airborne laser mine detection systems, ATD-111 and 
Magic Lantern.
      The conferees agree to authorize the requested amount.

Rolling air frame missile launcher for LSF-52

      In fiscal year 1996, Congress authorized and appropriated 
$20.0 million to install the ship self-defense system (SSDS) MK 
1 and the rolling airframe missile (RAM) system in LSD-52, an 
amphibious ship that is now under construction. This amount was 
insufficient to fully cover both the hardware procurement and 
ship installation costs. Consequently, the Navy was unable to 
purchase one of the two RAM launchers needed for a complete 
equipment suite. The budget request did not contain funding for 
this launcher.
      The Senate amendment would authorize an increase of $5.0 
million above the budget request for the procurement of one RAM 
launcher for LSD-52.
      The House bill would authorize the requested amount.
      The Senate recedes.

AEGIS support equipment

      The budget request included $30.4 million for AEGIS 
support equipment.
      The House bill would authorize an additional $3.0 million 
to procure flexible wearable computers for deployment on AEGIS 
ships as well as other ships that have interactive electronic 
technical manuals (IETM) available.
      The report to accompany the House bill (H. Rept. 104-563) 
noted that the Committee on National Security of the House of 
Representatives is aware that the Navy is investigating the 
possibility of hosting the IETMs on flexible wearable 
computers. Such a system would allow repair technicians to 
perform their tasks with hands-free access to the IETM 
maintenance information, while affording them maximum mobility 
to operate in confined spaces. The additional funds proposed by 
the House would permit the Navy to gain at-sea experience with 
the combined IETM/flexible wearable computer system.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Afloat planning system

      The budget request included $1.1 million for the Tomahawk 
afloat planning system (APS). This amount would be for the 
installation of systems purchased in prior years.
      The APS successfully underwent extensive operational test 
and evaluation in 1994, and production system installations 
have been completed on the USS Carl Vinson (CVN-70) and the USS 
George Washington (CVN-73). The system is being procured for 
installation in the Navy's aircraft carriers and for rapid 
deployment, when required, to meet the strike planning needs of 
a joint task force commander. It compliments the planning of 
Tomahawk land attack missile (TLAM) missions by shore-based 
cruise missile support activities by giving an afloat or 
deployed commander the ability to modify existing, pre-planned 
missions or plan new ones. It also provides the centerpiece of 
the joint service imagery processing system-Navy (JSIPS-N), a 
system that provides deployed planners real-time capability to 
receive, process, analyze and exploit tactical sensor imagery. 
A diversion of funds from this program in fiscal year 1996 and 
limiting funding in fiscal year 1997 threaten to severely 
disrupt the production line, thereby increasing unit costs 
dramatically and delaying the introduction of a capability that 
the Navy states will significantly improve its warfighting 
capability.
      Noting that the APS program's development and production 
efforts have remained on schedule and within cost, and have met 
or exceeded all specifications, the House bill would authorize 
an additional $10.0 million to support continued fielding of 
the APS.
      The Senate amendment would authorize an increase of $23.0 
million above the budget request for the procurement and 
installation of additional APS suites in order that the Navy 
could satisfy its full requirement for them in a cost effective 
manner.
      The Senate recedes.

NULKA decoy development

      The budget request included $4.4 million for continued 
development of the NULKA active countermeasures decoy. It also 
contained $12.0 million to procure NULKA decoys, launch 
subsystems, and training systems.
      The Senate amendment would authorize an increase of $9.0 
million for procurement of additional NULKA rounds and launch 
subsystems and for production improvements. The Senate 
amendment would also authorize an increase of $4.0 million in 
PE 64755N to improve the performance of the NULKA decoy in the 
presence of friendly emitters and to counter modern threat 
missiles.
      The House bill would authorize the requested amount.
      The House recedes.

Elevated causeway (modular)

      The budget request included no funding for expanding an 
existing elevated causeway (modular) (ELCAS(M)) prototype from 
a length of 2,000 feet to the 3,000 feet needed to satisfy 
logistics-over-the-shore (LOTS) operational requirements.
      Expeditionary logistics support of the Marine Corps or of 
a joint force could require assault follow-on echelon or other 
LOTS off-load in a variety of unimproved, adverse beach 
environments or degraded ports. The ELCAS(M), which the Navy 
could rapidly install, provides an elevated pier that overcomes 
high surf conditions, shallow beach gradients, and other 
hydrographic conditions that inhibit direct shoreside cargo 
discharge. The Navy has included funding for completion of two 
ELCAS(M) systems in the future years defense program. However, 
the Navy would not complete the current ELCAS(M) system until 
fiscal year 1999 because of budget constraints.
      The Senate amendment would authorize an increase of $6.7 
million above the budget request to expand the existing 
prototype system to a full 3,000 foot operational length, and 
also to acquire the ancillary support and installation 
equipment, such as lighting, piling, and safety lines, 
necessary to make it fully operational.
      The House bill would authorize the requested amount.
      The House recedes.
      The Navy budget request also included funding for a 
program to develop and field a system to meet the amphibious 
cargo beaching lighter requirement. Procurement for the system 
would not begin until fiscal year 2001. The Navy has an 
operational requirement for an amphibious cargo beaching 
lighter (or barge) that can operate in sea state 3 (SS3). To 
meet this requirement, the Navy must be able to assemble 
floating pontoons into larger sections in sea states reaching 
and exceeding SS3. The Navy designed the ELCAS(M) system to be 
able to operate sections of the system as a lighter in sea 
states up to SS3. However, the current design for the ELCAS(M) 
connector system does not allow the Navy to join the sections 
into larger units in sea states this high.
      The conferees have been informed that the contractor 
building the ELCAS(M) system has also developed a connector 
system that could be operated under SS3 conditions. The 
conferees direct the Navy to prepare a report, and submit it to 
the congressional defense committees with its fiscal year 1998 
budget request, that provides the Navy's analysis of the 
potential of using this new connector system in conjunction 
with the current ELCAS(M) sections to meet the amphibious cargo 
beaching lighter requirement.

Oceanographic equipment

      The budget request included no procurement funding for 
perishable equipment such as fathometers, global positioning 
satellite receivers, recording equipment, and side-scan sonars 
to conduct ocean surveys.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an increase of $6.0 
million above the budget request to provide additional funding 
for procurement of oceanographic survey equipment.
      The Senate recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $555.5 million for Marine Corps Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $546.7 million. The Senate amendment would authorize 
$816.1 million. The conferees recommended an authorization of 
$560.1 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Intelligence upgrades

      The budget request included $26.4 million for procurement 
of intelligence support equipment for the Marine Corps.
      The House bill would authorize an increase of $5.8 
million for the procurement of additional intelligence support 
equipment.
      The Senate amendment would authorize an increase of $14.6 
million for the procurement of additional intelligence support 
equipment.
      The Senate recedes.

Joint task force deployable communications support

      The budget request included no funding to provide a 
deployable satellite communications system for use by a 
deployed Marine Corps joint task force headquarters.
      Senate amendment would authorize an increase of $1.7 
million to procure such a system for the Marine Corps.
      The House bill would authorize the requested amount.
      The Senate recedes.

Tactical electronic reconnaissance processing and evaluation system

      The budget request included $1.0 million for procurement 
of support for the Marine Corps tactical electronic 
reconnaissance processing and evaluation system (TERPES), a 
system that is currently supporting joint operations in Bosnia.
      The House bill would authorize an increase of $1.1 
million to improve the interoperability of TERPES with the 
global command and control system (GCCS) and tactical air 
mission planning system (TAMPS).
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Marine Corps combat operations centers

      The budget request did not include funding to upgrade the 
capability of the Marine Corps' seven deployable combat 
operations centers (COC) and six fixed command centers (CC) to 
improve their data capacity and make them fully interoperable 
with the other services.
      The Senate amendment would authorize an increase of $7.4 
million above the budget request to upgrade the capability of 
these Marine Corps' COCs and CCs.
      The House bill would authorize the requested amount.
      The Senate recedes.

Telecommunications infrastructure

      The budget request included no funding to upgrade the 
communications network at the Marine Corps base at Camp 
Pendleton.
      The Marine Corps has been involved in an ongoing effort 
to upgrade existing telecommunications infrastructure at Marine 
Corps installations. While the budget request contained funding 
to support such infrastructure upgrades, it fell short of 
providing the resources necessary to upgrade Camp Pendleton. 
Establishing a high speed fiber optic backbone and switching 
system at Camp Pendleton would meet existing base requirements 
and facilitate future expansion to meet new requirements.
      The House bill and Senate amendment would authorize $18.8 
million to upgrade the telecommunications infrastructure at 
Camp Pendleton.
      The conferees agree to authorize an increase of $18.8 
million to provide a more efficient, state-of-the-art 
telecommunications infrastructure at Camp Pendleton.

Marine Corps common end user computer equipment

      The budget request included no funding for Marine Corps 
common end user computer equipment (CEUCE).
      The Senate amendment would authorize an increase of $9.8 
million above the budget for the procurement of additional 
Marine Corps CEUCE.
      The House bill would authorize the requested amount.
      The Senate recedes.

Marine Corps mobility enhancements

      The budget request included $1.3 million to procure 20 
M870A2 lowbed trailers and an additional $1.5 million to 
procure 261 International Standard Organization (ISO) beds for 
transporting fuel and water for the Marine Corps.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $28.3 
million for procurement of additional M870A2 lowbed trailers 
and ISO beds for the Marine Corps.
      The Senate recedes.

Marine Corps multiple integrated laser engagement system

      The budget request included no funding for procurement of 
the multiple integrated laser engagement system (MILES) for the 
Marine Corps.
      The House bill would authorize an increase of $10.6 
million to accelerate fielding of the first two battalion sets.
      The Senate amendment would authorize an increase of $49.0 
million to complete the Marine Corps procurement of MILES.
      The conferees agree to authorize an increase of $24.0 
million of MILES procurement.

Combat vehicle appended trainer (CVAT)

      The budget request included no funding for the 
development of new, state-of-the-art, full crew mission 
simulators for Marine Corps armored vehicle systems.
      The Senate amendment would authorize an increase of $9.2 
million to take advantage of the increased utility and reduced 
training costs offered by such simulators.
      The House bill would authorize the requested amount.
      The Senate recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $5,779.2 million for Aircraft Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $7,271.9 million. The Senate amendment would 
authorize $7,023.5 million. The conferees recommended an 
authorization of $6,764.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


C-130J

      The budget request included $62.9 million for one C-130J 
replacement aircraft for the Air Force.
      The House bill would authorize $429.0 million for eight 
Air Force C-130Js, an increase of four WC-130Js and three 
airborne battlefield command and control center aircraft, in 
addition to the one C-130J requested. Additional recommended 
increases to the administration request included $209.2 million 
for four KC-130J tanker aircraft for the Marine Corps and 
$105.0 million for two Air National Guard C-130Js.
      The Senate amendment would authorize a total of $267.4 
million for four Air Force WC-130Js and $284.4 million for six 
C-130Js for the Air National Guard.
      The conferees acknowledge the continued need to modernize 
tactical airlift and express concern over the Department's 
meager request of only one C-130 replacement aircraft. 
Consequently, the conferees authorize a total of $660.3 million 
for 13 C-130J aircraft as follows:
            (1) $52.3 million for the one requested Air Force 
        C-130J;
            (2) $209.2 million for four WC-130J's;
            (3) $209.2 for four KC-130J's for the Marine Corps; 
        and
            (4) $189.6 million for four C-130Js for the Air 
        National Guard.

Joint Surveillance Target Attack Radar System (JSTARS)

      The budget request included $417.8 million for two E-8C 
aircraft, $111.1 million for advanced procurement for two E-8Cs 
in fiscal year 1998, and $30.2 million for initial spares. 
Trainers and support equipment were included in the 
procurement. Funding in the amount of $207.3 million for follow 
on development and testing was also requested in PE 64770F.
      The House bill would increase the requested amount by 
$225.0 million for one additional aircraft.
      The Senate amendment would increase the requested amount 
by $210.0 million for procurement and an additional $30.0 
million for initial spares.
      The conferees agree to increase the requested amount by 
$210.0 million for the acquisition of one additional JSTARS 
aircraft.
      The conferees note that the JSTARS platform and 
associated ground stations are currently contained in the Air 
Force and Army tactical intelligence and related activities 
(TIARA) budget aggregations. While the conferees realize there 
are direct intelligence applications of the JSTARS associated 
Ground Support Modules (GSM) and the follow on Common Ground 
Stations (CGS), they note that the JSTARS aircraft is a direct 
battle management and targeting system, not an intelligence 
system. The JSTARS moving target indicator (MTI) radar system 
provides critical data to the operational and intelligence 
communities, and so could be considered within the TIARA budget 
aggregation. Accordingly, the conferees agree the associated 
ground stations are direct multi-source intelligence support 
applications and may be appropriately considered part of the 
entire intelligence support architecture and continue to be 
funded within TIARA aggregation.

B-1B Conventional mission upgrade program

      The budget request for B-1B modifications was $84.4 
million, and $220.9 million for research and development in 
PE64226F.
      The House bill would authorize an increase of $15.0 
million to the budget request for B-1B bomber modifications to 
accelerate competitive procurement of precision guided 
munitions (PGM) for the B-1B fleet, and $57.0 million to 
procure conventional bomb modules. The House bill would also 
increase the budget request by $8.3 million for research and 
development for defensive system upgrades.
      The Senate amendment would authorize an increase of $56.5 
million in procurement for conventional bomb modules and an 
increase of $48.0 million in research and development as 
follows:
            (1) $25.0 million for the bomber virtual umbilical 
        device (BVUD);
            (2) $10.0 million for defensive systems upgrades; 
        and
            (3) $13.0 million for data links.
      The conferees are discouraged by the slow pace of 
conventional PGM integration for the B-1B. Although additional 
funding was provided in fiscal year 1996 to accelerate arming 
of the B-1B bomber force with Joint Direct Attack Munitions and 
other PGM capability, the conferees are not aware of any 
significant progress toward this objective. Consequently, the 
conferees authorize an increase of $82.0 million to the 
procurement request for B-1B modifications as follows:
            (1) $25.0 million to accelerate competitive 
        procurement of PGM; and
            (2) $57.0 million to procure conventional bomb 
        modules.
      The conferees also agree to an increase to the budget 
request of $8.3 million for defensive systems upgrade program 
in PE64226F.

E-3 Airborne Warning and Control Systems (AWACS)

      The budget request did not include funds for the re-
engining of E-3 AWACS.
      The House bill would authorize an additional $64.2 
million in PE 27417F for reliability, maintainability and re-
engining initiatives approved by the Secretary of Defense that 
could begin in fiscal year 1997.
      The Senate amendment would increase the request by $109.0 
million in Aircraft Procurement, Air Force to begin the re-
engining of the AWACS aircraft.
      The conferees agree to authorize an additional $34.9 
million in research and development funding, for a total of 
$92.5 million, to initiate re-engining of AWACS.

Satellite communications terminals

      The budget request contained $14.8 million for 
modification of in service aircraft.
      The House bill would authorize the budget request.
      The Senate amendment would increase the requested amount 
by $21.2 million for procurement of demand assigned multiple 
access (DAMA) ultra-high frequency (UHF) satellite 
communications airborne terminals.
      The conferees agree to authorize an additional $20.3 
million in aircraft procurement funding to begin procuring UHF 
airborne DAMA terminals. The conferees understand that 
additional funds will be required in the out years to complete 
this effort and expect the Air Force to program sufficient 
funding in future budget requests.

Defense Airborne Reconnaissance Program Procurement

      Procurement for the Defense Airborne Reconnaissance 
Program (DARP) is contained in a number of procurement lines, 
distributed among the individual services and the defense-wide 
procurement account.
      The budget request included:
            (1) $66.2 million in Aircraft Procurement, Air 
        Force (APAF) line 59;
            (2) $150.7 million in APAF, line 70; and
            (3) $168.9 million in Procurement, Defense-wide 
        (PDW), line 7.
      The House bill would provide an additional $210.3 million 
in APAF line 59, a reduction of $50.0 million in APAF line 70, 
and an addition of $80.0 million in PDW line 7.
      The Senate amendment would provide an addition of $182.2 
million to APAF line 59, authorize the budget request for APAF 
line 70, and provide an additional $8.0 million for PDW line 7.
      The budget request, details of the adjustments in the 
House bill and the Senate amendment, and the final conference 
agreement, are summarized in the table below:

          DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS          
                         [Dollars in thousands]                         
------------------------------------------------------------------------
                                            Proposed change             
            Program              Budget  -------------------- Conference
                                 request    House    Senate    agreement
------------------------------------------------------------------------
Additional Rivet Joint                                                  
 aircraft.....................        --    39,300        --     39,300 
Rivet Joint mods..............    65,186    20,000        --     85,186 
Rivet Joint technology                                                  
 transfer.....................        --        --    20,000         -- 
Combat Sent mods..............     1,000     6,000        --      7,000 
RC-135 data links.............  ........        --     8,000         -- 
RC-135 re-engining............  ........   145,000   145,200    145,000 
SR-71 mods....................        --        --     9,000      9,000 
Subtotal--APAF 59.............    66,186   210,300   182,200    285,486 
Restore damaged U-2 aircraft..        --     5,000        --         -- 
Undistributed reduction.......        --  (50,000)        --   (50,000) 
Other.........................   150,742        --        --    150,742 
Subtotal--APAF 70.............   150,742  (45,000)        --    100,742 
Predator UAV..................    57,791    50,000        --    107,791 
Pioneer UAV...................    10,567    30,000        --     40,567 
Common automatic recovery                                               
 system.......................        --        --     8,000      8,000 
U-2 satellite communications..     2,023        --        --      2,023 
Common imagery ground/surface                                           
 system (CIGSS)...............    98,486        --        --     98,486 
                               -----------------------------------------
      Subtotal--PDW 7.........   168,867    80,000     8,000    256,867 
------------------------------------------------------------------------

      The conferees view with concern the lack of clarity in 
the display of DARP spending and have included provisions 
elsewhere in this bill requiring the Defense Airborne 
Reconnaissance Office (DARO) to provide improved budget 
presentations in future years.

                aircraft procurement, air force, line 59

      The conferees agree to an increase of $219.3 million 
above the budget request for the following purposes:
            (1) $39.3 million for an additional Rivet Joint 
        (RJ) aircraft;
            (2) $20.0 million for RJ modifications;
            (3) $6.0 million for Combat Sent modifications;
            (4) $145.0 million re-engining RC-135 aircraft; and
            (5) $9.0 million for SR-71 modifications.

Rivet Joint fleet modifications

      The conferees acknowledge the need for consistent level-
of-effort funding to improve these intelligence support 
aircraft in response to the rapid, and often unpredictable, 
improvements in threat technologies. Accordingly, the conferees 
expect the Department to provide funds for level-of-effort 
upgrades in future budget requests. While the conferees support 
upgrades based on platform-specific missions, they are 
skeptical of multi-functional type developmental upgrades and 
will closely monitor the Department's effort to coordinate 
service efforts and ensure compliance of such upgrades with the 
overall architecture.

Rivet Joint technology transfer

      The conferees encourage the Air Force to move forward 
with a near-term, cost effective program to transfer the 
mature, medium wave infrared sensor technology from the Cobra 
Ball aircraft to the Rivet Joint fleet. Such a program would 
offer the option of early deployment in support of theater 
missile defense improvements. This transfer could provide 
significant improvement to the Department's capabilities for 
long range surveillance, warning, rapid cueing for attack 
operations and predicting impact points.

                aircraft procurement, air force, line 70

      The conferees agree to a general reduction of $50.0 
million to the budget request.

                   procurement, defense-wide, line 7

Pioneer unmanned aerial vehicle (UAV)

      The budget request included $10.6 million attrition 
spares and unit support kits for the Pioneer UAV.
      The House bill would authorize an increase of $30.0 
million over the request to purchase attrition air vehicles and 
to replace aging and vanishing vendor items.
      The Senate amendment would authorize the request.
      The Department's decision to terminate the procurement of 
the Hunter UAV system has resulted in the Pioneer becoming the 
only UAV currently capable of meeting Navy and Marine Corps 
short range requirements. Consequently, the conferees agree to 
provide an increase of $30.0 million to fund initiatives 
necessary to ensure the continued effectiveness of the Pioneer 
UAV system.

Predator unmanned aerial vehicle (UAV)

      The budget request included $57.8 for Predator hardware 
and production support.
      The House bill would authorize an increase of $50.0 
million to procure an additional two Predator systems.
      The Senate amendment would authorize the budget request, 
and would separately provide a provision restricting the 
obligation of fiscal year 1997 funds.
      The Senate recedes.
      The conferees agree to recommend an additional $50.0 
million for the Predator UAV system. The conferees recognize 
the Predator UAV's importance as well as the need to field 
capable effective UAV systems in the near-term.

Common automatic recovery system (CARS)

      The conferees expect that this low cost system will help 
reduce mishaps and improve UAV operational effectiveness. 
Accordingly, the conferees agree to provide an additional $8.0 
million for integrating CARS into the tactical UAV (TUAV) and 
the Predator UAV systems as soon as practicable.

KC-135 simulators

      The budget request included $176.4 million for common 
aerospace ground equipment (AGE), which included funds for a 
three phase program to upgrade C-5, KC-10, and KC-135 
simulators.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $63.0 
million to acquire the last nine simulator systems in fiscal 
year 1997.
      Since the House bill and the Senate amendment were 
passed, the conferees have learned of possible reductions in 
the AGE line because of postponed acquisition of self-
generating nitrogen systems. Accordingly, the conferees agree 
to reduce the budget request by $16.2 million.

F-16 post production support

      The budget request included $81.6 million for post 
production support of F-16 aircraft.
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      Since the House bill and the Senate amendment were 
passed, the conferees have learned of possible reductions in F-
16 post production support requirements, because of double 
budgeting of sustainment costs, and unneeded production 
termination funds. Accordingly, the conferees agree to reduce 
the budget request by $10.7 million.

Miscellaneous production charges

      The budget request included $210.7 million for 
miscellaneous production charges.
      The House bill would authorize a reduction of $28.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees have learned of possible reductions in 
requirements for miscellaneous production charges, because 
funds in the program are excess to firm program requirements. 
Accordingly, the conferees agree to reduce the budget request 
by $24.7 million.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $2,733.9 million for Missile Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $4,341.2 million. The Senate amendment would 
authorize $2,847.2 million. The conferees recommended an 
authorization of $2,525.9 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Peacekeeper sustainment

      The budget request included $8.3 million for procurement 
of missile replacement equipment, $72.8 million for procurement 
of Minuteman III modifications, and $44.6 million for 
procurement of spares and repair parts.
      The House bill recommended a net increase of $32.0 
million for Peacekeeper sustainment activities. This included 
an additional $3.4 million for missile replacement equipment, 
$5.3 million for Minuteman modifications, and $300,000 for 
replacement spares and repairs. In addition, the House bill 
recommends that, of the amounts authorized to be appropriated 
pursuant to Title III for Air Force operation and maintenance, 
$23.0 million be used for sustained Peacekeeper operations.
      The Senate amendment approved the budget request for 
Peacekeeper.
      The conferees agree to authorize the following for 
peacekeeper sustainment: (1) an additional $3.4 million for 
missile replacement equipment, a net increase of $500,000 in 
this program element; (2) an additional $5.3 million in 
Procurement Air Force (Minuteman modifications); (3) an 
additional $300,000 in Air Force Procurement for replacement 
spares and repairs; and (4) of the amounts authorized to be 
appropriated pursuant to Title III for Air Force operation and 
maintenance, $23.0 million for Peacekeeper operations.

Overview

      The budget request for fiscal year 1996 contained an 
authorization of $0 million for Ammunition Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $303.9 million. The Senate amendment would authorize 
$0 million. The conferees recommended an authorization of 
$278.3 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1997 contained an 
authorization of $5,998.8 million for Other Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $6,117.4 million. The Senate amendment would 
authorize $5,889.5 million. The conferees recommended an 
authorization of $5,814.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


60K Loader

      The budget request contained $40.3 million for 37 60K 
loaders.
      The House bill would authorize the budget request.
      The Senate amendment would increase the authorization by 
$23.1 million to accelerate the acquisition of 60K loaders by 
adding 20 additional loaders in fiscal year 1997.
      The House recedes.
      The conferees understand that accelerated acquisition of 
60K loaders through an additional 20 loaders in fiscal year 
1997 could reduce Future Years Defense Program (FYDP) costs of 
these loaders by $27.4 million.
      Accordingly, the conferees recommend an increase of $23.1 
million to acquire a total of 57 of the new 60K loaders, with 
the understanding that the Department of Defense has programmed 
sufficient funds in the out years to complete the planned 
acquisition of 60K loaders.

Theater battle management command and control system procurement 
        (TBMCS)

      The budget request included $48.0 million for procurement 
of the theater battle management command and control system.
      The House bill would authorize the budget request.
      The Senate amendment would add $2.2 million to the 
program as part of a data link initiative to incorporate data 
links in various Air Force aircraft. The additional $2.2 
million would complete installation of data link related 
equipment in modular air operation centers.
      The Senate recedes.
      The conferees agree to authorize $48.0 million for the 
system.

Base information infrastructure

      The budget request included $125.7 million Air Force base 
information infrastructure.
      The House bill would reduce the authorization by $10.0 
million.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $1,841.2 million for Defense-wide Procurement 
in the Department of Defense. The House bill would authorize 
$1,890.2 million. The Senate amendment would authorize $1,908.0 
million. The conferees recommended an authorization of $2,008.3 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.


C-130 aircraft modifications

      The budget request included $86.7 million for 
modifications to U.S. Special Operations Command (USSOCOM) C-
130 aircraft.
      The Senate amendment would authorize an increase of $23.8 
million for survivability and sustainment improvements to 
USSOCOM's fleet of AC-130U gunships and the MC-130H Combat 
Talon II aircraft.
      The House bill would authorize the requested amount.
      The conferees agree to authorize an increase of $17.9 
million for modifications to USSOCOM C-130 aircraft.

Advanced SEAL delivery system

      The budget request included no procurement funding for 
the advanced SEAL delivery system (ASDS) for the U.S. Special 
Operations Command.
      A changed interpretation of administrative procedures 
between preparation of the fiscal year 1996 and fiscal year 
1997 budget requests caused $4.4 million of advance procurement 
funding for the ASDS to be deleted from the fiscal year 1997 
budget request. The consequence of this reduction in funding 
would be a one year delay in fielding the ASDS system.
      To restore the ASDS program to its original schedule, the 
Senate amendment would authorize an increase of $4.4 million 
over the budget request for the procurement of long-lead steel 
and integrated control and display consoles needed for 
fabrication of the first production ASDS.
      The House bill would authorize the requested amount.
      The House recedes.

SCAMPI communications system

      The budget request contained no funding for procurement 
of the SCAMPI communications system for the U.S. Special 
Operations Command (USSOCOM).
      The Senate amendment would authorize an increase of $3.7 
million to complete hub relocation for USSOCOM's SCAMPI 
communications system.
      The House bill would authorize the requested amount.
      The Senate recedes.

Special mission radio system

      The budget request contained $26.6 million for 
procurement of communications and electronic equipment for the 
U.S. Special Operations Command.
      The Senate amendment would authorize an additional $9.4 
million for procurement of the special mission radio system 
(SMRS) to satisfy long-range communications requirements of the 
special forces.
      The House bill would authorize the requested amount.
      The House recedes.

Briefcase multi-mission advanced tactical terminal

      The budget request included $19.8 million for 
intelligence systems for the U.S. Special Operations Command 
(USSOCOM).
      The Senate amendment authorized an addition of $4.5 
million to accelerate the procurement of the briefcase multi-
mission advanced tactical terminal (BMATT).
      The House bill would authorize the requested amount.
      The Senate recedes.

Overview

      The budget request for fiscal year 1997 contained no 
authorization for National Guard and Reserve Procurement in the 
Department of Defense. The House bill would authorize $805.0 
million. The Senate amendment would authorize $759.0 million. 
The conferees recommended an authorization of $780.0 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.

                   National Guard and Reserve Package

                                                             In millions
  Army Reserve:
        2.5T Truck SLEP...........................................  25.0
        5T Truck SLEP.............................................  25.0
        New Procurement 2.5/5T Trucks.............................  15.0
        Palletized Load System....................................   4.0
        Coolant Purification Units................................   2.0
        Small Arms Simulators.....................................   1.0
        MK-19.....................................................   3.0
        Automatic Building Machines...............................   5.0
        HMMWV Maintenance Trucks..................................   5.0
        Miscellaneous.............................................  13.0
  Navy Reserve:
        Magic Lantern Spares......................................   5.0
        F18 Upgrades..............................................  16.0
        MIUW Van System Upgrades..................................  10.0
        Night Vision Goggles......................................   5.0
        C-9 Replacement...........................................  40.0
        Miscellaneous.............................................  40.0
  USMC Reserve:
        CH-53.....................................................  50.0
        Miscellaneous.............................................  17.0
  Air Force Reserve:
        KC-135 Reengining.........................................  26.0
        Avionics Upgrades.........................................  14.0
        Night Vision Devices......................................   5.0
        C-20G.....................................................  30.0
        Miscellaneous.............................................  19.0
  Army National Guard:
        Tactical Trucks & Trailers................................  20.0
        2.5T Truck SLEP...........................................  15.0
        5T Truck SLEP.............................................   4.0
        Communications Equipment..................................  18.0
        Avenger I-Coft Simulator..................................   4.0
        C-23 Enhancement Program..................................  18.0
        Small Arms Simulators.....................................   5.0
        FADEC.....................................................  10.0
        Coolent Purification System...............................   3.0
        Crashworthy Fuel Cells....................................   5.0
        Vibration Diagnostic Equipment............................   3.0
        Reconfigurable Aviation Sim...............................   5.0
        AH-1 C-Nite...............................................   2.0
        Dragon Upgrade............................................  25.0
        Night Vision..............................................   5.0
        Aircraft Equipment........................................  17.0
        Miscellaneous.............................................  12.0
  Air National Guard:
        SEAD Mission Upgrade......................................  11.4
        Theater Deployable Comms..................................  17.0
        AN/TLQ Radar Decoys.......................................   3.0
        F-16 AIS..................................................  10.0
        C130J..................................................... 189.6
        Miscellaneous.............................................   3.0
                        -----------------------------------------------------------------
                        ________________________________________________
          Total NGRE package...................................... 780.0

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $799.9 million for Chemical Agent and 
Munitions Destruction, Army in the Department of Defense. The 
House bill would authorize $799.9 million. The Senate amendment 
would authorize $802.9 million. The conferees recommended an 
authorization of $759.9 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.


                       items of special interest

Air Force precision guided munitions

      Last year, the statement of managers accompanying the 
conference report on S. 1124 (H. Rept. 104-450) noted the need 
for DOD to develop a long-term cohesive, joint PGM program. 
Section 261 of the National Defense Authorization Act for 
Fiscal Year 1996 directed DOD to develop such a plan. The 
Department has informed the congressional defense committees 
that the analysis necessary to develop this plan will not be 
complete until later this year. The conferees believe that DOD 
should not wait for another whole year to begin providing 
additional PGM capability beyond that supported in the budget 
request.
      Accordingly, while awaiting this analysis and the 
Department's recommendations based on this analysis, the 
conferees recommend an increase of $118.2 million in missile 
procurement Air Force as detailed below:

                                           PRECISION GUIDED MUNITIONS                                           
                                              [Dollars in millions]                                             
----------------------------------------------------------------------------------------------------------------
                                    Request          SASC            HNSC         Conference                    
                               ------------------------------------------------      total                      
          Procurement                                                          ----------------        Ref      
                                  ($)     Qty     ($)     Qty     ($)     Qty     ($)    (Qty)                  
----------------------------------------------------------------------------------------------------------------
AGM-142.......................      --      --    39.0      54    39.0      50    39.0      54  MPAF line 2     
Joint Direct Attack Munition..    23.0     937      --      --    50.0    3000    23.0     937  MPAF line 5     
AMRAAM (AF)...................   116.3     133   139.8     200  ......  ......   116.9     163  MPAF line 7     
AGM-130.......................      --      --    40.0     100    95.0     250    40.0     100  MPAF line 8     
AGM 165, Maverick.............      --      --      --      --    34.0     425      --      --  MPAF line 8a    
CALCM.........................      --      --    15.0     100    15.0     100    15.0     100  MPAF line 12    
SFW...........................   131.1     400   152.7     500   152.7     500   152.7     500  PAAF line 16    
Hard Target Smart Fuze........      --      --     2.0      --      --      --     2.0      --  PAAF line 30    
----------------------------------------------------------------------------------------------------------------

Automated document conversion system (ADCS)

      The conferees are aware that the Department has made some 
progress in following its direction to begin the purchase of 
the software necessary to convert the Department's more complex 
engineering documents from raster files to an intelligent 
format. In addition, the conferees are encouraged by the 
initial results of ADCS testing. The conferees are aware that 
significant cost savings can be achieved through the use of an 
ADCS; thus, the conferees are disappointed that no funds were 
requested for this purpose.
      Accordingly, the conferees recommend $38.8 million for 
the competitive procurement of an ACDS capability.

Prototype instrumentation range facility

      There has been significant progress in advancing the 
state-of-the-art in training and simulation devices. With the 
advent of improved technologies, such as instrumented ranges, 
the Army can now train units in the complexities of modern 
combat more efficiently. However, this technology has not been 
transferred to the Army National Guard, where it could have 
significant impact on unit training and readiness. The 
conferees understand that the Army National Guard is prepared 
to allocate up to $7.0 million from the miscellaneous equipment 
section of the National Guard and Reserve Equipment Account to 
set up a prototype instrumented range facility to begin 
training Army National Guard units using advanced training and 
simulation devices.
      The conferees strongly support such an initiative and 
urge the Director of the Army National Guard to proceed with an 
initiative to establish such a facility. The conferees direct 
the Director of the Army National Guard to provide a report to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives not later 
than 12 months after enactment of this Act on the progress 
toward establishing the instrumented range.

                         legislative provisions

              Subtitle A--Authorization of Appropriations

                     legislative provisions adopted

Defense Inspector General (sec. 106)

      The House bill contained a provision that would authorize 
$2.0 million for the Defense Inspector General. The Senate 
amendment contained an identical provision. The conference 
agreement includes this provision.

Chemical agents and munitions destruction program (secs. 107 and 142)

      The budget request included $799.8 million for the 
defense chemical agents and munitions destruction program, 
including $477.9 million for operation and maintenance, $273.6 
million for procurement, and $48.3 million for research and 
development. Additionally, the budget request included $131.6 
million for military construction.
      The House bill contained a provision (sec. 107) that 
would authorize $804.8 million for the chemical agents and 
munitions destruction program, including $21.0 million for the 
alternative technology and approaches project, an increase of 
$5.0 million to the budget request.
      The Senate amendment contained a provision (sec. 107) 
that would authorize $802.8 million for the chemical agents and 
munitions destruction program, including an increase of $3.0 
million for research and development to expedite and accelerate 
the development and fielding of critical advanced sensors that 
are part of the Army's mobile munitions assessment system. A 
second provision (sec. 113) would require the Secretary of 
Defense to conduct a study on the cost of the baseline 
incineration of the chemical munitions stockpile versus the 
disposal of neutralized chemical munitions at a centrally 
located incinerator. A third provision (sec. 117) would provide 
$60.0 million for a pilot program to identify and demonstrate 
feasible alternatives to incineration for the demilitarization 
of assembled chemical munitions, establish an executive agent 
for the pilot program separate from the existing chemical 
weapon stockpile demilitarization program, require the 
Secretary of Defense to evaluate and report the results of the 
completed pilot program by December 31, 2000, and place limits 
on long lead contracting for the construction of chemical agent 
baseline program incinerators at any site in Kentucky or 
Colorado.
      The Senate recedes with an amendment.
      The conferees agree to a provision (sec. 107) that would 
authorize $759.8 million for the defense chemical agents and 
munitions destruction program, to include: $233.6 million for 
procurement; $477.9 million for operation and maintenance; and 
$48.3 million for research and development. Of the amount 
authorized $21.1 million shall be available for the alternative 
technologies and approaches project and $3.0 million shall be 
available to expedite and accelerate the development and 
fielding of critical advanced sensors that are part of the 
Army's mobile munitions assessment system.
      Further, the conferees agree to a provision (sec. 142) 
that would direct the Secretary of Defense to assess the 
current baseline incineration program for destruction of 
assembled chemical munitions and of alternative 
demilitarization technologies and processes other than 
incineration that could be used for the destruction of lethal 
chemical agents and munitions. Should the Secretary decide to 
conduct a pilot program for development and demonstration of an 
alternative technology or process other than incineration for 
the destruction of the lethal chemical agents that are 
associated with assembled munitions, the provision would 
authorize $25.0 million from funds authorized in fiscal year 
1997 for use by the Secretary for this purpose, and would 
require the Secretary to notify the Congress 30 days in 
advance, of his intention to use funds to initiate a pilot 
program. The provision would also require that the pilot 
program be conducted at the selected chemical agent and 
munitions stockpile storage site for which the alternative 
technology or process is recommended.

Progress in the chemical agents and munitions destruction program

      The conferees reiterate the concerns expressed in the 
statement of managers accompanying the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106), 
that continued delays in the chemical agents and munitions 
destruction program would lead to increases in overall program 
cost and in risk to the public and the environment. The 
conferees believe that the program should proceed 
expeditiously, using those technologies that minimize risk to 
the public and the environment. The conferees support the 
recommendations of the National Research Council (NRC), that 
the Army continue its current baseline incineration program 
until such time as the evaluation of alternative technologies 
for demilitarization and destruction of the stockpile is 
concluded. The conferees note the progress that has been made 
in the program. More than 50 percent (2 million pounds of 
chemical agents) of the chemical agent and munitions stockpile 
on Johnston Atoll has been destroyed and full-scale 
demilitarization operations continue at that site. On June 26, 
1996, the State of Utah granted approval for the Army to begin 
chemical munitions destruction operations using the baseline 
incineration process at the Tooele Chemical Agent Disposal 
Facility in Tooele, Utah.
      The conferees have reviewed the ``Department of Defense's 
Interim Status Assessment for the Chemical Demilitarization 
Program,'' dated April 15, 1996, that was submitted to the 
Congress in response to section 152(c) of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
Measures for potential reductions in the total cost of the 
chemical stockpile destruction program are under review within 
the Department of Defense. Although there is no evidence of 
immediate danger from stockpile, risk assessments from the 
programmatic environmental impact statement and the ongoing 
site-specific risk analysis updates continue to indicate that 
storage risk is much greater than the risks associated with 
executing the current chemical stockpile disposal program and 
that delay in the disposal effort will result in increased 
public risk. The Secretary of Defense is directed to submit to 
the Congress, with the Defense budget request for fiscal year 
1998, a final report on the assessment and recommendations for 
revision to the current baseline incineration program, 
including the use of alternative technologies, which could 
reduce program costs and increase public safety.

Alternative technologies

      The assessment discusses progress in the alternative 
technologies research and development program. Under this 
program, the Army, in coordination with the NRC, is evaluating 
five technologies for potential use at the bulk-only stockpile 
sites (Aberdeen Proving Ground, Maryland, and Newport Army 
Ammunition Depot, Indiana). The Army's evaluation and the NRC's 
recommendations will provide the basis for an October 1996 
decision by the Department of Defense on the continued 
development of an alternative chemical agent destruction 
process for the bulk-only storage sites. Should the Secretary 
of Defense decide to continue the development at an alternative 
technology for demilitarization of the chemical agents at the 
bulk-only chemical stockpile storage sites, the conferees agree 
that the Secretary should utilize current authority to 
reprogram funds to initiate a pilot program for this purpose.
      The conferees note that the Army's alternative 
technologies research and development program has been limited 
to consideration of alternative technologies for potential use 
at the bulk-only storage sites. The conferees believe that 
consideration should be given also to variants of the baseline 
program in which alternative technologies and processes are 
used for destruction of the chemical agent associated with 
assembled chemical munitions. The conferees have included a 
provision that would direct the Secretary of Defense, in 
coordination with the NRC, to conduct an assessment of such 
alternative technologies and processes and to report the 
results of the assessment to the Congress not later than 
December 31, 1997, together with any recommendations for 
revisions to the baseline program for destruction of assembled 
chemical munitions. Should the Secretary of Defense recommend 
the continued development of an alternative technology or 
process for destruction of the chemical agents associated with 
assembled chemical munitions, as mentioned earlier in this 
report, the conferees have included a provision which would 
make $25.0 million available from funds authorized in this Act 
to initiate a pilot program for this purpose. In order to 
minimize environmental permitting delays for a full-scale 
program which might use the alternative technology or process, 
the provision provides that the pilot program for development 
of the technology or process shall be conducted at the specific 
chemical agent and munitions stockpile storage for which the 
alternative technology or process is recommended.

Management of Chemical Agents and Munitions Destruction Program

      The conferees agree that the Department of Defense must 
provide for unified and integrated overall management of the 
chemical agents and munitions destruction program and the non-
stockpile agents and munitions destruction program. The 
conferees are concerned that a divided program under separate 
managers, would result in duplication of effort, increased 
costs, and reduced safety. Accordingly, the conferees continue 
to support the current management structure within the 
Department of Defense, with the Army as executive agent for the 
chemical agents and munitions destruction program, which 
includes the baseline incineration program, alternative 
technologies for the bulk-only stockpile sites, alternative 
technologies for the destruction of assembled chemical 
munitions, and the non-stockpile chemical agents and weapons 
destruction program. Additionally, the conferees appreciate the 
support and efforts of the National Research Council in 
conducting oversight of the chemical agents and munitions 
destruction program, and believe that it should continue to 
perform this function for the Department.

                       Subtitle B--Army Programs

                     legislative provisions adopted

Repeal of limitation on procurement of Armed Kiowa Warrior helicopters 
        (sec. 111)

      The House bill contained a provision (sec. 111) that 
would repeal the limitation on procurement of certain aircraft 
as it pertained to the OH-58D Armed Kiowa Warrior helicopter.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Multiyear procurement authority for Army programs (sec. 112)

      The House bill included a provision (sec. 112) that would 
authorize the Secretary of the Army to extend the multiyear 
contract in effect for the Avenger missile system during fiscal 
year 1996 through fiscal year 1997. Additionally, the provision 
would authorize the Secretary of the Army to enter into a 
multiyear procurement contract, beginning with fiscal year 
1997, for the procurement of the Army Tactical Missile System.
      The Senate amendment contained a provision (sec. 111) 
that would authorize the Secretary of the Army to enter into a 
multiyear procurement contract, beginning with fiscal year 
1997, for the procurement of the Javelin missile system.
      The Senate recedes with an amendment that would authorize 
a multiyear procurement contract for the Javelin missile 
system.

Bradley TOW 2 test program sets (sec. 113)

      The Senate amendment contained a provision (sec. 116) 
that would authorize the Secretary of the Army to make 
available $6.0 million from funds authorized to be appropriated 
under section 101(3) of the National Defense Authorization Act 
for Fiscal Year 1996 (110 Stat. 204), for Bradley TOW 2 test 
program sets.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle C--Navy Programs

                     LEGISLATIVE PROVISIONS ADOPTED

Nuclear attack submarine programs (sec. 121)

      The budget request included $296.2 million of advance 
construction and procurement funding for a fiscal year 1998 
nuclear attack submarine and $699.1 million for procurement of 
the third Seawolf class submarine, SSN-23. Research and 
development funding in the budget request for the fiscal year 
1998 submarine was initially reported as $489.4 million but was 
subsequently corrected to $487.6 million. The budget request 
included no advance construction and procurement funding for 
the procurement of a second nuclear attack submarine in fiscal 
year 1999, as called for in the National Defense Authorization 
Act for Fiscal Year 1996 and the Navy's six-year shipbuilding 
plan that was submitted in conjunction with the budget request.
      The House bill contained a provision (sec. 121) that 
would authorize $699.1 million for procurement of SSN-23, 
$296.2 million of advance construction and procurement funding 
for a fiscal year 1998 nuclear attack submarine that would be 
built at Electric Boat, and $504.0 million for advance 
construction and procurement for a fiscal year 1999 nuclear 
attack submarine that would be built at Newport News 
Shipbuilding.
      Section 121 of the House bill would also authorize an 
increase of $188.0 million to pursue core, Category I, and 
Category II advance submarine technology initiatives that were 
identified in Report on Nuclear Attack Submarine Procurement 
and Submarine Technology, submitted to Congress by the 
Secretary of Defense on March 26, 1996, in compliance with the 
National Defense Authorization Act for Fiscal Year 1996. The 
added funds would also be used for design initiatives intended 
to ensure that new technology is incorporated into the design 
of four developmental submarines that would begin construction 
at the rate of one per year during the period fiscal year 1998 
to fiscal year 2001 and on serial production submarines that 
would not be authorized until fiscal year 2003. Section 121 
would also revise the basis of the competition for serial 
production so that it would be based on best value vice price.
      The House provision would also place limitations on the 
expenditure of fiscal year 1997 procurement and development 
funds until the Secretary of Defense, the Under Secretary of 
Defense for Acquisition and Technology, and the Under Secretary 
of Defense (Comptroller) take certain steps to comply with 
sections 131 and 132 of the National Defense Authorization Act 
for Fiscal Year 1996. Additionally, the House provision would 
direct the Department of Defense to implement specified 
acquisition simplification strategies in order to expedite the 
fielding of more capable, less expensive nuclear attack 
submarines.
      The Senate amendment contained a provision (sec. 123) 
that would authorize $804.1 million for procurement of SSN-23, 
$296.2 million of advance construction and procurement funding 
for a fiscal year 1998 nuclear attack submarine that would be 
built at Electric Boat, and $701.0 million for advance 
construction and procurement for a fiscal year 1999 nuclear 
attack submarine that would be built at Newport News 
Shipbuilding. This authorization would satisfy all procurement 
funding requirements for SSN-23 and all advance construction 
and procurement funding requirements for the fiscal year 1998 
and fiscal year 1999 submarines.
      Although it would authorize the amount in a different 
provision discussed elsewhere in this statement of managers, 
the Senate amendment would increase funding for advance 
submarine technology by $100.0 million to pursue core, Category 
I, and Category II advance submarine technology initiatives 
that were identified in the Secretary of Defense's Report on 
Nuclear Attack Submarine Procurement and Submarine Technology. 
The Senate amendment would also place limitations, similar in 
intent if not in detail, on the expenditure of fiscal year 1997 
procurement funds until the Secretary of Defense and the Under 
Secretary of Defense for Acquisition and Technology take 
certain steps to comply with section 131 of the National 
Defense Authorization Act for Fiscal Year 1996.
      The Senate recedes with an amendment.
      The conferees agree to authorize $699.1 million for 
procurement of SSN-23, $296.2 million of advance construction 
and procurement funding for a fiscal year 1998 nuclear attack 
submarine that will be built at Electric Boat, and $701.0 
million for advance construction and procurement for a fiscal 
year 1999 nuclear attack submarine that will be built at 
Newport News Shipbuilding.
      For research and development the conference agreement:
            (1) authorizes $60.0 million to mature and 
        transition the core technologies identified in the 
        Secretary of Defense's Report on Nuclear Attack 
        Submarine Procurement and Submarine Technology with 
        emphasis on hydrodynamics, alternative sail designs, 
        advanced arrays, electric drive, external weapons, and 
        active controls and mounts;
            (2) directs that of this $60.0 million, $20.0 
        million is to be equally divided between Electric Boat 
        and Newport News to ensure the two shipbuilders are 
        principal participants in the process of including new 
        technologies in the design of future attack submarines. 
        The conferees intend that the shipbuilders be allowed 
        access to naval intelligence data and that there be 
        continuing interaction among the shipyards, the Navy 
        laboratories, and the Defense Advanced Research 
        Projects Agency;
            (3) authorizes $38.0 million to fund development 
        and testing of Category I and II technologies, as 
        described in the Secretary of Defense's report;
            (4) directs that the Navy will implement 
        acquisition reform initiatives similar in form and 
        intent to the Air Force's ``Lightning Bolt'' 
        initiatives begun in May 1995;
            (5) places limitations on the expenditure of fiscal 
        year 1997 procurement and development funds until the 
        Secretary of Defense, the Under Secretary of Defense 
        for Acquisition and Technology, and the Under Secretary 
        of Defense (Comptroller) take certain steps to comply 
        with section 131 of the National Defense Authorization 
        Act for Fiscal Year 1996 and other limitations included 
        in the amended provision;
             (6) repeals section 132 of the National Defense 
        Authorization Act for Fiscal Year 1996 and directs that 
        the funds covered by that provision shall be available 
        to the Secretary of the Navy only for advanced 
        submarine technology involving the construction of 
        large scale vehicles for purposes of hydrodynamic and 
        hydroacoustic research; and
            (7) affirms that the serial production of future 
        nuclear attack submarines to follow the four 
        developmental submarines will occur not earlier than 
        fiscal year 2002 and only after a competition based on 
        price.

Arleigh Burke class destroyer program (sec. 122)

      The budget request included $3.4 billion for the 
procurement of four Arleigh Burke class destroyers and advance 
procurement of future destroyers of this class.
      The Senate amendment contained a provision (sec. 124) 
that would authorize:
            (1) the requested amount for Arleigh Burke class 
        destroyers;
            (2) $750.0 million above the budget request for 
        advance procurement for Arleigh Burke class destroyers; 
        and
            (3) the Secretary of the Navy to enter into 
        multiyear contracts for the procurement of a total of 
        12 Arleigh Burke class destroyers at a procurement rate 
        of three destroyers per year during the four-year 
        period from fiscal year 1998 to fiscal year 2001;
      The Senate report (S. Rept. 104-267) noted that testimony 
by Navy witnesses indicated that the stable procurement program 
that would result from such authorization would permit the Navy 
to acquire these 12 ships at a substantial cost savings.
      The House bill would authorize the requested amount.
      The conferees agree to adopt a provision that authorizes 
an increase of $525.0 million above the budget request and 
provides a multiyear contracting authority for the procurement 
of a total of 12 Arleigh Burke class destroyers at a 
procurement rate of three destroyers per year during the four-
year period from fiscal year 1998 to fiscal year 2001.

                                       AIRBORNE ELECTRONIC WARFARE FUNDING                                      
                                              [Dollars in millions]                                             
----------------------------------------------------------------------------------------------------------------
                                                   House  Senate  Conference                                    
                   Procurement                    change  change    change                 Reference            
----------------------------------------------------------------------------------------------------------------
Band 9/10.......................................   $40.0   $40.0     $40.0    APN line 19, OSIP 19-79.          
Overhead connectivity...........................  ......    22.0  ..........  APN line 19, OSIP 32-85.          
USQ-113.........................................  ......    11.0      11.0    APN line 19, OSIP 32-85.          
Wing center sections............................    55.0  ......      50.0    ..................................
                                                 ---------------------------------------------------------------
      Total.....................................    95.0    73.0     101.0    ..................................
Research & Development..........................  ......  ......  ..........  ..................................
Reactive jamming initiative.....................  ......    55.0      32.0    RDT&E, Navy, PE 60427N.           
Universal exciter upgrade.......................  ......    10.0  ..........  RDT&E, Navy, PE 60427N            
                                                 ---------------------------------------------------------------
      Total.....................................  ......    65.0      32.0    ..................................
----------------------------------------------------------------------------------------------------------------

                              procurement

      Attack aviation continues to require a robust electronic 
warfare capability. The decision to retire the Air Force's EF-
111s and rely on the EA-6B for the Department's tactical 
jamming mission makes it imperative that the EA-6B fleet be 
structurally sound and modernized to meet current requirements.
      The conferees note that the current jamming transmitters 
on the EA-6B have not changed substantially since originally 
designed in the 1960s, although there have been several 
generations of improved surface-to-air and air-to-air missiles 
since then, and many of these new systems operate in the high 
radio frequency range. Also, the great majority of current 
anti-ship missiles employ seekers in the band 9/10 frequency 
range. Consequently, the conferees agree to authorize an 
increase of $40.0 million to the budget request to procure 60 
shipsets of these transmitters.
      The conferees agree to authorize an addition of $11.0 
million to the budget request to acquire an additional 24 units 
of the USQ-113 communications jammer.
      The EA-6B's aluminum wing center sections have been found 
to be subject to embrittlement, which has led to stress cracks 
and resulted in the removal of a number of aircraft from active 
service. Consequently, the conferees agree to increase the 
budget request by $50.0 million to purchase ten of the twenty 
new wing center sections in order to avoid a production break 
in the manufacture of this component.

                        research and development

      Although funds were authorized and appropriated for 
fiscal year 1996 to initiate a reactive jammer program for the 
EA-6B, the Department of Defense chose not to initiate such a 
program, and elected instead to program funds for such an 
effort from fiscal year 1999 to fiscal year 2001.
      The conferees find these actions of ignoring 
congressional direction and refusing to start a modest reactive 
jamming program unacceptable. The EA-6B is currently using 
obsolete receivers with technology from the 1960s. The EA-6B is 
scheduled to be the only airborne standoff jamming capability 
within DOD. The conferees expect the Department to begin at 
once a program to develop and field a reactive jamming 
capability in the EA-6B, and have authorized an additional 
$32.0 million for this purpose.

                         legislative provision

      The Senate amendment contained a provision (sec. 121) 
that would require the Secretary of Defense to:
            (1) certify obligation of funds for a reactive 
        jamming program; and
            (2) submit a plan for a complete program to the 
        congressional defense committees before obligation of 
        any funds for other recommended increases in the EA-6B 
        program.
      The provision would also provide that all EA-6B 
modification funding be transferred to the Air Force for 
upgrading and operating EF-111 aircraft, if such certification 
is not made by June 1, 1997.
      The House bill did not contain a similar provision.
      The House recedes.
      The conferees note with concern the Navy's slow response 
to Congressional direction and the need for modern, robust 
electronic warfare capabilities now.

T-39N trainer aircraft for the Navy (sec. 124)

      The House bill contained a provision (sec. 125) that 
would direct the Secretary of the Navy to enter into a contract 
for T-39N aircraft not later than 15 days from the date of 
enactment of the Defense Authorization Act for Fiscal Year 
1997.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would allow the 
Navy to acquire 17 T-39N aircraft once the Under Secretary of 
Defense for Acquisition and Technology makes certain 
certifications contained in the National Defense Authorization 
Act for Fiscal Year 1996, section 137.

Penguin missile program (sec. 125)

      The Senate amendment contained a provision (sec. 122) 
that would permit the Navy to enter into a contract for multi-
year procurement of not more than 106 Penguin missiles in 
accordance with section 2306b of title 10, United States Code. 
The total amount that could be expended would be limited to 
$84.8 million.
      The House bill contained no similar provision.
      The House recedes.

                     Subtitle D--Air Force Programs

                     legislative provisions adopted

Repeal on limitation on procurement of F-15E aircraft (sec. 131)

      The House bill contained a provision (sec. 141) that 
would repeal the limitation contained in the National Defense 
Act for Fiscal Years 1990 and 1991 (Public Law 101-189).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Modification to multiyear procurement authority for the C-17 aircraft 
        program (sec. 132)

      The budget request included $2,142.8 million for 
procurement of eight C-17 aircraft and their associated support 
in fiscal year 1997 and for advance procurement of additional 
C-17 aircraft in fiscal year 1998.
      The House bill contained a provision (sec. 142) that 
would authorize the Secretary of the Air Force to enter into a 
multiyear contract for a period of six program years for the 
procurement of a total of not more than 80 C-17 aircraft, 
beginning with fiscal year 1997. The House bill would also 
authorize an increase of $380.0 million for the procurement of 
two additional C-17 aircraft in fiscal year 1997 and for 
advance procurement of additional C-17 aircraft.
      The Senate amendment contained a provision (sec. 131) 
that would:
            (1) authorize the Secretary of the Air Force to 
        enter into one or more multiyear contracts for a period 
        that may exceed five years, but may not exceed seven 
        years for the procurement of not more than 80 C-17 
        aircraft; and
            (2) direct that any such multiyear contracts shall 
        include a termination clause that provides the 
        Secretary of the Air Force with the option to convert 
        to annual procurement.
      The Senate amendment would also authorize an increase of 
$194.0 million for one additional C-17 aircraft in fiscal year 
1997, $49.0 million for advance procurement for an additional 
two C-17 aircraft in fiscal 1998, and $6.0 million for initial 
spares.
      The conferees agree to authorize an additional $234.0 
million for accelerating the multiyear program. The conferees 
support an accelerated multiyear procurement (MYP) for the 
remaining 80 C-17 aircraft, and note that the Air Force entered 
a seven-year MYP contract on May 31, 1996. The conferees are 
concerned that although the Under Secretary of Defense for 
Acquisition testified before congressional defense committees 
of the House and Senate that over $300 million additional 
savings could be realized over those currently projected by 
converting the current seven-year contract to a six-year MYP, 
the Air Force has no plans to do so. The conferees include a 
legislative provision that directs the Secretary of the Air 
Force to negotiate an option to convert the current seven-year 
contract to a six-year MYP contract, and authorizes the Air 
Force to exercise this option in order to accelerate 
procurement of C-17's and take advantage of significant 
additional savings to the government.

                       Subtitle E--Other Matters

                     legislative provisions adopted

Assessment of modernization priorities of reserve components (sec. 141)

      The Senate amendment contained a provision (sec. 141) 
that would require the chiefs of each of the reserve components 
to conduct an assessment of modernization priorities and report 
to the congressional defense committees by December 1, 1996.
      The House bill contained no similar provision.
      The House recedes.

Extension of authority to carry out Armament Retooling and 
        Manufacturing Support Initiative (sec. 143)

      The Senate amendment contained a provision (sec. 114) 
that would extend the authority of the Department of Defense to 
carry out the Armament Retooling and Manufacturing Support 
Initiative through fiscal year 1998.
      The House bill contained no similar provision.
      The House recedes.

                   legislative provisions not adopted

Seawolf submarine cost cap

      The House bill contained a provision (sec. 122) that 
would split the procurement cost cap established by section 133 
of the National Defense Authorization Act for Fiscal Year 1996 
for the Seawolf class submarines SSN-21, SSN-22, and SSN-23 
into two separate caps, one for SSN-21 and SSN-22 and a second 
cap associated solely with SSN-23. The House bill would also 
repeal section 133.
      The Senate amendment contained a provision (sec. 126) 
that would stipulate that there is a total of $745.7 million 
that was appropriated in fiscal years 1990, 1991 and 1992 for 
procurement of now-canceled Seawolf submarines that is not 
included in the existing procurement cost cap for SSN-21, SSN-
22 and SSN-23.
      The conferees agree that neither of these provisions will 
be included in the conference agreement.

Pulse Doppler radar modification

      The House bill contained a provision (sec. 123) that, 
subject to funds being made available in a subsequent 
appropriations act, would direct the Secretary of the Navy to 
spend $29.0 million from unobligated prior-year balances for 
development and procurement of a pulse Doppler upgrade 
modification to the AN/SPS-48E radar system.
      The Senate amendment contained a provision (sec. 127) 
that would prohibit the use of funds appropriated for fiscal 
years prior to fiscal year 1997 for development of a pulse 
Doppler upgrade to the AN/SPS-48E radar system.
      The conferees agree to not include either of these 
provisions in the conference report.

Maritime pre-positioning ship program enhancement

      The House bill contained a provision (sec. 124) that 
would repeal the statutory authority that allows the Marine 
Corps to purchase and convert two additional foreign-built 
hulls for use by its maritime prepositioning force.
      The Senate amendment contained a provision (sec. 125) 
that would reaffirm the authorization, initially provided by 
the National Defense Authorization Act for Fiscal Year 1995, 
that section 2218(f) of title 10, United States Code, shall not 
apply to the purchase of three ships for the purpose of 
enhancing Marine Corps prepositioning ship squadrons.
      The conferees agree that neither of these provisions will 
be included in the conference report.

Type classification of electro optic augmentation (EOA) system

      The Senate amendment contained a provision (sec. 115) 
that would require the Secretary of the Army to type classify 
the EOA system.
      The House bill contained no similar provision.
      The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $34,745.7 million for Research and Development 
in the Department of Defense. The House bill would authorize 
$35,537.4 million. The Senate amendment would authorize 
$38,315.7 million. The conferees recommended an authorization 
of $37,296.6 million. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.


Overview

      The budget request for fiscal year 1997 contained an 
authorization of $4,320.6 million for Army, Research and 
Development in the Department of Defense. The House bill would 
authorize $4,680.0 million. The Senate amendment would 
authorize $4,958.2 million. The conferees recommended an 
authorization of $4,780.6 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Hardened materials

      The budget request included $9.9 million for materials 
technology (PE 62015A).
      The conferees agree to an increase of $4.0 million in PE 
62105A for the continued development of hardened materials as 
discussed in the House report (H. Rept. 104-563) and the Senate 
report (S. Rept. 104-267).

Projectile detection and cueing (PDCue) acoustic fire finder system

      The budget request included $23.6 million for sensors and 
electronics survivability technology (PE 62120A).
      The House bill would authorize an increase of $1.0 
million in PE 62120A for the PDCue to detect and localize 
sniper gunfire.
      The Senate amendment authorized the request.
      The Senate recedes.

Solid state dye lasers

      The budget request included $20.3 million for electronics 
and electronic devices (PE 62705A).
      The House bill would authorize an increase of $5.0 
million in PE 62303A for continued development of the solid 
state dye laser.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Liquid propellant

      The budget request did not include funding for liquid 
propellant technologies.
      The House bill would authorize an additional $5.0 million 
in PE 62618A for liquid propellant technologies.
      The Senate amendment would authorize an additional $15.0 
million in PE 62624A for liquid propellant technologies.
      The conferees agree to increase of $7.5 million in PE 
62624A for a program to address material compatibility, 
ignition and ballistic control issues, and to provide 
operational models validated by actual testing of the liquid 
propellant gun.

Countermine technology development and demonstration program

      The budget request included: $4.7 million in PE 62712A 
for exploratory development of countermine technology; $15.2 
million in PE 63606A for advanced development of countermine 
technologies; $16.4 million in PE 63619A for development, 
prototyping, and demonstration of advanced countermine systems; 
and $7.7 million in PE 63120D for the development and 
demonstration of technologies for use in humanitarian demining. 
The fiscal year 1997 budget request separated funding for the 
humanitarian demining program from the Army's countermine 
advanced technology development program where countermine 
developments for military operations other than war were 
previously managed.
      The House bill would authorize increases of $10.0 million 
in PE 62712A, $15.0 million in PE 63606A, and $25.0 million in 
PE 63619A for the development, demonstration, and validation of 
near-term and far-term improvements in the countermine 
capabilities of U.S. forces for tactical countermine and 
demining operations. The House report (H. Rept. 104-563) would 
direct the reassignment of humanitarian demining development 
into a consolidated demining program. The report would direct 
the Department of Defense to put increased emphasis on 
developing technologies applicable to both military wide-area 
clearance requirements and demining needs and to ensure that 
technologies are developed and shared that meet the 
countermine, wide-area clearance, and demining needs of the 
combatant commanders-in-chief and the interagency working group 
for humanitarian demining. Finally, the House report would 
direct the Secretary of Defense to develop plans for a 
countermine program that addresses these issues and to report 
the plan to the Congressional defense committees by March 1, 
1997.
      The Senate amendment would add $12.1 million in PE 63696A 
to accelerate the demonstration and deployment of a prototype 
vehicular mounted mine detection system (VMMD) and an 
additional $4.0 million to continue development of navigation 
aids and improvements to permit detection systems to operate at 
convoy speeds and display data in real time.
      The conferees agree to an increase of $3.0 million in PE 
62712A for exploratory development of countermine technology, 
an increase of $11.0 million in PE 63606A for advanced 
development of prototype VMMD, an additional $5.1 million for 
advanced development of ground penetrating radar technology, 
and an increase of $10.3 million in PE 63120D for the 
development and demonstration of technologies for use in 
humanitarian demining.
      The conferees note the summary of the January 1996 
Committee on National Security of the House of Representatives 
hearing on the landmine threat facing U.S. forces deploying to 
Bosnia and the capability of U.S. forces to meet the threat 
that was contained in the House report (H. Rept. 104-563). The 
conferees believe increased emphasis needs to be placed on the 
Department's countermine program. The program must address the 
development of feasible near-term improvements in contermine 
capabilities and the longer term advanced technologies which 
would promise more comprehensive solutions to the countermine 
problem. Specific emphasis needs to be placed on: the 
development of countermine technologies that can be applied to 
both military wide-area mine clearance requirements and 
humanitarian demining needs and will require the best efforts 
of the military services; the Department's countermine, 
unexploded ordnance clearance and explosive ordnance disposal 
research and development activities; industry; and academia. 
The conferees encourage the Department to use the resources of 
the National Research Council of the National Academy of 
Sciences in attacking this difficult problem.
      The conferees reiterate the view expressed in the 
statement of managers (H. Rept. 103-701) which accompanied the 
conference report on S. 1124 (Public Law 103-337) that the 
Department of Defense should develop a coordinated program for 
countermine warfare. The conferees believe that the actions 
taken by the Department with regard to integration and 
coordination of the chemical-biological defense program may 
provide an example of how the countermine efforts of the 
Department could be better coordinated.
      The conferees note that, as reflected in the statement of 
managers relating to funds for research, development, test, and 
evaluation of humanitarian demining technologies, the Assistant 
Secretary of Defense for Special Operations and Low Intensity 
Conflict shall continue to administer that program. The 
conferees direct the maximum degree of coordination among all 
demining programs.
      The conferees direct the Secretary of Defense to develop 
an integrated plan for a countermine program which addresses 
the issues raised above and to report the plan to Congress by 
March 1, 1997.

Unexploded ordnance remediation

      The budget request included $19.5 million for 
environmental quality technology (PE 62720A).
      The House bill would authorize an increase of $5.0 
million in PE 62720A for continued research, testing and 
analysis work at the Army Environmental Center.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Military engineering technology

      The budget request included $37.9 million in PE 62784A 
for military engineering technology.
      The Senate amendment would authorize an additional $1.0 
million to accelerate activities in applied research for cold 
regions research in the Army's military engineering technology 
program (PE 62784A).
      The House bill would authorize the budget request.
      The House recedes. The conferees agree to authorize an 
additional $1.0 million for project AT42 in PE 62784A 
recognizing the current needs of the Army for research into 
construction and civil engineering to support recent and 
unplanned operations in cold climates and winter conditions in 
Bosnia and elsewhere.

Trichloriomelamine (TCM)

      The budget request included $11.6 million for medical 
advanced technology (PE 63002A).
      The House bill would authorize an increase of $500,000 in 
PE 63002A to conduct toxicity studies of TCM disinfectant that 
includes a 90-day feeding in a non-rodent species to provide 
Environmental Protection Agency registration for Army future 
procurement from TCM suppliers.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Diesel/gas engine project

      The House bill would provide an additional $3.5 million 
in PE 63005A for continued development and Army testing of the 
combined diesel/gas turbine engine program.
      The Senate amendment contained no similar recommendation.
      The Senate recedes.

Wave net technology

      The budget request included $23.1 million for command, 
control, and communications advanced technology (PE 63006A).
      The Senate amendment would authorize an additional $4.0 
million in PE 63006A for continued development and testing of 
wave net technology for possible application to the Army's 
digitization initiatives.
      The House bill would authorize the budget request.
      The House recedes.

Starstreak

      The budget request contained no funding for continued 
evaluation of the Starstreak missile.
      The House bill would authorize an increase of $3.0 
million in PE 63003A to conduct phase two testing of the 
starstreak missile.
      The Senate amendment would authorize an increase of $15.0 
million for the same purpose.
      The conferees agree to an increase of $14.0 million in PE 
63003A to support Army efforts to evaluate the Starstreak 
missile as a potential candidate for the air-to-air missile 
system required for the Apache attack helicopter. The conferees 
also direct that prior year funds associated with the program 
be released immediately for obligation for this purpose.

Missile and rocket advanced technology

      The budget request included $90.0 million to develop 
missile technologies.
      The House bill would authorize an additional $12.0 
million in PE 63313A to support completion of a thorough risk 
reduction program for guidance package integration of the 
extended range Multiple Launch Rocket System (MLRS-ER).
      The Senate amendment would authorize an additional $10.0 
million for the same purpose.
      The House recedes.
      The conferees agree to authorize $100.0 million for 
missile/rocket technologies.

Objective Individual Combat Weapon (OICW)

      The budget request included $5.2 million to develop small 
arms for the armed services.
      The House bill would authorize an increase of $5.0 
million to develop the OICW.
      The Senate amendment would support the budget request.
      The Senate recedes.
      The conferees agree to authorize $10.2 million in PE 
63607A to develop competing technologies, through phase III, 
and allow the Army to downselect to a single contract for the 
OICW at the conclusion of the review process.

Battle integration center

      The budget request included $2.9 million in PE 63308A for 
Army missile defense systems integration.
      The Senate amendment recommended an increase of $27.0 
million in PE 63308A for the Army's Battle Integration Center 
(BIC).
      The House bill did not include additional funds for BIC.
      The House recedes.

X-ROD

      The budget request included $48.2 million for armament 
enhancement initiatives.
      The House bill would authorize an increase of $16.5 
million for continued development of the X-ROD kinetic energy 
tank round.
      The Senate amendment would support the budget request.
      The Senate recedes.
      The conferees agree to authorize $64.7 million for PE 
63639A.

``Next tank'' research and development

      The budget request did not include any funding for ``next 
tank'' research and development.
      The House bill did not address this topic.
      The Senate amendment addressed the need for the Army to 
begin to assess future concepts and requirements for a 
modernized force on a future battlefield.
      The House recedes.
      The conferees agree to authorize a total of $12.0 million 
to establish a new program element to accomplish several tasks: 
conduct a requirements analysis to establish a basis for 
deciding what system or mix of systems supports the best 
operational concept for defeating the evolving threat; develop 
conceptual approaches for integrating emerging technologies 
into a set of improvements that could be fielded in a new tank 
or in an upgraded main battle tank program; develop a set of 
requirements for the concepts selected by this analysis; and 
begin virtual prototyping activities that could lead to 
fielding a revolutionary main battle tank system within 20 
years.

Tactical electronic support systems

      The budget request included $2.0 million for tactical 
electronic support systems.
      The House bill and the Senate amendment contained an 
increase of $2.0 million to fund integration of the work 
completed by the Defense Advanced Research Projects Agency that 
developed the first operational prototype of an intelligence 
fusion system known as the Integrated Battlespace Intelligence 
Server, or IBIS.
      The conferees agree to authorize $4.0 million for PE 
63745A to support technological transfer requirements.

Intelligence data support systems

      The budget request included the following amounts for 
intelligence support systems:

                          [Dollars in millions]                         
------------------------------------------------------------------------
               Program                     Program element       Funding
------------------------------------------------------------------------
All Source Analysis System (ASAS)....  PE 63745A..............       2.0
Joint Maritime Combat Information      PE 64231N..............      11.3
 System (JMCIS).                                                        
Intelligence Analysis System (IAS)...  PE 26313M..............       1.2
Combat Information System (CIS)......  PE 27431F..............       7.7
------------------------------------------------------------------------

      The House bill would authorize an additional $2.0 million 
for ASAS and an additional $1.0 million each for the IAS, 
JMCIS, and CIS in their appropriate program elements. The House 
bill would also authorize an increase of $1.0 million in PE 
1160405BB for the U.S. Special Operation Command's research, 
analysis and threat evaluation system (SOCRATES). These funds 
would be used for improvements in interoperability, improved 
data fusion, reduced operator work load, and reduced 
development costs.
      The Senate amendment would authorize the budget request 
for these programs.
      The conferees agree to authorize an increase of $2.0 
million in PE 63745A, $1.0 million in PE 64231N, $1.0 million 
in PE 26313M, and $1.0 million in PE 1160405BB as recommended 
in the report accompanying the House bill (H. Rept. 104-563).

Comanche helicopter

      The budget request included $288.6 million for continued 
research and development work associated with the RAH-66 
Comanche helicopter.
      The House bill would authorize an increase of $50.0 
million in PE 64223A to support critical development work for 
this aircraft.
      The Senate amendment would authorize an increase of 
$100.0 million.
      The Senate recedes.
      The conferees agree to authorize $338.6 million in PE 
64223A for the Comanche program.

Javelin medium anti-tank weapon

      The budget request included $1.6 million to continue 
development work for the Javelin missile system.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $4.5 
million in PE 64611A to further the development of the 
alternate main charge warhead, start baseline integration 
tests, and evaluate the missile design to optimize warhead 
performance.
      The House recedes.
      The conferees agree to authorize $6.1 million in PE 
64611A for warhead integration activities.

Heavy assault bridge

      The budget request included $35.4 million to conduct 
development work necessary to support engineer requirements for 
the heavy assault bridge.
      The House bill and the Senate amendment would authorize 
an increase of $12.3 million in PE 64649A to design heavy 
assault bridge-unique line replaceable units and develop 
software integration requirements.
      The conferees agree to authorize $47.7 million in PE 
64649A for development work associated with engineer mobility 
equipment.

Night vision systems-engineering development

      The budget request included $33.6 million to support 
night vision system development work.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $15.0 
million in PE 64710A for research in this critical area.
      The conferees agree to authorize an increase of $2.0 
million, the higher level of increased appropriation.
      The conferees agree to authorize $35.6 million in PE 
64710A for the engineering development of night vision systems.

Brilliant Anti-armor Technology (BAT) submunition

      The budget request included $180.4 million to continue 
equipment materiel development of the BAT system.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $9.8 
million in PE 64768A to complete scheduled engineering and 
manufacturing development activities on time.
      The House recedes.
      The conferees agree to authorize $189.7 million in PE 
64768A for BAT development activities, an increase of $9.3 
million.

Weapons and munitions

      The budget request included $20.5 million to conduct 
engineering development of weapons and munitions.
      The House bill would authorize an increase of $1.6 
million to develop a change barrel to adapt a .50 caliber 
machine gun, and to develop an adaptor for a MK-19 installation 
in an Up-Armored High Mobility Multi-purpose Wheeled Vehicle.
      The Senate amendment would support the budget request.
      The conferees agree to authorize an additional $1.6 
million in PE 64802A to develop fire control improvements and 
the change barrel and adaptor as described above.

Longbow development/night vision systems

      The budget request included $5.9 million for development 
work for the Longbow system.
      The House bill would support the budget request.
      The Senate amendment would authorize an increase of $12.0 
million for development of night vision systems.
      The conferees agree to authorize $10.9 million, an 
increase of $5.0 million in PE 64816A, to be distributed as 
follows: $3.0 million for night vision system advance 
development; $1.0 million for Apache A Kit engineering 
manufacture and development (EMD); $1.0 million for Apache B 
Kit EMD.

High Energy Laser Systems Test Facility

      The budget request included $3.0 million in PE 65605A for 
the High Energy Laser Systems Test Facility (HELSTF).
      The Senate amendment would authorize an additional $21.7 
million in PE 65605A for the continued operation and upgrade of 
the facility.
      The House bill would authorize the budget request.
      The House recedes.

Combat vehicle improvement program

      The budget request included $197.8 million to support 
development efforts for a wide variety of combat vehicle 
systems.
      The House bill would authorize an increase of $17.9 
million for this effort. Of this amount, $4.9 million would be 
for the remanufacture of combat vehicle laser warning equipment 
and $3.0 million for the M1A2 compact autoloader.
      The Senate amendment would authorize an increase of $10.0 
million for high performance flat panel displays and would 
direct that these funds assist in Horizontal Technology 
Integration (HTI) of this technology into the M1 Abrams tank 
and other combat platforms.
      The conferees agree to authorize an increase of $27.9 
million. Of this amount, $4.9 million would be for the combat 
vehicle laser warning system; $10.0 million for the flat panel 
display technology; and $3.0 million for the M1A2 compact 
autoloader.
      The conferees agree to a total authorization of $225.7 
million in PE 23735A.

Under armor auxiliary power unit

      The conferees understand that the Army faces higher than 
expected costs to integrate an under armor auxiliary power unit 
(APU) for the M1 tank.
      The House bill would shift $10.0 million from the M1 tank 
modification line to PE 23735A to meet this shortfall.
      The Senate amendment did not address this issue.
      This Senate recedes.
      The conferees agree to authorize $10.0 million in PE 
23735A to fund fully the under armor APU integration effort.

Improved Cargo Helicopter (ICH)

      The budget request included $0.2 million for research and 
development of aircraft improvements.
      The House bill and the Senate amendment would authorize 
an increase of $22.7 million for technology demonstrations and 
risk reduction efforts for the programmatic development of the 
ICH program.
      The conferees agree to authorize $22.9 million in PE 
23744A for work in improving heavy lift helicopter capabilities 
that includes system health monitoring and vibration reduction 
technologies.

Force XXI digitization

      The budget request included $110.2 million for ongoing 
efforts to digitize the 21st century Army.
      The House bill would support the budget request.
      The Senate amendment would provide an increase of $24.0 
million to ensure a successful evaluation of Force XXI 
technologies.
      The conferees agree to authorize $122.2 million in PE 
23758A, an increase of $12.0 million for this effort.

Missile/air defense product improvement program

      The budget request included $31.0 million for missile and 
air defense improvements.
      The House bill would authorize an increase of $20.0 
million to the budget request.
      The Senate amendment would authorize an increase of $55.0 
million in PE 23801A. Of this amount, $40.0 million would be to 
complete analysis on cruise missile enhancements to the Patriot 
PAC-1 missile and an additional $15.0 million for evaluation of 
the Starstreak missile.
      The conferees agree to authorize $71.0 million in PE 
23801A to complete the Patriot cruise missile seeker 
assessment. The Starstreak missile program is addressed 
elsewhere in this report.

High modulus polyacrylonitrile carbon fiber

      The budget request included $27.9 million for Industrial 
Preparedness Activities (PE 78045A).
      The conferees agree to an increase of $8.0 million in PE 
78045A to complete the multi-year program to develop at least 
two domestic sources for high modulus polyacrylonitrile (PAN) 
carbon fiber as discussed in the House report (H. Rept. 104-
563) and the Senate report (S. Rept. 104-267). The conferees 
direct that all applicable competitive procedures be used in 
the award of any contracts or other agreements under this 
program, and that cost sharing requirements for non-federal 
participants be utilized where appropriate.

Instrumented factory for gears (INFAC)

      The budget request included $16.8 million for Industrial 
Preparedness (PE 78045A).
      The House bill would authorize an increase of $3.0 in PE 
78045A for INFAC.
      The Senate amendment authorized the budget request.
      The Senate recedes.

Force XXI initiatives

      The budget request did not include any funding for this 
program.
      The House bill contained $100.0 million for a new program 
element, to be established by the Army, to support the Force 
XXI Initiatives process that will allow the Army to conduct a 
timely evaluation of new equipment and technology.
      The Senate amendment would add $100.0 million for this 
purpose.
      The conferees agree to authorize $75.0 million for Force 
XXI development activities. The Army is expected to subject 
programs with promising preliminary results to normal reviews 
and evaluations required by law, prior to transitioning into 
production any program tested with these funds. The conferees 
expect the Army to budget for necessary resources in future 
year activities.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $7,334.7 million for Navy, Research and 
Development in the Department of Defense. The House bill would 
authorize $8,190.0 million. The Senate amendment would 
authorize $8,891.5 million. The conferees recommended an 
authorization of $8,068.3 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Continuous wave superconducting radio frequency free electron laser

      The budget request included $26.3 million for surface/
aerospace surveillance and weapons technology (PE 62111N).
      The House bill and Senate amendment would authorize an 
increase of $9.0 million in PE 62111N for the continuous wave 
superconducting radio frequency free electron laser (FEL) 
program.
      The conferees agree to an increase of $9.0 million in PE 
62111N for the continuation of the FEL program as discussed in 
the House report (H. Rept. 104-563) and the Senate report (S. 
Rept. 104-267). The conferees understand that there will be 
significant cost sharing between the Commonwealth of Virginia 
and the private sector in this effort. The conferees encourage 
the Department of Energy to build on this Navy project to meet 
the needs of materials scientists in universities and industry.

Advanced gun systems technology program

      The budget request included $4.8 million in PE 62111N for 
applied research in advanced gun and projectile technologies in 
support of the naval surface fire support (NSFS) program.
      The House bill would authorize an increase of $2.8 
million to accelerate development of advanced miniaturized, 
gun-hardened global positioning system/inertial navigation 
(GPS/INS) guidance and control technology and development of 
advanced technologies for next-generation gun systems.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Rocket propulsion programs

      The House bill authorized an increase of $19.0 million 
for rocket propulsion technology programs in PE 62111N, PE 
63217N, PE 62601F, and PE 63302F.
      The Senate amendment contained no similar provision.
      The conferees agree to provide an increase of $19.0 
million as specified in the House report (H. Rept. 104-563).

Power electronic building blocks

      The budget request included $35.6 million for surface 
ship technology programs (PE 62121N).
      The House bill and the Senate amendment would authorize 
an increase of $6.0 million in PE 62121N for power electronic 
building blocks (PEBB) systems.
      The conferees agree to an increase of $6.0 million in PE 
62121N for the continued development of PEBB technology for the 
rapid switching and control of high power electrical systems as 
discussed in the House report (H. Rept. 104-563) and the Senate 
report (S. Rept. 104-267). The conferees urge that the increase 
be used for the development of virtual prototyping tools that 
can be used to visualize and evaluate the performance of new 
reconfigurable ship electronic power systems that can survive 
battle damage and component failures.

Communications technology

      The budget request included $56.2 million in PE 62232N to 
continue development of key communications technologies for 
air, ship and submarine platforms.
      The House bill would authorize an increase of $2.0 
million to the budget request for support of wireless and 
satellite communications research in the areas of integrated 
antenna systems, communications hardware design, communications 
algorithm development and high-frequency device modeling and 
measurements.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Materials, electronics and computer technology

      The budget request included $75.9 million in PE 62234N 
for materials, electronics and computer technology.
      The House bill would authorize an increase of $1.0 
million in PE 62234N for composite engineered materials to 
address the future needs of naval shore facility maintenance 
and repair.
      The Senate amendment would authorize an increase of $5.0 
million in PE 62234N to address new materials processes such as 
resin transfer molding and the establishment of second sources 
for carbon fibers and prepreg systems.
      The conferees agree to authorize an increase of $6.0 
million for new materials processes as discussed in the House 
report (H. Rept. 104-563) and the Senate report (S. Rept. 104-
267).

Undersea weapons

      The budget request included $33.9 for undersea warfare 
weapon technology (PE 62633N).
      The House bill and the Senate amendment would authorize 
an increase of $6.0 million in PE 62633N for development of 
undersea weapons.
      The conferees agree to an increase of $6.0 million in PE 
62633N for the Navy's Undersea Weapons Technology program to 
accelerate the development and demonstration of technologies 
applicable to a quick reaction anti-submarine/anti-torpedo 
weapon for close-range engagements and for the protection of 
surface ships and submarines from torpedo attack as discussed 
in the House report (H. Rept. 104-563) and the Senate report 
(S. Rept. 104-267).

Maritime avionics subsystems and technology program

      The budget request included $29.3 million for advanced 
development of air systems and weapons advanced technology (PE 
63217N).
      The House bill would authorize an increase of $10.0 
million in PE 63217N for the maritime avionics subsystems and 
technology (MAST) program.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
      In the statement of managers accompanying the conference 
report on S. 1124 (H. Rept. 104-450), the conferees authorized 
$10.0 million to continue the MAST program in fiscal year 1996 
and recommended that the Secretary of the Navy consider 
requirements for continuation of the program in future budget 
requests. The conferees believe that the Navy science and 
technology program must continue to place emphasis on the 
development of advanced avionics architectures and systems. 
Because of the congressional interest in this program and the 
importance of advanced avionics architectures to future 
aircraft systems, the conferees expect the Secretary of the 
Navy to include funding for the MAST program in the fiscal year 
1998 budget request.

Mobile off-shore base

      The budget request included $9.2 million in PE 63238N to 
continue concept development of the mobile off-shore base 
(MOBS).
      The House bill would authorize reduction of $9.2 million 
in the budget request.
      The Senate amendment would approve the budget request.
      The House recedes.
      The conferees note that the Secretary of Defense has not 
reported to the congressional defense committees the plan and 
schedule for incorporating MOBS in the Defense Acquisition 
Board process and accomplishing a Milestone 0 review, as 
directed in the statement of managers accompanying the 
conference report on S. 1124 (H. Rept. 104-450).

Project M

      The budget request included no funding for Project M. a 
technology program for the active control of machinery 
platforms.
      In fiscal year 1996, Congress authorized and appropriated 
$7.0 million in PE 63569E to continue the transfer of Project M 
technology from the Defense Advanced Research Projects Agency 
(DARPA) to the Navy. The program has been focused on the 
demonstration of active control of machinery raft structural 
dynamics and magnetic levitation using rafts that represent 
future submarine engine room structures. The research has been 
significant because it has demonstrated that large scale 
implementation of active control for complex structures is 
possible. Additional funding in fiscal year 1997 would permit 
realistic testing of high fidelity quarter scale physical 
models that will provide quantitative performance data and 
other critical information that can be used to define the scope 
of applications for this technology in future submarine or 
surface ship designs. There is also potential for the expanded 
use of this technology in a broad spectrum of other military, 
space, and commercial applications where quieting of systems 
and subsystems is important.
      The House bill would authorize an increase of $8.0 
million in PE 63508N to complete transition of Project M from 
DARPA to the Navy.
      The Senate amendment would authorize an increase of $8.0 
million above the budget request in PE 63508N for the continued 
development of Project M.
      The conferees agree to an increase of $8.0 million above 
the budget request in PE 63508N for the continued development 
of Project M and to complete its transition from DARPA to the 
Navy. The conferees also direct that the Secretary of the Navy 
submit a report, no later than March 1, 1997, that provides a 
detailed assessment of:
            (1) the current status of the Project M program;
            (2) the Secretary's plans for continued development 
        of the project M technology;
            (3) future milestones for the maturing of the 
        technology;
            (4) the Navy's plan for incorporating Project M 
        technology into the design of its next generation of 
        nuclear attack submarine; and
            (5) funding included in the future years defense 
        program to satisfy this plan.

Commandant's warfighting laboratory

      The budget request included $24.4 million in PE 63640M, 
including $3.5 million for the Commandant of the Marine Corps 
warfighting laboratory, ``Sea Dragon''.
      The House bill would authorize an increase of $5.0 
million for this initiative.
      The Senate amendment would authorize an increase of $40.0 
in PE 65873M, Marine Corps Program-wide Support, for technology 
supporting experiments in ``Hunter Warrior'', the first 
advanced warfighting experiment being conducted by the 
Commandant's warfighting laboratory, and to support technology 
enhancements for follow-on limited objective experiments in 
fiscal year 1997.
      The conferees agree to authorize an increase of $40.0 
million in PE 63640M for support of the Commandant's 
warfighting laboratory. The conferees agree that the Marine 
Corps should budget for continuation of this initiative in 
future budget requests. The conferees also agree with the view 
expressed in the Senate report (S. Rept. 104-267) that 
continued support for the Marine Corps ``Sea Dragon'' process 
will be based on the demonstrated ability of the Marine Corps 
to budget adequately for the rapid fielding of new technologies 
supported by the results of the Sea Dragon experiments.

Tactical fiber optic communications

      The House bill would authorize an increase of $1.75 
million in PE 63640M for the Navy and the Marine Corps to 
exploit commercial advances in lightweight fiber optics for 
communications purposes and to demonstrate the use of 
lightweight tactical fiber optics for communications in a 
littoral scenario.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.

Medical mobile monitor

      The budget request included $37.3 million for medical 
development programs (PE 63706N).
      The House bill would authorize an increase of $4.0 
million in PE 63706N for the development of a medical mobile 
monitor to assist physicians and other medical personnel in the 
diagnosis and treatment of injuries and illness, and has the 
capability to interface with portable personal computers.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Smart base

      The budget request included $20.0 million for the Navy's 
Environmental Quality and Logistics program (PE 63712N).
      The Senate amendment would authorize an increase of $25.0 
million in PE63712N for the Smart Base technology 
demonstration.
      The House bill would authorize the budget request.
      The House recedes. The conferees agree to an increase of 
$25.0 million in PE 63712N for the Smart Base technology 
demonstration. In executing the program, the conferees instruct 
the Department of the Navy to minimize costs by seeking cost 
sharing partnerships with other Federal agencies, and state and 
local governments, as well as commercial activities.

Littoral warfare advanced technology demonstration

      The budget request included $43.6 million in PE 63747N 
for undersea warfare advanced technology development.
      The House bill would authorize an increase of $10.0 
million to the budget request for at-sea demonstration and 
evaluation of broad band, low low frequency active (LLFA) 
acoustic technology for the detection of quiet, slow moving 
submarines in the widely variable environment of the world's 
littoral regions.
      The Senate bill would authorize the requested amount.
      The House recedes. The conferees direct the Secretary of 
the Navy to report to the Congress on the Navy's intentions 
with regard to further development and exploitation of LLFA 
acoustic technology with the submission of the Navy's fiscal 
year 1998 budget request.

Undersea weapons advanced technology demonstration

      The budget request included $2.8 million for project 
R2267 in PE 63747N. This project develops and demonstrates 
advanced undersea weapons component prototypes for insertion 
into current undersea weapons to upgrade their capabilities.
      The House bill and the Senate amendment would authorize 
an increase of $5.0 million in PE 63747N for development and 
demonstration of advanced technology prototype improvements to 
current undersea weapons systems, including environmental 
emissions compliant alternative torpedo fuels and advanced 
broadband homing system technologies and software algorithms to 
improve the countermeasure resistance of U.S. undersea weapons.
      The conferees agree to an increase of $5.0 million in PE 
63747N.

Shallow water mine countermeasures

      The budget request included $42.8 million in PE 63782N 
for development and demonstration of mine countermeasures 
advanced technology, including $6.4 million for continued 
development of the advanced lightweight influence sweep system 
(ALISS).
      The House bill would authorize an increase of $5.0 
million in PE 63782N to complete development, fabrication and 
testing of the full-scale superconducting magnet that is one of 
the two major subsystems of the ALISS.
      The Senate amendment would authorize an increase of $3.0 
million in PE 63782N for completion of the science and 
technology demonstration program for the beach zone array 
subsystem of the explosive neutralization program.
      The conferees agree to authorize the requested amount.
      The conferees recommend that the Navy include funding in 
future budget requests to complete advanced technology 
development and demonstration of the ALISS, as recommended in 
the House report (H. Rept. 104-563), and to complete the 
science and technology demonstration program for the beach zone 
array subsystem of the explosive neutralization program, as 
recommended in the Senate report (S. Rept. 104-267).

Advanced technology transition

      The budget request included $104.4 million in PE 63792N 
for the Navy's Advanced Technology Transition program to 
demonstrate high-risk/high payoff technologies that could 
significantly improve the warfighting capabilities of the fleet 
and joint forces.
      The House bill would authorize a decrease of $20.0 
million from the budget request in PE 63792N. The House report 
(H. Rept. 104-563) commended the leadership of the Navy's 
science and technology community for the advanced technology 
transition initiative and the potential that it presents for 
accelerating the application of technology base solutions to 
fleet and joint warfighting requirements. However, the House 
report also included reservations about the growth in funding 
for the program and the increase in the number of projects 
encompassed by it that have occurred since fiscal year 1995. 
The House report expressed the view that the program needs to 
be highly selective and sharply focused on a relatively limited 
number of projects that are aimed at solutions to some of the 
Navy's most critical problems.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Research for advanced submarine technology

      The budget request included $19.1 million in PE 63504N 
for advanced submarine combat systems development and $26.4 
million in PE 63561N for advanced submarine system development, 
but no funding in PE 63508N for advanced submarine technology.
      Both the House bill and the Senate amendment were 
influenced by a report, Report on Nuclear Attack Submarine 
Procurement and Submarine Technology, submitted to Congress by 
the Secretary of Defense on March 26, 1996 in compliance with 
section 131 of the National Defense Authorization Act for 
Fiscal Year 1996. This report reflected recommendations of a 
submarine technology assessment panel, also known as the 
Baciocco Panel, that was commissioned by the Secretary of the 
Navy to provide an independent evaluation of available and 
future submarine technologies and an assessment of their 
feasibility, cost, and potential benefits or drawbacks with 
respect to their incorporation into a new submarine platform.
      The House bill would authorize an increase of $208.0 
million for advanced submarine technologies. The House report 
(H. Rept. 104-563) provides detailed direction on how this 
authorization would be distributed.
      The House bill would authorize an increase of $18.0 
million in PE 63508N for applied research and exploratory 
development in advanced submarine concepts, including Baciocco 
Panel recommendations, and for transition of advanced ship and 
submarine technologies developed under the Defense Advanced 
Research Projects Agency (DARPA). Of the additional amount 
provided in PE 63508N, $8.0 million would be to complete the 
transfer to the Navy of the technology for actively controlled 
machinery platforms demonstrated in DARPA Project ``M''.
      The House bill would authorize an increase of $60.0 
million to the budget request for demonstration and validation 
of core technologies identified in the Secretary of Defense's 
report, including improved acoustic sensors and processing, 
hydrodynamics, structural acoustics (including active controls 
and mounts), and propulsors (including integrated stern and 
electric drive), which would be distributed as follows:
                                                             In millions
  PE 63504N, Advanced Submarine Combat Systems Development:
    Advanced Acoustic Sensors..................................... $10.0
    Advanced Acoustic Signal Processing...........................  10.0
  PE 63561N, Advanced Submarine Systems Development:
    Hydrodynamics.................................................   5.0
    Structural Acoustics..........................................  15.0
    Propulsors....................................................  20.0

      The House bill would direct that, of the $60.0 million 
increase, a total of $20.0 million would be equally divided 
between the two submarine shipbuilders, Electric Boat Division 
and Newport News Shipbuilding, for the purpose of ensuring that 
these shipbuilders are principal participants in the process of 
including new technologies into the design and construction of 
the submarines built at their respective shipyards. The House 
report (H. Rept. 104-563) would direct the Secretary of the 
Navy to ensure that those shipbuilders have access for such 
purposes to the Navy laboratories and the Office of Naval 
Intelligence.
      The House bill would authorize an increase of $38.0 
million to the budget request for demonstration and validation 
of the Category I and Category II technologies described in the 
Secretary's report as follows:
            (1) PE 63504N: $19.0 million for demonstration and 
        validation of passive ranging/target motion analysis, 
        large aperture processing, matched environmental 
        processing, total ship monitoring system improvements, 
        near-term multi-line towed array, high gain multi-line 
        towed array, lightweight wide aperture array fiber 
        optics, and high gain hull array; and
            (2) PE 63561N: $19.0 million for demonstration and 
        validation of electro-mechanical/electro-hydraulic 
        actuators, advanced welding processes, power electronic 
        building blocks, advanced propulsor fabrication, 
        advanced hybrid propulsors, advanced coatings, rim 
        driven motors, and elastomeric ejection system.
      The House bill would authorize an increase of $50.0 
million in PE 63563N to initiate the design of new, next-
generation nuclear attack submarines. The $50.0 million would 
be equally divided between the two shipbuilders for this 
purpose. The design effort would proceed in parallel with the 
construction of four developmental submarines so that these two 
original designs would be ready to compete for serial 
production in fiscal year 2003.
      The House bill would authorize an increase of $40.0 
million in PE 64558N to produce design improvements for four 
developmental submarines that would be built at Electric Boat 
Division and Newport News Shipbuilding as a consequence of 
section 131 of the National Defense Authorization Act for 
Fiscal Year 1996. The $40.0 million would be equally divided 
between the two shipbuilders. Each shipbuilder would be allowed 
to propose to the Secretary of the Navy any design improvement 
that the shipbuilder considers appropriate for the submarines 
being built by that shipbuilder.
      The House bill would authorize an increase of $2.0 
million in PE 14224N for further development and evaluation of 
wake trail sensors.
      The Senate amendment would authorize a total increase of 
$100.0 million for advanced submarine technology initiatives 
identified in the Secretary of Defense's report. This increase 
would be distributed as follows:
            (1) $60.0 million for development of core 
        technologies, including $20.0 million in PE 63504N and 
        $40.0 million in PE 63561N; and
            (2) $40.0 million for development of the Category I 
        and Category II technologies identified in the 
        Secretary of Defense's report, including $20.0 million 
        in PE 63504N and $20.0 million in PE 63561N.
      The Senate report (S. Rept. 104-267) would direct the 
Navy to use these funds to carry out the high priority 
development efforts identified in the Secretary of Defense's 
report to Congress, emphasizing advanced hydrodynamic and 
hydroacoustic research, using advanced modeling that is 
validated, when appropriate, by the use of large scale models 
before insertion into the final design. The Senate report would 
also emphasize that the authorized increase would be for 
developing new technologies, not for the purpose of resolving 
funding shortfalls in existing programs or for improving combat 
systems or sensors on older submarines.
      The conferees agree to authorize an increase of $8.0 
million in PE 63508N for Project ``M''. This authorization is 
discussed in more detail elsewhere in this statement of 
managers.
      The conferees also agree to an increase of $60.0 million 
for demonstration and validation of core technologies 
identified in the Secretary of Defense's report, including 
improved acoustic sensors and processing, hydrodynamics, 
structural acoustics (including active controls and mount), and 
propulsors (including integrated stern and electric drive). 
This increase will be distributed as follows:

  PE 63504N, Advanced Submarine Combat Systems Development:
    Advanced Acoustic Sensors.................................      10.0
    Advanced Acoustic Signal Processing.......................      10.0
  PE 63561N, Advanced Submarine Systems Development:
    Hydrodynamics.............................................       5.0
    Structural Acoustics......................................      15.0
    Propulsors................................................      20.0

      The conferees direct that, of the $60.0 million increase, 
a total of $20.0 million will be equally divided between the 
two submarine shipbuilders, Electric Boat Division and Newport 
News Shipbuilding, for the purpose of ensuring that these 
shipbuilders are principal participants in the process of 
including new technologies into the design and construction of 
the submarines built at their respective shipyards. The 
conferees further direct the Secretary of the Navy to ensure 
that those shipbuilders have access for such purpose to the 
Navy laboratories and the Office of Naval Intelligence.
      The conferees also authorize a further increase of $38.0 
million to the budget request for demonstration and validation 
of the Category I and Category II technologies described in the 
Secretary's report. The recommended increase will be 
distributed as follows:
            (1) PE 63504N: $19.0 million for demonstration and 
        validation of passive ranging/target motion analysis, 
        large aperture processing, matched environmental 
        processing, total ship monitoring system improvements, 
        near-term multi-line towed array, high gain multi-line 
        towed array, lightweight wide aperture array fiber 
        optics, and high gain hull array; and
            (2) PE 63561N: $19.0 million for demonstration and 
        validation of electro-mechanical/electro-hydraulic 
        actuators, advanced welding processes, power electronic 
        building blocks, advanced propulsor fabrication, 
        advanced hybrid propulsors, advanced coatings, rim 
        driven motors, and elastomeric ejection system.

Submarine towed array processing software

      The budget request included $19.1 million in PE 63504N 
for advanced submarine combat systems development.
      The Senate amendment would authorize an increase of $8.0 
million in PE 63504N to improve the overall performance of both 
sonar and combat control systems by the improvement of their 
ASW acoustic processing.
      The House bill would authorize the requested amount.
      The Senate recedes.

Aircraft carrier research and development

      The budget request included $12.7 million in PE 63512N 
for carrier systems development, including $8.3 million for 
development and demonstration of technologies that may be used 
in the future aircraft carrier (CVX-78) now planned to begin 
construction contract award in fiscal year 2006.
      To accelerate development and demonstration of 
technologies for the CVX-78 and to establish a more reasonable 
ramp to ship design, component development, and the production 
decision for the CVX-78, the House bill would authorize an 
increase of $23.0 million to the budget request in PE 63512N. 
The House report (H. Rept. 104-563) indicated these funds would 
be used for development of technologies for advanced aircraft 
launch systems, advanced armor concepts, integrated topside 
design, initial computing plant systems architecture analysis, 
and development of advanced modeling and simulation.
      The Senate amendment would authorize an increase of $52.0 
million above the budget request in PE 63512N for aircraft 
carrier research and development.
      The Senate recedes.

Navy surface combatant

      The budget request included $12.9 million in PE 63564N 
for ship preliminary design and feasibility studies.
      The Senate amendment would authorize an increase of $25.0 
milllion in PE 63564N to increase funding for development of 
the Navy's next generation of surface combatant, the SC-21, to 
provide a level of funding that could lead to an orderly 
development and transition to procurement after the turn of the 
century.
      The House bill would authorize the requested amount.
      The Senate recedes.

Advanced surface machinery program--intercooled recuperated engine

      The budget request included $59.8 million in PE 63573N 
for the advanced surface machinery program, including $34.1 
million to continue advanced development of the intercooled 
recuperated (ICR) gas turbine engine. The ICR will be the 
propulsion engine for the SC-21 next generation surface 
combatant. Current plans call for introduction of the ICR into 
the fleet as the propulsion system for future DDG-51 class 
ships. The ICR promises 30 percent propulsion fuel savings 
compared to the current Navy gas turbine, increased range, and 
environmental emissions compliance. The engine is also being 
considered as the propulsion system for the multi-national 
European ``Horizon'' frigate. The ``Horizon'' program is a 
collaborative effort among U.S., British, and French navies.
      The ICR has been in advanced development since December 
1991, and is now undergoing development full scale system 
testing at Pyestock, England. Tests to date confirm engine 
design predictions and the 30 percent fuel savings benefits of 
recuperation. During the engine tests in early 1995, the 
recuperator developed air leaks which required its removal and 
return to the manufacturer. Intensive investigation revealed 
both design flaws and manufacturing process problems. A 
recuperator recovery plan was instituted by the management team 
and full scale engine tests resumed in January 1996, using a 
redesigned recuperator. A second test site is to be established 
at the Navy's Ship Systems Land Based Engineering Site (LBES) 
to support ICR engine endurance and qualification testing, 
integration of the ICR engine into the DDG-51, and integrated 
power system development for the SC-21.
      The House bill would authorize an increase of $12.5 
million to the budget request to complete preparations for 
supporting ICR engine endurance and qualification tests at the 
LBES. The House report (H. Rept. 104-563) expressed concern 
that the Navy's decision to proceed with the 500 hour endurance 
test and the final 1000 hour qualification test at the LBES is 
not supported by adequate funding, and directed the Secretary 
of the Navy to ensure that these funds are included in the 
fiscal year 1998 budget request. The House report would also 
direct the Navy to obligate no more than 25 percent of the 
fiscal year 1997 funds until the Secretary of the Navy reviews 
the results of the developmental testing and progress in 
resolving the recuperator problem and reports the results of 
this review, not later than December 31, 1996, to the 
congressional defense committees.
      The Senate amendment would authorize an increase of $19.0 
million to the budget request in PE 63573N for the ICR engine. 
Of this amount:
            (1) $12.5 million would be to establish an ICR test 
        facility at the Navy's existing land-based test site; 
        and
            (2) $6.5 million would be for at-sea testing of the 
        ICR engine.
      The Senate recedes.

Insensitive munitions

      The budget request included $7.3 million in PE 63609N for 
insensitive munitions advanced development.
      The House bill would authorize an additional $3.0 million 
to ensure adequate funding is available for the program.
      The Senate amendment would authorize the budget request.
      The conferees agree to increase the budget request by 
$3.0 million for insensitive munitions advanced development.

Lightweight 155MM howitzer program

      The budget request included $44.9 million in PE 63635M 
for Marine Corps ground combat and support systems.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an increase of $4.0 
million in PE 63635M to incorporate new technologies into the 
Marine Corps lightweight 155mm howitzer and its associated 
training devices.
      The Senate recedes.

Cooperative engagement capability

      The budget request included $164.5 million in PE 63755N 
and $9.9 million in PE 24152N for continued development of the 
Navy's cooperative engagement capability (CEC). Funding 
provided by the budget request would focus on the development 
of shipboard and airborne cooperative engagement systems (CES), 
initial operational test and evaluation of shipboard CES, and 
development of organic integrated logistic support for the CES.
      CEC is designed to enhance the warfighting capabilities 
of ships and aircraft by combining the data derived from 
various sensors into a single common representation that is 
available with the same positional accuracy to all 
participating ships. The Navy reports that a challenging cruise 
missile defense exercise, Mountain Top, which relied heavily on 
CEC position information, was held earlier this year in Hawaii. 
The exercise involved over-the-horizon detection, tracking, and 
engagement of a variety of difficult targets. The Navy 
currently projects that initial operational capability of the 
system will be achieved by September 1996. During testimony at 
this year's defense posture hearing, the Secretary of Defense 
singled out CEC as a program of high priority that he chose to 
accelerate because of its great potential for linking units 
from more than one service together and greatly increasing 
their warfighting ability.
      Despite relatively robust funding for CEC in this year's 
budget request, it contains no funding to pursue joint service 
integration efforts that were begun last year. Successful 
consummation of these efforts, in consonance with the Navy's 
baseline program, could greatly leverage the capability of the 
services to conduct joint operations and provide ballistic 
missile defense. Another area not addressed by the budget 
request, an issue raised in committee hearings this year, is 
reported interference between CEC and other data links 
currently in use in the fleet.
      The House bill would authorize an increase of $27.0 
million in PE 63755N for the CEC program and urge the continued 
acceleration and expansion of joint service integration 
efforts, including application to the Airborne Warning and 
Control Systems (AWACS) aircraft, Patriot and Theater High 
Altitude Area Defense (THAAD) missile systems, Marine Corps 
TPS-59 radar and the HAWK missile system.
      The Senate amendment would authorize an increase of $63.0 
million above the budget request for CEC in PE 63755N to permit 
continued pursuit of a number of promising efforts, including 
CEC integration with AWACS and national sensors, to accelerate 
development of an airborne capability for the system, and to 
address the issue of CEC interference with other fleet data 
links, particularly the link installed on the SH-60B.
      The conferees agree to an increase of $35.0 million in PE 
53755N for the CEC program and urge the continued acceleration 
and expansion of joint service integration efforts, including 
application to AWACS aircraft, Patriot and THAAD missile 
systems, Marine Corps TPS-59 radar and the HAWK missile system. 
The conferees also direct the Secretary of the Navy to prepare 
a detailed report, for submission no later than March 15, 1997, 
on:
            (1) progress made in resolving the issue of 
        spectrum interference as a result of the reallocation 
        under title VI of the Omnibus Reconciliation Act of 
        1993 of the spectrum in which CEC operates; and
            (2) steps that the Secretary has taken to address 
        and resolve harmful interference between CEC and other 
        fleet weapons systems and data links.

Strike missile evaluation

      The budget request did not include funding for evaluation 
of a variant of the Navy's Standard missile for use by Navy 
ships to conduct long-range strike.
      The Senate amendment would authorize an increase of $24.0 
million above the budget request in PE 63795N to evaluate the 
potential of the Standard missile to satisfy long-range strike 
and supersonic sea-skimming target requirements.
      The House bill would not authorize an increase for this 
purpose in PE 63795N.
      The Senate recedes.

Naval surface fire support program

      The budget request included $42.2 million in PE 63795N 
for gun weapons system technology. Of this amount, $20.2 
million is for the continued development of a 5-inch extended 
range guided munition (ERGM) round. The Navy is developing this 
round to address a gap in its ability to provide accurate naval 
surface fire support (NSFS) during an amphibious assault at the 
ranges dictated by current requirements. Of the $20.2 million, 
no funds have been budgeted for risk mitigation in the 
development of a GPS/INS guidance unit for the projectile, the 
component judged to have the greatest technical risk.
      The House bill would not authorize an increase of $5.0 
million to the budget request to build on the Navy's guidance 
risk reduction program; accelerate development and 
qualification of micro-electro-mechanical systems (MEMS) -
based, low cost global positioning system/inertial navigation 
system (GPS/INS) guidance and control technology; and ensure 
the availability of that technology for the Navy's 5-inch ERGM 
production program and for other guided munitions, rocket, and 
missile programs.
      The Senate amendment would authorize an increase of $3.0 
million to the budget request in PE 63795N for risk mitigation 
in development of the 5-inch ERGM.
      The Senate recedes.
      The conferees agree to an increase of $5.0 million in PE 
63795N for risk mitigation in development of the Navy's 5-inch 
ERGM and acceleration of the development of MEMS-based GPS/INS 
guidance and control technology for the ERGM projectile. 
Consistent with direction provided in the National Defense 
Authorization Act for Fiscal Year 1996, the conferees also 
agree to authorize an increase of $0.4 million above the budget 
request to support the retention of two Iowa class battleships 
on the naval register in an inactive status until the Navy is 
able to replace their potential NSFS capability.

Light airborne multi-purpose system helicopter program

      The budget request included $40.1 million in PE 64212N 
for helicopter development.
      Among the programs funded by PE 64212N is the Navy 
program to convert its existing fleet of light airborne multi-
purpose system (LAMPS) helicopters from the SH-60B 
configuration to the SH-60R configuration. It is planned that 
other Navy H-60 series helicopters, such as the HH-60, a search 
and rescue variant, and the SH-60F, an ASW variant with a 
dipping sonar, will also eventually be converted to the SH-60R 
configuration. However, the Navy's helicopter master plan, 
under which these conversions are included, has been in a 
constant state of flux for at least the past two years and, in 
the conferees' opinion, has lacked the focus needed to properly 
compete for resources as the defense budget, particularly the 
acquisition portion, has declined in recent years.
      The conferees are aware that the LAMPS SH-60B to SH-60R 
development program is short of resources. Since fiscal year 
1995, it has gone through requirements restructuring, 
contractual rebaselining, efforts at cost reduction through 
acquisition reform initiatives, contractor investment, and an 
increasing contractor inventory of accrued cost that has not 
been paid. While the Navy and contractor teams have maintained 
technical progress towards the planned fiscal year 2001 initial 
operational capability (IOC) date, the funding level contained 
in the fiscal year 1997 budget request would be insufficient to 
sustain this effort. Because the program was originally 
structured to permit conversion to the SH-60R configuration to 
occur during scheduled depot maintenance or service life 
extension overhauls, the delay in program development that 
would result from the fiscal year 1997 budget request would 
likely also cause a substantial increase in conversion costs 
and might render the program unaffordable.
      The Senate amendment would authorize an increase of $6.8 
million in PE 64212N to restore funds that were removed from 
the SH-60R development program during preparation of the fiscal 
year 1997 budget request. This additional funding would permit 
a critical design review to occur in fiscal year 1997 and 
maintain the program's progress toward a fiscal year 2001 IOC. 
The Senate amendment would also authorize an increase of $10.0 
million for the procurement of additional SH-60B upgrade kits 
to replace funds that were removed from the program during 
fiscal year 1996 to pay for F-14 digital flight control 
improvements.
      The House bill would authorize the request amount.
      The conferees agree to authorize an increase of $6.8 
million in PE 64212N for the SH-60R development program. An 
increase of $10.0 million for the procurement of additional SH-
60B upgrade kits is not authorized.

Vertical replenishment helicopter replacement program

      The budget request included no funding to initiate 
procurement of a helicopter to replace the Navy's increasingly 
costly and aging CH-46 vertical replenishment (VERTREP) 
helicopter.
      To address this problem, the Senate amendment would 
authorize an increase of $10.0 million above the budget request 
to take advantage of excess components available from the Army 
and initiate a VERTREP helicopter replacement program in fiscal 
year 1997.
      The House bill would authorize the requested amount.
      The conferees agree that development of a replacement 
VERTREP helicopter would be better pursued as a research and 
development program and authorize an increase of $10.0 million 
in PE 64212N for this purpose.

Helicopter ground proximity warning systems

      The budget request included $24.7 million in PE 64215N 
for engineering and manufacturing systems development of joint 
service and Navy standard avionics components and subsystems.
      Recognizing that the Navy and the Marine Corps have a 
requirement for a ground proximity warning system, the House 
bill would authorize an increase of $2.4 million in PE 64215N 
to continue development of the helicopter ground proximity 
warning system (GPWS) in anticipation of its fielding on Navy 
and Marine heavy and medium lift helicopters.
      The Senate amendment would authorize the requested 
amount.
      The Senate recedes.

Joint Maritime Combat Information System (JMCIS)

      The budget request included $11.3 million in PE 64231N 
for the Navy tactical command system afloat (NTCS-A) component 
of the joint maritime command information system (JMCIS).
      The House bill would authorize an increase to the budget 
request of $14.5 million as follows:
            (1) an additional $1.0 million in PE 64231N to 
        explore and initiate efforts to improve 
        interoperability between JMCIS and the other service 
        intelligence support terminals;
            (2) an additional $2.0 million in PE 64231N for 
        proliferating the RADIANT MERCURY automated multi-level 
        security sanitizer;
            (3) an increase of $1.5 million in PE 64231N for 
        development of an integrated two-way Link 16 processing 
        capability for the JMCIS software; and
            (4) an additional $10.0 million in a new program 
        element, PE 64770N, for integrating a capability for 
        the U.S. Navy to receive, process, and utilize the 
        joint surveillance target attack radar system (JSTARS) 
        moving target indicator (MTI) synthetic aperture radar 
        (SAR) system data.
      The Senate amendment would authorize an additional $23.0 
million above the budget request to:
            (1) develop an integrated two-way Link 16 
        processing capability in JMCIS software;
            (2) incorporate the Air Force's contingency theater 
        automated planning system (CTAPS) into JMCIS;
            (3) develop an upgrade to permit data exchange 
        between JSTARS and the Navy's afloat planning system 
        (APS);
            (4) field the RADIANT MERCURY automated multi-level 
        security sanitizer; and
            (5) develop the tools and architecture that will 
        allow users to selectively request, filter, and process 
        supporting databases.
Of the $23.0 million, $19.5 million would be for research and 
development in PE 64231N and $3.5 million would be for 
procurement.
      The conferees agree to authorize an additional $13.0 
million above the budget request in PE 64231N as follows:
            (1) $1.0 million for coordinating JMCIS functional 
        capabilities with the other service intelligence 
        terminals;
            (2) $2.0 million for fielding RADIANT MERCURY;
            (3) $1.5 million for two-way Link 16; and
            (4) $8.5 million for receiving and exploiting the 
        JSTARS MTI capabilities.
      The conferees also agree to authorize an increase of $3.5 
million of procurement funding to accomplish these objectives.

CV-22 special operations tiltrotor aircraft

      The budget request included $576.8 million in PE 64262N 
for development of the V-22 tiltrotor aircraft to meet the 
medium lift amphibious/vertical lift needs of the Marine Corps 
(MV-22) and the special operations needs (CV-22) of the Special 
Operations Command (SOCOM). The Navy and the SOCOM acquisition 
executives reached agreement on a program that will develop an 
aircraft capable of meeting the SOCOM's needs for the CV-22. 
This program provides for remanufacture of a MV-22 test 
aircraft to CV-22 standards for test and evaluation, rather 
than providing a new aircraft off the production line.
      The House bill would authorize an additional $37.0 
million to procure a new aircraft to support testing and 
evaluation of the CV-22, notwithstanding the agreement between 
the Department of the Navy and SOCOM acquisition executives. 
The House report (H. Rept. 104-563) expressed the opinion that 
the remanufacturing alternative would represent a significant 
challenge for the program office to complete the CV-22 program 
with the desired capabilities by the date of the required 
special operations initial operational capability (IOC). The 
report expressed the opinion that the agreed plan would pose an 
unacceptable risk to CV-22 program. The report indicated that 
the House expected the Secretary of the Navy to include the 
total of $47.0 million required to complete the CV-22 test and 
evaluation aircraft in the Navy's budget requests for fiscal 
years 1998 and 1999.
      The Senate amendment would authorize an additional $20.0 
million for funding for risk mitigation during the first year 
of low rate initial production. The Senate report (S. Rept. 
104-267) noted that the program agreed upon by the Navy and 
SOCOM acquisition executives would be predicated on 
remanufacture of an MV-22 aircraft for CV-22 test and 
evaluation, and would represent compliance with all key 
performance parameters and most of the threshold requirements 
defined in the joint operational requirements document (JORD). 
The report noted that using a remanufactured MV-22 flight test 
article would represent an innovative, cost-effective solution 
to the problem of living within the program's resources. The 
report also noted that the remanufacturing approach represents 
a challenge for the program office to complete the CV-22 
program with the agreed-on capabilities on or before the 
required IOC in 2005. The report also noted that the Senate 
expected the joint program office to release aircraft number 
nine back to the contractor for remanufacture by August 1, 
1999. Should additional testing for the MV-22 program be 
necessary, the program manager would be required to develop and 
implement the necessary options to complete MV-22 testing 
without the use of aircraft number nine after August 1, 1999.
      The conferees understand that, notwithstanding the 
agreement that the SOCOM acquisition executive signed, the 
SOCOM would prefer to have a new, rather than a remanufactured 
aircraft to conduct CV-22 testing. The SOCOM has expressed 
concern that meeting the established IOC of having 15 aircraft 
available in fiscal year 2005 is at risk. The conferees also 
understand that the SOCOM has reservations about accepting an 
aircraft for the remanufacture program that could have upwards 
of 200 hours of flight time, based on previous experience with 
the MH-47 program.
      The conferees observe that there are some similarities 
and some differences between the schedules for the buying and 
remanufacturing approaches;
      (1) The schedule laid out by the Department indicates 
that the program preferred by the SOCOM would involve building 
an MV-22 aircraft that would later be converted to CV-22 
configuration. Building a CV-22 aircraft, when the CV-22 is 
itself in development, now would involve too much concurrency.
      (2) This MV-22 aircraft would be inducted into a CV-22 
conversion program at the same time that an existing test 
aircraft would enter a remanufacturing program to turn it into 
a CV-22 test aircraft. According to the current schedule, both 
programs would deliver a CV-22 aircraft for testing in May, 
2000.
      (2) Buying a new dedicated test aircraft would reduce 
schedule risk. Should something happen to one of the test 
aircraft during MV-22 testing, the whole testing program and 
making one of the test aircraft available for remanufacturing 
could be delayed.
      The conferees note that such schedule risk could be 
mitigated by the fact that this bill would add two production 
MV-22 aircraft that could be made available in lieu of 
providing a test aircraft for remanufacture. However, having an 
extra test aircraft available over the life of the MV/CV-22 
program would ease the problems of testing schedules.
      The conferees agree to provide an additional $37.0 
million, with $27.0 million for the new MV-22 aircraft that 
would be converted to CV-22 configuration later, and $10.0 
million provided only for mitigating technical risk in the 
overall V-22 program.
      The conferees have agreed to support the extra dedicated 
test aircraft because of SOCOM's view that this aircraft is the 
Command's number one unfunded priority. The conferees are 
willing to defer to the SOCOM in this case, with the 
understanding that the SOCOM will budget for the additional 
funds, beyond those now included in the program plan for 
remanufacture of an MV-22 to the CV-22 configuration, for: (1) 
the rest of the costs of the new aircraft; and (2) any CV-22-
unique risk mitigation effort that SOCOM views as important. 
The conferees expect that these funds would be transferred from 
SOCOM to the Navy acquisition executive during the years of 
execution.

Precision targeting and location system

      The budget request included $78.7 million in PE 64270N 
for electronic warfare engineering and manufacturing 
development.
      The House bill would authorize an additional $3.5 million 
for development and demonstration in a flyable prototype of 
currently available technology capable of rapid, precision 
location of sources of global positioning system collateral 
interference and intentional jamming in order to assess the 
technical feasibility and utility of such a targeting system on 
operational aircraft and unmanned aerial vehicles.
      The Senate amendment did not include a specific 
authorization for such a precision targeting and location 
system development and demonstration program.
      The Senate recedes.

Smart Ship initiative

      The budget request included no funding for the Navy's 
Smart Ship initiative. This initiative, developed too late for 
inclusion in the budget request, will be managed at fleet level 
and is designed to demonstrate that crew workload for a surface 
combatant ship can be reduced via technology and changes to 
existing policies and procedures. The lessons derived from it 
are expected to have a direct, cost saving impact on the 
designs for future ships, such as the arsenal ship and the 
Navy's next generation of surface combatant, the SC-21. It may 
also produce modification proposals that could be cost 
effectively incorporated into existing fleet units to lower 
operating and support costs.
      The Senate amendment would authorize an increase of $31.3 
million above the budget request to accelerate the Smart Ship 
initiative. Of this amount, $21.9 million would be for PE 
64307N. The balance of $9.4 million would be added to the 
Navy's operating account.
      The House bill would authorize the requested amount.
      The conferees agree to authorize $23.4 million above the 
budget request to accelerate the Smart Ship initiative. Of this 
amount, $14.0 million would be for PE 64307N. The balance of 
$9.4 million would be added to the Navy's operating account.

Arsenal ship

      The budget request included $25.0 million in PE 64310N 
for Department of the Navy engineering and manufacturing 
development to initiate a ``new start'' development for the 
arsenal ship. The budget request for the Defense Advanced 
Research Projects Agency (DARPA) also included $16.4 million in 
PE 63226E for development of technologies for application to 
future surface warfare and fast sealift ships, including the 
arsenal ship.
      The House bill would authorize the budget request, but 
would provide funding for the Navy for the arsenal ship program 
in PE 63563N, Ship Concept Advanced Design, an advanced 
development program element, rather than in PE 64310N. The 
House report (H. Rept. 104-563) would direct the Secretary of 
the Navy to submit the initial results of a review of DOD 
Directive 5000.1 and DOD Regulation 5000.2 with respect to core 
acquisition management issues relative to the arsenal ship with 
the fiscal year 1998 budget request.
      The Senate amendment would authorize an increase of 
$147.0 million in PE 64310N to accelerate development of the 
arsenal ship weapons system and to accelerate the process of 
finding answers to questions that would allow the Navy to 
develop the arsenal ship as a system, not just a ship. The 
Senate report (S. Rept. 104-267) noted that the Senate expects 
the Navy to be prepared to address this matter and its various 
developmental and resource implications before the submission 
of the fiscal year 1998 budget request.
      The conferees agree to authorize $25.0 million for the 
arsenal ship program in a new advanced development program 
element, PE 63310N, and $16.4 million in 63226E as included in 
the budget request.
      The conferees commend the Navy's leadership and the Navy 
development community and participating Defense agencies for 
the innovative way in which the concept for the arsenal ship 
has been developed. The conferees agree that the program is in 
an early conceptual stage and that a number of questions 
regarding the program, as expressed in the House and Senate 
reports, need to be answered as the program proceeds. The 
conferees also agree that the projected cost of the program 
indicates that the arsenal ship will be a major defense 
acquisition program.
      The conferees support the concept of the Department of 
Defense advanced concept technology demonstration and the 
desirability of early user involvement in the development and 
evaluation of emerging technologies. The conferees also support 
the need to break out of bureaucratic practices, and make 
maximum use of best commercial practices, streamlined 
acquisition procedures, and modern design and analytical tools 
to develop new defense acquisition paradigms. The conferees see 
no conflict between these goals and the requirement for the 
Department of Defense to answer necessary questions at the 
beginning and at subsequent milestones in any development and 
acquisition program. The challenge for the Department, as 
expressed in the House report, is to create better analytical 
tools that will provide answers to the continuing questions in 
any development program, such as: (1) what is the operational 
requirement?; and (2) what is the most cost and operationally 
effective way of meeting that operational requirement?

Standard missile ``Terrier'' target

      The budget request included $1.6 million in PE 64366N for 
development of improvements to the Standard missile.
      The House bill would authorize an additional $8.0 million 
for a proof of concept demonstration and evaluation of the 
potential effectiveness of the Terrier missile as a supersonic 
sea-skimming target (SSST).
      The Senate amendment would authorize this initiative in 
PE 63795N.
      The Senate recedes.
      The conferees note that the Navy's inventory of SSSTs is 
insufficient to meet both test and evaluation and fleet 
training needs and believe that the Navy must seriously address 
the development and procurement of a follow-on SSST to ensure 
that production units are available when needed.

Airborne mine detection systems

      The budget request included $14.5 million in PE 64373N 
for airborne mine countermeasures systems.
      The Senate amendment would authorize an increase of $10.0 
million in PE 64373N to produce a competitive evaluation of two 
airborne laser mine detection systems (ALMDS), ATD-111 and 
Magic Lantern. Both systems are based on light detection and 
ranging (LIDAR) technology. The funding increase would be used 
to prepare the two systems for the competition, to conduct the 
competitive assessment, and to prepare the required report as 
follows:
            (1) $3.0 million would be available to prepare ATD-
        111 for the competition;
            (2) $5.0 million would be available to prepare 
        Magic Lantern for the competition; and
            (3) $2.0 million would be available to organize and 
        conduct the competition, analyze data, and prepare the 
        required report.
      The Senate amendment would also require the Secretary of 
the Navy, upon completion of the competitive assessment, to 
develop a plan to procure a sufficient number of the winning 
systems to provide the active Navy forces with a satisfactory 
contingency ALMDS capability. To begin this procurement, the 
Senate amendment would authorize an increase of $25.0 million 
above the budget request.
      The House bill would authorize an increase of $25.0 
million above the budget request for the procurement of three 
additional Magic Lantern systems.
      The conferees agree to authorize an increase of $10.0 
million in PE 64373N to conduct the competitive assessment 
described in the report accompanying the Senate amendment (S. 
Rept. 104-267).
      The Senate report noted that, in testimony on its mine 
warfare programs this year, the Navy, emphasized its long term 
objective of providing an organic mine countermeasures (MCM) 
capability to the active fleet that will permit fleet units to 
respond immediately to mine threats while waiting for 
specialized MCM units to arrive on the scene. However, progress 
in fielding an organic capability for the Navy's aircraft 
carrier battle groups (CVBGs) and amphibious ready groups 
(ARGs) to conduct minehunting by use of an ALMDS has been 
marginal.
      The conferees are aware that there are two LIDAR systems 
in development, Magic Lantern and ATD-111, that could be 
candidates for a solution to the ALMDS requirement. They have 
been in development for a number of years at very modest levels 
of funding. However, it would appear that, while their 
technology is sufficiently mature to proceed to the engineering 
and manufacturing development stage, sufficient resources are 
not available to transition both systems.
      Accordingly, the conferees direct the Navy to conduct a 
competitive evaluation field test, during fiscal year 1997, of 
the two candidate technologies represented by Magic Lantern and 
ATD-111, for the purpose of identifying a single system that 
can be procured and integrated into active Navy fleet aircraft 
to provide them with an organic MCM capability. This assessment 
should include a quantitative determination of each system's 
performance with respect to detection and classification of 
moored and floating mines, area coverage, false alarm rates, 
potential for multi-mission capability, system availabity, and 
capability for integration and carriage abroad the SH-60 series 
active fleet helicopters. The conferees further direct that 
this competitive evaluation be conducted as soon as 
practicable, but no later than July 1, 1997. The Secretary of 
the Navy shall report result to the congressional defense 
committees no later than August 1, 1997.
      Upon completion of this assessment, the Navy shall 
develop a plan that will lead to procurement of a sufficient 
number of the winning systems to provide active Navy forces 
with a satisfactory contingency ALMDS capability. The conferees 
direct the Secretary of the Navy to submit this plan to the 
congressional defense committees in conjunction with the fiscal 
year 1999 budget request to continue execution of the plan.

Multi-purpose processor

      The budget request included $61.4 million in PE 64503N, 
including $33.6 million for development of submarine sonar 
improvements. Included in this program element is a program for 
the development and introduction of multipurpose processor 
(MPP) technology into the U.S. submarine fleet.
      The MPP was developed under the Small Business Innovative 
Research Program. Using commercial off-the-shelf (COTS) 
hardware and an open software architecture, the MMP has 
capitalized on the exponential improvement in commercial 
hardware and software to facilitate rapid improvements in 
submarine acoustic data processing. Fundamental to the MPP is 
the concept of protecting the Navy's investment in processor 
software through software transportability, i.e., the ability 
to transport new, advanced software to existing hardware 
utilizing an open operating system. The MPP has been 
incorporated into the design of the command, control, 
communications, and intelligence system of the New Attack 
Submarine Program. The Navy's Submarine Combat Systems Program 
has also selected the MPP as a cornerstone for sonar upgrades 
for the existing SSN-688, 688I, and SSBN-726 class submarines.
      The House bill would authorize an increase of $11.0 
million in PE 64503N for advanced development and rapid 
introduction of MPP technology into the U.S. submarine fleet.
      The Senate amendment would authorize an increase of $15.2 
million in PE 64558N to mature MPP transportable software 
technology for use in research and development programs, and to 
improve the performance of Navy towed and hull mounted arrays.
      The conferees agree to an increase of $15.2 million in PE 
64503N to support advanced development of MPP transportable 
software technology and rapid introduction of MPP technology 
into the U.S. submarine fleet.

Seawolf shock test

      The budget request included $91.9 million in PE 64561N 
for Seawolf class research and development
      The Senate amendment would authorize an increase of $26.0 
million in PE 64561N to provide for shock testing of Seawolf 
components not covered by the budget request.
      The House bill would authorize the requested amount
      The Senate recedes.

Tactical fiber optic communications

      The budget request included $4.6 million in PE 32019K for 
the joint/defense information systems engineering and 
integration program.
      The House bill would authorize an increase to the budget 
request of $3.0 million to investigate military applications of 
the planned world wide commercial fiber optic grid and support 
a Defense Information Systems Agency proof of concept 
demonstration of the ability to establish Department of Defense 
``splices'' into the grid before it is fully deployed.
      The Senate amendment would authorize the budget request.
      The House recedes.

Doppler sonar velocity log

      The budget request included $22.9 million in PE 64562N 
for engineering and manufacturing systems development of 
submarine tactical warfare systems.
      The House bill would authorize an increase of $1.0 
million to the budget request in PE 64562N for the evaluation 
of a commercially available, non-developmental Doppler sonar 
velocity log as a potential replacement for standard Navy 
electromagnetic logs.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.

Explosive ordnance disposal

      The budget request included $7.3 million in PE 64654N for 
the joint service explosives ordnance disposal (EOD) 
development program.
      The House bill would authorize an increase of $1.1 
million in PE 64654N to accelerate development of EOD 
procedures for countering high threat unexploded ordnance found 
in the field.
      The Senate amendment would authorize the budget request.
      The House recedes.

Battle group passive horizon extension system--surface terminal

      The budget request included $1.9 million PE 64721N for 
continued research and development of the battle group passive 
horizon extension system--surface terminal (BGPHES-ST) 
capabilities.
      The House bill would authorize an increase of $1.0 
million in PE 64721N for procurement by the Navy of existing 
Air Force processing capabilities and algorithms for 
exploitation of the class of threats known as ``PROFORMA'' and 
integration of EPR-157 and EPR-208 capabilities in existing 
BGPHES-ST hardware.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Quick reaction combat capability

      The budget request included $29.5 million for continued 
development of the quick reaction combat capability (QRCC) for 
ship self-defense.
      The Senate amendment would authorize an increase of $17.0 
million above the budget request in PE 64755N to:
            (1) accelerate engineering of the LHD amphibious 
        assault ship self-defense system;
            (2) integrate the advanced combat direction system 
        (ACDS) with the cooperative engagement capability 
        (CEC); and
            (3) improve tracking equipment at the Navy's 
        Wallops Island engineering test site and aboard its 
        self-defense test ship.
      The House bill would authorize the requested amount.
      The Senate recedes.

SPS-48E radar pulse Doppler upgrade

      The conferees are aware of a recently completed Navy 
study ``Land Clutter Effects of Shipboard Radars'', dated April 
11, 1996. The study demonstrates that radar signal return 
clutter over land can seriously degrade the ability of 
shipboard air surveillance radars to detect low altitude 
targets. Even close-in aircraft or cruise missiles may not be 
detected, and sensitive, highly automated systems can become 
overloaded with large numbers of clutter detections and false 
tracks. As a case in point, the AN/SPS-48E radar, the principal 
aerial surveillance and height-finding radar for aircraft 
carriers and large deck amphibious ships, demonstrates degraded 
near-shore and limited low altitude over-land detection 
performance against small signature targets, such as cruise 
missiles.
      The conferees authorize an increase of $12.0 million in 
PE 64755N to develop and demonstrate a pulse Doppler upgrade to 
the AN/SPS-48E radar. Incorporating a pulse Doppler capability 
into this radar would provide improved near-shore and low 
altitude over-land clutter rejection and improved radar 
performance.

Infrared search and track

      The budget request included $3.9 million in PE 64755N for 
the continued development of the infrared search and track 
(IRST) weapons system.
      To eliminate a substantial portion of the delays in the 
IRST program that the budget request would produce, the Senate 
amendment would authorize an increase of $8.0 million above the 
budget request in PE 64755N.
      House bill would authorize the requested amount.
      The Senate recedes.

Evolved Sea Sparrow missile

      The budget request included $39.5 million in PE 64755N 
for continued development of the evolved Sea Sparrow missile 
(ESSM).
      The Senate amendment would authorize an increase of $8.0 
million above the budget request in PE 64755N to:
            (1) modify the safe and arming device of the RIM-7P 
        to ensure safe separation from the firing ship;
            (2) additional simulation capability that will 
        better reflect the improved missile design and the 
        environmental conditions that the missile will 
        encounter within its flight envelop; and
            (3) an S-band link to support the missile's 
        employment by AEGIS ships.
      The House bill would authorize the requested amount.
      The Senate recedes.

Fixed distributed system-1

      The budget request included no funding for improving the 
capabilities of the Navy's fixed distributed system-1 (FDS-1), 
a modern surveillance system that can detect even the most 
modern threat submarines. The committee has learned that 
additional enhancements in this system could improve 
significantly its surveillance coverage.
      The House bill would authorize an increase of $35.0 
million to the budget request in PE 64784N for a fixed 
distributed system commercial-off-the-shelf/non-development 
initiative fiber optics upgrade.
      The Senate amendment would authorize an increase of $52.0 
million above the budget request in PE 64784N to complete 
enhancements to FDS-1.
      The Senate recedes.

Safety and survivability

      The House bill would authorize an increase of $2.0 
million in PE 65864N to support ongoing non-developmental item 
(NDI) operational assessments of commercial safety and 
survivability technology and systems for potential use in Navy 
operational units. In addition, the House bill would authorize 
an increase of $4.0 million in PE 63226E for the Defense 
Advanced Research Projects Agency (DARPA) to examine high 
leverage technologies for firefighting and personnel 
protection.
      The Senate amendment did not contain similar provisions.
      The conferees agree to authorize only the increase of 
$2.0 million in PE 65864N, because no appropriation was 
provided for the DARPA portion of the recommended program.

SSBN security and survivability program

      The budget request included $21.3 million in PE 11224N 
for the SSBN security and survivability program.
      The House bill would authorize an additional $2.0 million 
for further development and evaluation of wake trail sensors 
and an additional $6.0 million to sustain the funding level 
required to maintain a credible SSBN security and survivability 
program.
      The Senate amendment would authorize an increase of $5.5 
million to explore several promising technologies, such as 
forward scatter barrier, low frequency active sonar, radar 
detection, and light detection and ranging (LIDAR) buoy 
detection.
      The House recedes.
      The conferees agree with the views expressed in the House 
report (H. Rept. 104-563) concerning the need to maintain a 
credible and robust SSBN security program in view of the 
critical role of strategic deterrence in U.S. national military 
strategy that is provided by the U.S. SSBN force.

Joint target support system testbed

      The budget request includes $136.4 million in PE 24229N, 
including $130.5 million for operational systems development of 
the Tomahawk Baseline Improvement Program (TBIP) and $5.9 
million for the Tomahawk theater mission planning center.
      The House bill would authorize an additional $8.0 million 
in PE 24229N to continue development and demonstration of the 
joint targeting support system testbed (JTSST).
      The Senate amendment would authorize an increase to the 
budget request of $29.0 million in PE 24229N for continued 
development of the Tomahawk Block IV missile.
      The Senate recedes.
      In the statement of managers accompanying the conference 
report on S. 1124 (H. Rept. 104-450), the conferees agreed to 
initiate development of a JTSST for demonstration of potential 
joint targeting operations with the expectation that the 
results of the initial JTSST study and follow-on demonstrations 
would contribute to the definition of long-term objectives, 
guidelines, and schedule milestones for convergence of the 
Navy/Marine Corps tactical aircraft mission planning systems 
and the Air Force mission support system, and lead to the 
development of a joint mission planning system architecture for 
the military services.
      The conferees voice their displeasure that the Secretary 
of Defense has failed to comply with the previous guidance 
provided by the Congress with regard to the JTSST 
demonstration. The Secretary is directed to report to the 
congressional defense committees, no later than December 31, 
1996, the Department's plans for:
            (1) development of a joint mission planning system 
        architecture for the military services;
            (2) the convergence of Navy/Marine Corps and Air 
        Force tactical mission planning and mission support 
        systems; and
            (3) the role a JTSST demonstration will play in 
        furthering these plans.

Integrated surveillance system improvements

      The budget request included $14.0 million in PE 24311N 
for research and development support of the Integrated Undersea 
Surveillance System (IUSS) including $3.3 million for research 
and development support of the Surveillance Towed Array Sensor 
System (SURTASS) and $10.7 million for the IUSS detection/
classification system.
      The House bill would authorize an increase of $22.1 
million in PE 24311N to the budget request in PE 24311N to:
            (1) continue development and integration of SURTASS 
        twin line arrays, reduce the size of transmit arrays, 
        continue fiber optic array development, expand 
        frequency processing capabilities, and conduct at-sea 
        testing of resulting developments;
            (2) sustain the low frequency array program and 
        development of more reliable low frequency active 
        transmitters; and
            (3) adapt SURTASS software algorithms for submarine 
        sonar systems.
      The Senate amendment would authorize an increase of $8.0 
million in PE 63504N for adaptation of SURTASS software 
algorithms for use in submarine sonar systems.
      The Senate recedes.

Consolidated training systems development

      The budget request included $34.9 million in PE 24571N 
for consolidated training systems development, including $3.4 
million for continued development of the Navy's surface 
tactical team trainer (STTT), $17.9 million for the joint 
tactical combat training system (JTCTS), and $6.0 million for 
training and training devices systems (TTDS).
      The House bill would authorize an increase of $3.0 
million in PE 24571N to continue integration and evaluation of 
the cryptologic systems trainer in the battle force tactical 
training (BFTT) system component of the STTT.
      The Senate amendment would authorize an increase of $5.0 
million in PE 64735F and $9.0 million in PE 24571N for the 
JTCTS to correct an imbalance between the program's planned 
development timeline and the schedule allowed by the funding 
included in the budget request.
      The Senate recedes.

Advanced anti-radiation guided missile

      The budget request included no funds to continue 
development of the advanced anti-radiation guided missile 
(AARGM) technology.
      The House bill would authorized an additional $50.0 
million for AARGM in PE 25601N. The House report (H. Rept. 104-
563) would direct the Secretary of the Navy to proceed with the 
development program and use the additional funds to continue 
seeker development, analyses, demonstrations, and test support. 
The House report would direct that the use of these funds be 
limited to design reviews and support for test and evaluation. 
The report further would encourage the Secretaries of the Navy 
and the Air Force to fund the fiscal year 1998 requirements for 
the program.
      The Senate amendment would approve the budget request.
      The Senate recedes.

High speed anti-radiation missile

      The House bill would authorize an additional $5.0 million 
in PE 25601N and an additional $3.5 million in PE 27162F for 
the High Speed Anti-Radiation Missile (HARM).
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to authorize an additional $2.5 
million in PE 25601N to accomplish risk reduction efforts for 
the block IV program and block V software for HARM.

Tactical data links

      The budget request included $37.3 million in PE 25604N 
for development of improvements in tactical data links in 
operational Navy systems.
      The House bill would authorize an increase to the budget 
request of $11.6 million for further development of Link 16 and 
related tactical data link programs for surface ship 
applications; $13.6 million in Other Procurement, Navy; and 
$2.2 million in Operations and Maintenance, Navy (OMN 0205604N 
4B7N) to accelerate the installation of Link 16 tactical data 
links in AEGIS surface combatants.
      The Senate amendment would authorize the requested 
amount.
      The House recedes.

Towed array receive system

      The budget request included $4.9 million in PE 25620N for 
surface anti-submarine warfare combat systems integration.
      The House bill would authorize an increase to the budget 
request of $4.0 million in PE 25620N for integration of the 
Navy's towed array receive system (TARS) upgrade in the AN/SQQ-
89 surface ship sonar suite in order to address shortcomings in 
the Navy's capability for detecting slow-moving diesel-electric 
submarines in shallow water.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Commander in Chiefs' technology initiative

      The budget request included $5.0 million in the Navy 
Science Assistance program (PE 25658N).
      The Senate amendment would authorize and increase of 
$10.0 million in PE 25658N to support efforts by the services 
and defense agencies to transition rapidly selected 
technologies from the defense research and development 
establishment to the services for use in military operations 
through the Commander in Chiefs' technology initiative 
established by Congress last year.
      The House bill would authorize the budget request.
      The House recedes. The conferees expect that funding in 
future years for this initiative will be included in the Navy 
budget request.

Tactical electronic reconnaissance processing and evaluation system

      The budget request included $2.5 million in PE 26313M for 
upgrade to, and communications integration testing within, the 
tactical electronic reconnaissance processing and evaluation 
system (TERPES).
      The House bill would authorize an additional $855,000 to 
provide communication software upgrades to improve TERPES 
interoperability with the global command and control system 
(GCCS) and the tactical air mission planning system (TAMPS).
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Medium tactical vehicle remanufacturing

      The budget request included $5.2 million in PE 26624M for 
Marine Corps combat services support.
      The House bill would authorize the requested amount.
      The Senate amendment would authorize an additional $3.0 
million in PE 26624M to retain a third contractor during the 
engineering and manufacturing development phase of the medium 
tactical vehicle remanufacturing program.
      The Senate recedes.

GEOSAT Follow-On

      The Senate amendment contained $20.0 million to begin 
development of a second GEOSAT Follow-On (GFO-2) altimetry 
satellite.
      The House bill did not include funding for GFO-2.
      Given the cost growth that has taken place in the GFO-1 
program, the conferees agree to authorize $15.0 million in PE 
35160N to commence work on GFO-2, subject to the following 
restrictions: (1) Of the $15.0 million authorized for GFO-2, 
the conferees agree to authorize the use of up to $10.0 million 
to compensate for cost growth in the GFO-1 program and to ready 
the satellite for launch; and (2) the conferees direct the 
Secretary of the Navy not to obligate or expend any of the 
funds on a GFO-2 program until the Secretary certifies to 
Congress that technical and cost issues associated with GFO-1 
have been satisfactorily resolved and the Secretary recommends 
proceeding with GFO-2.

Manufacturing technology (MANTECH)

      The budget request included $16.8 million for the Army 
MANTECH program (PE 78045A), $35.5 million for the Navy MANTECH 
program (PE 78011N) and $49.9 million for the Air Force MANTECH 
program (PE 78011F).
      The Senate amendment would fund the Army program at the 
requested amount and authorize a general increase in the 
services' manufacturing technology programs with an increase of 
$30.0 million in PE 78011N and an increase of $20.0 in PE 
78011F, as part of a broader thrust to address current and 
future affordability concerns.
      The House bill would authorize an increase of $11.0 
million in the Army MANTECH program and authorize the requested 
amount for the Navy and Air Force MANTECH programs.
      The conferees agree to authorize the following amounts 
for the MANTECH program:
            PE 78045A--$27.9 million.
            PE 78011N--$65.5 million.
            PE 78011F--$69.9 million.
      The conferees are aware of issues involved with the delay 
of funding for MANTECH programs and direct the Department of 
Defense to take the necessary actions to ensure expeditious and 
timely obligation of fiscal year 1996 and 1997 funding for 
these programs. The committee encourages the continuation of 
programs currently funded in the MANTECH account designed to 
demonstrate the effectiveness of comprehensive career analysis 
and retraining models for military and civilian personnel who 
have been or will be terminated as a consequence of base 
closure decisions.
      A provision (sec. 276) in the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
amended section 2525 of title 10, United States Code to require 
the Secretary of Defense to seek the participation of 
manufacturers of manufacturing equipment for the projects under 
the programs. The conferees agree that this language is not 
hortatory but intend it to provide specified direction and 
focus to the program. The focus of the MANTECH program is the 
development of manufacturing process technology, and the 
manufacturing equipment segment of the industry should be 
actively involved in the projects under these programs.

Acquisition center of excellence

      The Senate amendment would authorize $8.0 million in a 
new budget line for the establishment of an acquisition center 
of excellence in the Navy.
      The House bill did not contain a similar provision.
      The House recedes. The conferees expect that the Navy 
will provide follow-on funding for this effort in fiscal year 
1998 and beyond as part of the budget requested for each fiscal 
year. The conferees direct the Secretary of the Navy to submit 
to the congressional defense committees, no later than June 15, 
1997, a report on progress made toward establishing the center 
as well as toward the development of performance measures for 
judging the effectiveness of the center in acting as an agent 
of reform for the acquisition process in the Navy and elsewhere 
in the Department of Defense.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $14,417.5 million for Air Force, Research and 
Development in the Department of Defense. The House bill would 
authorize $13,271.1 million. The Senate amendment would 
authorize $14,786.4 million. The conferees recommended an 
authorization of $14,756.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Carbon/carbon nosetips

      The Senate amendment recommended that $1.5 million of the 
funds provided in PE 62102F be utilized for the development of 
carbon/carbon thermal protection material for reentry vehicles 
as well as for aircraft, spacecraft and missile applications.
      The House bill had no similar provision.
      The House recedes.

Thermally stable jet fuels

      The budget request included $74.9 million for aerospace 
propulsion technology (PE 62203F).
      The Senate amendment would authorize an increase of $3.0 
million in PE 62203F for thermally stable jet fuels.
      The House bill would authorize the budget request.
      The conferees agree to an authorization of $74.9 million 
for PE 62203F of which $3.0 million is authorized for the 
continuation of the thermally stable jet fuel program.

High frequency active auroral research program

      The budget request included $121.1 million for Phillips 
Laboratory exploratory development (PE 62601F) and $54.1 
million for counterproliferation support (PE 63160D).
      The Senate amendment authorized an increase of $15.0 
million for the high frequency active auroral research program, 
with $7.5 million in PE 62601F and $7.5 million in PE 63160D.
      The House bill authorized the budget request.
      The House recedes.

Metal fatigue monitoring

      The budget request included $23.8 million for advanced 
materials for weapon systems technology (PE 63112F).
      The House bill would authorize an increase of $2.5 
million in PE 63112F for the metal fatigue monitoring program.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Aircraft ejection seats

      The budget request included $18.0 million in PE 63231F 
for crew systems and personnel protection technology, $11.1 
million in PE 64264N for aircrew systems development, and $4.4 
million for life support systems in PE 64706F.
      The House bill and the Senate amendment would authorize 
an additional $5.0 million in PE 63231F and PE 64264N each to 
accelerate program phases for ejection seat upgrades. The House 
bill would also provide an additional $3.5 million in PE 64706F 
to evaluate the ACES II ejection seat with stabilization, limb 
restraints, and expanded crew member accommodation and to 
examine new technology for the integration of tactical aircrew 
personal equipment.
      The conferees agree to authorize an additional $11.5 
million, $5.0 million to PE 63231F and $5.0 million to PE 
64264N, for ejection seat development, and $1.5 million in PE 
64706F to evaluate the ACES II ejection seat with 
stabilization, limb restraints, and expanded crew member 
accommodation.

Space architect

      The budget request included $15.0 million in PE 63855F 
for the Department of Defense Space Architect.
      The House bill recommended a reduction of $4.0 million 
from the request, to include any ``pass-through'' funding 
intended for the Office of the Secretary of Defense for which 
there was no request.
      The Senate amendment approved the budget request.
      The conferees agree to authorize $13.0 million in a new 
operational systems development program element, a reduction of 
$2.0 million. The conferees are following with interest the DOD 
Space Architect's on-going reviews of the appropriate military 
satellite communications architecture and the architecture for 
space control. The conferees expect to be kept apprised of 
progress during the conduct of these important reviews. The 
conferees also strongly urge the Architect to consult closely 
with the Commander-in-Chief, U.S. Space Command during these 
reviews. Finally, the conferees direct that, in the submission 
of the fiscal year 1998 budget request, funding for the Deputy 
Under Secretary of Defense for Space not be included along with 
funds for the Space Architect.

B-2 Conventional capability enhancements

      The House bill would authorize an increase of $290.0 
million in PE 64240F to accelerate precision guided munition 
(PGM) integration and conventional weapons capability into the 
B-2 bomber fleet.
      The Senate amendment would authorize the budget request.
      The conferees note that the Department plans to equip the 
B-2 fleet with enhanced conventional capability, but are 
concerned with the low levels of funding and slow pace of these 
efforts. Consequently, the conferees authorize an increase of 
$212.0 million to accelerate integration of PGMs and to provide 
enhanced communications, information data link capability, and 
improved conventional weapons accuracy for the existing fleet 
of 21 B-2 bombers.

Nuclear weapons support

      The budget request included $4.8 million in PE 64222F for 
nuclear weapons support.
      The conferees are concerned about the backlog of 
requirements for nuclear weapons support for various systems 
and the impact this backlog can have upon U.S. confidence in 
the reliability of the nuclear weapons stockpile. Accordingly, 
the conferees recommend an increase of $1.0 million for 
activities of the Air Force's Nuclear Weapons Integration 
Office. The conferees direct the Secretary of the Air Force to 
include sufficient funds in the fiscal year 1998 budget request 
to eliminate this backlog.

Global positioning system

      The Senate amendment recommended an increase of $7.1 
million in PE 64480F to sustain the development and support a 
production rate of three Block IIF Global Positioning System 
(GPS) satellites per year, which will be required to maintain a 
full 24-satellite constellation. The Senate amendment also 
recommended an increase of $5.0 million in PE 35164F to 
accelerate activities necessary to ensure effective use of 
high-precision GPS signals by United States forces, and the 
means to deny access to those signals by hostile forces.
      The House bill recommended approval of the budget request 
for GPS.
      The conferees agree to authorize an increase of $7.1 
million in Missile Procurement, Air Force, to sustain the 
development and support a production rate of three Block IIF 
GPS satellites per year. The conferees also agree to authorize 
an increase of $5.0 million in PE 35164F to accelerate 
activities necessary to ensure effective use of high-precision 
GPS signals by United States forces, and the means to deny 
access to those signals by hostile forces.

Joint tactical information distribution system (JTIDS)

      The budget request included $11.1 million for JTIDS.
      The House bill would add $55.7 million to the budget 
request.
      The Senate amendment would add $19.8 million.
      The conferees agree to an increase of $19.8 million to 
the budget request for PE 64754F to accelerate the integration 
of Link 16 into the B-1B, F-15E, and F-16.

F-15 countermeasures

      The House bill would authorize an additional $17.0 
million in PE 27134F to complete development of the ALQ-135 for 
the F-15E.
      The Senate amendment would provide no additional 
authorization.
      The conferees agree to authorize an additional $15.0 
million to complete ALQ-135 development.

Trusted Rubix

      The budget request included $6.9 million in PE 33140F for 
information systems security. The conferees agree that of the 
amount authorized to be appropriated in PE 33140F, up to $1.5 
million may be used for the Trusted Rubix multi-level security 
program.

Precision landing system

      The House bill would authorize an additional $5.0 million 
in PE 35114F to complete development of the precision landing 
systems receiver.
      The Senate amendment had no similar authorization.
      The Senate recedes.

Blade tip repair

      The budget request included $13.6 million for the Program 
Office for Productivity, Reliability, Availability and 
Maintenance (PE 78026F).
      The Senate amendment would authorize an increase of $4.5 
million in PE 78026F to extend the current modeling under the 
Air Force Blade Repair Program to the Propulsion Directorate at 
the Oklahoma Air Logistics Center.
      The House bill would authorize the budget request.
      The House recedes.

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $8,672.8 million for Defense-Wide, Research 
and Development in the Department of Defense. The House bill 
would authorize $9,406.4 million. The Senate amendment would 
authorize $9,679.5 million. The conferees recommended an 
authorization of $9,691.3 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.


Defense research sciences

      The budget request included $74.9 million for Defense 
Research Sciences (PE 61101E).
      The Senate amendment would authorize that, within the 
funds provided in PE 61101E, $20.0 million be utilized for 
optoelectronics development.
      The House bill would authorize the budget request.
      The House recedes with an amendment. The conferees agree 
to an authorization of $89.9 million for PE 61101E. This amount 
includes an increase of $20.0 million for optoelectronics, 
$10.0 million for computer-assisted education programs, a 
reduction of $2.7 million for gallium nitride programs, and a 
reduction of $2.3 million for ultraphotonics programs.

University research initiative

      The budget request included $209.2 million in PE 61103D 
for the University Research Initiative (URI).
      The House bill would authorize an increase of $20.0 
million in PE 61103D for the continuation of the Defense 
Experimental Program to Stimulate Research (DEPSCoR) program.
      The Senate amendment would authorize a decrease of $10.0 
million for the URI and an authorization of $20.0 million from 
available funds for the DEPSCoR program. The Senate amendment 
also included an authorization of $3.0 million from available 
funds for the pilot program for the transfer of defense 
technology information to private industry described elsewhere 
in this report.
      The conferees agree to an authorization of $219.2 million 
in PE 61103D. This amount includes a general reduction of $10.0 
million, an increase of $20.0 million for the DEPSCoR program 
and $3.0 million for the pilot program for the transfer of 
defense technology.

Tactical technology

      The budget request included $117.9 million in PE 62702E 
for tactical technology programs.
      The House bill would authorize an increase of $12.0 
million for the DP-2 program.
      The Senate amendment would authorize an increase of $3.0 
million for the expansion of the small low-cost interceptor 
device (SLID) program.
      The conferees agree to authorize $114.5 million in PE 
62702E, including a $3.0 million increase for SLID in 
accordance with the S. Rept. (104-267), a decrease of $3.9 
million for the collaborative crises and mitigation program, 
and a decrease of $2.5 million for the fast computational 
algorithms program. The conferees agree that $12.0 million of 
the available funding is for the continuation of testing and 
demonstration of the DP-2 program.

Flat panel technology

      The budget request included $45.0 million for flat panel 
displays (FPDs) in PE 62708E.
      The House bill would authorize an increase of $20.0 
million in PE 62708E to accelerate the ability to produce high 
quality, low cost flat panel displays for military equipment 
and missions.
      The Senate amendment would authorize the requested 
amount.
      The conferees agree to an increase of $20.0 million in PE 
62708E for flat panel displays and infrastructure development. 
The conferees support continued research and development 
efforts and endorse the Defense Advanced Research Projects 
Agency's (DARPA) industry team efforts and encourage DARPA's 
continued investment in the program as outlined in the FPD 
Initiative.

Materials and electronics technology

      The budget request included $218.5 million for materials 
and electronics technology programs (PE 62712E).
      The House bill would authorize an increase of $8.0 
million in PE 62712E for Chemical Vapor Composite (CVC) and 
Chemical Vapor Deposition (CVD) synthetic diamond materials.
      The Senate amendment would authorize an increase of $11.0 
million in PE 62712E: $3.0 million for pulsed laser deposition 
to create hard carbon based coatings and $8.0 million to 
support continuation of high temperature superconductivity. The 
Senate amendment would also authorize, of the funds available 
for materials and electronics technology, $7.0 million to be 
used for the seamless high off-chip connectivity (SHOCC) 
program in PE 62712E.
      The conferees agree to a total authorization of $222.3 
million in PE 62712E. The conferees agree to an increase of 
$4.0 million for CVD and CVC synthetic diamond materials; an 
increase of $8.0 million for high temperature superconductivity 
as discussed in the Senate report (S. Rept. 104-267); and an 
increase of $3.0 million for carbon-based coatings. The SHOCC 
program is authorized for $7.0 million within the program 
element. The conferees further agree to reduce the 
authorization by $7.5 million for healthcare information 
infrastructure and $3.7 million for the nonvolatile memory 
program.

Joint Department of Defense-Department of Energy munitions technology 
        development program

      The budget request included $16.2 million for the joint 
Department of Defense and Department of Energy munitions 
technology development program.
      The House bill would reduce the budget request by $1.6 
million.
      The Senate amendment would increase the budget request by 
$5.0 million for projects approved by the joint technology 
advisory committee.
      The conferees agree to authorize the budget request.

Fuel cells

      The House bill would authorize an increase of $2.4 
million in PE 63226E to complete the fixed base powerplant 
development and an increase of $4.0 million in PE 63573N for 
competing conceptual ship service powerplant design studies.
      The Senate amendment would authorize an increase of $8.0 
million in PE 63851D to complete the development of the climate 
change fuel cell program and an increase of $4.3 million in PE 
63226E for the completion of the development of the 2 MW 
carbonate-based fuel cell technology.
      The conferees agree to an increase of $8.0 million in PE 
63851D for the climate change fuel cell program, an increase of 
$2.1 million in PE 63226E for the completion of development of 
the 2 MW carbonate-based fuel cell program, and an increase of 
$1.9 million in PE 63513N for competing conceptual ship service 
powerplant design studies.

Experimental evaluation of major innovative technologies (EEMIT)

      The budget request included $635.6 million for 
experimental evaluation of major innovative technologies 
(EEMIT) (PE 63226E).
      The House bill would authorize an increase of $38.4 
million in PE 63226E: $2.4 million for fuel cells; $5.0 million 
for telemedicine (PE 63002A); $10.0 million for cruise missile 
defense; $4.0 million for safety and survivability; $5.0 
million for digital battlefield medical x-ray technology; and 
$12.0 million for the passive millimeter wave camera.
      The Senate amendment would authorize an increase of $77.3 
million in PE 63226E: $50.0 million for cruise missile defense; 
$3.0 million for the large millimeter wave telescope; $10.0 
million for Crown Royal; $4.3 million for carbonate-based fuel 
cells; and $10.0 million for thermophotovoltaics.
      The conferees agree to a total authorization for EEMIT of 
$648.7 million in PE 63226E. The conferees agree to authorize 
$2.1 million for fuel cells; $8.0 million for the telemedicine 
project for disaster relief and emergency medical services 
(DREAMS); $10.0 million for thermophotovoltaics; $3.0 million 
for the large millimeter wave telescope; and of the funds 
available in the EEMIT line, $5.0 million may be used for the 
passive millimeter wave camera.
      The conferees agree to reduce the authorization by $5.0 
million for dynamic multiuse information fusion, and by $5.0 
million for the joint forward air combat control project.

Electronic commerce resource centers

      The budget request included $332.1 million for Advanced 
Electronics Technologies (PE 63739E).
      The House bill would authorize an increase of $15.0 
million in PE 63739E for the creation of five new electronic 
commerce resource centers (ECRC).
      The Senate authorized the budget request.
      The Senate recedes. The conferees agree to authorize an 
increase of $15.0 million in PE 63739 to expand the ECRC 
program.

High performance computing modernization

      The budget request included $99.9 million for the high 
performance computing modernization program (PE 63755D).
      The Senate amendment would authorize an increase of $25.0 
million in PE 63755D to sustain the operations of 
supercomputing centers.
      The House bill would authorize the budget request.
      The House recedes.

Mobile detection assessment response system

      The budget request included $23.7 million for the Joint 
Robotics Program (PE 63709D).
      The House bill would authorize an increase of $8.0 
million in PE 63709D for the continued development of the 
mobile detection assessment response system (MDARS).
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Non-acoustic antisubmarine warfare

      The budget request included $24.0 million in PE 63714D 
for the advanced sensor applications program (ASAP), the 
independent non-acoustic antisubmarine warfare (NAASW) research 
program managed by the Office of the Secretary of Defense.
      The House bill would authorize an increase of $6.0 
million above the budget request in PE 63714D for the ASAP 
program. The report accompanying the House bill (H. Rept. 104-
563) observed that the funding level requested in the budget 
request for the ASAP program is approximately 20 percent less 
than the level appropriated for fiscal year 1996, and 
approximately 10 percent of the level originally programmed in 
the fiscal year 1996 future years defense program for fiscal 
year 1997. The House report also discussed the increased 
capabilities of advanced nuclear submarines, the proliferation 
of modern, quiet diesel submarines and advanced non-nuclear 
submarine technology, and significant strides in submarine 
operational proficiency being made by several Third World 
navies. Reflecting the conclusion that the reductions in 
funding for the ASAP program in the budget request were 
imprudent and that increased emphasis needs to be placed on 
improving the anti-submarine warfare capabilities of U.S. 
forces in general, and on the NAASW program in particular, the 
House bill would authorize an increase of $6.0 million above 
the budget request for the ASAP program and identify $1.0 
million of this increase to conduct additional investigations 
of foreign technology and systems relevant to the missions of 
the ASAP program.
      The report accompanying the Senate amendment (S. Rept. 
104-267) expressed similar reservations about reductions in 
funding for the Department of Defense (DOD) ASAP program. It 
also commented on the Department's unsatisfactory response to 
direction given in the statement of managers accompanying the 
National Defense Authorization Act for Fiscal Year 1996 for DOD 
to conduct a comparative evaluation of a light detection and 
ranging (LIDAR) system, ATD-111, against other comparable 
approaches. This response stated that DOD intends to test the 
ATD-111 system in fiscal year 1996 but would delay testing for 
another LIDAR system, April Showers, until fiscal year 1998. 
Thus DOD would spend two more years developing April Showers 
and then compare those two sets of test results.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63714D for the ASAP program to:
            (1) continue the work on scattering theory, 
        microwave radiometry, and the joint U.S.-UK radar ocean 
        imaging investigations; and
            (2) conduct a competitive evaluation in fiscal year 
        1997 between ATD-111 and the April Showers LIDAR 
        system.
      The conferees agree to authorize an increase of $4.0 
million in PE 63714D for the following purposes:
            (1) the comparative evaluation of ATD-111 and the 
        April Showers LIDAR system; and
            (2) continuation of work on ocean remote sensing, 
        scattering theory, microwave radiometry, and the joint 
        U.S.-U.K. radar ocean imaging investigations.
      The conferees acknowledge the concerns expressed in the 
Senate report and agree that the Department's plan for 
comparative assessment of ATD-111 and April Showers must 
provide equitable treatment for both systems. The conferees 
direct the Secretary of Defense to develop a new plan and 
provide it to the congressional defense and intelligence 
committees no later than January 15, 1997.
      The conferees direct the program office to reassess the 
value of some of the lower priority projects it is pursuing 
with the aim of freeing up resources for higher priority 
projects. The conferees reiterate that the ASAP program is a 
congressional interest item.

Integrated weapons system database

      The budget request included $1.9 million for the 
Continuous Acquisition and Life-cycle Support Activities (PE 
63736E).
      The Senate amendment would authorize an increase of $4.0 
million in PE 63736E for the Integrated System Database for 
continuation of the Integrated Data Environment (IDE) program.
      The House bill would authorize the budget request.
      The House recedes.

Rapid acquisition of manufactured parts

      The budget request did not include research and 
development funds for the rapid acquisition of manufactured 
parts (RAMP) program.
      The House bill would authorize an increase of $12.0 
million in PE 63736D for RAMP.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63736D for RAMP.
      The House recedes.

NATO research and development

      The budget request included $22.7 million for NATO 
research and development (PE 63790D)
      The House bill would reduce the budget request by $2.2 
million.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Data review and analysis monitoring aid (DRAMA)

      The budget request included $13.8 million for the Defense 
Support Activities (PE 65798S).
      The Senate amendment would authorize an increase of $3.0 
million in PE 65798S for the continuation of the DRAMA program 
to reduce duplication in the defense supply system.
      The House bill would authorize the budget request.
      The House recedes.

Joint command, control, communications, and computers/intelligence, 
        surveillance, and reconnaissance

      The budget request included $2.9 million in PE 33149K for 
C4I for the Warrior, a new initiative that promotes the 
development and demonstration of joint and coalition command, 
control, communications, and computers/intelligence 
interoperability.
      The House bill would authorize an increase of $15.0 
million for development of improved capabilities for concept 
development, analysis, and evaluation of advanced technology 
and concepts for joint command, control communications, and 
computers/intelligence, surveillance, and reconnaissance, 
including $10.0 million for establishment of a battle 
laboratory and $5.0 million for development of advanced 
modeling and simulation.
      The Senate amendment would authorize the budget request.
      The House recedes.

Defense Airborne Reconnaissance Office (DARO) research and development

      The budget request included $438.6 million for research 
and development for the Defense Airborne Reconnaissance 
Program.
      The House bill would add a total of $90.5 million to the 
request. The Senate amendment would increase the request by 
$23.4 million. Details of the adjustments in the House bill and 
the Senate amendment, as well as the final conference 
agreement, are displayed in the table below:

                               DEFENSE AIRBORNE RECONNAISSANCE PROGRAM DEVELOPMENT                              
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                           Budget                                                     Conference
                Program                   request        Proposed House           Change Senate       agreement 
----------------------------------------------------------------------------------------------------------------
  Tactical UAV joint program--project                                                                           
 141:                                                                                                           
    Tactical UAV......................       51,449      (18,000)                (12,800)                 33,449
    Tactical control system...........        7,067  ......................  ......................        7,067
    Common systems development........        6,092  ......................  ......................        6,092
                                       -------------------------------------------------------------------------
      Subtotal--project 141...........       64,608      (18,000)                (12,800)                 46,608
                                       =========================================================================
  Airborne reconnaissance program--                                                                             
 project 525:                                                                                                   
    Advanced sensors..................       66,367       15,000             ......................       76,367
    Reconnaissance advanced technology       17,523        8,000             ......................       25,523
    Common data link..................       29,431  ......................       (6,500)                 22,931
    DARO operations...................          641  ......................  ......................          641
                                       -------------------------------------------------------------------------
      Subtotal--project 525...........      113,962       23,000                  (6,500)                125,462
                                       =========================================================================
  Endurance UAVs--project 527:                                                                                  
    Predator..........................        6,099  ......................  ......................        6,099
    High altitude endurance (HAE) UAV                                                                           
     common ground segment............       71,642  ......................  ......................       71,642
    Conventional HAE (Global Hawk)....       81,227  ......................  ......................       71,227
    Low observable HAE (Dark Star)....       17,426       28,500             ......................       45,926
                                       -------------------------------------------------------------------------
      Subtotal--project 527...........      176,394       28,500             ......................      194,894
                                       =========================================================================
  Manned reconnaissance program--                                                                               
 project 530:                                                                                                   
    U-2...............................        4,161       57,000                  42,700                  46,861
    U-2 support for precision guided                                                                            
     munitions........................       24,119  ......................  ......................       24,119
                                       -------------------------------------------------------------------------
      Subtotal--project 530...........       28,280       57,000                  42,700                  70,980
                                       =========================================================================
  Distributed common ground system                                                                              
 (DCGS)--project 531:                                                                                           
    Common imagery ground/surface                                                                               
     system (CIGSS)...................       47,780       11,000             ......................       47,780
    Airborne reconnaissance ground                                                                              
     SIGINT system (ARGSS)............        5,116  ......................  ......................        5,116
    DCGS interoperability.............        2,419  ......................  ......................        2,419
                                       -------------------------------------------------------------------------
      Subtotal--project 530...........       55,315       11,000             ......................       55,315
                                       =========================================================================
      Total PE 35154D.................      438,559       90,500                  23,400                 493,259
----------------------------------------------------------------------------------------------------------------

            TACTICAL UNMANNED AERIAL VEHICLES (PROJECT 141)

      The budget request for tactical unmanned aerial vehicles 
(project 141) included $64.6 million for fiscal year 1997.
      The House bill would reduce the budget request by $18.0 
million.
      The Senate amendment would reduce the budget request by 
$12.8 million.
      The conferees agree to recommend $46.6 million for the 
joint tactical unmanned aerial vehicle (JTUAV) program, a 
reduction of $18.0 million. The restructuring of the program 
and the creation of an advanced concept technology 
demonstration (ACTD) has resulted in excess unexpended funds 
from fiscal years 1995 and 1996. Accordingly, the conferees 
recommend a reduction of $18.0 million.
      The conferees note the rapidity with which the DARO has 
initiated the JTUAV program as an ACTD. The conferees are 
skeptical of the Department's stated intention to transition 
the JTUAV ACTD into an acquisition program before having any 
experience with even a limited demonstration of the program. It 
appears that the Department is using the ACTD program to 
circumvent acquisition requirements, rather than to demonstrate 
new technologies on a limited basis. Considering the 
Department's unimpressive record of UAV acquisitions, and 
continuing difficulties in fielding proposed sophisticated 
UAVs, the conferees urge caution. Not only has the Department 
had difficulties in fielding systems, but it continues to 
endure significant losses of existing UAVs to mechanical 
malfunction. The conferees intend to follow closely the JTUAV 
development to ensure DARO adheres to accepted acquisition 
principles and regulations, and its commitment to timely 
results.
      Finally, noting the continued difficulties experienced by 
the DARO in developing a suitable heavy fuel engine for its 
UAVs, the conferees encourage competition to the maximum extent 
possible in developing this capability.

             AIRBORNE RECONNAISSANCE PROGRAM (PROJECT 525)

Joint airborne signals intelligence (SIGINT) architecture (JASA)

      The budget request included $51.8 million within the 
$66.3 million contained in the advanced sensors line to 
continue the joint airborne SIGINT system (JASS) development, 
including continuing work on the JASS high band prototype 
(HBP).
      The House bill would authorize the request. The House 
report (H. Rept. 104-563) would prohibit the Department from 
obligating any funds for the HBP follow-on system, the JASS 
high band subsystem (HBSS), until the completion of flight 
testing and when the HBP had proven its utility.
      The Senate amendment would authorize the request without 
similar restrictions.
      The conferees agree to authorize the requested amount for 
HBP to continue airborne SIGINT functional developments, 
including the technical infrastructure upgrades necessary for 
aircraft to incorporate future developments. However, because 
the Department is scheduled to award the HBSS contract before 
the HBP flight testing has begun, the conferees direct that no 
funds be obligated to integrate and develop the HBSS until the 
Secretary of Defense certifies to the Congress that such 
concurrency provides an acceptable level of technical and 
schedule risks. The conferees also direct the Secretary to 
provide a complete cost and capability analysis of those 
elements of the HBP that will be used in the HBSS.
      The conferees remain concerned about the health and long-
term well-being of airborne SIGINT reconnaissance, because of 
the pressures to field sensor and system improvements to keep 
abreast of constantly evolving threats. The conferees believe 
the DARO should be managing the airborne SIGINT program in a 
manner that provides for needed upgrades while moving toward 
the objective JASA architecture.

Electro-optic camera framing technology

      The budget request contained $114.0 million for the 
airborne reconnaissance program (project 525), including $66.4 
million for advanced sensor development.
      The House report (H. Rept. 104-563) noted that several 
technologies show promise for providing precision point 
targeting and location data. The House bill would authorize an 
additional $15.0 million for the continued development and 
evolution of the electro-optic (EO) framing sensors with on-
chip forward motion compensation (FMC) technology, including:
            (1) $3.0 million for the operational insertion and 
        testing of a medium altitude wide area coverage ``step 
        frame'' sensor;
            (2) $2.2 million to develop enhanced data 
        compression algorithms;
            (3) $5.8 million to conduct a study of, and begin 
        development for, an EO framing infrared (IR) charge-
        coupled device with on-chip FMC; and
            (4) $4.0 million to support multi-spectral EO 
        framing technologies with on-chip FMC.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize $10.0 million for 
continued research and development of this capability, 
including:
            (1) $3.0 million for the medium altitude wide area 
        coverage step frame sensor;
            (2) $4.0 million for enhanced data compression 
        algorithms; and
            (3) $3.0 million for multi-spectral EO framing 
        technology development with on-chip FMC.
      The conferees are aware that the area of EO/IR framing 
technologies is dynamic, with several vendors offering 
approaches to solving reconnaissance mission needs. Therefore, 
the conferees encourage the DARO to avail itself of the 
benefits of this competitive marketplace in addressing the 
conferees' concerns.

Multi-function self-aligned gate technology

      The budget request included $114.0 million for the 
airborne reconnaissance program (project 525), including $17.5 
million for the reconnaissance advanced technology project.
      The House bill would provide an additional $8.0 million 
for the reconnaissance advanced technology project for multi-
function self-aligned gate (MSAG) technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to provide an additional $8.0 million 
for MSAG as described in the House report (H. Rept. 104-563).

            endurance unmanned aerial vehicles (project 530)

Global Hawk

      The budget request included $81.2 million project 530 for 
the Global Hawk UAV ACTD, including $10.0 million for 
development of a signals intelligence payload.
      The House bill would prohibit the obligation of funds for 
the signals intelligence payload until the Global Hawk has been 
proven in flight demonstrations.
      The Senate amendment would authorize the budget request.
      The conferees agree to recommend a reduction of $10.0 
million to the budget request for the Global Hawk.

Dark Star

      The budget request included $17.4 million within project 
530 for the Dark Star UAV.
      The House bill would increase the budget request by $17.5 
million to upgrade electro-optical cameras, provide a 
redesigned synthetic aperture radar antenna, and provide a more 
robust aerial vehicle design.
      The first Dark Star vehicle crashed on its second test 
flight. Subsequent to this event and the passage of H.R. 3230, 
the Intelligence Authorization Bill recommended adding $22.0 
million to recover from the air vehicle crash.
      The Senate amendment would support the authorization in 
the budget request, but include a provision (sec. 216) on Dark 
Star described elsewhere in the statement of managers. The 
Senate recedes on the bill provision.
      The conferees agree on the importance of returning the 
Dark Star program to flight testing as soon as the program 
manager has extracted the necessary lessons from the recent 
crash. Realizing the potential of the Dark Star UAV to provide 
unique support to operational users, the conferees agree to 
authorize an additional $28.5 million for the Dark Star UAV, 
for the following purposes:
            (1) $22.0 million to complete the necessary 
        engineering and design efforts to recover from the 
        crash of the first air vehicle;
            (2) $3.5 million for integrating EO framing 
        technology with on-chip forward motion compensation 
        into the aircraft and associated ground processing 
        equipment; and
            (3) $3.0 million for long lead procurement for the 
        fifth air vehicle, which will replace the destroyed 
        aircraft.

              manned reconnaissance program (Project 530)

      The budget request for the manned reconnaissance program 
(project 530) was $28.3 million.
      The House bill would increase the budget request by $57.0 
million for projects as follows:
            (1) $10.0 million to improve and downsize the 
        Senior Year electro-optical system (SYERS) sensor to:
                    (a) enable the Air Force to fly the two 
                systems simultaneously on the U-2; and
                    (b) to improve SYERS geolocational 
                accuracies;
            (2) $7.0 million to support the ASARS improvement 
        program (AIP) to ensure this upgrade can be fielded by 
        fiscal year 1998;
            (3) $40.0 million, the remainder of recommended 
        additional funding, to upgrade Senior Ruby, Senior 
        Spear, and Senior Glass to a common configuration. 
        Specifically, the House report would direct the Air 
        Force to:
                    (a) upgrade the Senior Spear and Senior 
                Ruby sensors to the Senior Glass configuration; 
                and
                    (b) upgrade the existing Senior Glass 
                systems to an open architecture configuration 
                consistent with an architectural approach 
                approved by the Defense Cryptologic Program 
                manager.
      The House bill would also direct the Department to 
determine, and to program for, necessary future years level-of-
effort funding to continue evolutionary U-2 sensor upgrades.
      The Senate amendment would authorize an additional $32.7 
million to procure and integrate two additional Senior Glass 
payloads for the U-2 fleet. The Senate amendment would also 
provide an additional $10.0 million to repackage the SYERS 
sensor for simultaneous operation with other sensors, and to 
begin the effort to add geolocation, broad area coverage, and 
multi-spectral imaging capabilities.
      The conferees agree to recommend $70.9 million, or an 
increase of $42.7 million, to be applied as follows:
            (1) $32.7 million to procure and integrate 
        additional Senior Glass payloads;
            (2) $10.0 million to repackage the SYERS sensor for 
        simultaneous operation with other sensors, and to begin 
        the effort to improve capabilities for geolocation, 
        broad area coverage, and multi-spectral imaging.
      The conferees recognize that:
            (1) the DARO needs to develop and field systems 
        compliant with the joint airborne SIGINT architecture 
        (JASA);
            (2) the JASA effort is an important initiative for 
        providing future intelligence gathering capability; and
            (3) the Department needs to continue making 
        incremental upgrades to U-2 SIGINT capabilities to 
        maintain near-term capability, while the Department 
        completes JASA development.

             distributed common ground system (project 531)

      The budget request included $55.3 million in project 531, 
including $47.8 million for the common imagery ground/surface 
system (CIGSS).
      The House bill would authorize an additional $11.0 
million to modify core CIGSS components to ensure the program 
can achieve a common, interoperable baseline by fiscal year 
1998. The House report complimented the Department's technical 
solutions and management approach to migrating the various 
imagery ground stations to the CIGSS configuration and 
standards as outlined in the published handbook.
      The Senate amendment would support the budget request.
      The conferees agree to support the budget request of 
$55.3 million for project 531.

AC-130 aircraft enhancements, Special Operations Command

      The budget request included $83.9 million for tactical 
systems development for the U.S. Special Operations Command 
(SOCOM).
      The Senate amendment would authorize an increase of $5.8 
million in PE 1160404BB for enhancements to the SOCOM AC-130 
aircraft.
      The House bill would authorize the requested amount.
      The Senate recedes.

Advanced SEAL delivery system

      The budget request included $83.9 million in PE 1160404BB 
for special operations tactical development.
      In order to provide a significant improvement in the 
acoustic characteristics of the advanced SEAL delivery system 
(ASDS) before its procurement begins, the Senate amendment 
would authorize an increase of $2.8 million above the budget 
request in PE 1160404BB to provide quieter pumps and motors for 
the base design of the ASDS.
      The House bill would authorize the requested amount.
      The House recedes.

Rigid hull inflatable boat

      The budget request included $5.0 million for procurement 
of special warfare equipment, including $4.5 million for 
procurement of the Naval Special Warfare 10 meter Rigid Hull 
Inflatable Boat (RHIB).
      The House bill would authorize an increase of $2.75 
million in PE 1160404BB to complete development and operational 
testing of competing prototype RHIBs, a downselect decision to 
a single contractor, and other activities relative to a 
Milestone III decision for the RHIB in fiscal year 1997.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
      The conferees agree to authorize an increase of $4.5 
million in PE 1160404BB to complete development and operational 
testing of the RHIB as recommended in the House report (H. 
Rept. 104-563). The conferees further agree to a corresponding 
reduction in the amount authorized for procurement of special 
warfare equipment.

Ballistic missile defense funding and programmatic guidance

      The fiscal year 1997 budget request for the Ballistic 
Missile Defense Organization (BMDO) was $2.8 billion, including 
research, development, test, and evaluation (RDT&E), 
procurement, and military consideration.
      The House bill would authorize an increase of $724.8 
million for BMDO.
      The Senate amendment would authorize an increase of 
$855.9 million for BMDO.
      The conferees agree to authorize a total of $3,712.9 
million for BMDO, an increase of $914.2 million above the 
budget request. The conferees' recommended funding allocations 
are summarized in the following table. Additional programmatic 
and funding guidance are also provided below.

                         BMDO FUNDING ALLOCATION                        
                          [Millions of dollars]                         
------------------------------------------------------------------------
              Program                Request     Change   Recommendation
------------------------------------------------------------------------
Support Technology................      226.3     +147.5         373.8  
THAAD.............................      481.8     +140.0         621.8  
Hawk*.............................       19.4  .........          19.4  
TMD-BM/C3*........................       19.3  .........          19.3  
Navy Lower Tier**.................      310.7  .........         310.7  
Navy Upper Tier...................       58.2     +246.0         304.2  
Corps SAM.........................       56.2  .........          56.2  
BPI...............................  .........      +24.3          24.3  
NMD...............................      508.4     +350.0         858.4  
Joint TMD***......................      521.5       +6.4         527.9  
PAC-3**...........................      596.9  .........         596.9  
                                   -------------------------------------
    BMDO Total....................    2,798.7     +914.2       3,712.9  
------------------------------------------------------------------------
*Procurement only.                                                      
**Procurement and RDT&E.                                                
***RDT&E and Military Construction.                                     

                           support technology

      The budget request for BMDO's support technology programs 
(E 62173C/63173C) was $226.3 million. The conferees agree to 
authorize a net increase of $147.5 million for support 
technology.
      The conferees support BMDO's efforts in the area of wide 
bandgap electronics that are funded in the Innovative Science 
and Technology program (project 1651). The conferees agree to 
authorize an increase of $10.0 million in PE 62173C to 
facilitate a wide bandgap electronics program specifically 
targeting gallium nitride and silicon carbide as the major 
semiconductor technologies to be developed. The program should 
be affiliated with an academic institution involving a research 
and development facility for material growth, material 
characterization (including material surface behavior), and 
wide bandgap semiconductor device development.
      The conferees recommend an increase of $20.0 million in 
PE 63173C for United States-Russian cooperative BMD programs 
and activities, as specified in the House report (H. Rep. 104-
563).
      The conferees recommend an increase of $7.5 million in PE 
63173C for the Scorpius space launch technology demonstration 
program.
      The conferees strongly support BMDO's development of the 
Atmospheric Interceptor Technology (AIT) program and recommend 
an increase of $40.0 million in PE 63173C for the AIT program.
      The conferees continue to support development of the 
Space-Based Laser (SBL) program. SBL offers the potential for a 
high leverage system to deal with ballistic missiles of 
virtually all ranges. The conferees agree to authorize an 
increase of $70.0 million in PE 63173C to continue the SBL 
effort. The conferees believe that the Air Force should begin 
to take a much more active role in developing the SBL program. 
Specifically, the committee believes that the Air Force Space 
and Missile Systems Center should play a key role in designing 
a demonstrator spacecraft and providing detailed cost estimates 
for completion of such a demonstration program.

               theater high altitude area defense system

      The budget request included $481.8 million to complete 
Theater High Altitude Area Defense (THAAD) demonstration and 
validation (Dem/Val) and to begin engineering and manufacturing 
development (EMD). The conferees continue to support the 
development, production, and fielding of THAAD as a matter of 
highest priority. The conferees remain committed to fielding 
the THAAD system as quickly as technically feasible. The 
conferees agree to authorize an increase of $75.0 million in PE 
63861C and an increase of $65.0 million in PE 64861C, an 
overall increase of $140.0 million for the THADD program.
      The conferees also attach importance to the THAAD User 
Operational Evaluation (UOES) system. This system will provide 
valuable opportunities for training and testing. Most 
importantly, it will provide some limited operational 
capability in the event of a crisis. However, the conferees 
question the adequacy of a UOES capability based on 40 
interceptor missiles. The conferees believe that a total of 80 
missiles is more appropriate, and direct the Secretary of 
Defense to include funding to acquire these additional 40 UOES 
missiles in the fiscal year 1998 budget request.
      The administration's proposed program for THAAD does not 
include funding for a second EMD radar until very late in the 
program. The conferees believe that there are many compelling 
reasons to fund this radar earlier. Accordingly, the conferees 
direct the Secretary of Defense to proceed with acquisition of 
a second EMD radar in fiscal year 1997 and agree to authorize 
$65.0 million in long-lead funding for this purpose.
      The conferees strongly reject the idea that the THAAD 
development program should be delayed so as to allow a ``fly-
off'' between THAAD and the Navy Upper Tier system.
      The conferees understand that the Army plans to complete 
THAAD dem/val flight testing at the White Sands Missile Range 
and transition to flight testing at the Kwajalein Missile Range 
for the EMD phase. The conferees support this plan.

                     navy upper tier (theater wide)

      The budget request included $58.2 million for continued 
development of the Navy Upper Tier (Theater Wide) TMD system. 
This is a significant reduction from the $200.4 million 
authorized and appropriated in fiscal year 1996, and reflects 
the low priority that the administration attaches to this 
program. The conferees do not support the Department's 
recommendation to delay the development and deployment of the 
Navy Upper Tier system.
      The National Defense Authorization Act for Fiscal Year 
1996 mandates that the Navy Upper Tier system become the fourth 
``core'' TMD system and establishes accelerated milestones for 
this program. The conferees have not been made aware of any 
technical reasons why a Navy Upper Tier capability cannot be 
fielded on a much more aggressive schedule than proposed by the 
administration.
      The conferees continue to support the Navy Upper Tier 
system as a matter of priority. Sea-based upper tier TMD 
capability provides an important complement to ground-based 
systems, and each has unique attributes. Accordingly, the 
conferees recommend a net increase in PE 63868C of $246.0 
million to support an accelerated Navy Upper Tier program.
      The conferees are aware that BMDO has begun evaluating 
the key modifications required for the THAAD kill vehicle to be 
a candidate for the Navy Upper Tier mission. The conferees 
recommend the use of not more than $10.0 million to support 
this effort in fiscal year 1997 from the overall amount 
authorized for the Navy Upper Tier program, and not more than 
$10.0 million from the overall amount authorized for THAAD for 
this purpose.
      The conferees believe that the Navy, in conjunction with 
BMDO, should assess the potential that development of a new 
second stage motor for the Standard Missile could have for a 
range of missile defense applications. Accordingly, the 
conferees recommend the use of $10.0 million of the funds 
authorized for Navy Upper Tier to initiate this second stage 
motor development effort.

              corps sam/medium extended air defense system

      The budget request included $56.2 million for Corps 
surface-to-air missile (SAM)/Medium Extended Air Defense System 
(MEADS) program. The conferees endorse the MEADS program, which 
is required to defend forward-deployed troops, and approve the 
budget request, subject to limitation specified elsewhere in 
this report.

           united states-israel boost phase intercept program

      In the Statement of Managers accompanying the National 
Defense Authorization Act for Fiscal Year 1996, the conferees 
endorsed a cooperative program between the United States and 
Israel to develop a kinetic energy boost-phase intercept 
program based on an unmanned aerial vehicle (UAV). The 
conferees maintain their strong support for this concept. The 
budget request included $9.3 million in the Joint TMD program 
element (PE 63872C) to continue this effort. The conferees 
recommend that these funds be transferred to the BPI program 
element (PE 63870C) and that this amount be increased by $15.0 
million for a total authorization of $24.3 million.
      The conferees believe that the first step of this U.S.-
Israel BPI program should be a joint technology risk mitigation 
effort, aimed at reducing technological uncertainties. If this 
proves successful, it can be followed by an advanced technology 
demonstration to validate the technical feasibility of the 
concept and the major system elements. This would enable the 
United States and Israel to evaluate the potential for a joint 
acquisition program or one in which both countries continue to 
collaborate on separate but mutually reinforcing efforts.

                        national missile defense

      The budget request included $508.4 million for National 
Missile Defense (NMD). Based on information received from the 
Department of Defense, the conferees do not believe that the 
administration's proposed budget and program plan for NMD are 
adequate even to meet the stated purpose of its ``deployment 
readiness'' program. As acknowledged by the Director of BMDO in 
congressional testimony, the planned test program for the 
exoatmospheric kill vehicle (EKV) is inadequate to support a 
deployment decision within the framework of the ``3+3'' 
program. The administration's proposed NMD program consists of 
just five EKV flights: two in fiscal year 1997; two in fiscal 
year 1998; and one in fiscal year 1999. Under this plan, the 
NMD deployment decision supposedly could be made at the end of 
fiscal year 1999; however, such a decision would be based on a 
single integrated interceptor tests. Furthermore, the test 
booster would not represent an operational configuration.
      To support a lower risk and more robust NMD program, the 
conferees believe that additional EKV flight tests are 
required. Specifically, the conferees direct the Secretary of 
Defense to restructure the EKV program to support two flight 
tests in fiscal year 1997, three in fiscal year 1998, and four 
in fiscal year 1999. This requires the acquisition of 
additional kill vehicle and test booster hardware. 
Additionally, the conferees direct the Secretary to evaluate 
the advantages of upgrading the Payload Launch Vehicle (PLV) 
system to provide a more representative velocity regime and 
test environment for NMD system tests. To accomplish these 
objectives, and to ensure that other aspects of the NMD program 
are able to support an initial operational capacity (IOC) in 
fiscal year 2003 (which the administration's proposal 
supposedly protects), the conferees recommend an increase of 
$350.0 million in PE 63871C.
      The conferees commend the Under Secretary of Defense 
(Acquisition and Technology) for his recent decision to 
establish an NMD joint-service program office (JPO), and direct 
the Director of BMDO to ensure full participation by the Army, 
Navy, and Air Force in the JPO. In addition, the committee 
directs the Director of BMDO to ensure that the EKV and 
associated booster designs are compatible with the widest 
possible range of NMD system architectures and basing modes. 
The conferees direct that the Director of BMDO inform the 
Senate Committee on Armed Services and the House Committee on 
National Security of his plans in this regard not later than 
February 15, 1997.
      The conferees note that the prototype ground-based radar 
(GDR-P) is an important NMD system element, and the GBR-P is 
scheduled to begin testing at U.S. Army Kwajalein Atoll (USAKA) 
in 1998. This schedule must be maintained, or accelerated, in 
order to realize cost savings associated with leveraging the 
THAAD radar program and test schedule. Of the amounts 
authorized in PE 63871C, the conferees recommend $68.0 million 
for GBR-P in order to ensure that the radar is available for 
integrated system testing in fiscal year 1998.
      The conferees recognize the importance of the Midcourse 
Space Experiment (MSX) for collecting and analyzing background 
data of use to future midcourse sensors such as the Space 
Missile and Tracking System. The conferees are concerned, 
however, that BMDO has failed to budget funds to continue 
operations through the end of the expected lifetime of the 
satellite. Therefore, the conferees strongly urge the Director, 
BMDO to provide adequate funds in the fiscal year 1998 budget 
submission and over the Future Years Defense Plan (FYDP) for 
MSX satellite operations.
      The conferees understand the importance of an effective 
battle management/command, control, and communications (BM/C3) 
architecture to overall NMD system performance and reliability. 
In this regard, the conferees are aware of proposals to 
leverage existing TMD BM/C3 capabilities, including such 
capabilities being developed under the THAAD program, to 
support an NMD system. The committee therefore urges the 
Director, BMDO to study these proposals and inform the 
committee not later than February 15, 1997, of his views in 
this regard.

                      joint national test facility

      The budget request included $5.8 million for Joint 
National Test Facility (JNTF) modernization, split among 
program elements 63871C, 63872C, and 63173C. To adequately 
satisfy the complex missile defense integration requirements 
leading to successful joint tests, analysis, war gaming, CINC 
exercises, and acquisition support, the conferees recommend 
$15.0 million be made available for modernization, 
computational and wide area network capabilities in support of 
the Ballistic Missile Defense Network (BMDN) from within the 
program elements listed above.

                               management

      The budget request did not contain a separate program 
element for management.
      The House bill recommended a general reduction of $15.0 
million for management.
      The Senate did not recommend a reduction for management.
      The House recedes.

                     joint theater missile defense

      The budget request included $521.5 in BMDO's Joint TMD 
program element (formerly known as Other TMD). The committee 
recommends a net increase of $6.4 million in PE 63872C, 
including the following adjustments: (1) a transfer of $9.3 
million to the BPI program element for the U.S.-Israel Joint 
BPI program; (2) an increase of $3.7 million for the Arrow 
Deployability Project (ADP), for a total authorization of $35.0 
million to fully fund the U.S. share of the program envisioned 
in the recently completed Memorandum of Agreement between the 
United States and Israel; (3) an increase of $7.0 million for 
the Army's Advanced Research Center (ARC), for a total 
authorization of $15.0 million; and (4) an increase of $5.0 
million for BMDO to ensure that the Navy's Cooperative 
Engagement Capability is compatible with all of BMDO's core TMD 
programs.

Holloman high speed test track

      The budget request included $116.0 million for the 
Central Test and Evaluation investment development program (PE 
64940D).
      The Senate amendment would authorize an increase of $17.0 
million in PE 64940D for the joint high speed upgrade for the 
Holloman High Speed Test Track.
      The House recedes.

                       items of special interest

Anti-submarine warfare program

      The budget request included $49.6 million in PE 62314N 
for exploratory development of advanced undersea warfare 
surveillance technologies.
      The House bill would authorize an increase of $21.0 
million to the budget request to accelerate the development of 
advanced anti-submarine warfare (ASW) technologies.
      The Senate amendment would authorize the budget request.
      The House recedes.
      In the statement of managers accompanying the conference 
report on the National Defense Authorization Act for Fiscal 
Year 1996 (H. Rept. 104-450), the conferees directed the 
Secretary of Defense to assess the current and projected U.S. 
ASW capability in light of the continuing development of 
quieter nuclear submarines, the proliferation of very capable 
diesel submarines, the sale of sophisticated, submarine 
launched weapons, and the declining trend in budget resources 
associated with ASW program. The assessment was expected to 
identify both short-term and long-term improvements that are 
needed to cope with the evolving submarine threat in both 
littoral and open ocean areas. The conferees directed that the 
results of this assessment and the plan for the U.S. ASW 
program be reported to the congressional defense committees by 
July 1, 1996.
      The conferees' comments on the Secretary's assessment are 
included in the classified annex to this statement of managers.

Battle group airborne anti-submarine warfare

      The report accompanying the Senate amendment (S. Rept. 
104-267) expressed concern about the Navy's slow progress in 
planning for and funding organic battle group airborne anti-
submarine warfare (ASW) systems suitable for countering the 
existing and projected littoral ASW threat. The report 
acknowledged the reality of current budgetary constraints, but 
also emphasized the need for a solid conceptual plan, supported 
by adequate resources, to meet the evolving littoral ASW 
threat.
      The Senate report expressed the opinion that the Navy's 
overall plan for modernizing its H-60 series helicopters has 
not met these criteria. It opined that the plan's broad 
concept, to convert existing H-60 variants into a multi-mission 
SH-60R helicopter and introduce it by fiscal year 2001 as a 
complement to introduction of DDG-51 Flight IIA destroyers into 
the fleet, appears sound. However, the mix of aircraft to be 
converted and the funding programmed to implement this concept 
have remained in a state of flux for the past two years. For 
example, the Navy's integrated helicopter plan for fiscal year 
1997 reversed the Navy's previous decision to convert aircraft 
carrier based SH-60F ASW helicopters to HH-60H combat/utility 
helicopters. Instead, the new plan would convert these SH-60F 
helicopters to the SH-60R configuration. Some would be 
converted in the near term to fill surface combatant 
requirements, but the balance of the SH-60Fs would not undergo 
conversion until after fiscal year 2006.
      Last year, the Navy's fiscal year 1996 helicopter plan 
would not have converted some 60 SH-60Fs to the SH-60R 
configuration. The statement of managers accompanying the 
National Defense Authorization Act for Fiscal Year 1996 
directed the Secretary of the Navy to evaluate the cost 
effectiveness of a modernization program for the dipping sonars 
installed on these helicopters. Because the fiscal year 1997 
plan now calls for conversion of these 60 helicopters to the 
SH-60R configuration, implying eventual installation of the 
airborne low frequency dipping sonar (ALFS), a different set of 
assumptions applies, and different questions have emerged.
      Although the 60 SH-60F helicopters are now to be 
converted to the SH-60R configuration, most of these 
conversions will not occur for at least 10 to 15 years. The 
conferees are concerned about whether the dipping sonars 
presently installed on these carrier based SH-60F helicopters 
are now, or will remain, suitable for the littoral ASW 
operations envisioned by the Navy's strategic concept ``Forward 
. . . From the Sea'' during this 15 year period.
      To help resolve their uncertainty, the conferees direct 
the Secretary of the Navy to develop a plan, containing 
decision options, that would ensure that its carrier based SH-
60F helicopters not scheduled for conversion to the SH-60R in 
the near term, i.e., the helicopters that will remain 
responsible for inner-zone battle group ASW, are equipped with 
a dipping sonar, including possible modifications to the 
presently installed sonar, that is suitable, and will remain 
suitable, for littoral ASW operations. The Secretary is 
directed to submit this plan no later than March 1, 1997.

Chemical and biological defense program

      The budget request included a total of $505.0 million for 
the chemical-biological defense program, including $296.8 
million in research and development, test and evaluation and 
$208.2 million in procurement.
      The House bill would authorize an increase of $44.3 
million for research, development, test and evaluation, and an 
increase of $16.2 million in the operations and maintenance 
accounts ($13.2 million for Army and $3.0 million for the Air 
Force).
      The Senate bill would authorize the budget request.
      The conferees agree to provide an increase to the budget 
request of $16.2 million for shortfalls in operations and 
maintenance ($13.2 million in the Army account and $3.0 million 
in the Air Force account).
      The conferees remain concerned with findings contained in 
the March 1996 General Accounting Office (GAO) report on 
chemical and biological defense. While the GAO report notes 
improvement in the readiness of U.S. military forces to operate 
in a chemical or biological environment, the report also 
identifies continued deficiencies in the areas of chemical-
biological defense training; inadequacy of the biological 
vaccine stockpile; development and implementation of a DOD 
immunization policy; and adequacy of training and equipment for 
medical personnel. In this regard, the conferees express 
concern with the Department's management and oversight of the 
chemical and biological defense program.
      The conferees direct the Deputy Secretary of Defense to 
review and report back to the Congress on steps taken by the 
Department to correct deficiencies highlighted by the GAO 
report, to include a decision on the development and 
implementation of a DOD immunization policy. The conferees 
agree that it is essential that a decision be made on the 
vaccines to be stockpiled and on an immunization policy. 
Further the conferees agree that it is essential that medical 
personnel assigned to deploy with U.S. military forces to high 
threat areas have the necessary training and equipment to 
protect themselves against chemical or biological agents, and 
the necessary training and equipment to treat casualties in a 
chemically or biologically contaminated area.

Composite materials insertion for fielded weapon systems

      The House bill would direct the Secretary of Defense to 
institute a composite materials insertion program in the 
military services and cited a number of material technologies 
to be considered. The conferees clarify that the Secretary may 
include other materials, such as polymer based composites, in 
the program at his discretion.

Dredge spoil disposal

      The House bill would authorize an increase of $2.5 
million in PE 62233N to investigate potential low cost 
alternatives to the current methods of disposal or reclamation 
of dredge spoils.
      The Senate amendment contained no similar provision.
      The conferees could not provide an authorization since 
the project was not appropriated by either appropriations 
committee. The conferees believe, however, that the Navy must 
begin to look at alternative technologies to reduce the cost of 
processing dredged material which it will incur as it faces the 
costly challenge of dredging the 15 ports it cites will require 
dredging over the next 15 years.

Electron scrubber technology

      The electron scrubber (e-SCRUB) technology may 
potentially be used to eliminate or reduce pollutants that 
cause acid rain, air toxins, and volatile organic compounds 
from off gas generated by incinerators. It may also be used in 
the treatment of waste water. The technology combines electron 
beam flue gas scrubbing treatment with high average electron 
beam technology. Under the Strategic Defense Initiative, the 
Defense Nuclear Agency (DNA) directed the development of e-
SCRUB as an antimissile technology. Several years ago, it was 
first evaluated as an environmental compliance technology under 
the Strategic Environmental Research and Development Program 
(SERDP).
      The conferees have followed with interest the progress of 
the e-SCRUB technology under SERDP. The conferees note that 
SERDP development and testing of the technology was hindered by 
program funding reductions, the lack of relevance to the 
Department of Defense (DOD) environmental requirements, and 
poor performance.
      In fiscal year 1995, DNA submitted a proposal for funding 
of the e-SCRUB technology under the Environmental Security 
Technology Certification Program (ESTCP). In order to receive 
favorable consideration for ESTCP participation, the proposal 
would have to satisfy a high priority need, be technically 
mature, project a high return on investment, and include an 
appropriate transition plan. A panel of experts reviewed the 
technology and determined that it was not ripe for ESTCP 
support.
      The conferees have remaining concerns regarding the 
technical maturity, the overall cost, and the utility to DOD. 
However, proponents of the e-SCRUB technology maintain that it 
is ready for prototyping and demonstration, and that it will 
benefit major DOD maintenance and operation facilities 
confronted with significant air and water pollution problems. 
It is claimed that many of the significant problems associated 
with early development of the e-SCRUB technology have been 
overcome.
      The conferees direct the Department to conduct another 
review of the e-SCRUB technology to determine if it meets the 
criteria for demonstration and validation of technology 
relevant to the Department's environmental needs. If the 
technology has no relevance or fails to meet the Department's 
criteria, the Secretary of Defense shall submit a report to the 
congressional defense committees describing those findings. If 
the technology is relevant and meets the Department's criteria, 
the Secretary shall use no more than $2.0 million from 
available funds to complete demonstration and validation 
through ESTCP or the National Defense Center of Environmental 
Excellence.

FFG-7 modernization

      The Navy now plans to retain more of its FFG-7s in active 
and reserve status than had been previously planned. Heavy 
operational demands have caused the Navy to reverse an earlier 
decision to retire most of the FFG-7 class of ships. While the 
Navy has not made a final decision on the total number that 
will be retained, it is likely that the Navy will retain a 
portion of them in active service until at least 2010. The 
ships that will remain available include 12 that have the 
coherent receiving transmitter (CORT) installed. There are an 
additional 11 flight 3 and flight 4 ships that form a separate 
subclass. They are somewhat less capable than the CORT ships 
but are presently planned to remain in active service. The Navy 
intends to transition the remaining ships of the FFG-7 class to 
naval reserve force, ready reserve force or foreign military 
sales status.
      The conferees appreciate the Navy's rationale in 
retaining some FFG-7s in service. However, it would now appear 
prudent to evaluate the ability of these ships to deal with 
evolving threats during their remaining service life. Factors 
for consideration include:
            (1) the FFG-7 class has several different 
        configurations, some have an updated anti-air warfare 
        (AAW) system, while others have a more capable anti-
        submarine warfare (ASW) weapons system;
            (2) the FFG-7 class was originally developed as a 
        design-to-cost, open ocean, anti-submarine escort, and 
        was not optimized for near land operations or 
        countering advanced sea-skimming cruise missiles; and
            (3) several groups have approached the committee 
        during its review of the fiscal year 1997 budget 
        request, asserting that relatively inexpensive off-the-
        shelf upgrades are available that will provide the FFG-
        7 class with the capabilities needed to counter modern 
        threats.
      The conferees want the Navy to clarify its intentions for 
modernizing the FFG-7 class. Therefore, the conferees direct 
the Secretary of the Navy to prepare a report on options for 
modernizing the FFG-7 class and submit that report with the 
fiscal year 1998 budget request. The report should include, but 
need not be limited to, answers to the following questions:
            (1) what are the threats that will likely be 
        encountered in operational situations where the FFG-7s 
        might be employed?
            (2) what priority does the Navy place on 
        modernizing the FFG-7 class to deal with these threats?
            (3) what are the alternatives for buying off-the-
        shelf upgrade packages that could defeat these threats?
            (4) would buying off-the-shelf upgrade packages be 
        cost effective relative to potential development 
        programs? and,
            (5) what would be a reasonable funding and 
        installation program to procure and install either off-
        the-shelf packages or upgrade packages deriving from a 
        development program?

Integrated avionics

      Congress has frequently expressed concern over the 
proliferation of avionics systems for strategic and tactical 
aircraft. Congressional reports dating back to fiscal year 1980 
brought attention to the fact that there were over thirty 
discrete defensive avionics systems designed and developed to 
counter the same threat.
      During the past decade, the Department of Defense has 
made some progress in fostering commonality among the military 
services. The Joint Integrated Avionics Working Group (JIAWG) 
has advanced the goal of developing common integrated avionics. 
It is important that this progress continue.
      The conferees reiterate the need for joint integrated 
avionics to improve performance and substantially reduce the 
operational and maintenance cost associated with aircraft 
avionics.

Lithography

      The conferees support the pursuit of extreme ultraviolet 
(EUV) lithography aimed at the fabrication of 100 nanometer 
design rule structures to support nanowriters, nanofabrication 
prototypes, and the facilities for short wavelength 
meterologies, calibration and standards. The conferees 
recognize its potential as the technology of choice of the next 
generation short wavelength tools for the industry and 
encourage the Department of Defense to consider using $10.0 
million, of the total authorization for lithography, for EUV 
technologies.

Materials nanostructures

      The conferees recognize that there is no appropriation to 
accelerate this program. The conferees recognize the potential 
of the emerging field of material nanostructures. This regime 
of science offers the opportunity to integrate inorganic and 
organic chemistry and physics at the material formative 
dimension that will impact microelectronics, micromachines, 
molecular level controllers and switches, among many other 
applications. Nanostructures have the potential to 
revolutionize future military technological superiority. The 
conferees urge the Department of Defense to devote additional 
funds to the development of these promising technologies.

Molecular design

      Although there was no additional funding appropriated 
above the Department of Defense's request that would allow the 
conferees to consider any additional authorization for the 
molecular design program, the conferees fully endorse the 
current program in the Office of Naval Research (ONR) and urge 
its continuance. The conferees agree that the scientific 
investigations into the molecular synthesis of atoms as 
foundational building blocks of new material nanostructures 
will lead to a culture shift that will allow ``cross-cuts'' in 
scientific disciplines of chemistry, biology and physics to 
occur. The conferees commend ONR, the Defense Advanced Research 
Projects Agency, and those universities participating in 
innovative research for their initiatives in this revolutionary 
direction of science. The conferees urge continued funding 
support by the Department.

Nickel-zinc battery technology

      The military services have requirements for low cost, 
high energy density batteries with high power capability and 
low maintenance requirements. The conferees have become aware 
of emerging technology for a state-of-the-art, high energy 
density nickel-zinc battery, which would be significantly 
cheaper, lower maintenance and more durable than the silver-
zinc batteries now in service use, and would not carry the same 
environmental penalties as a silver-zinc and nickel-cadmium 
batteries. The conferees encourage the Secretary of the Navy to 
develop and demonstrate high energy density nickel-zinc battery 
technology that could provide great potential for a low cost, 
high performance replacement for nickel-cadmium aircraft 
batteries and for other applications.

Plasma Energy Pyrolysis System

      The conferees support the ongoing joint effort between 
the U.S. Army Environmental Center/Environmental Technology 
Division and the Tennessee Valley Authority/Muscle Shoals 
Environmental Research Center to develop, demonstrate, and 
validate the Plasma Energy Pyrolysis System (PEPS) technology. 
The conferees urge the Department of Defense to continue its 
activity in this area with available funds. The Department of 
the Army shall report to the congressional defense committees 
on the feasibility of this technology not later than April 30, 
1997.

                         legislative provisions

              Subtitle A--Authorization of Appropriations

                     legislative provisions adopted

Dual use technology program (sec. 203)

      The House bill contained a provision (sec. 203) that 
would require the Secretary of Defense to designate a senior 
official, reporting directly to the Under Secretary of Defense 
for Acquisition and Technology, whose sole responsibility would 
be to develop policy and ensure effective execution of dual use 
programs and integration of commercial technologies into 
military systems. Further, the provision would require that not 
less than five, seven, ten, and fifteen percent, respectively 
for each of fiscal years 1997-2000, of each service's science 
and technology program be available only for dual use cost-
shared programs. The provision would prohibit the use of ``in-
kind'' contributions as a part of non-Federal entity 
participation in dual use projects. The provision also modified 
the other transaction authorities of the Department.
      The conferees agree to a provision that would require 
designation of an official to manage dual use programs governed 
by this provision and a requirement for at least five percent 
of the amounts appropriated for science and technology programs 
for fiscal year 1997 be available for dual use programs. In 
addition, the conferees agree to authorize $85.0 million in PE 
63805E for this purpose and direct that the management of these 
funds be under the jurisdiction of the person designated by the 
Secretary of Defense to manage dual use programs. The Secretary 
would be required to submit with the fiscal year 1998 budget 
request the Department's outyear funding strategy for this dual 
use program.
      The conferees agree to modify the House provision to 
allow ``in-kind'' contributions as a part of non-Federal entity 
participation in dual use projects. The conferees direct the 
official managing dual use programs in the Department of 
Defense to develop a set of consistent and equitable procedures 
for the treatment of the in-kind contributions. The official 
shall ensure that such procedures are consistent with the 
guidance on this issue contained in the Senate report (S. Rept. 
104-267).

Defense Special Weapons Agency (DSWA) formerly known as the Defense 
        Nuclear Agency (DNA) (sec. 204)

      The budget request included $314.3 million for the 
Defense Nuclear Agency (DNA).
      The Senate amendment contained provisions (secs. 109, 
203, and 303) that would authorize a $15.0 million increase to 
the budget request for the Defense Nuclear Agency (DNA) to 
increase the frequency of nuclear weapons incidents field 
training exercises ($3.0 million defense operations and 
maintenance); to establish a counter terrorism support program 
leveraging DNA capabilities developed during the Cold War, and 
to establish a nuclear weapons delivery sustainment program 
($12.0 million in research and development, PE 62715H).
      The House bill would reduce the budget request for DNA by 
$3.0 million. Additionally, it would deny $7.0 million 
requested for the Topaz International Program (project AX), and 
would make available $4.0 million to continue the counter 
terrorist explosives research program.
      The conferees agree to a provision that would authorize 
$314.3 million for DNA ($192.1 million in PE 62715H, $26.2 
million in PE 63711H, $88.1 million in operations and 
maintenance, and $7.9 million in procurement). Of the amount 
available in PE 62715H, the conferees agree that funds shall be 
available for the following activities/programs: $4.0 million 
for the continuation of the counter terrorism support program; 
$3.0 million for Deep Digger; and $12.0 million to establish a 
nuclear weapons delivery sustainment program.
      Included in the budget request for DNA was $7.0 million 
for the Topaz International program (project AX). The conferees 
have reviewed the assessment conducted by the National Research 
Council of this program. The conferees agree with a number of 
conclusions and recommendations reached by the NRC. Substantial 
amounts of money have been spent, both by the United States and 
Russia, to develop space nuclear power. Despite the 
identification of space reactor power as a potential enabler 
for future missions, no potential users of mission requirements 
have been identified.
      Accordingly, the conferees deny the budget request for 
the Topaz International Program (project AX). The conferees 
understand that of the funds authorized for this program for 
fiscal year 1996, $4.6 million remained unobligated and 
unexpended. The conferees recommend that $3.0 million be used 
to terminate the program. A substantial amount of money has 
been spent over the decades on various space nuclear reactor 
power technologies. To save this investment for potential 
future use, the conferees recommend that all information and 
technology related to the Topaz international program and the 
U.S. space nuclear reactor power technology program be 
deposited in a central repository.

    Subtitle B--Program Requirements, Restrictions, and Limitations

                     LEGISLATIVE PROVISIONS ADOPTED

Space launch modernization (sec. 211)

      The House bill contained a provision (sec. 211) that 
would: (1) authorize $50.0 million for a competitive reusable 
space launch vehicle (RLV) program; and (2) permit obligation 
of the authorized funds only to the extent that the current 
operating plan of the National Aeronautics and Space 
Administration (NASA) allocates at least an equal amount for 
the RLV program.
      The Senate amendment contained a provision (sec. 211) 
that would: (1) authorize $44.5 million for the Evolved 
Expendable Launch Vehicle program and $25.0 million for a 
competitive reusable launch vehicle technology program; (2) 
prohibit the use of DOD funds for RLV in an amount in excess of 
that dedicated to the program by NASA; and (3) prohibit the 
obligation of funds authorized for the Evolved Expendable 
Launch Vehicle (EELV) program in fiscal year 1997 until the 
Secretary of Defense certifies that funds authorized to be 
appropriated for RLV have been made available for obligation.
      The House recedes with an amendment that would: (1) 
authorize $44.5 million for the Evolved Expendable Launch 
Vehicle program and $25.0 million for a competitive reusable 
launch vehicle program; (2) permit obligation of the funds 
authorized for RLV only to the extent that the current 
operating plan of NASA allocates at least an equal amount for 
the RLV program; (3) limit the obligation of funds for EELV to 
$20.0 million until the Secretary of Defense makes available 
for obligation funds authorized for RLV; and (4) require the 
Secretary of Defense and the Administrator of the National 
Aeronautics and Space Administration to submit to Congress a 
joint plan for coordinating and eliminating unnecessary 
duplication in the operations and planned improvements of 
rocket engine test facilities managed by the Air Force and 
NASA.

Space-Based Infrared System program (sec. 212)

      The House bill contained a provision (sec. 219) that 
would authorize funds for the Space-Based Infrared System 
(SBIRS) program, prohibit the obligation of expenditure of 
funds until the Secretary of Defense issues a certification to 
Congress, and direct the Secretary to consider the appropriate 
management responsibilities for the Space and Missile Tracking 
System (SMTS) program.
      The Senate amendment contained a similar provisions (sec. 
213).
      The Senate recedes with an amendment that would authorize 
$427.4 million for the SBIRS program ($173.3 million for SBIRS 
Space Segment High, $247.2 million for SMTS, and $6.9 million 
for Cobra Brass), prohibit the obligation or expenditure of 
more than $100.0 million for SBIRS Space Segment High until the 
Secretary of Defense issues a certification to Congress, and 
direct the Secretary to consider the appropriate management 
responsibilities for the SMTS program.
      The conferees are disappointed by the Department of 
Defense's management of the SMTS program. The Department has 
yet to present the revised SMTS program baseline as required by 
section 216 of the National Defense Authorization Act for 
Fiscal Year 1996. Additionally, poor management practices on 
the part of the Air Force, the Office of the Secretary of 
Defense, and the contractor have forced delays in the SMTS 
program. The conferees are particularly disappointed by the 
Department of Defense's decision to recommend for rescission 
$51.0 million for fiscal year 1996 funds authorized and 
appropriated for SMTS acceleration and competition. Shortly 
after recommended these funds for rescission, the Department 
endorsed a plan for enhanced competition. The Department's 
handling of the fiscal year 1996 SMTS funding and its on-again, 
off-again approach to competition is not acceptable. The 
conferees direct the Secretary of Defense to promptly complete 
the program baseline specified in section 216 of the National 
Defense Authorization Act for Fiscal Year 1996, and to promptly 
release the additional funds authorized for SMTS for fiscal 
year 1997 for purposes of accelerating the program.

Clementine 2 micro-satellite development program (sec. 213)

      The Senate amendment contained a provision (sec. 215) 
that would authorize $50.0 million for the Clementine 2 mico-
satellite near-earth interception mission. The provision would 
also prohibit the obligation of any funds for the Global 
Positioning System (GPS) Block IIF satellite development 
program until the Secretary of Defense certifies to Congress 
that the fiscal year 1996 funds for Clementine 2 have been 
obligated and the fiscal year 1997 funds for Clementine 2 have 
been made available for obligation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$50.0 million for the Clementine 2 micro-satellite near-earth 
asteroid mission and would prohibit the obligation of more than 
$25.0 million for GPS Block IIF until the Secretary of Defense 
certifies that fiscal year 1997 funds for Clementine 2 have 
been made available for obligation.

Live-fire survivability testing of V-22 Osprey aircraft (sec. 214)

      The House bill contained a provision (sec. 212) which 
would permit the Secretary of Defense to waive the 
survivability testing requirements of section 2366(c) of title 
10, United States Code, notwithstanding the fact that the V-22 
tilt-rotor aircraft has already entered engineering and 
manufacturing development. The provision would require the 
Secretary to report to the Congress on how the Secretary plans 
to evaluate the survivability of the V-22 aircraft, his 
assessment of possible alternatives to realistic survivability 
testing of the aircraft, and alternative survivability test 
requirements for the conduct of any alternative live-fire test 
program. The provision would also require that funds required 
for alternative live-fire testing of the V-22 shall be made 
available from amounts appropriated for the V-22 program.
      The Senate amendment contained a similar provision (sec. 
242), but allowed rather than directed the use of V-22 program 
funds to carry out the tests.
      The Senate recedes.

Live-fire testing of the F-22 aircraft (sec. 215)

      The House bill contained a provision (sec. 213) that 
would provide authority to the Secretary of Defense to waive 
certain live fire testing required by section 2366 
of title 10, United States Code.
      The Senate amendment contained a similar provision.
      The conferees agree to a provision (sec.   ) that would 
provide the Secretary of Defense the waiver authority and 
further require that alternative survivability testing be 
funded from funds appropriated from the F-22 program.

Limitation on funding for F-16 tactical manned reconnaissance aircraft 
        (sec. 216)

      The House bill contained a provision (sec. 216) that 
would establish a limitation of $50.0 million on the total 
obligations and expenditures of the Department of Defense for 
the F-16 tactical manned reconnaissance aircraft program for 
research, development, test, evaluation, acquisition, and 
modification. The provision would exempt from limitation the 
obligations for the incorporation of the common data link.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Cost analysis of F-22 aircraft program (sec. 217)

      The Senate amendment contained a provision (sec. 218) 
that would direct the Secretary of Defense to review, analyze 
and estimate the production costs of the F-22 aircraft program 
using the Cost Analysis Improvement Group to complete the 
study. Detailed requirements for the report were outlined in 
the provision, and a date of March 30, 1997 was given for the 
completion of the report. A limitation on the use of funds for 
the F-22 program was also included pending receipt of the 
report.
      The House bill contained no similar provision.
      The House recedes.

F-22 aircraft program reports (sec. 218)

      The Senate amendment contained a provision (sec. 219) 
that would require the Secretary of Defense to submit reports 
to Congress on event-based decision making when submitting the 
budget for an upcoming fiscal year. Reports of decisions made, 
comparing previously defined criteria and decision outcomes, 
would also be required.
      The House bill contained no similar provision.
      The House recedes.

Cost-benefit analysis of the F/A-18E/F aircraft program (sec. 219)

      The Senate amendment contained a provision (sec. 228) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees on the F/A-18E/F 
program, comparing the costs and benefits of the F/A-18C/D with 
the F/A-18E/F. Not more than 90 per cent of the funds 
appropriated for the F/A-18E/F could be obligated or expended 
on the F/A-18E/F until 30 days after the date of receipt of the 
report by the congressional defense committees.
      The House bill contained no similar provision.
      The House recedes.

Joint Advanced Strike Technology (JAST) program (sec. 220)

      The House bill contained a provision (sec. 220) that 
would preclude the obligation of funds for the Advanced Short 
Takeoff and Vertical Landing variant of JAST, and require an 
analysis of force structure alternatives and associated costs.
      The Senate amendment contained no similar provision, but 
would provide an additional $13.0 million for alternate engine 
concepts.
      The Senate recedes with an amendment that would remove 
the prohibition on the obligation of funds for the Advanced 
Short Takeoff and Vertical Landing variant of JAST, but would 
retain the provisions in the House bill requiring an analysis 
of future force structure needs and existing alternatives to 
the JAST program.
      The conferees agree to provide the additional $13.0 
million as identified in the Senate report (S. Rept. 104-267) 
for competitive engine initiatives.

Unmanned aerial vehicles (sec. 221)

      The House bill contained a provision (sec. 217) that had 
five sections addressing unmanned aerial vehicle (UAV) 
programs. The sections would:
            (1) prohibit the Secretary of Defense from entering 
        into a contract for the Joint Tactical Unmanned Aerial 
        Vehicle project until 30 days after certification was 
        received by the Congressional defense committee of the 
        justification and affordability of various 
        reconnaissance programs;
            (2) require a clear depiction of reconnaissance 
        budget requests;
            (3) transfer management of the Predator program to 
        the Department of the Air Force;
            (4) prohibit the obligation of funds to operate 
        Predator UAV's from naval vessels; and
            (5) provide $10.0 million for advanced concepts 
        technology demonstrations of air-to-surface precision 
        guided munitions employment using a UAV and a non 
        developmental laser target designator.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would remove 
the following sections:
            (1) the prohibition on entering into contracts on 
        the Joint Unmanned Aerial Vehicle, and
            (2) authorization of $10.0 million for an ACTD of 
        air to surface precision guided munitions employment 
        using a UAV and a non developmental laser target 
        designator.

High altitude endurance unmanned aerial reconnaissance system (sec. 
        222)

      The House bill contained a provision (sec. 223) that 
would require that any funds authorized to be appropriated for 
an improved Tier III Minus High Altitude Endurance Unmanned 
Aerial Reconnaissance System that would increase the unit 
flyaway cost above the established contracted for amount be 
awarded through competitive acquisition procedures.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Cyclone class patrol craft self-defense (sec. 223)

      The Senate amendment contained a provision (sec. 225) 
that would direct the Secretary of Defense to carry out a study 
through the Commander in Chief of the U.S. Special Operations 
Command (USSOCOM) of self-defense options for USSOCOM's Cyclone 
class patrol craft and report the results to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives.
      The House bill contained no similar provision.
      The House recedes with an amendment.

One-year extension of deadline for delivery of Enhanced Fiber Optic 
        Guided Missile (EFOG-M) system (sec. 224)

      The House bill contained a provision (sec. 243) that 
would amend Section 272(a)(2) of the National Defense 
Authorization Act for fiscal year 1996 (Public Law 104-106; 110 
Stat. 239) by striking out ``September 30, 1998,'' and insert 
``September 30, 1999'' that would extend the deadline for 
delivery of the EFOG-M systems.
      The Senate amendment contained no similar provisions.
      The Senate recedes.

Hydra-70 rocket product improvement program (sec. 225)

      The budget request included $6.2 million for enhancements 
to existing missile programs.
      The House bill included a provision (sec. 218) that would 
authorize an increase of $15.0 million for at least one 
composite motor type Hydra-70 missile evaluation on the Apache 
helicopter.
      The Senate amendment would authorize an increase of $9.0 
million for a Hydra-70 missile evaluation and an additional 
$4.5 million to develop and qualify an insensitive rocket motor 
as well as to support minor software improvements for the 
Hellfire missile.
      The conferees agree to a provision (sec. 225) that would 
authorize $9.0 million for the Hydra-70 evaluation. An 
additional $3.9 million is authorized for Hellfire missile 
insensitive rocket motor development, for a total of $19.1 
million in PE 23802A.

Federally-funded research and development centers (sec. 226)

      The Senate amendment contained a provision (sec. 222) 
that would impose a combined ceiling on the funding that may be 
provided to both federally-funded research and development 
centers (FFRDCs) and university-affiliated research centers 
(UARCs) fiscal year 1997 at the same level as that imposed for 
fiscal year 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment that would remove the 
UARCs from the ceiling and would limit the statutory funding 
ceiling for FFRDCs at the level reflected in projected 
expenditures for studies and analyses FFRDCs in the fiscal year 
1997 budget request. The conferees direct that funds expended 
by an FFRDC on recapitalization not be limited by the amount of 
the ceiling allocated to that FFRDC by the Department of 
Defense. The conferees direct that management of the FFRDCs be 
undertaken consistent with the direction in the House report 
(104-563) and Senate report (104-267).
      The conferees note the continued importance of 
maintaining within the FFRDC community an international trade 
and technology support capability as described in the Senate 
report (104-112) to accompany the National Defense 
Authorization Act for Fiscal Year 1996. The conferees urge the 
Under Secretary of Defense for Acquisition and Technology to 
ensure that this capability is continued at an appropriate 
FFRDC and that sufficient funding be allocated to maintain it 
at a robust level of effort.

Demilitarization of conventional munitions, rockets, and explosives 
        (sec. 227)

      The House bill contained a provision (sec. 214) that 
would authorize $15.0 million for the demilitarization of 
conventional munitions, explosives and rockets, and would 
require the Secretary of Defense to establish a five year 
program for the development and demonstration of 
environmentally compliant technologies for the disposal and 
demilitarization of conventional munitions, explosives, and 
rockets.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Research activities of the Defense Advanced Research Projects Agency 
        relating to chemical and biological warfare defense technology 
        (sec. 228)

      The House bill contained a provision (sec. 215) that 
would amend provisions of Title XVII of the National Defense 
Authorization Act of Fiscal Year 1994 (Public Law 103-160) to 
clarify the role of the Defense Advanced Research Projects 
Agency in the Department of Defense's research and developments 
efforts related to chemical and biological warfare defense 
technologies.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Certification of capability of United States to prevent illegal 
        importation of nuclear, biological, or chemical weapons (sec. 
        229)

      The House bill contained a provision (sec. 224) that 
would require the President to certify to the Congress whether 
or not the United States has the capability (as of the date of 
certification) to prevent the illegal importation of nuclear, 
biological, or chemical weapons into the United States and its 
possessions.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The Office of the Secretary of Defense report, titled 
``Proliferation: Threat and Defense'', dated April 1996, cites 
the growing threat posed by the proliferation of weapons of 
mass destruction and the spread of technology for their 
production. According to the report, one of the most volatile 
and frightening scenarios for U.S. defense planning would be 
based on a terrorist group that might attempt to smuggle 
nuclear, chemical, or biological weapons materials into the 
United States and attack U.S. domestic targets. The conferees 
believe that the capability of the United States to deal with 
the potential threat posed by the illegal importation of 
nuclear, biological, or chemical weapons into the United States 
should be acknowledged, so that U.S. citizens might understand 
the seriousness of the threat and that increased emphasis might 
be placed on meeting the threat.

Nonlethal weapons and technologies program (sec. 230)

      The House bill contained a provision (sec. 222) that 
would provide $3.0 million in PE 63640M for the nonlethal 
weapons research and development program.
      The Senate amendment contained a provision (sec. 220) 
that would provide $15.0 million for a joint service research, 
development, test and evaluation program for nonlethal weapons 
and nonlethal technologies, and would require the establishment 
of a new program element to be administered by the program's 
designated executive agent. The provision would also place 
limits on the funds authorized for the foreign comparative 
testing program and the NATO research and development program 
until the funds authorized for the joint service nonlethal 
weapons and nonlethal technologies program in the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106), and additional funding for nonlethal weapons and 
technologies authorized for fiscal year 1997, are released to 
the executive agent for obligation. Additionally, a second 
Senate provision (sec. 313) would authorize $2.0 million in 
operations and maintenance funds for the Army and $3.0 million 
in operations and maintenance funds for the Marine Corps for 
procurement of nonlethal weapons capabilities to meet existing 
deficiencies in current nonlethal weapons inventories.
      The House recedes with an amendment.
      Last year, $37.2 million was authorized for the nonlethal 
weapons technologies program. The conferees have been troubled 
by the reluctance of the DOD to release the funds for execution 
and implementation of this program. Nonlethal weapons can 
enhance significantly the flexibility and operational 
effectiveness of forward deployed forces. As the military 
services become increasingly involved in unorthodox, non-
traditional military operations, nonlethal weapons can help to 
manage, contain, and defuse certain volatile and low-intensity 
situations. The conferees do not accept or condone the 
Department's failure to make these funds available to the 
executive agent for obligation.
      Currently, the Department's plan for execution of funds 
authorized in fiscal year 1996 includes a total of $15.95 
million for nonlethal weapons technologies, with $10.45 million 
for research, development, test and evaluation, and $5.4 
million for procurement. On July 17, 1996, the Under Secretary 
of Defense for Acquisition and Technology forwarded 
correspondence pledging to make available an additional $11.09 
million in nonlethal funding during fiscal year 1996. 
Specifically, the Department agrees to prepare a reprogramming 
action that would transfer funding from the Defense Advanced 
Research Projects Agency (DARPA) to the various services, as 
follows: $5.4 million to reimburse the services ($1.0 million 
to the Army, $2.1 million to the Marine Corps, and $2.3 million 
to the Air Force); $1.04 million for research, development, 
test and evaluation for additional investment; and $4.65 
million to accommodate current nonlethal priorities for use at 
the discretion of the executive agent.
      The conferees understand that the fiscal year 1997 budget 
submission includes $10.2 million for the various services and 
DOD nonlethal initiatives. The conferees agree to an investment 
strategy utilizing additional funds authorized by this 
provision, allocated as follows: $13.74 million for research, 
development, test and evaluation, as outlined in the July 17, 
1996 letter from the Under Secretary of Defense for Acquisition 
and Technology; $1.26 million available to the executive agent 
for research, development, test and evaluation activities, at 
his discretion; and $5.0 million for training and replenishment 
of nonlethal technology needs ($2.0 million for the Army and 
$3.0 million for the Marine Corps).
      The conferees emphasize that the revised Department plan 
for fiscal year 1996 does not bring the Department into 
compliance with Section 219 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
However, it does represent a reasonable effort to ensure the 
immediate and near term nonlethal requirements of the military 
services. The conferees will closely monitor the formulation of 
the fiscal year 1996 nonlethal reprogramming list, and expect 
the Department to coordinate this effort with the relevant 
congressional committees to ensure its prompt approval.
      The conferees agree to eliminate the provision that would 
prohibit the obligation or expenditure of funds authorized for 
the foreign comparative testing program and the NATO research 
and development program. That decision was reached with the 
understanding that the Department will fully implement and 
execute the nonlethal weapons technologies program for fiscal 
years 1996 and 1997, as agreed to in the July 17, 1996 letter 
from the Under Secretary of Defense for Acquisition and 
Technology.
      The conferees direct the Department to consult with the 
Congress on a regular basis, and to include in its consultation 
a review of the joint and individual service mission needs and 
operational requirements for nonlethal weapons systems and 
technologies. Additionally, the conferees expect the fiscal 
year 1998 budget submission to include the funds necessary to 
continue this effort. The conferees further direct the 
Department of Defense to notify Congress 15 days in advance of 
obligation or expenditure of fiscal year 1997 operations and 
maintenance funds provided to the Army and the Marine Corps for 
procurement of nonlethal weapons.
      The conferees are aware that the Office of Technology 
Assessment (OTA) had underway, when it closed on October 2, 
1995, a major assessment of technology with applications 
related to peace operations, with particular emphasis on non-
lethal weapons technology. Whereas in excess of $250,000 was 
expended and substantial progress had been made by OTA, no 
report was issued. The conferees direct that up to $70,000 of 
the funds authorized for the non-lethal program in fiscal year 
1997 be used by the Department to complete a report on non-
lethal weapons technology based on the work begun at OTA.

Counterproliferation support program (secs. 231 and 1309)

      The Senate amendment contained a provision (sec. 221) 
that would authorize $176.2 million for the 
counterproliferation support program, a $82.5 million increase 
to the budget request. Of this increase, $75.0 million would be 
authorized for the tactical antisatellite technologies program, 
and $7.5 million would be authorized for the high frequency 
active auroral research program (HAARP). A second provision 
(sec. 230) would make available $3.0 million from the 
counterproliferation support program for a surgical strike 
vehicle to defeat hardened and deep underground structures.
      The House bill contained no similar provisions, but would 
authorize the budget request for the counterproliferation 
support program.
      The House recedes with an amendment that would authorize 
$186.2 million for the counterproliferation support program, a 
$92.5 million increase to the budget request. Of those funds, 
$75.0 million is authorized for the tactical antisatellite 
technologies program; $7.5 million is authorized for the high 
frequency active auroral research program (HAARP); $10.0 
million is authorized for a nonproliferation and 
counterproliferation research and development program to 
enhance efforts at interdicting and detecting nuclear, 
radiological, chemical and biological weapons and related 
materials; and $3.0 million would be available to the Air 
Combat Command for research and development of a near-term 
capability to defeat hardened and deeply buried targets, 
including tunnels and deeply buried facilities for the 
production and storage of chemical, biological and nuclear 
weapons and their delivery systems. Additionally, the conferees 
agree that $4.0 million from funds authorized for the Air Force 
operation and maintenance account be made available for U.S. 
Strategic Command (USSTRATCOM) mission planning and analysis.
      The conferees agree that funds authorized in this Act for 
the technical studies and analyses program (PE 605104D) may not 
be obligated until funds authorized for the tactical 
antisatellite technologies program in this Act and in the 
National Defense Authorization Act for Fiscal Year 1996 have 
been released for obligation by the executive agent.

Joint Committee for Review of Counterproliferation Program of the 
        United States

      The conferees agree to a provision (sec. 1309) that would 
extend the authority of the Joint Committee for Review of 
Counterproliferation Programs (CRCP) of the United States to 
September 30, 2000, and require annual reports to the 
congressional defense committees on the activities of the 
committee by May 1 of each year. The provision would also 
modify the composition of the committee by designating the 
Assistant to the Secretary of Defense for Nuclear, Chemical and 
Biological Defense as executive secretary for the committee.

             Subtitle C--Ballistic Missile Defense Programs

                     legislative provisions adopted

Funding for ballistic missile defense programs for fiscal year 1997 
        (sec. 241)

      The House bill contained a provision (sec. 231) that 
would authorize funding for ballistic missile defense research 
and development activities in fiscal year 1997.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the following amounts for the following programs:
            (1) $621.8 million for the Theater High Altitude 
        Area Defense System;
            (2) $304.2 for the Navy Upper Tier system;
            (3) $858.4 for National Missile Defense;
            (4) $56.2 for the Corps Surface-to-Air Missile 
        (SAM)/Medium Extended Air Defense (MEADS) program.
The amended provision would also include the following 
limitations: (1) a limitation on the use of funds for the 
Office of the Under Secretary of Defense for Acquisition and 
Technology for official representation until the Secretary of 
Defense certifies that the above specified funds have been made 
available for obligation and the Secretary has included the 
Navy Upper Tier system in the theater missile defense core 
program; and (2) a limitation on the obligation of more than 
$15.0 million for the Corps SAM program until the Secretary of 
Defense submits to Congress an initial program estimate, a 
report on Corps SAM alternatives, and a certification that 
there will be no increase in overall U.S. funding commitment as 
a result of the withdrawal of France from the project 
definition and validation phase of the program.

Certification of capability of United States to defend against single 
        ballistic missile (sec. 242)

      The House bill contained a provision (sec. 232) that 
would require the President to submit to the Congress a 
certification stating whether the United States has the 
military capability to intercept and destroy a single ballistic 
missile launched at the territory of the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report on ballistic missile defense and proliferation (sec. 243)

      The House bill contained a provision (sec. 235) that 
would direct the Secretary of Defense to submit a report to 
Congress by December 31, 1996, on ballistic missile defense and 
proliferation.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Revision to annual report on ballistic missile defense and 
        proliferation (sec. 244)

      The House bill contained a provision (sec. 236) that 
would update the requirement for the annual ballistic missile 
defense report to Congress.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Report on Air Force National Missile Defense Plan (sec. 245)

      The Senate amendment contained a provision (sec. 238) 
that expressed the sense of the Senate that the Air Force 
National Missile Defense (NMD) plan is an important NMD option 
and is worthy of serious consideration. The provision would 
also require the Secretary of Defense to submit to Congress a 
report on the Air Force NMD plan not later than 120 days after 
enactment of this Act.
      The House bill contained no similar provision.
      The House recedes with an amendment that would omit the 
sense of the Senate language and require the report specified 
in the Senate provision.

Capability of National Missile Defense system (sec. 246)

      The House bill contained a provision (sec. 238) that 
would direct the Secretary of Defense to ensure that any 
national missile defense system deployed by the United States 
is capable of defeating the threat posed by the Taepo Dong II 
missile of North Korea.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Actions to limit adverse effects on private sector employment of 
        establishment of National Missile Defense Joint Program Office 
        (sec. 247)

      The Senate amendment contained a provision (sec. 908) 
that would require the Director of the Ballistic Missile 
Defense Organization to take such actions as are necessary in 
connection with the establishment of the National Missile 
Defense (NMD) Joint Program Office to ensure that establishment 
of that office does not make it necessary for a Federal 
Government contractor to reduce the number of persons employed 
by the contractor for supporting the NMD program at any 
particular location outside the National Capitol Region.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Director of the Ballistic Missile Defense Organization to 
take such actions as are necessary in connection with the 
establishment of the NMD Joint Program Office to ensure that 
establishment of that office does not make it necessary for a 
Federal Government contractor to significantly reduce the 
number of persons employed by the contractor for supporting the 
NMD program at any particular location outside the National 
Capitol Region.

ABM Treaty defined (sec. 248)

      The House bill contained a provision (sec. 237) that 
would define the Anti-Ballistic Missile Treaty.
      The Senate amendment contained a similar provision.
      The Senate recedes.

                       Subtitle D--Other Matters

                     legislative provisions adopted

Maintenance and repair at Air Force installations (sec. 261)

      The House bill contained a provision (sec. 241) that 
would require that the Secretary of the Air Force establish 
consistent procedures and criteria to allocate real property 
maintenance and repair funds at all bases and facilities. The 
absence of consistency leaves the Air Force test and evaluation 
bases and facilities at a significant disadvantage in the 
allocation of resources.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report relating to Small Business Innovation Research program (sec. 
        262)

      The House bill contained a provision (sec. 242) that 
would require the Secretary of Defense to ensure that the Small 
Business Innovation Research (SBIR) program be managed and 
executed by the individual program managers of programs for 
which $20.0 million or more has been authorized for a fiscal 
year. The provision would also require a report on the Small 
Business Innovation Research program, as to whether there has 
been a demonstrable reduction in the quality of research.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the requirement that program managers individually manage and 
execute the SBIR program and would expand the reporting 
requirements to include the degree to which competitive 
procedures are being used and the degree to which the 
technologies developed are being used in military programs.

Amendment to University Research Initiative Support program (sec. 263)

      The House bill contained an amendment (sec. 244) that 
would propose changes in the data base for calculation of 
university eligibility for the University Research Initiative 
Support program.
      The Senate contained an identical provision (sec. 243).
      The Senate amendment includes this provision.

Amendments to Defense Experimental Program to Stimulate Competitive 
        Research (sec. 264)

      The House bill contained a provision (sec. 245) that 
would allow the Department more flexibility to customize the 
Defense Experimental Program to Stimulate Competitive Research 
(DEPSCoR) program for defense needs and help to improve the 
administration of the program.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Elimination of report on the use of competitive procedures for the 
        award of certain contracts to colleges and universities (sec. 
        265)

      The House bill contained a provision (sec. 246) that 
would eliminate the annual reporting requirement on the use of 
competitive procedures for award of research and development 
contracts, and the award of construction contracts to colleges 
and universities, primarily because this report duplicates 
information already required in other reports.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Pilot program for transfer of defense technology information to private 
        industry (sec. 266)

      The Senate amendment contained a provision (sec. 813) 
that would authorize the use of $3.0 million of the funds 
available in the University Research Initiative program (PE 
61103D) for the establishment of a pilot program at a 
university to demonstrate online transfers of information on 
defense technologies to businesses in the private sector and 
through an interactive data network involving Small Business 
Development Centers.
      The House bill contained no similar provision.
      The House recedes.
      The conferees direct that all applicable competitive 
procedures be used in the award of any contract, grant or other 
agreement under this pilot program and that cost sharing 
requirements for non-Federal participants be utilized where 
appropriate.

Research under transactions other than contracts and grants (sec. 267)

      The Senate amendment contained a provision (sec. 810) 
that would modify section 2371 of title 10, United States Code, 
to clarify when the authority under the section may be used. 
The provision would also modify the annual reporting 
requirement in section 2371 and specify certain information 
that would not be required to be disclosed under section 552 of 
title 5, United States Code.
      The House bill contained a similar provision (sec. 203).
      The House recedes.
      The conferees direct the services to follow the example 
of the Defense Advanced Research Projects Agency in the 
aggressive use of this authority under section 2371.

Desalting technologies (sec. 268)

      The Senate amendment contained a sense of the Senate 
provision (sec. 244) that recognized the importance of 
desalting technologies and encouraged the Secretary of Defense 
to place greater emphasis on making funds available for 
research and development into efficient and economical 
processes and methods for converting saline water to fresh 
water.
      The House bill contained no similar provision.
      The House recedes.

Evaluation of digital video network equipment used in Olympic games 
        (sec. 269)

      The House bill contained a provision (sec. 1050) that 
would require the Secretary of Defense to evaluate the digital 
video network equipment used in the 1996 Olympic games to 
determine whether such equipment would be the most appropriate 
equipment for use as a test bed for the military application of 
off-the-shelf technology.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment to defer the report 
date from December 31, 1996 to April 1, 1997 to allow the 
Department time to evaluate other comparative systems.

Annual joint warfighting science and technology plan (sec. 270)

      The Senate amendment contained a provision (sec. 1052) 
that would require the Secretary of Defense to submit to the 
congressional defense committees the annual Joint Warfighting 
Science and Technology plan so that it may be considered in the 
congressional review of the President's defense budget request. 
The provision would also require that additional information of 
interest to Congress be submitted in conjunction with the plan.
      The House bill contained no similar provision.
      The House recedes.

         Subtitle E--National Oceanographic Partnership Program

                     LEGISLATIVE PROVISIONS ADOPTED

National Oceanographic Partnership Program (sec. 282)

      The House bill contained a provision (sec. 247) that 
would establish a National Oceanographic Partnership Program 
for the purpose of leveraging all U.S. oceanographic efforts to 
the benefit of the military. The Partnership Program would 
establish a National Oceanographic Leadership Council to 
coordinate national oceanography programs, partnerships and 
facilities, and coordinate policy efforts of all Federal 
activities involved in oceanographic surveys and research. The 
council would also provide a comprehensive plan to ensure 
development of oceanography science and technology modeling and 
simulation programs throughout government, universities and 
that industry will be available to support military 
requirements in the future. The House provision would also 
create a national ocean data and remote sensing center to 
centralize all unclassified, classified and sensitive 
compartmented information databases, models and product 
synthesis capabilities to support national oceanographic 
requirements and a national natural littoral laboratory. The 
House would authorize increases of $15.0 million in PE 61153N 
and $15.0 million in PE 62435N for the National Oceanographic 
Partnership Program.
      The Senate amendment contained a similar provision (sec. 
252) that would provide for the establishment of a National 
Ocean Research Leadership Council, chaired by the Secretary of 
the Navy or his designee and composed of representatives of 
Federal agencies, industry and academia, to coordinate national 
oceanography programs, partnerships and facilities. The Senate 
amendment would provide an increase of $13.0 million in the 
Navy's Oceanographic and Atmospheric Technology program (PE 
62435N) for support of the National Oceanographic Partnership 
Act. The Senate amendment also contained a provision that would 
establish national coastal data centers on both the east and 
west coasts at existing institutions of higher learning with 
well established institutes or graduate schools of 
oceanography.
      The Senate recedes with an amendment that would authorize 
an increase of $13.0 million in PE 62435N to be allocated as 
directed in the Senate report (S. Rept. 104-267). The conferees 
also agree to authorize $7.5 million for oceanographic ship 
operations out of funds available in operations and 
maintenance, project 80. The provision would also direct the 
National Oceanographic Leadership Council to review the 
requirement for the establishment of centers for the national 
centralization of oceanographic research data, including 
coastal data centers, and to establish such centers as it deems 
necessary.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Joint United States-Israeli Nautilus Laser/Theater High Energy Laser 
        program

      The House bill contained a sense of Congress provision 
(sec. 221) that would strongly support the Joint U.S.-Israeli 
Nautilus Laser/Theater High Energy Laser program and encourage 
the Secretary of Defense to request authorization to develop 
these programs as agreed to April 28, 1996, in the statement of 
intent signed by the Secretary of Defense and the Prime 
Minister of the State of Israel.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree to authorize an additional $50.0 
million for a new program element to support the Nautilus/
Theater High Energy Laser program and the associated design 
verification testing. The conferees understand that the 
government of Israel is prepared to devote significant 
resources to this effort and the committee urges the 
administration to seek a rapid conclusion of a memorandum of 
agreement (MOA) on the THEL program with Israel. The conferees 
fully expect that additional funding to implement such an MOA 
will be included in future Army budget requests.

Policy on compliance with the ABM Treaty

      The House bill contained a provision (sec. 233) that 
would codify the ``demonstrated capabilities'' standard for 
assessing compliance of systems with the Anti-Ballistic Missile 
(ABM) Treaty, state certain prohibitions, and define an ABM-
qualifying flight test as a test against a ballistic missile 
with a range in excess of 3,500 kilometers and a velocity in 
excess of five kilometers per second.
      The Senate amendment contained a provision (sec. 239) 
that would extend by one year section 235 of the National 
Defense Authorization Act of Fiscal Year 1996 (Public Law 104-
106).
      The House and the Senate recede from their respective 
provisions.
      The conferees note that the President's National Security 
Advisor has stated that the Theater Missile Defense (TMD) 
Demarcation agreement, to which the United States has 
tentatively agreed, would modify the rights and obligations of 
the parties and, hence, constitute a substantive change to the 
ABM Treaty. The conferees acknowledge and reaffirm the 
constitutional principle that any substantive treaty change may 
be entered into only pursuant to the President's treaty making 
power under the Constitution. The conferees note that this 
constitutional principle is specifically codified with regard 
to the ABM Treaty in section 232 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337).
      The conferees would take strong exception to any 
interpretation by the administration that section 235 of the 
National Defense Authorization Act for Fiscal Year 1996 ``pre-
authorizes'' implementation of the TMD Demarcation agreement. 
For example, because the agreement-in-principle does not apply 
the ``demonstrated capabilities standard'' to all TMD systems, 
it would not satisfy the standard specified in section 
235(b)(1). More importantly, section 235 does not supersede the 
constitutional requirement to submit a substantive change to 
the ABM Treaty to the Senate for advice and consent.
      In light of the fact that the President's National 
Security Advisor has confirmed that the draft TMD Demarcation 
agreement would constitute a substantive change to the ABM 
Treaty, the conferees agree that legislation requiring 
submission of the agreement for Senate advice and consent is 
not needed.

Requirement that multilateralization of the ABM Treaty be done only 
        through treaty-making power

      The House bill contained a provision (sec. 234) that 
would state that any addition of a new signatory party to the 
Anti-Ballistic Missile (ABM) Treaty (in addition to the United 
States and the Russian Federation) constitutes an amendment to 
the treaty that can only be agreed to by the United States 
through the treaty making power of the United States. This 
provision would prohibit the obligation or expenditure of funds 
during any fiscal year for the purpose of implementing or 
making binding upon the United States the participation of any 
additional nation as a party to the ABM Treaty, unless that 
nation is made a party to the treaty by an amendment to the 
Treaty that is made in the same manner as the manner by which a 
treaty is made.
      The Senate amendment contained a provision (sec. 231) 
that would express the sense of the Senate that during fiscal 
year 1997 the United States shall not be bound by any 
international agreement entered into by the President that 
would substantively modify the ABM Treaty, including any 
agreement that would add one or more countries as signatories 
to the Treaty or would otherwise convert the treaty from a 
bilateral Treaty to a multilateral treaty, unless the agreement 
is entered pursuant to the treaty making power of the President 
under the Constitution.
      The House and the Senate recede from their respective 
provisions.
      The conferees acknowledge and reaffirm the constitutional 
principle that any substantive change to a treaty may be 
entered into only pursuant to the President's treaty making 
power under the Constitution. The conferees note that, with 
regard to the ABM Treaty, this constitutional principle is 
specifically codified in section 232 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337). In 
this regard, the accord on ABM Treaty succession, tentatively 
agreed to by the administration, would constitute a substantive 
change to the ABM Treaty, which may only be entered into 
pursuant to the treaty making power of the President under the 
Constitution. An explanation for this conclusion is presented 
below.
      First, the fundamental circumstances that provided the 
rationale for the ABM Treaty have changed. The ABM Treaty, more 
than any other arms control agreement, was a product of the 
bipolar Cold War confrontation between the United States and 
the Soviet Union. With the dissolution of the Soviet Union, the 
United States faces strategic and political circumstances that 
are vastly different than those that obtained in 1972.
      Second, by having the Soviet Union succeeded, for 
purposes of the ABM Treaty, by some but not all of the 
independent states of the former Soviet Union, each possessing 
sovereign rights under the Treaty, a succession agreement would 
change, limit, and extend certain rights and obligations 
previously possessed by the parties. This is virtually a text 
book definition of a treaty amendment. The rights of the United 
States would clearly be changed given the fact that the 
Standing Consultative Commission (SCC), the ABM Treaty's 
implementing body, would, for the first time, be comprised of 
several parties, all of whom would need to consent to changes, 
clarifications or amendments to the Treaty.
      As the administration stated in a May 3, 1996, letter: 
``Each party will participate in implementing the Treaty as a 
sovereign entity. This includes a full and equal voice in the 
SCC.'' When asked if the consent of all parties would be needed 
before the Treaty could be amended, clarified, or interpreted, 
the administration answered: ``Yes. The U.S. has insisted on a 
decision-making mechanism in the SCC under which legally 
binding obligations would be adopted by consensus.'' In effect, 
the SCC would be transformed into a corporate body in which up 
to a dozen affirmative votes would be required before the 
Treaty could be amended. In addition, some of the new treaty 
partners would only have partial rights. Of the former Soviet 
states, for example, only Russia would be entitled to deploy an 
operational ABM system.
      Third, the functional mechanics of the ABM Treaty will be 
changed through multilateralization. The ABM Treaty is based, 
in part, on a geographical description of the United States and 
the Soviet Union. For example, the Treaty states specifically 
that certain large phased array radars may only be located 
along the periphery of the national territory of the parties. 
In the case of the former Soviet Union, however, some radars 
are now located outside of Russia. The Skrunda radar in Latvia, 
for example, is on the territory of an independent country that 
has rejected membership in the ABM Treaty. Clearly, any 
agreement that addresses the successorship issue will also have 
to redefine these geographic aspects of the Treaty, which will 
constitute substantive amendments to the Treaty. In this 
regard, the Senate will be as interested to see which states do 
not accede to the ABM Treaty as it will be to see which 
countries do accede.
      Fourth, all succession agreements related to existing 
strategic arms control agreements have been addressed by the 
Senate through the constitutional advice and consent mechanism, 
with the exception of the Intermediate-Range Nuclear Forces 
Treaty, which was clearly identified as an exception to the 
rule at the time of succession.
      In the case of the Conventional Armed Forces in Europe 
(CFE) Treaty, the Senate specifically recognized the impending 
breakup of the Soviet Union and adopted provisions that were 
intended to take this into account during the ratification 
debate. The Senate was so concerned about this issue with 
regard to the CFE Treaty that it attached a condition to the 
resolution of ratification that specified procedures for adding 
new states parties and for evaluating the implications of the 
withdrawal of key newly independent states from the Treaty.
      In the case of the Strategic Arms Reductions Talks (START 
I) Treaty, the succession agreement, known as the Lisbon 
Protocol, was approved by a two-thirds vote of the Senate as 
part of the overall ratification process. As in the case of 
CFE, START I was surrounded by major succession issues that the 
Senate had to address in a formal manner. It is the view of the 
conferees that neither CFE nor START I would have been approved 
by the Senate but for the fact that the succession issues were 
thoroughly addressed as part of the ratification debate.
      Given the compelling case that the ABM Treaty succession 
agreement is a substantive change to the treaty, the conferees 
affirm that such agreement must be submitted to the Senate for 
advice and consent.

Funding increase for field emission flat panel technology

      The House bill included a provision (sec. 248) that would 
authorize an additional $10.0 million for the combat vehicle 
improvement program to fund field emission flat panel 
technology for the M1 tank upgrade.
      The Senate amendment would also provide $10.0 million for 
this project.
      The House recedes from its legislative provision.
      The conferees agree to recommend an additional $10.0 
million in PE 23735A for flat panel display technology.

Natural resource assessment and training delivery system

      The House bill contained a provision (sec. 249) that 
would authorize funding to support a proposed natural resource 
assessment and training delivery system. The purpose of the 
program was to enhance the ability of the Department of Defense 
to mitigate the environmental impact of its operational 
training of forces and testing of weapons on military 
installations more effectively and at lower costs.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees agree that there are advanced technology 
methods such as remote sensing, satellite and aircraft mounted 
sensors, integrated digital data sets, and advanced computing 
resources that could offer the Department efficiencies in time, 
cost and area coverage over personnel intensive ground 
sampling, data processing and analysis when it monitors 
environmental conditions at military installations.
      The conferees urge the Department to investigate 
industrial and academic capabilities to implement advance 
technologies for environmental monitoring and training.

Funds for research, development, test, and evaluation relating to 
        humanitarian demining technologies

      The budget request included $7.7 million for humanitarian 
demining activities.
      The Senate amendment contained a provision (sec. 204) 
that would make $18.0 million available for humanitarian 
demining activities in PE 63120D, to be administered by the 
Assistant Secretary of Defense for Special Operations and Low 
Intensity Conflict.
      The House bill contained no similar provision, but would 
recommend the budget request for humanitarian demining 
activities.
      The Senate recedes.
      The conferees agree to authorize $18.0 million in PE 
63120D for research, development, test, and evaluation of near-
term and long-term technologies and capabilities relating to 
humanitarian demining technologies. The humanitarian demining 
program will continue to be administered by the Assistant 
Secretary of Defense for Special Operations and Low Intensity 
Conflict. The relationship of this program to the Defense 
countermine program is discussed elsewhere in the report.

Department of Defense Space Architect

      The Senate amendment contained a provision (sec. 212) 
that would require the Secretary of Defense to include the 
kinetic energy tactical anti-satellite (ASAT) program in the 
space control architecture to be developed by the Department's 
new Space Architect. The provision would prohibit the use of 
fiscal year 1997 defense funds to support the Space Architect 
until the Secretary certifies that he will include the ASAT 
program in the space control architecture, that he has 
obligated fiscal year 1996 funds for the kinetic energy ASAT, 
and that he has made available for obligation fiscal year 1997 
funds appropriated for the kinetic energy ASAT, consistent with 
congressional guidance.
      The House contained no similar provision.
      The Senate recedes.

Research for advanced submarine technology

      The Senate amendment contained a provision (sec. 214) 
that would repeal section 132 of the National Defense 
Authorization Act for Fiscal Year 1996.
      The House bill contained no similar provision.
      The Senate recedes.

Tier III minus Unmanned Aerial Vehicle

      The Senate amendment contained a provision (sec. 216) 
that would prohibit the procurement of more than three air 
vehicles for the Tier III minus UAV program until flight 
testing is completed.
      The House bill contained no similar provision.
      The Senate recedes.

Defense airborne reconnaissance program

      The Senate amendment contained a provision (sec. 217) 
that would require the Secretary of Defense to submit a report 
comparing the Predator unmanned aerial vehicle (UAV) with the 
Dark Star (Tier III minus) UAV.
      The House bill did not contain a similar provision.
      The Senate recedes.

Advanced submarine technologies

      The Senate amendment contained a provision (sec. 223) 
that would authorize $489.4 million for the submarine 
previously designated by the Navy as the New Attack Submarine 
and an additional $100.0 million to address the inclusion on 
future nuclear attack submarines of core, category I, and 
category II technologies, as such technologies are identified 
by the Secretary of Defense in Appendix C of the ``Report on 
Nuclear Attack Submarine Procurement and Submarine 
Technology'', submitted to Congress on March 26, 1996.
      The House bill contained no similar provision.
      The Senate recedes.

Funding for basic research in nuclear seismic monitoring

      The Senate amendment contained a provision (sec. 224) 
that would make available $6.5 million for basic research in 
nuclear seismic monitoring from funds requested for the Air 
Force for arms control implementation.
      The House bill contained no similar provision.
      The Senate recedes.
      The budget request included $26.7 million for arms 
control implementation in PE 35145F for research and 
development activities to prepare the United States for 
implementation of, and compliance with, nuclear testing 
treaties. Those activities include the development of a 
national and international data center, treaty implementation 
and technical support, and nuclear monitoring techniques. The 
conferees agree that, of those funds, $6.5 million shall be 
available for basic research in nuclear seismic monitoring.

Computer-assisted education and training

      The Senate amendment included a provision (sec. 226) that 
would require that $10.0 million in the Defense Research 
Sciences program (PE 61101E) be used for the continuation of 
computer-assisted education and training programs in the 
Department of Defense.
      The House bill contained no similar provision.
      The Senate recedes.

Seamless high off-chip connectivity

      The Senate amendment included a provision (sec. 227) that 
would require that $7.0 million in funds available for 
research, development, test and evaluation in the Department of 
Defense be used to continue research and development of 
seamless high off-chip connectivity (SHOCC) programs.
      The House bill contained no similar provision.
      The Senate recedes.

National Polar-Orbiting Operational Environmental Satellite System

      The Senate amendment contained a provision (sec. 229) 
that would authorize $29.0 million for the National Polar-
Orbiting Operational Environmental Satellite System (NPOESS), a 
reduction of $5.0 million from the Department of Defense 
portion of the NPOESS budget request.
      The House bill contained no similar provision but 
recommended a reduction of $15.0 million.
      The Senate recedes.
      The conferees agree to authorize $29.0 million for 
NPOESS.

Funding for upper tier theater missile defense systems

      The Senate amendment contained a provision (sec. 232) 
that would authorize funds for the Theater High Altitude Area 
Defense (THAAD) system and the Navy Upper Tier theater missile 
defense (TMD) system. The provision would also prohibit the use 
of funds during fiscal year 1997 by the Undersecretary of 
Defense for Acquisition and Technology for official 
representation activities until the Secretary of Defense 
certifies to Congress that: (1) fiscal year 1997 funds for 
THAAD and Navy Upper Tier have been made available for 
obligation; and (2) the Navy Upper Tier system has been 
included in the core TMD program.
      The House bill contained no similar provision.
      The Senate recedes.

Scorpius space launch technology program

      The Senate amendment contained a provision (sec. 235) 
that would provide for the use of up to $7.5 million of funds 
authorized for the Ballistic Missile Defense Organization for 
the Scorpius space launch technology program.
      The House bill contained no similar provision.
      The Senate recedes.

Corps SAM/MEADS program

      The Senate amendment contained a provision (sec. 236) 
that would authorize $56.2 million for the Corps surface-to-
air/Medium Extended Air Defense System, and would require the 
Secretary of Defense to submit certain items prior to 
obligating more than $15.0 million in fiscal year 1997.
      The House bill contained no similar provision.
      The Senate recedes. Funding for Corps SAM/MEADS is 
discussed elsewhere in this report.

Annual report on threat of attack by ballistic missiles carrying 
        nuclear, chemical, or biological warheads

      The Senate amendment contained a provision (sec. 237) 
that would require an annual report on the threat of attack by 
ballistic missiles carrying weapons of mass destruction.
      The House bill contained no similar provision.
      The Senate recedes.

                  TITLE III--OPERATION AND MAINTENANCE

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $88,859.7 million for Operation and 
Maintenance in the Department of Defense and $1,910.9 for 
Working Capital Fund Accounts in fiscal year 1997. The House 
bill would authorize $90,728.8 million for Operation and 
Maintenance and $2,070.9 for Working Capital Fund Accounts. The 
Senate amendment would authorize $89,113.8 million for 
Operation and Maintenance and $2,215.9 for Working Capital Fund 
Accounts. The conferees recommended an authorization of 
$89,871.0 million for Operation and Maintenance and $2,065.9 
for Working Capital Fund Accounts for fiscal year 1997. Unless 
noted explicitly in the statement of managers, all changes are 
made without prejudice.


Military Personnel Operation and Maintenance Funding

                Increased Funding For Off-Duty Education

      The conferees agreed to increases of $4.5 million in off-
duty education funds for the U.S. Marine Corps and $9.5 million 
in tuition assistance for the U.S. Air Force.

                    Increased Funding For Recruiting

      The conferees agreed to increase funding for recruiting 
and advertising above the amount requested in the President's 
budget by $4.7 million for the U.S. Marine Corps and by $5.0 
million for the U.S. Army Reserve.

                       New Parent Support Program

      The conferees agreed to fund the New Parent Support 
Program at $20 million, and direct that it be allocated as 
follows: Army, $7.8 million; Navy, $5.5 million; Marine Corps, 
$2.9 million; Air Force, $3.8 million.

Active and reserve component P-3 squadrons

      The budget request included funding to sustain a maritime 
patrol aircraft (MPA) force structure of 12 active and 8 
reserve P-3 squadrons (12/8), a reduction of one active and one 
reserve squadron from the fiscal year 1996 force structure.
      The Senate amendment would authorize an increase of $45.3 
million to sustain the MPA force structure at 13 active and 9 
reserve squadrons (13/9) in fiscal year 1997. The Senate report 
(S. Rept. 104-267) noted that the operational demands placed on 
MPA by the unified commanders have been very heavy in recent 
years because the P-3 has a multi-mission capability that is 
well-suited to littoral warfare operations. Despite an intense 
operating tempo, budget pressures have forced the Navy to cut 
P-3 force structure in its current budget request.
      The House bill would authorize the requested amount.
      The conferees agree to an increase of $23.6 million above 
the budget request to avoid the reductions in P-3 force 
structure that would be dictated by the budget request. Of this 
total, $10.6 million would be for squadron operations and $13.0 
million would be for personnel.

Defense Health Program

      The conferees agreed to increase the Defense Health 
Program account within the Operation and Maintenance account by 
$475.0 million to resolve a shortfall in the budget request.

National defense features

      The budget request contained no funding in the National 
Defense Sealift Fund (NDSF) for a national defense features 
(NDF) program.
      The Senate amendment would authorize $50.0 million for 
the NDF program, using funds made available from repeal of 
section 132 of the National Defense Authorization Act for 
Fiscal Year 1996.
      The House bill would authorize the requested amount for 
NDF.
      The Senate recedes.
      The conferees direct the Secretary of Defense to 
establish a separate line item in the NDSF budget request for 
the NDF program. The conferees view the NDF program as a matter 
of special interest and direct that the Secretary not transfer 
any funds out of the NDF line item without approval of the 
congressional defense committees.

Maritime training ship

      The budget request for the National Defense Sealift Fund 
(NDSF) contained no funding for the repair and refurbishment of 
the United States Naval Ship (U.S.N.S.) Tanner prior to its 
redesignation as a maritime training ship.
      The Senate amendment would authorize an increase of $5.0 
million in the NDSF to complete necessary repair and 
refurbishment of U.S.N.S. Tanner prior to its redesignation as 
a maritime training ship.
      The House bill would authorize the requested amount.
      The House recedes.

                       Items of special interest

Air Force automated maintenance data systems

      The conferees are aware that the Air Force is moving 
toward a new standard maintenance data-system--the Integrated 
Maintenance Data System (IMDS). The conferees also understand 
that one of the first information systems to be integrated into 
IMDS, scheduled during the second quarter of fiscal year 1997, 
will be TICARRS. While the House bill provided $10.0 million 
for TICARRS, the Air Force indicates that only $5.5 million is 
required to operate TICARRS through the second quarter of 
fiscal year 1997. Therefore, the conferees agree to provide 
$5.5 million for this purpose. Should schedule or technical 
uncertainties delay the implementation of IMDS, the conferees 
expect the Air Force to provide sufficient funding to operate 
the legacy data maintenance systems, CAMS/REMIS and TICARRS, 
through fiscal year 1997.

Center for Military History

      The conferees are aware that the Army is reducing the 
number of civilian personnel in its employ. The Congress has 
been informed that any reduction of civilians at the Center for 
Military History (CMH) would be commensurate with other 
reductions within the Department of the Army. The conferees are 
encouraged by this plan and direct the Secretary to ensure that 
any reduction at CMH be proportional to reductions made at 
other Army activities.

Consolidation of integration of the military exchange systems

      The conferees are aware that the Department of Defense 
has established a task force to examine how to achieve an 
integrated military exchange system. The conferees recognize 
the imperative to generate efficiencies and improve the 
delivery of the exchange benefit. While a consolidated or 
integrated exchange system may be an option for achieving these 
goals, the conferees direct that no action be taken to 
consolidate or integrate the military exchange systems without 
approval of the Committee on Armed Services of the Senate and 
the Committee on National Security of the House of 
Representatives.

Second destination transportation

      The congressional defense committees have authorized 
expenditures of appropriated funds for second destination 
transportation charges for the military exchanges since the end 
of World War II. These funds are utilized to assist the 
military exchanges in shipping items manufactured in the United 
States to service members and their families stationed in 
overseas locations, thereby assuring retail prices for those 
stationed overseas as close as possible to stateside prices.
      The conferees remind the Department that second 
destination transportation expenditures are not discretionary. 
The conferees direct the Department of Defense and the 
Department of the Army, acting as executive agent of second 
destination transportation, to fully fund the actual 
expenditures necessary to fully fund second destination 
transportation charges.
      The conferees note that the Department of Defense has not 
implemented section 334 of the National Defense Authorization 
Act for Fiscal Year 1996 which directed the Secretary to 
authorize the exchange systems and the Defense Commissary 
Agency to negotiate directly with private carriers to achieve 
the most cost effective rates for the transportation of goods 
overseas. The current policies, procedures and methods of 
planning and budgeting for second destination transportation 
costs are ineffective and lead to under funding within the 
account. The conferees direct the Secretary of Defense to 
immediately implement the provisions of section 334 of the 
National Defense Authorization Act for Fiscal Year 1996.

Defense Commissary Agency designation as a performance based 
        organization

      The committee report to accompany S. 1745 (S. Rept. 104-
267) and the committee report to accompany H. 3230 (H. Rept. 
104-563) included comments concerning the nomination by the 
Department of Defense to convert the Defense Commissary Agency 
(DeCA) to a Performance Based Organization. These reports note 
that the committees strongly support the commissary benefit and 
supports actions necessary to ensure the benefit is maintained.
      The conferees concur in maintaining the commissary 
benefit for our service members and their families. The 
conferees are aware that the Department is studying whether the 
leadership of DeCA should be uniformed or civilian in a 
Performance Based Organization. The conferees believe that the 
military services should maintain the same level of key 
leadership within DeCA as that in effect on January 1, 1996. It 
is imperative that the commissionary benefit not be degraded 
and any transition plan must include safeguards to ensure that 
trade-offs and management initiatives of a performance-based 
organization serve the beneficiary population not the 
organization or industry.

                         legislative provisions

              Subtitle A--Authorization of Appropriations

                     legislative provisions adopted

Armed Forces Retirement Home (sec. 303)

      The House bill contained a provision (sec. 303) that 
would authorize $57.3 million from the Armed Forces Retirement 
Home Trust Fund for the operation of the Armed Forces 
Retirement Home.
      The Senate amendment contained a similar provision (sec. 
586) that would authorize $57.345 million from the Armed Forces 
Retirement Home Trust Fund for the operation of the Armed 
Forces Retirement Home.
      The Senate recedes.

Transfer from National Defense Stockpile Transaction Fund (sec. 304)

      The House bill contained a provision (sec. 304) that 
would authorize the Secretary of Defense to transfer $250 
million from the National Defense Stockpile Transaction Fund to 
the operation and maintenance accounts of the military 
services.
      The Senate bill contained a similar provision (sec. 304) 
that would authorize the transfer of $150 million.
      The House recedes.

Civil Air Patrol Corporation (sec. 305)

      The Senate amendment contained a provision (sec. 305) 
that would permit the Department of Defense to provide the 
Civil Air Patrol Corporation with $14.5 million. The provision 
required that 25 percent of these funds be used for the Civil 
Air Patrol's principal mission of search and rescue.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that $14.5 million in operation and maintenance funds be made 
available to the Civil Air Patrol Corporation and that 25 
percent of these funds be used to support search and rescue and 
disaster relief operations.

Availability of additional funds for Antiterrorism activities (sec. 
        306)

      The conferees agree to a provision authorizing an 
additional $14.0 million for use by the Secretary of Defense to 
fund emergency anti-terrorist activities of the Department of 
Defense. These funds are in addition to funds otherwise 
authorize to be appropriated in this Act for anti-terrorism, 
and are to be available for the Secretary of Defense to respond 
quickly to emergency anti-terrorism requirements that are 
identified by commanders of the unified combatant commands or 
commanders of joint task forces in response to a change in 
terrorist threat level.
      The conferees urge the Secretary of Defense to propose an 
emergency anti-terrorism program as part of the fiscal year 
1998 budget submission.

SR-71 (sec. 308)

      The House bill contained a provision (sec. 1040) that 
would prohibit the Secretary of Defense from carrying out any 
aerial reconnaissance program using the SR-71 aircraft.
      The Senate amendment contained a provision (sec. 306) 
that would provide $30.0 million in operations and maintenance 
funding for the SR-71 contingency reconnaissance force.
      The House recedes.

                   Subtitle B--Depot-Level Activities

                     legislative provisions adopted

Extension of authority for aviation depots and naval shipyards to 
        engage in defense-related production and services (sec. 311)

      The House bill contained a provision (sec. 311) that 
would extend the authority for aviation depots and shipyards of 
the Department of Defense to engage in defense related 
production and services.
      The Senate amendment contained a similar provision (sec. 
328).
      The Senate recedes.

Test programs for modernization through spares (sec. 312)

      The Senate amendment contained a provision (sec. 812) 
that would require the Secretary of the Army to report to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives the steps 
that have been taken to ensure that the Army's modernization-
through-spares program is conducted in accordance with 
applicable federal laws.
      The House bill contained no similar provision.
      The House recedes.

                  Subtitle C--Environmental Provisions

                     legislative provisions adopted

Defense contractors covered by requirement for reports on contractor 
        reimbursement costs for response actions (sec. 321)

      The House bill contained a provision (sec. 321) that 
would repeal subsection (c) of section 2706 of title 10, United 
States Code, which requires the Department of Defense to submit 
an annual report to Congress that describes the reimbursement 
of environmental response action costs and the amount and 
status of pending requests for reimbursement for the top 100 
defense contractors.
      The Senate amendment contained a provision (sec. 342) 
that would establish a reporting requirement that would limit 
data collection to the top 20 defense contractors.
      The House recedes.

Establishment of separate environmental restoration accounts for each 
        military department (sec. 322)

      The Senate amendment contained a provision (sec. 341) 
that would devolve the Defense Environmental Restoration 
Account (DERA), from a single transfer account administered by 
the Department of Defense, to four separate accounts 
administered by the individual military departments.
      The House bill contained no similar provision.
      The House recedes.

Payments of stipulated penalties assessed under the Comprehensive 
        Environmental Response, Compensation, and Liability Act (sec. 
        323)

      The House bill contained a provision (sec. 322) that 
would authorize the payment from the Defense Environmental 
Restoration Account (DERA) of stipulated civil penalties 
assessed under the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (CERCLA) (Public Law 
96-510) at five military installations--Fort Riley, Kansas 
($34,000), the Massachusetts Military Reservation ($55,000), 
F.E. Warren Air Force Base, Wyoming ($10,000), the Naval 
Education and Training Center, Newport, Rhode Island ($30,000), 
and the Lake City Army Ammunition Plant, Missouri ($37,500). 
The provision would also allow the Department of Defense (DOD) 
to complete a supplemental environmental project (SEP) 
($500,000) in lieu of stipulated penalties at the Massachusetts 
Military Reservation.
      The Senate amendment contained a similar provision (sec. 
344).
      The Senate recedes with a technical amendment.

Shipboard solid waste control (sec. 324)

      The House bill contained a provision (sec. 324) that 
would adopt the administration's legislative proposal to amend 
section 1902(c) of the Act to Prevent Pollution from Ships 
(APPS) (33 U.S.C. 1901, et seq.) to allow for the use of 
pulpers and shredders for the disposal of non-plastic and non-
floating solid waste within ``special areas'' (the Baltic Sea, 
the North Sea, the Mediterranean Sea, the Red Sea, the Persian 
Gulf, and the Antarctic Ocean), consistent with Annex V of the 
International Convention for the Prevention of Pollution on 
Ships (MARPOL).
      The Senate amendment contained a similar provision (sec. 
348).
      The House recedes.

Authority to develop and implement land use plans for Defense 
        Environmental Restoration Program (sec. 325)

      The House bill contained a provision (sec. 325) that 
would permit the Secretary of Defense to conduct a limited 
pilot program to develop and implement, as a part of the 
Defense Environmental Restoration Program, a land use plan for 
up to ten defense sites where the Secretary is planning or 
implementing environmental restoration activities. In 
developing these plans, the Secretary would be required to 
consult with technical review committees, restoration advisory 
boards, local land use redevelopment authorities or other 
appropriate agencies knowledgeable about the site and land use 
planning. The House provision would require the submission of a 
report to Congress by December 31, 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
an annual report consistent with section 2706(a) of title 10, 
United States Code. The conferees expect that cleanup 
activities conducted at contaminated sites will be consistent 
with the anticipated future land use.

Pilot program to test alternative technology for limiting air emissions 
        during shipyard blasting and coating operations (sec. 326)

      The House bill contained a provision (sec. 326) that 
would direct the Secretary of the Navy to establish a pilot 
program to test alternative technology designed to capture, 
destroy or remove particulate emissions and volatile air 
pollutants that occur during abrasive blasting and coating 
operations at naval shipyards. The Secretary would be required 
to test the validity of the technology, assess its cost 
effectiveness, and determine the extent to which it would 
facilitate compliance with environmental strictures. The 
Secretary would then report to Congress and provide a 
recommendation regarding large scale implementation of the 
technology at naval shipyards.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of the Navy to determine the potential benefit of 
the technology prior to initiation of the pilot program.

Agreements for services of other agencies in support of environmental 
        technology certifications (sec. 327)

      The House bill contained a provision (sec. 328) that 
would provide the Department of Defense with the authority to 
enter into cooperative agreements with agencies of a State or 
local government to obtain assistance in the demonstration, 
validation, and regulatory certification of environmental 
technology.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
authority to enter into cooperative agreements for technology 
certification. As a prerequisite to entering into such 
cooperative agreements, the amendment would require the 
Secretary of Defense to determine that the technology in 
question has the potential to benefit the Department 
significantly and that there is no private market reasonably 
available to facilitate regulatory certification. The amendment 
also would expand the annual reporting requirement under 
section 2706(a) of title 10, United States Code, to ensure 
accountability for the use of these cooperative agreements.
      The conferees agree that the purpose of this provision is 
to expand the current practice of site specific environmental 
technology certification and to facilitate broader regulatory 
acceptance. The conferees expect that the use of cooperative 
agreements will promote flexibility, cost effectiveness, and 
efficiency in achieving regulatory acceptance and application 
of new technologies that will help the Department meet 
environmental requirements.
      The continuation of this new authority will be contingent 
upon the degree to which regulatory acceptance is effectively 
expanded. The conferees will carefully review the Department's 
annual report to determine the effectiveness of the cooperative 
agreement authority.

Repeal of redundant notification and consultation requirements 
        regarding remedial investigations and feasibility studies at 
        certain installations to be closed under the base closure laws 
        (sec. 328)

      The Senate amendment contained a provision (sec. 343) 
that would repeal section 334 of the National Defense 
Authorization Act for Fiscal Years 1992 and 1993. Section 334 
triggers redundant notification and consultation requirements 
regarding remedial investigations and feasibility studies at 
certain installations to be closed under the base closure laws.
      The House bill contained no similar provision.
      The House recedes.

Authority for agreements with Indian tribes for services under the 
        environmental restoration program (sec. 329)

      The Senate amendment contained a provision (sec. 352) 
that would modify section 2701 of title 10, United States Code, 
specifically to authorize the Secretary of Defense to enter 
into agreements to obtain the reimbursable services of any 
Indian tribe that assists the Secretary in carrying out 
Department of Defense environmental restoration activities. 
Section 2701 currently authorizes the Secretary to enter into 
such agreements with any other Federal, State or local 
government agency. The provision would make it clear that an 
Indian tribe may be a party to such an agreement.
      The House bill contained no similar provision.
      The House recedes.

Authority to withhold listing of Federal facilities on the National 
        Priorities List (sec. 330)

      The Senate amendment contained a provision (sec. 345) 
that would amend section 120(d) of the Comprehensive 
Environmental Response, Compensation and Liability Act (CERCLA) 
of 1980 (42 U.S.C. 9620(d)) by providing the Environmental 
Protection Agency with the discretion to withhold National 
Priorities List designation of a Federal facility cleanup 
action if the site is already subject to an approved Federal or 
State cleanup plan.
      The House bill contained no similar provision.
      The House recedes.

Clarification of meaning of uncontaminated property for purposes of 
        transfer by the United States (sec. 331)

      The Senate amendment contained a provision (sec. 347) 
that would amend section 120(h)(4)(A) of the Comprehensive 
Environmental Response, Compensation and Liability Act (CERCLA) 
of 1980 (42 U.S.C. 9620(h)) to expand the scope of clean parcel 
determinations.
      The House bill contained no similar provision.
      The House recedes.
      The conferees have concluded that the Senate amendment 
would facilitate the expeditious transfer of clean parcels on 
closing installations, facilitating economic reuse. The 
provision is consistent with the administration's legislative 
proposal.

Conservation and cultural activities (sec. 332)

      The House bill contained a provision (sec. 323) that 
would authorize the Secretary of Defense to establish and 
execute a ``Conservation and Readiness Program.'' The provision 
would allow for the use of cooperative agreements and grants to 
facilitate the participation of public and private agencies, 
organizations, institutions, individuals, or other entities. 
The purpose of the program would be to conduct and manage 
coordinated conservation and cultural activities that have 
regional or Department of Defense-side significance.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit 
the Secretary of Defense to establish and carry out a program 
to address cultural and natural resource issues that have 
regional or Department of Defense-wide significance and that 
involve more than one military department. The amendment would 
eliminate the Secretary's authority to award grants and would 
establish criteria for determining which conservation and 
cultural activities would be eligible for the program.
      The conferees recognize that there are many conservation 
and cultural activities that are necessary to support joint 
military requirements. For example, assessing bird migratory 
patterns so that operational flights may avoid high bird volume 
transit areas at certain times of the year enhances the safety 
of flight operations for all the services, and it would not 
make sense for each service to perform its own separate study 
of such migratory patterns. The military departments have an 
ongoing obligation to ensure that there is adequate funding to 
respond to the conservation and cultural issues that arise at 
military installations. Accordingly, the Department of Defense 
has developed a definitive annual planning, programming, and 
budgeting strategy for the preservation of cultural and natural 
resources. The instant program recognizes that development.
      The conferees believe that it is also necessary to have a 
Defense-wide program for cultural and natural resource 
management. However, there should be specific criteria for 
determining program eligibility in order to avoid some of the 
abuses that have existed under the Legacy Program. Such a 
program will allow the Department of Defense to conduct 
regionally significant, multi-component, operationally or 
legally compelled natural and cultural activities in a 
coordinated, uniform, and efficient manner. Any funds 
appropriated for the Legacy Program shall be subject to the 
criteria set forth in this provision.

Navy program to monitor ecological effects of organotin (sec. 333)

      The House bill contained a provision (sec. 327) that 
would require the Secretary of the Navy, in consultation with 
the Environmental Protection Agency (EPA), to develop and 
implement a program to monitor the concentrations of organotin 
in the water column, sediments, and aquatic organisms of 
representative estuaries and near-coastal waters of the United 
States, as described in Organotin Antifouling Paint Control Act 
of 1988 (OAPCA) (Public Law 100-333). The program would be 
designed to produce high quality data to enable the EPA to 
develop water quality criteria concerning organotin compounds. 
In addition, the Secretary of the Navy would be required to 
submit to Congress, no later than June 1, 1997, a report 
explaining the monitoring program and describing the results of 
the analysis performed pursuant to that program.
      The Organotin Antifouling Paint Control Act of 1988 
(OAPCA) (Public Law 100-333) was enacted by Congress to protect 
marine life by reducing the quantities of organotin, a highly 
toxic ingredient in antifouling paints used on vessels that 
navigate the waters of the United States. Despite the fact that 
the Act imposed a March 30, 1989 deadline on the Environmental 
Protection Agency (EPA) for the certification of organotin 
release rates and water quality criteria, such criteria have 
yet to be established. As a result, there are no uniform 
national water quality standards for organotin. The OAPCA also 
directed the EPA to implement a 10 year organotin monitoring 
program and to submit annual reports to Congress. Only one 
report has been submitted.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
application of the provision. The EPA would be obligated to 
agree to provide the Navy with advance funding. The requirement 
for Navy monitoring would terminate after five years. The Navy 
would also submit to Congress a report describing the results 
of its monitoring activities.
      Although the conferees agree that the Navy should not be 
required to perform the entire organotin monitoring function it 
does, however, appear evident that the EPA is incapable of 
meeting its statutory mandate. The conferees agree that this is 
a unique situation and does not set a precedent for assigning 
environmental monitoring activities to the Navy in the future. 
Finally, the conferees expect that, with the implementation of 
the Navy monitoring activities, the EPA will make progress 
toward completion of its remaining responsibilities and develop 
water quality standards for organotin.

Authority to transfer contaminated Federal property before completion 
        of required response actions (sec. 334)

      The Senate amendment contained a provision (sec. 346) 
that would amend section 120(h)(3)(B) of the Comprehensive 
Environmental Response, Compensation, and Liability Act 
(CERCLA) of 1980 (42 U.S.C. 9620) to authorize the United 
States to transfer contaminated federal property before an 
approved remedial design is in place. The Senate provision 
would require a federal agency to provide remedial action 
assurances in the deed or other agreement that is proposed to 
govern the transfer. That approach is similar to the purchase 
agreements used in the private sector, with the additional 
element of regulatory participation. The Senate provision was 
based on a legislative proposal submitted by the administration 
to facilitate reuse of contaminated property and to eliminate 
the disparate treatment between public and private sector 
transfers of contaminated property.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      Prior to the transfer of property under this provision, 
it must be determined that the property is suitable for 
transfer, that the intended use is consistent with protection 
of human health and the environment, and that the deed or other 
agreement proposed to govern the transfer contains response 
action assurances. The conferees note that the provision would 
allow transfers to accommodate the laws of different states. 
Moreover, the conferees agree that the provision does not 
change existing federal responsibility with respect to response 
action at transferred property. Although the provision amended 
section 120(a)(4) of CERCLA (42 U.S.C. 9601 et seq.), with 
respect to such property, it should not be construed to 
otherwise limit or expand the sovereign immunity waiver under 
this section.

  Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

                     legislative provisions adopted

Contracts with other agencies to provide or obtain goods and services 
        to promote efficient operation and management of exchanges and 
        morale, welfare, and recreation activities (sec. 341)

      The House bill contained a provision (sec. 341) that 
would provide authority for exchanges and morale, welfare and 
recreation systems (MWR) to enter into contracts or other 
agreements with another element of the Department of Defense or 
another Federal department, agency or instrumentality to 
provide goods and services beneficial to the efficient 
management and operation of exchange and MWR systems.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Noncompetitive procurement of brand-name commercial items for resale in 
        commissary stores (sec. 342)

      The House bill contained a provision (sec. 342) that 
would clarify that, in order to receive the exception from 
competition in contracting requirements, a commercial item has 
to be regularly sold outside the commissary store under the 
same brandname as it would be sold in the commissary store.
      The Senate amendment contained a similar provision (sec. 
363).
      The Senate recedes with a clarifying amendment.
      The conferees intend that commissary stores only acquire 
items for resale under the brand-name exemption to the 
Competition in Contracting Act that are ordinarily available to 
the general public. The military commissary system is not an 
appropriate vehicle to sell items for which the distribution is 
limited to the military market unless they have been acquired 
for resale through competitive procedures. Because the dynamics 
of the marketplace often offer significant opportunities for 
consumer savings during the introductory sales period for new 
products, it is not the conferees intent that these provisions 
limit the introduction of the new items into the commissary 
system when their release to the commissary system is 
simultaneous with their introduction in the commercial sector.

Prohibition of sales or rental of sexually explicit material (sec. 343)

      The House bill contained a provision (sec. 343) that 
would prohibit the sale or rental of sexually explicit written 
or videotaped material on property under the jurisdiction of 
the Department of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

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

                     LEGISLATIVE PROVISIONS ADOPTED

Extension of requirement for competitive procurement of printing and 
        duplication services (sec. 351)

      The House bill contained a provision (sec. 351) that 
would extend section 351 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106) which directed 
the Defense Printing Service (DPS) to competitively procure 
from private sector sources at least 70 percent of its printing 
and duplication work. The provision also requires a report on 
the DPS compliance with this requirement.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Reporting Requirements under Demonstration project for purchase of 
        fire, security, police, public works, and utility services from 
        local government agencies (sec. 352)

      The House bill contained a provision (sec. 832) that 
would extend the authority of the Department of Defense (DOD) 
to conduct a demonstration project for fire, safety, and other 
services for an additional 2 years. The provision would also 
require the DOD to submit a report on this project to the 
Congress during each of these two years.
      The Senate had a similar provision.
      The Senate recedes with a technical amendment.

                       Subtitle F--Other Matters

                     legislative provisions adopted

Authority for use of appropriated funds for recruiting functions (sec. 
        361)

      The House bill contained a provision (sec. 1034) that 
would authorize the secretaries of the military departments to 
expend appropriated funds for small meals and snacks during 
recruiting functions.
      The Senate amendment contained a similar provision (sec. 
362) that would authorize this expenditure for a five year 
period, and specify that the refreshments be provided for 
members of the Delayed Entry Program, other prospects, and 
community leaders.
      The House recedes with a clarifying amendment.

Training of members of the uniformed services at non-government 
        facilities (sec. 362)

      The Senate amendment contained a provision (sec. 1065) 
that would authorize military personnel to use the same 
procedures for acquiring commercial training courses as 
civilian personnel.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include 
this authority in title 10, United States Code.

Requirement for preparation of plan for improved operation of working-
        capital funds and effect of failure to produce an approved plan 
        (sec. 363)

      The House bill contained a provision (sec. 360) that 
would terminate the Defense Business Operations Fund (DBOF) 
effective October 1, 1998. It also would require the Secretary 
of Defense to submit to the Congress a plan to improve the 
management and performance of the industrial, commercial, and 
support activities currently managed through the DBOF not later 
than September 30, 1997.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delay the 
termination of DBOF until October 1, 1999. The conferees 
believe strong action is in order to focus the attention of the 
Department of Defense (DOD) upon serious financial and 
management shortfalls in DBOF. While the conferees fully 
support the concept of providing full visibility of the total 
costs of industrial and support activities, the conferees 
believe that an update to the DBOF management plan is long 
overdue. The conferees urge DOD to develop a plan that provides 
stability to DBOF activities, while protecting unique 
capabilities critical during war or mobilization. It is the 
intent of the conferees to use the report required in this 
provision as a basis to review the decision on the termination 
of DBOF.

Increase in capital asset threshold under Defense Business Operations 
        Fund (sec. 364)

      The House bill contained a provision (sec. 361) that 
would raise the capital asset threshold in a Defense Business 
Operations Fund (DBOF) activity from $50,000 to $100,000.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Expansion of authority to donate unusable food (sec. 365)

      The House bill contained a provision (sec. 369) that 
would expand the list of eligible recipients for donations of 
unusable food items from the Department of Defense to state and 
local governments, many of whom operate their own shelters and 
food kitchens to feed homeless citizens. The provision would 
also allow the Defense Logistics Agency (DLA) to participate in 
this program. Currently, section 2485 of title 10, United 
States Code; does not include state and local governments among 
the entities eligible to receive donations of unusable and 
surplus food items such as Meals Ready To Eat (MREs), and 
allows only the individual military departments to donate 
unusable food. This provision would allow DLA to donate MREs 
and other excess food items from various defense agencies to 
cities and states who, in turn, could distribute them to 
homeless individuals and families.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Assistance to committees involved in inauguration of the President 
        (sec. 366)

      The Senate amendment contained a provision (sec. 365) 
that would amend section 2543 of title 10, United States Code, 
to allow the Secretary of Defense to provide safety, security, 
and ceremonial assistance to the Presidential inaugural 
committee. The Secretary would also be authorized to provide 
other assistance deemed appropriate, but only if done on a 
reimbursable basis.
      The House bill contained no similar provision.
      The House recedes.

Department of Defense support for sporting events (sec. 367)

      The Senate amendment contained a provision (sec. 366) 
that would allow the Secretary of Defense to provide assistance 
to civilian law enforcement agencies for security and safety at 
civilian sporting events if the Attorney General of the United 
States certifies that such assistance is required to meet 
essential security and safety needs. The provision would also 
allow the Secretary of Defense to provide other assistance for 
these events but only to the extent that the assistance could 
not be reasonably provided by a source other than the 
Department of Defense, does not adversely impact on military 
preparedness, and the organization requesting such assistance 
reimburses the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Storage of motor vehicle in lieu of transportation (sec. 368)

      The House bill contained a provision (sec. 363) that 
would provide storage, at government expense, of privately-
owned vehicles for service members when there are restrictions 
on the normal shipment of these vehicles, and would also 
provide storage of vehicles for service members who are 
deployed between 30 and 180 consecutive days.
      The Senate amendment contained a similar provision (sec. 
622).
      The Senate recedes with an amendment that would limit 
storage of vehicles to those service members who are deployed 
on contingency operations.

Security protections at Department of Defense facilities in the 
        national capital region (sec. 369)

      The House bill contained a provision (sec. 365) that 
would permit the Defense Protection Service (DPS) to provide 
emergency protection and security services to sensitive defense 
activities in the National Capital Region (NCR).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Administration of midshipmen's store and other Naval Academy support 
        activities as nonappropriated fund instrumentality (sec. 370)

      The Senate amendment contained a provision (sec. 364) 
that would authorize the conversion of all midshipmen trust 
fund operations that support the Naval Academy and the Brigade 
of Midshipmen to nonappropriated fund status.
      The House bill contained no similar provision.
      The House recedes with an amendment that would specify 
that the employment status of current employees is protected 
during and after this conversion.

Reimbursement under agreement for instruction of civilian students at 
        Foreign Language Institute of the Defense Language Institute 
        (sec. 371)

      The Senate amendment contained a provision (sec. 369) 
that would authorize the Secretary of the Army to determine the 
amount of reimbursement an educational institution would be 
required to pay in order to permit non-government students to 
receive instruction at the Defense Language Institute.
      The House bill contained no similar provision.
      The House recedes with an amendment that would ensure 
that the reimbursement rate would not be less than the rate 
paid by other governmental agencies, and would permit the 
Secretary of the Army to accept reimbursement in-kind as part 
of the reimbursement on a case-by-case basis.

Assistance to local educational agencies that benefit dependents of 
        members of the Armed Forces and Department of Defense civilian 
        employees (sec. 372)

      The House bill contained a provision (sec. 367) that 
would authorize $58.0 million for payment to local educational 
agencies that provide educational services to Department of 
Defense personnel and their dependents. The provision would 
also require DOD to notify these agencies that they are 
eligible for such assistance.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would provide 
$35.0 million.

Renovation of building for Defense Finance and Accounting Service 
        center, Fort Benjamin Harrison, Indian (sec. 373)

      The Senate amendment contained a provision (sec. 367) 
that would authorize the Department of Defense to transfer 
operating funds to the General Services Administration (GSA) 
for purposes of renovating Building 1 at Fort Benjamin 
Harrison, Indiana, which is occupied by the Defense Finance and 
Accounting Service.
      The House bill contained no similar provision.
      The House recedes with an amendment that would ensure 
that the DOD is fully reimbursed by the GSA for the funds which 
the DOD expends on the renovation project.

Food donation pilot program at service academies (sec. 374)

      The Senate amendment contained a provision (sec. 1073) 
that would authorize the service academies to conduct food 
donation programs to serve the poor and homeless people 
consistent with those programs authorized to be conducted by 
other military activities.
      The House bill contained no similar provision.
      The House recedes.

Authority of Air National Guard to provide certain services at Lincoln 
        Municipal Airport, Lincoln, Nebraska (sec. 375)

      The Senate amendment contained a provision (sec. 370) 
that would provide the authority for the Nebraska Air National 
Guard to provide fire and rescue services at the Lincoln 
Municipal Airport in Lincoln, Nebraska.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
such services to be provided only if the Nebraska Air National 
Guard and the Lincoln Municipal Airport Authority enter into an 
agreement providing reimbursement to the Air National Guard for 
the cost of providing such services. The agreement must also 
provide an indemnification from any claim for damages or injury 
to any person or property arising out of the provision of such 
services or the failure to provide such services.

Technical amendment regarding impact aid program (sec. 376)

      The Senate amendment contained a provision (sec. 1086) 
that would amend the special rule for impact aid payments for 
eligible federally connected children and would prohibit the 
Secretary of Education from making payments to school districts 
when the eligibility is associated with property used for 
Department of Defense activities, unless such funds are 
transferred from the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would strike the 
portion of the provision that required funds to be transferred 
from the Department of Defense.

                   legislative provisions not adopted

Depot-level activities

      The House bill contained a provision (sec. 312) that 
would exclude large maintenance projects from the calculations 
for determining the amount of depot maintenance that is 
performed by private contractors.
      The Senate amendment contained a number of provisions 
(secs. 321-330) that would make numerous changes to the current 
legislation regarding the performance of depot maintenance 
within the Department of Defense (DOD). Section 321 would 
reinforce the idea that core logistics functions of the DOD 
should be performed at government owned depots, using 
government owned equipment operated by government employees. 
Section 322 would change the current 60/40 ratio, as outlined 
in section 2466 of title 10, United States Code. Section 323 
would require the Secretary of Defense to annually report on 
the amount of depot maintenance performed by the public sector 
during the previous year and the amount of maintenance 
performed by the private sector. Section 324 would codify the 
definition of depot maintenance.
      In addition, section 325 would require the Department of 
Defense to provide the congressional defense committees with a 
report outlining its plan for the performance of depot 
maintenance at public depots and by private industry. This 
report would require the DOD to answer some of the questions 
that they did not answer last year. Section 326 would require 
the Department of Defense to provide the congressional defense 
committees with a report outlining the competitive procedures 
used by the Department of Defense in determining whether the 
depot maintenance workload should be performed by a public 
depot or a private entity.
      Furthermore, section 327 would require the Joint Chiefs 
of Staff to perform a risk assessment regarding what depot 
maintenance workloads could be performed by the private sector 
and what workloads need to be maintained in depots owned and 
operated by the Department of Defense. Section 329 would 
require a competition between all DOD aviation depots to 
determine which depot can perform the depot maintenance on F-18 
aircraft most efficiently. Finally, section 330 would require 
the Department of Defense to perform a competition for the 
workload currently performed at Kelly and McClellan AFB to 
determine if the work should be moved to another public depot 
or be privatized in place.
      The House and Senate recede. The conference agreement 
does not contain any of these provisions. The conferees agree 
not to take any action regarding these issues this year.

Master Ship Repair Agreement

      The House bill contained a provision (sec. 352) that 
would require the Secretary of the Navy to award complex ship 
repairs and overhauls only to qualified shipyard contractors. 
The current Navy requirements for Master Ship Repair Agreement 
(MSRA) qualification includes a requirement for a contractor 
owned dry-dock facility. This section would not apply to 
repairs and overhauls performed on the Pacific Coast of the 
United States.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees are aware that the Navy would like to 
revise its requirements for MSRA certification by increasing 
capability requirements which will demand a more robust and 
extensive repair capability, and will delete the requirement 
for a contractor owned dry-dock facility. Under these new 
requirements the Navy would establish dry-dock requirements on 
an individual repair contract solicitation basis. The conferees 
believe that such a revision in the MSRA requirements would 
allow more private shipyards to compete for repair contracts 
that do not require contractor owned dry-dock facilities. The 
conferees understand that this new Navy policy for ship repair 
contracts is designed to insure an adequate and comprehensive 
ship repair industrial base to meet current and future Navy 
requirements. The conferees further believe that this policy 
change will provide stability to the Navy ship repair and 
overhaul program. Therefore, the conferees direct the Secretary 
of the Navy to implement this new policy as soon as possible.

National Defense Reserve Fleet

      The budget request contained $90.0 million in the 
National Defense Sealift Fund for the acquisition and 
modification of roll-on/roll-off (RO/RO) ships for introduction 
into the Ready Reserve Force (RRF) component of the National 
Defense Reserve Fleet (NDRF).
      The Senate amendment contained a provision (sec. 312) 
that would:
            (1) waive the current congressionally imposed 
        restriction on the acquisition of RO/ROs from the world 
        market to permit the acquisition and modification of up 
        to five such RO/ROs for introduction into the RRF; and
            (2) authorize an increase of $60.0 million above 
        the budget request for the acquisition and modification 
        of two additional RO/ROs for the RRF.
      The House bill contained no similar provision. The House 
bill would reduce the budget request by the $90.0 million 
included in it for the acquisition and modification of foreign-
built RO/ROs and apply these funds to the purchase of a 
maritime prepositioning ship for the Marine Corps.
      The Senate recedes.

Restriction on Coast Guard funding

      The Senate amendment contained a provision (sec. 314) 
that would reject any authorization for the Department of 
Defense to fund the Coast Guard through budget subfunction 054.
      The House bill contained no similar provision.
      The Senate recedes.

Oceanography

      The Senate amendment contained a provision (sec. 315) 
that would authorize an additional $6.2 million for 
oceanographic ship operations and data analysis for the U.S. 
Navy.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees recognize the importance of the 
oceanographic activities of the Navy and authorize an 
additional $6.2 million for this purpose in the operations and 
maintenance account.

Firefighting and security-guard functions at facilities leased by the 
        Government

      The Senate amendment contained a provision (sec. 361) 
that would modify the current prohibition on contracting for 
firefighting and security-guard services. This provision would 
amend current legislation by clarifying the authority of the 
Department of Defense to contract with non-federal employees 
for these services if they are to be carried out at a private 
facility at which a Federal Government activity is located 
pursuant to a lease of the facility.
      The House bill contained no similar provision.
      The Senate recedes.

Computer emergency response team

      The Senate amendment contained a provision (sec. 368) 
that would authorize $2.0 million to be used by the Software 
Engineering Institute for use by the Computer Emergency 
Response Team.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees support the important work of the Computer 
Emergency Response Team and have agreed to authorize an 
additional $2.0 million for this purpose in the operations and 
maintenance tables.

              Title IV--Military Personnel Authorizations

                       items of special interest

Military Personnel Funding

      The conferees agreed to authorize that $70.1 billion, 
which is $273.3 million above the President's request, be 
appropriated for military personnel. The conference agreement 
includes the following:

                  air national guard fighter aircraft

      The conferees authorize the Air National Guard personnel 
end strength 576 part-time personnel, 249 active guard/reserves 
and 343 military technicians above the budget request and 
recommend an increase of $8.5 million to the personnel 
authorization to provide Air National Guard fighter squadrons 
with 15 primary authorized aircraft (PAA) per squadron vice the 
requested 12.

                   air national guard c-130 aircraft

      The conferees authorize the Air National Guard personnel 
end strength 310 part-time personnel, 25 active guard/reserves 
and 50 military technicians above the budget request and 
recommend an increase of $2.0 million to the personnel 
authorization to provide Air National Guard tactical airlift 
squadrons with 12 primary authorized aircraft (PAA) per 
squadron vice the requested 10.

     army military personnel account shortfall for fiscal year 1997

      The conferees authorized a $50.0 million addition to the 
Army military personnel account.

                   reserve full time manning increase

      In recognition of the expanded role of both the Army and 
Air Force Reserve in the early-deploying contingency forces and 
day-to-day operational tempo, the conferees authorize the 
Secretary of the Army to increase the number of Active Guard 
and Reserve (AGR) by 254 personnel and authorize the Secretary 
of the Air Force to increase the number of AGR by 30 personnel. 
The conferees authorize an increase of $8.0 million above the 
President's request for reserves on active duty to support the 
reserves in the Army and $2.6 million for reserves on active 
duty to support the reserves in the Air Force.

                     navy maritime patrol aircraft

      The conferees authorize the Navy to increase the number 
of Navy P-3C maritime patrol aircraft squadrons by two (1 
active, 1 reserve) above the 12 active and 8 reserve squadrons 
requested in the President's budget. As a consequence, the 
conferees authorize the following increases: Navy active 
personnel accounts (End Strength: 418 personnel, and $9.0 
million); Naval Reserve personnel accounts (End Strength: 97 
Training and Administration of the Reserves (TAR) personnel, 
266 part-time personnel, and $4.0 million).

              reserve component individual training funds

      The conferees authorize $7.5 million above the 
President's budget request for National Guard personnel account 
to fund schools and special training for military occupational 
skill training. In addition, the conferees authorize funding 
within the Army Reserve personnel account to provide troop 
program unit professional development training, as well as 
individual skills training, by $7.5 million.

                       Subtitle A--Active Forces

                     legislative provisions adopted

End strengths for active forces (sec. 401)

      The House bill contained a provision (sec. 401) that 
would authorize end strengths for active forces.
      The Senate amendment contained a similar provision (sec. 
401).
      The Senate recedes with an amendment that includes the 
authorized strengths for officers.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
  Army:                                                                 
    Total.....................      495,000      495,000       495,000  
    Officer...................       81,300       80,300        80,300  
  Navy:                                                                 
    Total.....................      428,340      406,900       407,318  
    Officer...................       58,870       56,100        56,165  
  Marine Corps:                                                         
    Total.....................      174,000      174,000       174,000  
    Officer...................       17,978       17,978        17,978  
  Air Force:                                                            
    Total.....................      388,200      381,100       381,100  
    Officer...................       75,928       74,445        74,445  
------------------------------------------------------------------------

Permanent end strength levels to support two major regional 
        contingencies (sec. 402)

      The House bill contained a provision (sec. 402) that 
would require that annual defense budget requests submitted to 
Congress must provide at least enough funding to maintain the 
minimum active end strengths prescribed in the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
      The Senate amendment contained a provision (sec. 402) 
that would increase the flexibility afforded military services 
to manage their active duty end strengths from 0.5 percent to 
5.0 percent.
      The Senate recedes with an amendment that combines the 
two provisions and provides the military services 1.0 percent 
flexibility in order to manage their end strengths effectively.

Authorized strengths for commissioned officers on active duty in grades 
        of major, lieutenant colonel, and colonel and Navy grades of 
        lieutenant commander, commander, and captain (sec. 403)

      The House bill contained a provision (sec. 403) that 
would permanently raise the grade ceilings of active duty Army, 
Air Force, and Marine Corps majors and lieutenant colonels and 
active duty Navy lieutenant commanders, commanders, and 
captains relative to the total number of commissioned officers 
on active duty.
      The Senate amendment contained a similar provision (sec. 
403).
      The House recedes.

Extension of requirement for recommendations regarding appointments to 
        joint 4-star officer positions (sec. 404)

      The Senate amendment contained a provision (sec. 404) 
that would extend, for three years, the process for exemption 
of combatant commanders (CINCs), the Deputy Commander-in-Chief 
of the U.S. European Command (DCINCEUR), and the Commander-in-
Chief, U.S. Forces, Korea, from the ceiling for grades above 
major general or rear admiral under certain conditions.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
expiration date contained in section 525(b)(5)(c) from 
September 30, 1997 to September 30, 2000.

Increase in authorized number of general officers on active duty in the 
        Marine Corps (sec. 405)

      The Senate amendment contained a provision (sec. 405) 
that would increase the number of active duty general officers 
in the Marine Corps by 12, from 68 to 80.
      The House bill contained no similar provision.
      The House recedes.
      The conferees do not intend that this action prejudice 
the outcome of the comprehensive study of general and flag 
officers required by section 1213 of this conference report 
which would include these authorizations.

                       Subtitle B--Reserve Forces

                     Legislative provisions adopted

End strengths for selected reserve (sec. 411)

      The House bill contained a provision (sec. 411) that 
would authorize the end strength levels for the selected 
reserve for fiscal year 1997.
      The Senate amendment contained a similar provision (sec. 
411).
      The Senate recedes with an amendment that would authorize 
selected reserve end strengths at the higher end strength level 
for each component.
      The following table summarizes the authorized end 
strength levels for the selected reserve for fiscal year 1997.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States................      373,000      366,758       366,758  
The Army Reserve..............      230,000      214,925       215,179  
The Naval Reserve.............       98,894       95,941        96,304  
The Marine Corps Reserve......       42,274       42,000        42,000  
The Air National Guard of the                                           
 United States................      112,707      108,018       109,178  
The Air Force Reserve.........       73,969       73,281        73,311  
The Coast Guard Reserve.......        8,000        8,000         8,000  
------------------------------------------------------------------------

End strengths for Reserves on active duty in support of the Reserves 
        (sec. 412)

      The House bill contained a provision (sec. 412) that 
would authorize reserve full-time support end strength levels 
for fiscal year 1997.
      The Senate amendment contained a similar provision (sec. 
412).
      The Senate recedes with an amendment that would authorize 
end strengths for reserves on active duty in support of the 
reserves at the higher end strength level for each component.
      The following table summarizes the reserve full-time 
support end strength levels for fiscal year 1997.

------------------------------------------------------------------------
                                               Fiscal year              
                               -----------------------------------------
                                     1996         1997         1997     
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States................       23,390       22,798        22,798  
The Army Reserve..............       11,575       11,475        11,729  
The Naval Reserve.............       17,587       16,506        16,603  
The Marine Corps Reserve......        2,559        2,559         2,559  
The Air National Guard of the                                           
 United States................       10,066       10,129        10,403  
The Air Force Reserve.........          628          625           655  
------------------------------------------------------------------------

End strengths for military technicians (sec. 413)

      The House bill contained a provision (sec. 413) that 
would authorize military technician end strength levels for 
fiscal year 1997.
      The Senate amendment contained a provision (sec. 518) 
that would modify the authorization for military technicians in 
the Air National Guard for fiscal year 1997.
      The Senate recedes with an amendment that adds the 
technician levels in the Senate amendment to those in the House 
bill.
      The following table summarizes the authorized end 
strength levels for military technicians for fiscal year 1997.

------------------------------------------------------------------------
                                                 Fiscal year            
                                   -------------------------------------
                                       1996       1997         1997     
                                     program    request   recommendation
------------------------------------------------------------------------
The Army National Guard of the                                          
 United States....................     25,500     25,500        25,500  
The Army Reserve..................      6,630      6,799         6,799  
The Air National Guard of the                                           
 United States....................     22,906     22,281        23,299  
The Air Force Reserve.............      9,802      9,704         9,802  
------------------------------------------------------------------------

Assurance of continued assignment of military personnel to serve in 
        Selective Service System (sec. 414)

      The Senate amendment contained a provision (sec. 413) 
that would exempt from end strength ceilings military personnel 
assigned to duties in support of the Selective Service System.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the services to support the Selective Service System at the 
requirement level set by the Director, Selective Service. The 
requirement level would not exceed 745 military personnel.

                   Title V--Military Personnel Policy

                       items of special interest

General and flag officer career patterns

      The conferees are concerned about the career patterns of 
officers once they are selected for promotion to general and 
flag officer grades. The current general and flag officer 
selection, assignment and development process may not 
effectively contribute to the preparation of those officers for 
increasing levels of responsibility and maximum performance 
efficiency at each level of assignment. Specific concerns 
include: 1) the length of time officers spend on promotion 
lists to grades 0-7 and 0-8 before they are actually promoted; 
2) the tempo with which general and flag officers are rotated 
through important positions; 3) the effect of this tempo both 
on the effectiveness of individual officers in each position to 
which they are assigned and on the overall value these officers 
add in each position to which they are assigned; and 4) the 
consequences of requiring general and flag officers to retire 
upon completion of 35 years of service.
      The conferees direct the Secretary of Defense to review 
the career patterns of general and flag officers and report to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives not later 
than April 1, 1997. The report should address, at a minimum:
            (1) Average time-in-grade at the time of selection 
        for promotion to each general and flag officer grade. 
        Average time-in-grade should be reported by fiscal 
        year, by service, by competitive category and by grade. 
        For the purposes of this report, the time of selection 
        should reflect the date the respective promotion board 
        report is approved by the official authorized to 
        approve such report;
            (2) Average time-in-grade at the time of promotion 
        to each general and flag officer grade. Average time-
        in-grade should be reported by fiscal year, by service, 
        by competitive category and by grade;
            (3) Average tour lengths for general and flag 
        officers who changed positions or assignments during 
        fiscal years 1991 through 1995. Tour lengths should be 
        reported by fiscal year, by service, and by grade. 
        Joint tours should be addressed separately from non-
        joint tours; and
            (4) Assessment of the continued appropriateness of 
        the mandatory retirement of officers after 35 years of 
        commissioned service as required by section 636 of 
        title 10, United States Code.
      The conferees do not expect the Secretary of Defense to 
delegate the conduct of this review or the preparation of the 
required report to the individual military departments, the 
uniformed services or to the Joint Staff.

                         LEGISLATIVE PROVISIONS

                  Subtitle A--Officer Personnel Policy

                     LEGISLATIVE PROVISIONS ADOPTED

Grade of Chief of Naval Research (sec. 501)

      The Senate amendment contained a provision (sec. 506) 
that would establish that an officer, while serving in the 
Office of Naval Research as Chief of Naval Research, have at 
least the grade of rear admiral (upper half).
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees do not intend that this action prejudice 
the outcome of the comprehensive study of general and flag 
officers required by section 1213 of this conference report 
which would include this position.

Chief and Assistant Chief of Army Nurse Corps and Air Force Nurse Corps 
        (sec. 502)

      The Senate amendment contained two provisions (sec. 540 
and 541) that would establish the grade of the Chief of the 
Army Nurse Corps and Chief of the Air Force Nurse Corps as a 
Brigadier General, and the Assistant Chief of the Army Nurse 
Corps and Assistant Chief of the Air Force Nurse Corps as a 
Colonel.
      The House bill contained no similar provision.
      The House recedes with an amendment to combine the two 
provisions.
      The conferees do not intend that this action prejudice 
the outcome of the comprehensive study of general and flag 
officers required by section 1213 of this conference report 
which will include these positions.

Navy spot promotion authority for certain lieutenants with critical 
        skills (sec. 503)

      The House bill contained a provision (sec. 503) that 
would make permanent the authority for the Navy to temporarily 
promote certain lieutenants in skills for which there is a 
shortage of qualified officers.
      The Senate amendment contained a provision (sec. 501) 
that would extend the authority for the Navy to promote 
temporarily, without Senate confirmation, lieutenants in 
certain positions from September 30, 1996 until September 30, 
1997.
      The Senate recedes with an amendment that would make 
permanent the authority for the Navy to promote temporarily 
certain lieutenants having certain skills and serving in 
certain positions, limit the number who may be promoted under 
this authority to 325, and make such temporary promotions 
subject to the advice and consent of the Senate.

Time for award of degrees by unaccredited educational institutions for 
        graduates to be considered educationally qualified for 
        appointment as reserve officers in grade 0-3 (sec. 504)

      The Senate amendment contained a provision (sec. 503) 
that would increase the number of years that the Department of 
Defense could recognize a baccalaureate degree awarded by 
qualifying educational institution from three years to eight 
years.
      The House bill contained no similar provision.
      The House recedes.

Exception to baccalaureate degree requirement for appointment in the 
        Naval Reserve in grades above 0-2 (sec. 505)

      The House bill contained a provision (sec. 514) that 
would provide members of the Naval Reserve participating in the 
Seaman to Admiral program an exception to the requirement for 
reserve officers to hold a baccalaureate degree in order to be 
promoted above the grade of lieutenant (junior grade).
      The Senate amendment contained a similar provision (sec. 
502).
      The conference agreement includes this provision.

Chief Warrant Officer promotions (sec. 506)

      The Senate amendment contained a provision (sec. 504) 
that would permit below the zone selection for promotion to 
Chief Warrant Officer, W-3, and would reduce the time-in-grade 
requirement for warrant officer promotions from three years to 
two years.
      The House bill contained no similar provision.
      The House recedes.

Service credit for senior ROTC cadets and midshipmen in simultaneous 
        membership program (sec. 507)

      The Senate amendment contained a provision (sec. 507) 
that would provide service credit for longevity and pay to 
individuals who are simultaneously Senior ROTC Cadets or 
Midshipmen and enlisted members in the Selected Reserve under 
the Simultaneous Membership Program (SMP).
      The House bill contained no similar provision.
      The House recedes.

Continuation on active status for certain reserve officers of the Air 
        Force (sec. 508)

      The House bill contained a provision (sec. 507) that 
would authorize the Secretary of the Air Force to retain up to 
50 reserve officers who are designated judge advocates beyond 
dates of mandatory retirement for years of service.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Reports on response to recommendations concerning improvements to 
        Department of Defense joint manpower process (sec. 509)

      The House bill contained a provision (sec. 504) that 
would require the Secretary of Defense to provide a semi-annual 
report to Congress on the status of actions taken to implement 
the Inspector General recommendations resulting from inspection 
of the joint manpower process. The provision would also require 
that the General Accounting Office assess the adequacy and 
completeness of the Department's corrective actions.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Frequency of reports to Congress on joint officer management policies 
        (sec. 510)

      The House bill contained a provision (sec. 505) that 
would change the requirement that the Secretary of Defense 
report to Congress every six months on the promotion rates of 
officers currently or formerly serving in joint duty 
assignments.
      The Senate amendment contained a similar provision (sec. 
505).
      The conference agreement includes this provision.

                 Subtitle B--Enlisted Personnel Policy

                     legislative provisions adopted

Career service reenlistments for members with at least 10 years of 
        service (sec. 511)

      The House bill contained a provision (sec. 501) that 
would permit the secretaries of the military departments to 
reenlist noncommissioned officers with 10 or more years of 
service for indefinite periods of time.
      The Senate amendment contained a similar provision (sec. 
536).
      The House recedes.
      The conferees recognize that some services may want to 
retain the current fixed-term enlistment system. Specifically, 
the conferees urge the Secretary of the Navy to permit the Navy 
and the Marine Corps to pursue either policy independent of the 
other service's choice.

Authority to extend period for entry on active duty under the Delayed 
        Entry Program (sec. 512)

      The House bill contained a provision (sec. 502) that 
would permit the secretaries of the military departments, on a 
case-by-case basis, to extend to 18 months the maximum period 
that a person can remain in the Delayed Entry Program.
      The Senate amendment contained a similar provision (sec. 
535).
      The conference agreement includes this provision.

                   Subtitle C--Activation and Recall

                     legislative provisions adopted

Limitations on recall of retired members to active duty (sec. 521)

      The Senate amendment contained a provision (sec. 532) 
that would limit the number of retired officers who may be 
recalled to active duty to 25 per service at any one time; 
prohibit the recall of officers who retired as a result of an 
early retirement board or who retired after being notified that 
he or she was to be considered by an early retirement board; 
and limit the tenure of a recall to 12 months.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
provision effective on September 30, 1997.

Clarification of definition of active status (sec. 522)

      The House bill contained a provision (sec. 513) that 
would expand the definition of the term ``active status'' in 
section 101(d)(4) of title 10, United States Code, to include 
both officers and enlisted members of the reserve components 
and make the definition consistent with other references in 
title 10, United States Code.
      The Senate amendment contained a similar provision (sec. 
511).
      The conference agreement includes this provision.

Limitation of requirement for physical examinations of members of 
        National Guard called into federal service (sec. 523)

      The Senate amendment contained a provision (sec. 513) 
that would repeal the requirement that each member of the 
National Guard receive a physical examination when called into 
and again when mustered out of federal service.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal the 
requirement that each member of the National Guard receive a 
physical examination when called into and again when mustered 
out of federal service, except when they are mobilized for a 
contingency operation or a national emergency.

                Subtitle D--Reserve Component Retirement

                     legislative provisions adopted

Increase in annual limit on days of inactive duty training creditable 
        towards reserve retirement (sec. 531)

      The House bill contained a provision (sec. 631) that 
would increase the limits on the annual amount of retirement 
points that a reservist can earn as a result of inactive 
training from 60 to 75.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Retirement of reserve enlisted members who qualify for active duty 
        retirement after administrative reductions in enlisted grade 
        (sec. 532)

      The House bill contained a provision (sec. 634) that 
would permit a reserve enlisted member who qualifies for an 
active duty retirement and who is reduced in grade for reasons 
other than misconduct to retire in the highest enlisted grade 
held.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Authority for a reserve on active duty to waive retirement sanctuary 
        (sec. 533)

      The Senate amendment contained a provision (sec. 514) 
that would permit a reservist serving on active duty for less 
than 180 days to waive the applicability of the retirement 
sanctuary.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Eligibility of reserves for disability retirement (sec. 534)

      The House bill contained a provision (sec. 633) that 
would authorize disability retirement benefits defined in 
Section 702 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106), to certain reservists.
      The Senate amendment contained a similar provision (sec. 
515).
      The House recedes with an amendment that would clarify 
the effective date for transition of eligibility criteria for 
reserve disability retirement and other benefits from proximate 
result of performing duty to a determination of in line of 
duty.

              Subtitle E--Other Reserve Component Matters

                     LEGISLATIVE PROVISIONS ADOPTED

Training for reserves on active duty in support of the reserves (sec. 
        541)

      The House bill contained a provision (sec. 512) that 
would clarify that a reservist on active duty in support of the 
reserves may receive training and professional development in 
the same manner as any other member on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Eligibility for enrollment in Ready Reserve mobilization income 
        insurance program (sec. 542)

      The House bill contained a provision (sec. 517) that 
would amend the Ready Reserve mobilization income insurance 
program to permit members of the Individual Ready Reserve who 
transfer to the selected reserve to be eligible to participate 
in the mobilization insurance program.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Reserve credit for participation in Health Professions Scholarship and 
        Financial Assistance Program (sec. 543)

      The House bill contained a provision (sec. 555) that 
would amend title 10, United States Code, to provide 
discretionary authority to the secretaries of the military 
departments to award service credit toward a non-regular 
retirement for certain members of the armed forces health 
professions scholarship and financial assistance programs.
      The Senate amendment contained a similar provision (sec. 
516).
      The conference agreement includes this provision.

Amendments to Reserve Officer Personnel Management Act provisions (sec. 
        544)

      The Senate amendment contained a provision (sec. 512) 
that would make several amendments to the Reserve Officer 
Personnel Management Act.
      The House bill contained no similar provision.
      The House recedes.
      The conferees direct that the Secretary of Defense 
provide a report on the number and category of waivers granted 
under the authority of this provision to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives not later than March 31, 1998.

Report on number of advisers in active component support of reserves 
        pilot program (sec. 545)

      The House bill contained a provision (sec. 515) that 
would require the Secretary of Defense to determine the 
appropriate number of active component advisors and recommend 
such number to Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Sense of Congress and report regarding reemployment rights for 
        mobilized reservists employed in foreign countries (sec. 546)

      The House bill contained a provision (sec. 516) that 
would express the sense of Congress that there is a lack of 
reemployment rights afforded reservists who now live in foreign 
countries and work for U.S. or foreign companies. The provision 
would also direct the Secretary of Defense, together with the 
Secretaries of State and Labor, to provide the Congress with 
recommendations to alleviate the reemployment problems of this 
group of reservists.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

                 Subtitle F--Officer Education Programs

                     legislative provisions adopted

Payment of premiums under mobilization income insurance program (sec. 
        547)

      The conferees recommend a provision that would clarify 
how premiums are to be paid under the reserve mobilization 
income insurance program.

Oversight and management of Senior Reserve Officers' Training Corps 
        program (sec. 551)

      The House bill contained a provision (sec. 552) that 
would give priority for enrollment in ROTC to students who were 
qualified for advanced training, and would prohibit anyone who 
was ineligible for advanced training from participating in 
practical military training, field training, or practice 
cruises, unless the ineligibility was waived by the service 
secretary. The section would also permit civilians attending 
ROTC or other courses of military instruction to wear military 
uniforms only when the individual service regulations 
specifically authorize such wear.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would ensure 
uniform application of any criteria that would limit acceptance 
in ROTC.

Prohibition on reorganization of Army ROTC Cadet Command or termination 
        of senior ROTC units pending report on ROTC (sec. 552)

      The Senate contained a provision (sec. 523) that would 
prohibit the reorganization, restructuring, or termination of 
any Reserve Officers' Training Corps Cadet Command or Senior 
Reserve Officers Training Corps until 180 days after the 
issuance of a report on various aspects of the selection for 
termination process.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Pilot program to test expansion of ROTC program to include graduate 
        students (sec. 553)

      The House bill contained a provision (sec. 554) that 
would permit the initial award of Reserve Officers' Training 
Corps (ROTC) scholarships to people who already have received a 
baccalaureate degree, provided the recipient executes the 
required contractual commitments, including enrollment in the 
ROTC advanced course.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
number of scholarships which could be awarded to graduate 
students, place a 3-year limit on duration of the program, and 
require a report from the Secretary of Defense.

Demonstration project for instruction and support of Army ROTC units by 
        members of the Army Reserve and National Guard (sec. 554)

      The Senate contained a provision (sec. 522) that would 
require the Secretary of the Army to conduct a demonstration 
program in order to assess the feasibility and advisability of 
providing instruction and support to units of the Reserve 
Officers' Training Corps (ROTC) that use members of the Army 
Reserve, including the Individual Ready Reserve and the Army 
National Guard.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
demonstration program to three years.

Extension of maximum age for appointment as a cadet or midshipman in 
        the Senior Reserve Officers' Training Corps and the service 
        academies (sec. 555)

      The House bill contained a provision (sec. 551) that 
would increase the maximum age for appointment in the Senior 
Reserve Officers' Training Corps (ROTC), permitting the 
appointment of persons under 27 years of age. The section would 
also permit former enlisted members who had served on active 
duty to be appointed in the Senior ROTC program even though 
they were older than 27, so long as on the date of their 
commissioning they would be under 30 years of age. This section 
would also increase the maximum allowable age of entry into the 
service academies to 23.
      The Senate amendment contained a similar provision (sec. 
521).
      The Senate recedes.

Expansion of eligibility for education benefits to include certain 
        Reserve Officers' Training Corps (ROTC) participants (sec. 556)

      The House bill contained a provision (sec. 556) that 
would expand the eligibility for the Montgomery GI Bill 
education benefits to include ROTC scholarship students who 
received scholarships with values of less than $2,000 annually.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Comptroller General report on cost and policy implications of 
        permitting up to five percent of service academy graduates to 
        be assigned directly to reserve duty upon graduation (sec. 557)

      The House bill contained a provision (sec. 557) that 
would require the Comptroller General to analyze and report to 
Congress the cost and policy implications of requiring up to 
five percent of the graduating class of each of the service 
academies to serve in the reserve components, and that there be 
a corresponding increase in the number of Reserve Officers' 
Training Corps (ROTC) graduates each year placed on active 
duty.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Subtitle G--Decorations and Awards

                     legislative provisions adopted

Authority for award of medal of honor to certain African American 
        soldiers who served during World War II (sec. 561)

      The House bill contained a provision (sec. 1035) that 
would authorize the Secretary of the Army to award the Medal of 
Honor to African American former service members who served in 
the United States Army during World War II and for whom the 
Army recommended the award of the Medal of Honor after a 
congressionally mandated review of their records.
      The Senate amendment contained a similar provision (sec. 
539).
      The Senate recedes.

Waiver of time limitations for award of certain decorations to 
        specified persons (sec. 562)

      The Senate amendment contained a provision (sec. 542) 
that would waive the statutory time limitations for the award 
of military decorations to provide for the award of the 
Distinguished Flying Cross to certain individuals who have been 
recommended by the Secretary of the Navy for receipt of this 
award.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Replacement of certain American Theater Campaign Ribbons (sec. 565)

      The House bill contained a provision (sec. 563) that 
would authorize the Secretary of the Army to replace, upon 
request, the American Theater Campaign Ribbon awarded to 
certain veterans of World War II.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                       Subtitle H--Other Matters

                     legislative provisions adopted

Hate crimes in the military (sec. 571)

      The House bill contained a provision (sec. 561) that 
would direct the Secretary of Defense to require each of the 
military services to conduct human relations training designed 
to promote a thorough awareness of equal opportunity issues, as 
well as a sensitivity to ``hate group'' activity. It also would 
require the Secretary to ensure that prospective recruits, both 
officer and enlisted, understand the full implications of the 
oath of office or oath of enlistment in terms of the equal 
protection and civil liberties protection of the Constitution. 
Finally, this section would require the Secretary to conduct an 
annual survey on race relations, gender discrimination and hate 
group activity.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Disability coverage for members granted excess leave for educational or 
        emergency purposes (sec. 572)

      The Senate amendment contained a provision (sec. 533) 
that would provide disability coverage for officers who are on 
excess leave while participating in an educational program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend 
disability coverage to enlisted members on excess leave for 
emergency purposes.

Clarification of authority of a reserve judge advocate to act as a 
        military notary public when not in a duty status (sec. 573)

      The House bill contained a provision (sec. 562) that 
would authorize all judge advocates of the armed forces, 
adjutants, assistant adjutants, personnel adjutants, and other 
members of the armed forces designated by regulations of the 
armed forces to have the same notary public authority without 
regard to whether they are on active duty or performing 
inactive duty for training.
      The Senate amendment contained a similar provision (sec. 
1064).
      The Senate recedes with an amendment that would not 
permit the authority to apply prior to the date of enactment.

Panel on jurisdiction of courts-martial for the National Guard when not 
        in Federal service (sec. 574)

      The House bill contained provisions (sec. 531-539) that 
would make several changes to the law governing the 
jurisdiction and powers of courts-martial conducted by the 
National Guard when not in federal service.
      The Senate amendment contained no similar provisions.
      The House recedes with an amendment that would direct the 
Secretary of Defense to establish a panel to study the 
jurisdiction of such courts-martial. Matters reviewed by the 
panel would include the extent of use of courts-martial and 
nonjudicial punishment in the National Guard when not in 
federal service and the extent to which such courts-martial and 
nonjudicial punishments were conducted under authority provided 
by title 32, United States Code or state law. The conference 
agreement would require a report to Congress no later than 
March 1, 1997.

Authority to expand law enforcement placement program to include 
        firefighters (sec. 575)

      The Senate amendment contained a provision (sec. 571) 
that would include federal firefighters in the program 
established by the Secretary of Defense to assist eligible 
members and former members of the armed forces and eligible 
civilian employees of the Department of Defense to obtain 
employment in public safety jobs.
      The House bill contained no similar provision.
      The House recedes.

Improvements to program to assist separated military and civilian 
        personnel to obtain employment as teachers or teachers' aides 
        (sec. 576)

      The Senate amendment contained two provisions (sec. 572 
and sec. 1122) pertaining to the Troops-to-Teachers program. 
These provisions would permit service members retiring under 
the temporary early retirement authority to participate in the 
program and would reduce the teaching obligation, incentive 
grant, and local education authority reimbursement periods from 
five years to two years.
      The House bill contained no similar provision.
      The House recedes with an amendment that would combine 
the two Senate provisions into a single provision.

Retirement at grade to which selected for promotion when a physical 
        disability is found at any physical examination (sec. 577)

      The House bill contained a provision (sec. 632) that 
would permit disability retirements for service members at the 
grade to which they would have been promoted had it not been 
for an intervening physical disability.
      The Senate contained a similar provision (sec. 531).
      The conference agreement includes this provision.

Revisions to missing persons authorities (sec. 578)

      The Senate amendment contained a provision (sec. 537) 
that would repeal certain provisions in the Missing Persons Act 
in the National Defense Authorization Act for Fiscal Year 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment that would strike the 
repeal of the requirement that a counsel be appointed for the 
missing person; strike the repeal of the right to judicial 
review; and modify the mandatory review of preenactment and 
special interests cases to include missing persons from the 
Korean War era.

      Subtitle I--Commissioned Corps of the Public Health Service

                     legislative provisions adopted

Applicability to Public Health Service of prohibition on crediting 
        cadet or midshipmen service at the service academies (sec. 581)

      The Senate amendment contained a provision (sec. 561) 
that would clarify that commissioned officers of the Public 
Health Service, like members of the Armed Forces, do not 
receive length-of-service credit for service as a student at a 
service military academy.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Exception to strength limitations for Public Health Service officers 
        assigned to the Department of Defense (sec. 582)

      The House bill contained a provision (sec. 742) that 
would amend section 207, title 42, United States Code, to 
exclude commissioned officers of the Public Health Service 
(PHS) assigned to duty in the Department of Defense from being 
counted when computing the maximum number of commissioned PHS 
officers authorized by law.
      The Senate amendment contained a similar provision (sec. 
562).
      The Senate recedes.

Authority to provide legal assistance to Public Health Service officers 
        (sec. 583)

      The House bill contained a provision (sec. 563) that 
would authorize active duty or retired officers of the 
Commissioned Corps of the Public Health Service and their 
dependents to be eligible for legal assistance at military 
installations.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Repeal of requirement that commissioned officers be initially appointed 
        in a reserve grade

      The House bill contained a provision (sec. 506) that 
would repeal the requirement that all commissioned officers be 
appointed initially as reserve officers.
      The Senate amendment contained no similar provision.
      The House recedes.

Individual Ready Reserve activation authority

      The House bill contained a provision (sec. 511) that 
would authorize the President, under Presidential Selection 
Reserve Call-up, to recall up to 30,000 members of a new 
category of the Individual Ready Reserve (IRR) that would be 
created by this section. The new category of the IRR would 
consist of those personnel in the military skills and 
occupations, designated by the Secretary of Defense, who had 
volunteered prior to leaving active duty.
      The Senate amendment contained no similar provision.
      The House recedes.

ROTC scholarship student participation in simultaneous membership 
        program

      The House bill contained a provision (sec. 553) that 
would direct the Secretary of Defense to establish a program to 
permit Reserve Officers' Training Corps (ROTC) scholarship 
cadets to serve simultaneously as a member of a Selected 
Reserve unit.
      The Senate amendment contained no similar provision.
      The House recedes.

Restoration of regulations prohibiting service of homosexuals in the 
        armed forces

      The House bill contained a provision (sec. 566) that 
would rescind the current Department of Defense policy and 
relative directive and regulations concerning homosexuality in 
the armed forces and related Department of Defense and military 
department regulations, and would reinstate the regulations 
that were in effect on January 19, 1993.
      The Senate amendment contained no similar provision.
      The House recedes.

Reenactment and modification of mandatory separation from service for 
        members diagnosed with HIV-1 virus

      The House bill contained a provision (sec. 567) that 
would restate, with modifications, section 5676 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106) to require the separation of members determined to be HIV-
positive.
      The Senate amendment contained no similar provision.
      The House recedes.

Uniform policy regarding retention of members who are permanently 
        nonworldwide assignable

      The Senate amendment contained a provision (sec. 534) 
that would require the Secretary of Defense to prescribe 
regulations and directives establishing uniform policies and 
procedures regarding the retention of members of the armed 
forces who are permanently nonworldwide assignable for medical 
reasons.
      The House bill contained no similar provision.
      The Senate recedes.

Period for filing a claim for correction of military records not be 
        extended by reason of military service

      The Senate amendment contained a provision (sec. 538) 
that would clarify that the three-year statute of limitations 
for the filing of a request for relief before the Boards for 
Correction of Military Records is not waived by the Soldiers' 
and Sailors' Civil Relief Act.
      The House bill contained no similar provision.
      The Senate recedes.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                         legislative provisions

                     Subtitle A--Pay and Allowances

                     legislative provisions adopted

Military pay raise for fiscal year 1997 (sec. 601)

      The House bill contained a provision (sec. 601) that 
would provide a 3.0 percent military pay raise and a 4.6 
percent increase in the rate of the basic allowance for 
quarters.
      The Senate amendment contained a similar provision (sec. 
601) that would increase the rates of basic pay and the basic 
allowance for subsistence for members of the uniformed services 
by 3.0 percent. The provision would increase the rate of the 
basic allowance for quarters for members of the uniformed 
services by 4.0 percent.
      The Senate recedes.

Adjustment of rate of cadet and midshipman pay (sec. 602)

      The Senate amendment contained a provision (sec. 602) 
that would repeal a provision in title 37, United States Code, 
that links the rate of cadet and midshipman pay to changes in 
military pay.
      The House bill contained no similar provision.
      The House recedes.

Pay of senior noncommissioned officers while hospitalized (sec. 603)

      The Senate amendment contained a provision (sec. 603) 
that would authorize the senior enlisted member of an armed 
force to continue to receive the basic pay authorized for that 
position for no more than 180 days while no longer in that 
position and hospitalized prior to retirement.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Availability of basic allowance for quarters for certain members 
        without dependents who serve on sea duty (sec. 604)

      The House bill contained a provision (sec. 602) that 
would authorize several changes concerning the payment of basic 
allowance for quarters and variable housing allowance for 
service members assigned to sea duty.
      The Senate amendment contained a similar provision (sec. 
604).
      The Senate recedes with an amendment that would clarify 
payment of basic allowance for quarters to military couples 
assigned to sea duty, and payment of variable housing allowance 
to members above the grade of E-4 assigned to sea duty.

Uniform applicability of discretion to deny an election not to occupy 
        government quarters (sec. 605)

      The House bill contained a provision (sec. 651) that 
would clarify the authority for the secretaries of the military 
departments to deny the election not to occupy inadequate 
government quarters made by a service member in the grade of E-
6.
      The Senate amendment contained a similar provision (sec. 
605).
      The conference agreement includes this provision.

Establishment of minimum monthly amount of variable housing allowance 
        for high housing cost areas (sec. 606)

      The House bill contained a provision (sec. 603) that 
would require the Secretary of Defense to establish a minimum 
amount of variable housing allowance.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees direct the Secretary of Defense to perform 
a comprehensive review of all housing allowances and submit a 
legislative recommendation that would reform and streamline the 
housing allowances while dealing with housing costs in a more 
effective manner. The report and legislative recommendations 
shall be submitted to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives not later than March 1, 1997.

Family separation allowance for members separated by military orders 
        from spouses who are members (sec. 607)

      The Senate amendment contained a provision (sec. 606) 
that would authorize payment of the family separation allowance 
to the senior of two service members who are married to each 
other and who would normally reside with each other but are 
separated by military orders.
      The House bill contained no similar provision.
      The House recedes.

Waiver of time limitations for claim for pay and allowances (sec. 608)

      The Senate amendment contained a provision (sec. 607) 
that would provide the Comptroller General authority, upon the 
request of a service secretary, to waive the time limits in the 
case of a claim for pay and allowances up to a maximum of 
$25,000, subject to the availability of appropriations.
      The House bill contained no similar provision.
      The House recedes.

           Subtitle B--Bonuses and Special and Incentive Pays

                     LEGISLATIVE PROVISIONS ADOPTED

One-year extension of certain bonuses and special pay authorities for 
        reserve forces (sec. 611)

      The House bill contained a provision (sec. 611) that 
would extend the authority for the selected reserve 
reenlistment bonus, the selected reserve enlistment bonus, the 
selected reserve affiliation bonus, the ready reserve 
enlistment and reenlistment bonus, and the prior service 
enlistment bonus until September 30, 1998.
      The Senate amendment contained a similar provision (sec. 
611).
      The conference agreement includes this provision.

One-year extension of certain bonuses and special pay authorities for 
        nurse officer candidates, registered nurses, and nurse 
        anesthetists (sec. 612)

      The House bill contained a provision (sec. 612) that 
would extend the authority to pay certain bonuses and special 
pay for nurse officer candidates, registered nurses, and nurse 
anesthetists until September 30, 1998.
      The Senate amendment contained a similar provision (sec. 
612).
      The conference agreement includes this provision.

One-year extension of authorities relating to payment of other bonuses 
        and special pays (sec. 613)

      The House bill contained a provision (sec. 613) that 
would extend the authority to pay the aviation officer 
retention bonus, reenlistment bonus for active members, 
enlistment bonus for critical skills, special pay for nuclear 
qualified officers extending period of active service, nuclear 
career accession bonus, nuclear career annual incentive bonus, 
and repayment of education loans for certain health 
professionals who serve in the selected reserve until September 
30, 1998.
      The Senate amendment contained a similar provision (sec. 
613).
      The conference agreement includes this provision.

Special pay for certain Public Health Service officers (sec. 614)

      The Senate amendment contained two provisions (secs. 615 
and 616) that would authorize retention special pay for 
optometrists in regular and reserve components of the 
Commissioned Corps of the Public Health Service (PHS) and 
special pay for nonphysician health care providers in the 
Commissioned Corps of the PHS.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would combine 
the two provisions.

Special incentives to recruit and retain dental officers (sec. 615)

      The House bill contained a provision (sec. 614) that 
would increase the amount of special pay for dental officers, 
to establish an entitlement to special pay for reserve dental 
officers consistent with special pay entitlements for 
physicians, and to establish an accession bonus for dental 
officers. Additionally, this section would require the 
Secretary of Defense to report to Congress on the feasibility 
of increasing dental participation in the Armed Forces Health 
Professions Scholarship and Financial Assistance Program.
      The Senate amendment contained a similar provision (sec. 
614) that would increase the special pay, additional special 
pay, and board certified pay for certain dental officers of the 
armed forces.
      The Senate recedes.

Foreign language proficiency pay for Public Health Service and National 
        Oceanic and Atmospheric Administration officers (sec. 616)

      The Senate amendment contained a provision (sec. 617) 
that would extend foreign language proficiency pay now 
authorized for members of the armed services to any member of 
the uniformed services whose duties require such language 
proficiency.
      The House bill contained no similar provision.
      The House recedes.

            Subtitle C--Travel and Transportation Allowances

                     legislative provisions adopted

Allowance in connection with shipping motor vehicle at government 
        expense (sec. 621)

      The House bill contained a provision (sec. 622) that 
would authorize travel allowances for travel to and from a port 
while transporting motor vehicles at government expense in 
conjunction with a permanent change of station move between the 
continental United States and overseas locations.
      The Senate amendment contained a similar provision (sec. 
621).
      The conference agreement includes this provision.

Dislocation allowance at a rate equal to two and one half months basic 
        allowance for quarters (sec. 622)

      The House bill contained a provision (sec. 623) that 
would increase the amount of dislocation allowance paid to 
service members from two months of basic allowance for quarters 
to two and one half months basic allowance for quarters.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Allowance for travel performed in connection with leave between 
        consecutive overseas tours (sec. 623)

      The House bill contained a provision (sec. 624) that 
would authorize the service secretaries to defer the travel and 
transportation allowances that accrue in conjunction with 
service members being ordered to consecutive overseas tours 
when participation in a contingency mission precludes 
completion of the travel within one year.
      The Senate amendment contained a similar provision (sec. 
623).
      The conference agreement includes this provision.

Funding for transportation of household effects of Public Health 
        Service officers (sec. 624)

      The Senate amendment contained a provision (sec. 624) 
that would extend the authorization to be reimbursed for ``do-
it-yourself'' moves currently authorized for members of the 
armed forces to the Public Health Service.
      The House bill contained no similar provision.
      The House recedes.

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

                     LEGISLATIVE PROVISIONS ADOPTED

Effective date for military retiree cost-of-living adjustment for 
        fiscal year 1998 (sec. 631)

      The Senate amendment contained a provision (sec. 631) 
that would establish the date of the military retirement cost-
of-living adjustment in fiscal year 1998 as January 1, 1998.
      The House bill contained no similar provision.
      The House recedes.

Clarification of initial computation of retiree COLAs after retirement 
        (sec. 632)

      The House bill contained a provision (sec. 635) that 
would make a technical correction to the method used to 
calculate the initial cost-of-living adjustment for certain new 
retirees.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Suspension of payment of retired pay of members who are absent from the 
        United States to avoid prosecution (sec. 633)

      The House bill contained a provision (sec. 1044) that 
would require the Secretary of Defense to develop uniform 
procedures under which a member or former member of the 
uniformed services would forfeit retired pay if they willingly 
remain outside the United States to avoid criminal or civil 
prosecution or civil liability.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Nonsubstantive restatement of Survivor Benefit Plan statute (sec. 634)

      The House bill contained a provision (sec. 639) that 
would restate the Military Survivor Benefit Plan statute 
(subchapter II of chapter 73 of title 10, United States Code) 
in its entirety to include amendments to the statute through 
the National Defense Authorization Act for Fiscal Year 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Increases in Survivor Benefit Plan contributions to be effective 
        concurrently with payment of retired pay cost-of-living 
        increases (sec. 635)

      The Senate amendment contained a provision (sec. 633) 
that would require that annual cost-of-living increases to 
Survivor Benefit Plan premiums be effective on the date on 
which the retired pay cost-of-living increase is effective.
      The House bill contained no similar provision.
      The House recedes.

Amendments to the Uniformed Services Former Spouses' Protection Act 
        (sec. 636)

      The House bill contained a provision (sec. 637) that 
would amend the Uniformed Services Former Spouses' Protection 
Act (Public Law 97-252) to simplify the processing of court 
orders related to retirement pay. The section would also 
clarify that the Secretary of Defense could not accept a court 
order from a state that modifies a previous court order from 
another state unless the court issuing the modifying court 
order has jurisdiction over both the military member and the 
spouse or former spouse.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Prevention of circumvention of court order by waiver of retired pay to 
        enhance civil service retirement annuity (sec. 637)

      The Senate amendment contained a provision (sec. 636) 
that would provide that a former spouse of a military retiree, 
whose military retired pay is part of a divorce settlement, 
would continue to receive the amount of money directed by court 
order if the military retiree becomes a federal employee and 
waives military retired pay in favor of having military service 
count towards civil service retirement benefits.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
provision prospective, taking effect after January 1, 1997 and 
prohibit back pay or lump sum restitution.

Administration of benefits for so-called minimum income widows (sec. 
        638)

      The House bill contained a provision (sec. 638) that 
would transfer the responsibility for making payments under the 
minimum income widows program to the Department of Defense with 
payments from pension programs for widows of veterans paid by 
the Department of Veterans' Affairs.
      The Senate amendment contained a similar provision (sec. 
635) that would adjust the maximum level of annual income at 
which eligibility for minimum income widows payments end.
      The Senate recedes with an amendment that would combine 
the two provisions.

                       Subtitle E--Other Matters

                     legislative provisions adopted

Discretionary allotment of pay including retired or retainer pay (sec. 
        651)

      The Senate amendment contained a provision (sec. 632) 
that would require the Secretary of Defense to establish 
procedures to allow military retirees a maximum of six retiree 
pay allotments.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Reimbursement for adoption expenses incurred in adoptions through 
        private placements (sec. 652)

      The Senate amendment contained a provision (sec. 641) 
that would extend the authority to reimburse adoption expenses 
to those service members who adopt through private agencies if 
the adoption is supervised by the court.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Waiver of recoupment of amounts withheld for tax purposes from certain 
        separation pay (sec. 653)

      The Senate amendment contained a provision (sec. 642) 
that would for involuntarily separated members, waive the 
recoupment of the amount of separation pay withheld for tax 
purposes if the separation pay is later recouped.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Technical correction clarifying limitation on furnishing clothing or 
        allowances to enlisted National Guard technicians (sec. 654)

      The House bill contained a provision (sec. 652) that 
would clarify the circumstances under which uniforms could be 
furnished to enlisted National Guard technicians.
      The Senate amendment contained a similar provision (sec. 
1103).
      The conference agreement includes this provision.

Technical correction to prior authority for payment of back pay to 
        certain persons (sec. 655)

      The House bill contained a provision (sec. 636) that 
would make a technical correction to section 634 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106) to clarify the level of compensation to be paid to 
certain veterans.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Compensation for persons awarded prisoner of war medal who did not 
        previously receive compensation as a prisoner of war (sec. 656)

      The House bill contained a provision (sec. 1036) that 
would require the secretaries of the military departments to 
pay subsistence and other allowances authorized to be paid to 
prisoners of war interned by a government of a nation with 
which the United States has been at war to former service 
members who were awarded the Prisoner of War Medal as a result 
of being interned by a nation with which the United States was 
not at war.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Payments to certain persons captured and interned by North Vietnam 
        (sec. 657)

      The Senate amendment contained a provision (sec. 643) 
that would authorize a payment of $40,000 to a person, or the 
survivor of a person, who demonstrates that he or she served as 
a Vietnamese operative pursuant to OPLAN 34A, was captured, and 
remained in captivity after 1973, and has not received any 
payment for the period spent in captivity.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: increase 
the payment to $50,000 for those persons who can demonstrate 
that they spent more than 20 years in prison; include persons 
who served in Laos pursuant to OPLAN 35; limit disbursement 
only to locations in the United States or its territories, or 
in a manner prescribed by the person eligible for the payment; 
and make the authorization subject to appropriation.

                   legislative provisions not adopted

Temporary lodging expenses of member in connection with first permanent 
        change of station

      The House bill contained a provision (sec. 621) that 
would authorize service members traveling to their first 
permanent duty station to receive a temporary lodging expense 
allowance.
      The Senate amendment contained no similar provision.
      The House recedes.

Annuities for certain military surviving spouses

      The Senate amendment contained a provision (sec. 634) 
that would require the Secretary of Defense to pay an annuity 
to the surviving spouses of retired service members who died 
before March 21, 1974.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title VII--Health Care Provisions

                       items of special interest

Programs for hospital and health facilities medical management in the 
        Department of Defense

      The conferees are concerned that the medical facilities 
of the Department of the Army, the Department of the Air Force 
and the Department of the Navy may not be implementing cost-
containment programs similar to those in the private sector. 
The conferees note that private sector medical facilities have 
developed and are using such programs for equipment maintenance 
management, equipment and utilization tracking, quality 
outcomes benchmarks and protocols and clinical pathways for 
both managing care and for reporting results.
      The conferees urge the Secretary of Defense to establish 
a program comparable to those in use in the private sector to 
measure the performance of military facilities. The conferees 
suggest that such a program be initially established in several 
large military medical facilities (500 bed facilities) and 
later expanded to all medical facilities as the program 
matures. The conferees direct the Secretary to submit a report 
on the progress of this effort not later April 15, 1997 to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives.

                         legislative provisions

                    Subtitle A--Health Care Services

                     legislative provisions adopted

Preventive health care screening for colon and prostate cancer (sec. 
        701)

      The House bill contained a provision (sec. 702) that 
would establish that male members and former members of the 
uniformed services are entitled to preventative health care 
screening for colon and prostate cancer.
      The Senate amendment contained a similar provision (sec. 
710) which also would add colon cancer screening to the 
preventative health care services available to female members 
and former members.
      The Senate recedes with a clarifying amendment.

Implementation of requirement for Selected Reserve dental insurance 
        plan (sec. 702)

      The Senate amendment contained a provision (sec. 701) 
that would extend the implementation date of the selected 
reserve dental insurance program from October 1, 1996 into 
fiscal year 1997 and stipulate a full and open competition for 
the award of the contract or contracts.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      Though this section would extend the implementation date 
for the reserve dental insurance program, the conferees are 
disappointed that a Request For Proposal has not yet been 
issued. The conferees urge the Department to proceed 
expeditiously with procurement of a contract for reserve dental 
care.

Dental insurance plan for military retirees and unremarried surviving 
        spouses and certain other dependents of military retirees (sec. 
        703)

      The Senate amendment contained a provision (sec. 702) 
that would establish a dental insurance plan for military 
retirees and certain dependents. The program, which would be 
available to eligible beneficiaries not later than October 1, 
1997, would be based on voluntary enrollment and would require 
premiums to be paid by the participants.
      The House bill contained no similar provision.
      The House recedes with an amendment that would prohibit 
discretionary premium sharing by the Secretary of Defense.

Plan for health care coverage for children with medical conditions 
        caused by parental exposure to chemical munitions while serving 
        as members of the armed forces (sec. 704)

       The Senate amendment contained a provision (sec. 709) 
that would authorize 10.0 million dollars to be available for 
research on the possible causal relationship between ``Gulf War 
Syndrome'' and exposure to chemical agents and hazardous 
materials during military service in the Persian Gulf. The 
provision would also establish medical and dental benefits for 
children of Gulf War veterans who are born with congenital 
defects and illnesses. The provision would waive the CHAMPUS 
fees, deductibles, and copayments for children entitled to care 
under this section.
      The House bill contained no similar provision.
      The House recedes with an amendment that would eliminate 
the entitlement to health care for the children of those who 
are no longer eligible for health care within the Military 
Health Care System. Additionally, the amendment would require 
the Secretary of Defense, in coordination with the Secretary of 
Veterans Affairs, to develop a plan for ensuring that children 
who have a congenital defect or catastrophic illness, proven to 
a reasonable degree of scientific certainty to have resulted 
from exposure of the service member to a chemical warfare agent 
or other hazardous material during military service, are 
provided medical care.
      Since the end of the Persian Gulf War, over 17,000 
veterans have reported suffering from a wide range of symptoms 
collectively referred to as ``Gulf War Syndrome.'' Some of 
these veterans believe their illnesses may be the result of 
exposure to chemical warfare agents.
      The conferees are concerned that exposure to chemical 
warfare agents may be a causal factor of the Gulf War Syndrome 
and congenital birth defects or catastrophic illness among 
children born to service members who served in the Gulf War, 
particularly in light of the Department of Defense's recent 
disclosure that some Persian Gulf War veterans may have been 
exposed to chemical agents during the war.
      As a result, the conferees believe the Department of 
Defense should expeditiously arrange for independent research 
to determine whether exposure to low levels of chemical warfare 
agents could have caused the symptoms associated with Gulf War 
Syndrome. Furthermore, the conferees believe the Department 
should study the possible health implications of administering 
a ``cocktail mix'' of inoculations and using investigational 
new drugs, as was done during the Persian Gulf deployment. The 
Department of Defense has a responsibility to current military 
members, former members, and their children, to invesigate 
fully any possible links between exposure to chemical agents or 
the use of combined inoculations and illnesses suffered by 
these members or their offspring.

                      Subtitle B--TRICARE Program

                     legislative provisions adopted

CHAMPUS payment limits for TRICARE Prime enrollees (sec. 711)

      The House bill contained a provision (sec. 712) that 
would permit health care providers who are not participating in 
the TRICARE network to be paid higher amounts than now 
permitted in certain limited circumstances in which they 
provide care to TRICARE Prime enrollees.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Improved information exchange between military treatment facilities and 
        TRICARE Program contractors (sec. 712)

      The House bill contained a provision (sec. 713) that 
would require the Secretary of Defense to field a uniform 
version of the Composite Health Care System (CHCS) throughout 
the military health services system.
      The Senate amendment contained a similar provision (sec. 
703).
      The Senate recedes with an amendment that would include a 
definition of the Department of Defense managed-care program.

Plans for Medicare subvention demonstration programs (sec. 713)

      The Senate amendment contained a provision (sec. 708) 
that would require the Secretary of Defense and the Secretary 
of Health and Human Services to devise and submit to the 
Congress a plan for the implementation of a demonstration 
program under which the Department of Defense would be 
reimbursed by Medicare for medical care provided to Medicare-
eligible beneficiaries in military medical facilities. The 
provision would also require the Secretary of Defense to 
conduct a study of the feasibility and advisability of 
providing fee-for-service reimbursement and would also 
authorize $75.0 million for a Medicare subvention demonstration 
program, should one be authorized in the 104th Congress.
      The House bill contained no similar provision.
      The House recedes with an amendment that would eliminate 
the authorization for funding.

          Subtitle C--Uniformed Services Treatment Facilities

                     legislative provisions adopted

Definitions (sec. 721)

      The House bill contained a prevision (sec. 721) that 
would define various terms pertaining to the Uniformed Services 
Treatment Facilities.
      The Senate amendment contained an identical provision 
(sec. 721).
      The conference agreement includes this provision.

Inclusion of designated providers in uniformed services health care 
        delivery system (sec. 722)

      The House bill contained a provision (sec. 722) that 
would provide for the inclusion of the Uniformed Services 
Treatment Facilities (USTFs) in the health care delivery system 
of the uniformed services and would establish the terms under 
which the USTFs would become designated providers of managed 
health care services to military beneficiaries.
      The Senate amendment contained a similar provision (sec. 
722).
      The conference agreement includes this provision.

Provision of uniform benefit by designated providers (sec. 723)

      The House bill contained a provision (sec. 723) that 
would require the designated providers to implement the TRICARE 
uniform benefit, including the uniform cost-sharing 
requirements, upon implementation of TRICARE in the designated 
provider's region or October 1, 1997, whichever date is later.
      The Senate amendment contained a similar provision (sec. 
723) which would require the implementation of the uniform 
benefit either on the date of implementation of the TRICARE 
program in the designated provider's region or October 1, 1996, 
whichever is later.
      The Senate recedes.

Enrollment of covered beneficiaries (sec. 724)

      The House bill contained a provision (sec. 724) that 
would establish several controls on the number of beneficiaries 
enrolled in managed care programs of designated providers. The 
provision also would prohibit the disenrollment of current 
participants, except in certain cases, and would establish 
additional enrollment criteria for designated providers.
      The Senate amendment contained an identical provision 
(sec. 724).
      The conference agreement includes this provision.

Application of CHAMPUS payment rules (sec. 725)

      The House bill contained a provision (sec. 725) that 
would clarify that the Civilian Health and Medical Care Program 
of the Uniformed Services (CHAMPUS) rules may apply in 
situations when the health care provided to military 
beneficiaries is not provided outside the Uniformed Services 
Treatment Facility's catchment area.
      The Senate amendment contained an identical provision 
(sec. 725).
      The conference agreement includes this provision.

Payments for services (sec. 726)

      The House bill contained a provision (sec. 726) that 
would require the payments made to designated providers to be 
full-risk capitation based on the utilization experience of 
enrollees and competitive market rates for equivalent health 
care services. It also would limit payments to a designated 
provider to no more than the government would pay if enrollees 
received their care through the TRICARE program or through 
Medicare.
      The Senate amendment contained an identical provision 
(sec. 726).
      The conference agreement includes this provision.

Repeal of superseded authorities (sec. 727)

      The House bill contained a provision (sec. 727) that 
would repeal previous Uniformed Services Treatment Facility's 
(USTFs) legislative provisions, effective October 1, 1997, the 
date on which the USTFs would become ``designated providers'' 
under the TRICARE program.
      The Senate amendment contained a similar provision (sec. 
727).
      The Senate recedes with a clarifying amendment.

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

                     legislative provisions adopted

Authority to waive CHAMPUS exclusion regarding nonmedically necessary 
        treatment in connection with certain clinical trials (sec. 731)

      The House bill contained a provision (sec. 731) that 
would permit the Secretary of Defense, pursuant to an agreement 
with the Secretary of Health and Human Services, to waive the 
exclusion of non-medically necessary treatment with respect to 
clinical trials sponsored or approved by the National 
Institutes of Health.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Exception to maximum allowable payments to individual health-care 
        providers under CHAMPUS (sec. 732)

      The House bill contained a provision (sec. 733) that 
would provide the Secretary of Defense the authority to 
authorize the commander of a military treatment facility, a 
TRICARE lead agent, or a civilian, at-risk health care 
contractor to modify the CHAMPUS payment limitations to ensure 
the availability of care for military beneficiaries.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Codification of annual authority to credit CHAMPUS refunds to current 
        year appropriation (sec. 733)

      The House bill contained a provision (sec. 734) that 
would make permanent the authority that allows the Civilian 
Health and Medical Program of the Uniformed Services (CHAMPUS) 
to credit refunds and similar collections to the current-year 
appropriations and thus be available to pay current-year 
obligations.
      The Senate amendment contained a similar provision (sec. 
705).
      The conference agreement includes this provision.

Exceptions to requirements regarding obtaining nonavailability-of-
        health-care statements (sec. 734)

      The House bill contained a provision (sec. 735) that 
would prohibit the requirement for non-availability statements 
for outpatient services for military beneficiaries who chose 
the TRICARE Standard (fee-for-service) option.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Enhancement of third-party collection and secondary payer authorities 
        under CHAMPUS (sec. 735)

      The House bill contained a provision (sec. 736) that 
would refine the Third Party Collection Program under which 
military medical facilities collect from third party payers for 
health care services provided to beneficiaries who have 
additional coverage by a third-party plan or the CHAMPUS Double 
Coverage Program.
      The Senate amendment contained a similar provision (sec. 
704).
      The conference agreement includes this provision.

                       Subtitle E--Other Matters

                     legislative provisions adopted

Alternatives to active duty service obligation under Armed Forces 
        Health Professions Scholarship and Financial Assistance Program 
        and Uniformed Services University of the Health Sciences (sec. 
        741)

      The House bill contained a provision (sec. 741) that 
would establish four alternative obligations for members of the 
Health Professions Scholarship and Financial Assistance Program 
who do not, or cannot, complete their active-duty service 
obligations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would establish 
that the alternatives be: (1) service in another armed force 
for a period of time not less than the remaining obligation; 
(2) service in a reserve component assignment of a duration 
twice as long as the remaining active-duty obligation; or (3) 
repayment of a percentage of the total cost incurred by the 
Department under the program equal to the percentage of the 
member's total active-duty service obligation being relieved, 
plus interest. The provision would also establish that members 
relieved of an active duty service obligation due to a physical 
disability may fulfill the obligation as a health professional 
civil service employee in a facility of the uniformed services.

External peer review for Defense Health Program extramural medical 
        research involving human subjects (sec. 742)

      The conferees recommend a provision that would establish 
that research projects that involve human subjects, that are 
conducted solely by a non-Federal entity, and are funded 
through the Defense Health Program (DHP), would be required to 
undergo a peer review process, established by the Secretary of 
Defense, to ensure the precept of basic scientific merit and 
the protection of subjects before DHP funds be obligated or 
expended.

Comptroller General review of health care activities of the Department 
        of Defense relating to Gulf War illnesses (sec. 744)

      The Senate amendment contained a provision (sec. 706) 
that would require the Comptroller General to conduct several 
reviews related to Persian Gulf Illnesses.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Report regarding specialized treatment facility program (sec. 745)

      The House bill contained a provision (sec. 745) that 
would require the Secretary of Defense to provide Congress with 
a report on the impact of reducing the catchment areas for 
specialized treatment facilities from 200 miles to 100 miles.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Study of means of ensuring uniformity in provision of medical and 
        dental care for members of reserve components (sec. 746)

      The House bill contained a provision (sec. 701) that 
would define the entitlement to medical and dental care for 
reserve component members in a specific military duty status.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to conduct a review of the provision 
of medical and dental care to members of the reserve components 
on active duty, including active duty for training and annual 
duty training, members on inactive duty training, and members 
on full-time National Guard duty. The report should include 
recommendations for a comprehensive plan for ensuring that the 
medical treatment, active-duty entitlements, and consideration 
for disability evaluation available to reserve component 
members is sufficient and in parity with that provided to 
members of the active component.

Sense of Congress regarding tax treatment of Armed Forces Health 
        Professions Scholarship and Financial Assistance Program (sec. 
        747)

      The House bill contained a provision (sec. 744) that 
would express the sense of Congress that the Secretary of 
Defense should continue to work with the Secretary of the 
Treasury to seek relief from the taxable status of tuition and 
related expenses as taxable income subject to withholdings.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees, recognizing the extraordinary benefit to 
the Armed Services, believe that tuition and related expenses 
provided under the Armed Forces Health Professions Scholarship 
Program or the Financial Assistance Program should not be 
considered taxable income. The current situation is the result 
of an Internal Revenue Service ruling which reversed 
longstanding practice that payments under these programs were 
not considered taxable income. The conferees believe that the 
President can and should direct the Internal Revenue Service to 
reverse the current ruling and return to the previous policy. 
Further, the conferees believe that any action to collect taxes 
from those personnel who participated in the Armed Forces 
Health Professions Scholarship Program or the Financial 
Assistance Program while the previous policy was in effect 
should be terminated.

                   legislative provisions not adopted

Definition of TRICARE Program

      The House bill contained a provision (sec. 711) that 
would define the managed-care program of the Department of 
Defense known as TRICARE.
      The Senate amendment contained no similar provision.
      The House recedes.

Authority to waive or reduce CHAMPUS deductible amounts for reservist 
        called to active duty in support of contingency operations

      The House bill contained a provision (sec. 732) that 
would provide the Secretary of Defense the authority to waive 
or reduce CHAMPUS deductible amounts in the case of the 
dependents of a member of a reserve component of the uniformed 
services who is on active duty under a call or order to active 
duty of less than one year.
      The Senate amendment contained no similar provision.
      The House recedes.

Restoration of previous policy regarding restrictions on use of 
        Department of Defense Medical Facilities

      The Senate amendment contained a provision (sec. 707) 
that would repeal the restriction on the use of Department of 
Defense funds to perform abortions in overseas medical 
facilities.
      The House bill contained no similar provision.
      The Senate recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                         LEGISLATIVE PROVISIONS

                   Subtitle A--Acquisition Management

                     LEGISLATIVE PROVISIONS ADOPTED

Procurement technical assistance programs (sec. 801)

      The Senate amendment contained a provision (sec. 801) 
that would provide an increase of $12.0 million to continue the 
procurement technical assistance center program in fiscal year 
1997.
      The House bill contained an increase of $8.0 million for 
the continuation of this program with no legislative language.
      The House recedes. The conferees believe that the 
Department of Defense should continue to administer this 
program and urge the Secretary of Defense to continue to 
utilize the infrastructure of the procurement technical 
assistance centers to support the implementation of acquisition 
streamlining initiatives in the Federal Acquisition 
Streamlining Act of 1994 such as electric commerce.

Extension of pilot Mentor-Protege program (sec. 802)

      The Senate amendment contained a provision (sec. 802) 
that would extend the period in which mentor firms under the 
Mentor-Protege program may incur costs for furnishing 
developmental assistance under the program until September 30, 
1999. The provision would also extend the period during which 
new agreements can be entered into until September 30, 1998.
      The House bill contained a provision (sec. 808) that 
would extend the pilot Mentor-Protege program through fiscal 
year 1997.
      The House recedes.

Authority to waive certain requirements for defense acquisition pilot 
        programs (sec. 803)

      The House bill contained a provision (sec. 801) that 
would expand existing authorities provided to the Secretary of 
Defense to waive or modify certain acquisition laws in 
executing programs designated as defense acquisition pilot 
programs.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Modification of authority to carry out certain prototype projects (sec. 
        804)

      The House bill contained a provision (sec. 804) that 
would reauthorize the authority provided by section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160) to allow additional flexibility in the acquisition 
of prototype technologies and systems. The provision would also 
expand this authority to the military services.
      The Senate amendment contained a similar provision (sec. 
803).
      The Senate recedes.

Increase in threshold amounts for major systems (sec. 805)

      The House bill contained a provision (sec. 804) that 
would update the existing statutory dollar amount threshold for 
the definition of ``major systems'' to fiscal year 1990 
constant dollars from fiscal year 1980 dollars. It would also 
allow the Secretary of Defense to further adjust this threshold 
for inflation after notification to the congressional defense 
committees. These changes would conform the definition for 
``major systems'' to that used for ``major defense acquisition 
program'' in title 10, United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying that any 
subsequent adjustment in the threshold should be rounded to the 
nearest $5.0 million.

Revision in information required to be included in Selected Acquisition 
        Reports (sec. 806)

      The House bill contained a provision (sec. 805) that 
would adjust and improve the terminology and references used in 
the acquisition reporting process of major defense acquisition 
programs. The provision would add ``procurement unit cost'' as 
an additional reporting element of the Selected Acquisition 
Report to provide a more meaningful measure of recurring unit 
cost. The provision would also eliminate the reporting element 
for completion status for a program because, as currently 
defined, it provides statistical measures of only marginal 
utility for program oversight.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Increase in simplified acquisition threshold for humanitarian or 
        peacekeeping operations (sec. 807)

      The House bill contained a provision (sec. 806) that 
would expand the current authority that doubles the simplified 
acquisition threshold, for purchases made outside of the United 
States in support of a contingency operation, to cover 
humanitarian and peacekeeping operations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would expand 
the authority to all Federal agencies.

Expansion of audit reciprocity among Federal agencies to include post-
        award audits (sec. 808)

      The House bill contained a provision (sec. 807) that 
would expand current statutory authorities in two ways in order 
to reduce administrative burdens and duplication of efforts by 
different governmental entities. First, it would extend audit 
reciprocity considerations to post-award audit to expedite the 
contract closeout process and the issuance of final contract 
payments. Second, it would require the Office of Management and 
Budget to issue guidance to ensure that State and local 
entities accept cognizant Federal agency audits in order to 
minimize duplication of effort and reduce cost for contractors 
engaged in contracting at various levels of government.
      The Senate amendment contained no similar provision.
      The Senate recedes. The conferees expect that guidance 
implementing this provision will provide that a contracting 
officer consult, as necessary, with the available resident 
audit authority in making a determination that the objectives 
of indirect cost audit can be met by accepting the results of a 
prior audit.

Compensation of certain contractor personnel prohibited (sec. 809)

      The Senate amendment contained a provision (sec. 1076) 
that would modify the statutory cost principles to limit annual 
reimbursement of individual compensation to $200,000.
      The House bill contained no similar provision.
      The House recedes with an amendment raising the 
individual compensation limit to $250,000 and modifying such 
limitation to apply only in fiscal year 1997. The conferees 
have also limited the restriction to officers of the firm to be 
defined in regulation. The conferees intend this term to 
include individuals in senior management positions with 
responsibility for the management of a firm or a major segment 
thereof.
      The conferees also agree to language clarifying the 
definition of compensation for the purposes of this limitation. 
In this definition, compensation is defined as wages and 
elective deferred compensation. Further, the conferees intend 
for this provision to be applied in a manner that results in 
the $250,000 compensation limit being the aggregate total limit 
that any one individual may submit for reimbursement. The 
conferees acknowledge the difficulty of determining a general 
policy for the treatment of deferred compensation under a cost 
reimbursement limitation of this nature.
      The conferees intend this provision to be an interim 
approach pending the development and consideration of a 
permanent change to the statutory cost principles. The 
conferees have included a provision requiring the Administrator 
of the Office of Federal Procurement Policy, in consultation 
with the Secretary of the Treasury and the Secretary of 
Defense, to provide to Congress no later than March 1, 1997, a 
legislative proposal to address, in an equitable and clear 
fashion, the limitation of reimbursement of individual 
compensation under government contracts. The proposal shall 
include a definition of compensation, including the treatment 
of deferred compensation, to be covered by such limitation as 
may be proposed. In developing such legislative proposal, the 
Administrator shall make every effort to develop an approach 
that allows contractors to avoid using internal tracking 
procedures other than those currently used for the purposes of 
complying with accepted accounting practices and current tax 
law.

Exception to prohibition on procurement of foreign goods (sec. 810)

      The House bill contained a provision (sec. 831) that 
would delay the expiration of the current statutory domestic 
source restriction for valves and machine tools from October 1, 
1996 to October 1, 2001.
      The Senate amendment contained a provision (sec. 806) 
that would amend section 2534 of title 10, United States Code, 
by providing additional authority for the Secretary of Defense 
to waive limitations on the procurement of goods other than 
United States goods. The amendment would authorize the 
Secretary to waive a limitation in a case where he determines 
that the application of the limitation would impede the 
reciprocal procurement of defense items under a memorandum of 
understanding entered into under section 2531 of title 10, 
United States Code.
      The House recedes.
      The conferees note that the Defense Federal Acquisition 
Regulation Supplement interprets the domestic source limitation 
in section 2534(a)(5) of title 10, United States Code, for ball 
bearings and roller bearings ``in accordance with subpart 
225.71 of part 225 of the Defense Federal Acquisition 
Regulation Supplement, as in effect on October 23, 1992'' as 
allowing only those waivers that were included in the cited 
DFARS subpart, rather than the general waivers in section 
2534(d) of title 10, United States Code, to be applied to the 
domestic source restrictions for ball and roller bearings. The 
conferees do not intend the new provision to have any effect on 
the Department's interpretation.

                       Subtitle B--Other Matters

                     legislative provisions adopted

Prohibition on release of contractor proposals under Freedom of 
        Information Act (sec. 821)

      The House bill contained a provision (sec. 822) that 
would exempt contractor proposals provided to the Federal 
government from release under the Freedom of Information Act 
(Public Law 89-554). This provision is intended to allow 
Federal agencies to dispense with the lengthy line-by-line 
reviews that are currently required to arrive at the non-
disclosure determination for this material. This provision is 
not intended to affect information available to be placed under 
a General Accounting Office protective order pursuant to 
section 3553(f) of title 31, United States Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment clarifying the 
status of those portions of contractor proposals included in a 
government contract.

Amendments relating to reports on procurement regulatory activity (sec. 
        822)

      The House bill contained a provision (sec. 824) that 
would repeal the requirement for the Administrator for Federal 
Procurement Policy to publish a semiannual regulatory activity 
report on procurement regulations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
semiannual reporting requirement an annual requirement and 
modify the required content of the report.

Amendment of multi-year limitation on contracts for inspection, 
        maintenance, and repair (sec. 823)

      The House bill contained a provision (sec. 825) that 
would repeal the current statutory limitation on multi-year 
contracts for inspection, maintenance, and repair functions 
thereby enabling the multi-year policy provisions of the 
Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355) to govern such contracts.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment extending the 
limitation period to not more than five years, vice three 
years.

Streamlined notice requirements to contractors and employees regarding 
        termination or substantial reductions in contracts under major 
        defense programs (sec. 824)

      The House bill contained a provision (sec. 826) that 
would streamline and simplify the notification process 
resulting from termination or substantial reduction in defense 
contract funding required by the Defense Conversion, 
Reinvestment, and Transition Assistance Act of 1992 (Division D 
of Public Law 102-484). This provision would modify the 
notification process to occur upon actual contract termination 
or substantial reduction rather than prematurely during the 
budget process as currently required.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Repeal of notice requirements for substantially or seriously affected 
        parties in downsizing efforts (sec. 825)

      The House bill contained a provision (sec. 827) that 
would repeal the requirement for the Secretary of Defense to 
notify Federal, state, county, local and labor officials if the 
President's annual budget submission, or long-term guidance 
documents, or public announcements of base or facility closures 
or realignments, or cancellation or curtailment of a major 
contract will affect them seriously and substantially.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Study of effectiveness of defense mergers (sec. 826)

      The House bill contained a provision (sec. 833) that 
would require a study conducted by the Secretary of Defense on 
the effect of defense mergers and acquisitions in the defense 
sector. The study would address the effectiveness of defense 
mergers and acquisitions in eliminating excess capacity within 
the defense industry, the degree of change in the dependence of 
defense contractors on defense-related Federal contracts after 
mergers, and the effect on defense industry employment 
resulting from defense mergers and acquisitions.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment adding the effect on 
competition for defense contracts as a matter to be addressed.

Annual report relating to Buy American Act (sec. 827)

      The House bill contained a provision (sec. 1053) that 
would require the Secretary of Defense to submit an annual 
report on the amount of purchases by the Department of Defense 
from foreign entities in that fiscal year. The report would 
also include the dollar value of items for which the Buy 
American Act of 1933 (41 U.S.C. 10) was waived.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment extending the date 
the report is required to be submitted to 120 days after the 
end of the fiscal year.

Foreign environmental technology (sec. 828)

      The Senate amendment contained a provision (sec. 3165) 
that would allow the Secretary of Energy to waive the 
prohibition under section 2536(b) of title 10, United States 
Code, on award of certain Department of Defense and Department 
of Energy contracts to companies owned by an entity controlled 
by a foreign government. The provision would authorize the 
waiver if the Secretary of Energy determines that it is 
essential to the national security or advances the 
environmental restoration objectives of the Department, without 
harm to the national security interests of the United States. 
Moreover, the waiver only applies if the entity is controlled 
by a foreign government with which the Secretary is authorized 
to exchange restricted data under section 144(c) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2164(c)).
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
waiver authority to the Secretary of Defense.
      The conferees direct the Secretary of Defense to provide 
a report to the congressional defense committees on whether the 
standards identified in this new waiver authority should be 
modified or expanded.

Assessment of national defense technology and industrial base and 
        dependency of base on supplies available only from foreign 
        countries (sec. 829)

      The Senate amendment contained a provision (sec. 804) 
that would substantially amend the requirements in chapter 148 
of title 10, United States Code, for analysis, assessment and 
planning concerning the national technology and industrial 
base. The amendments would clarify that the Secretary of 
Defense has responsibility for preparing periodic and selected 
assessments of the capability of the national technology and 
industrial base to attain the national security objectives 
outlined in section 2501(a) of title 10, United States Code. 
The provision would also establish a requirement that the 
Secretary prepare and submit to Congress an annual report 
describing the assessment and analyses used to identify and 
address concerns about national technology and industrial base 
capabilities as well as each program in the annual budget 
request designed to sustain such capabilities.
      The House bill contained a provision (sec. 829) that 
would direct the Department of Defense to conduct an assessment 
of the degree of dependency on foreign sources for key 
components of defense systems.
      The House recedes with an amendment that would require 
foreign dependency risk assessments be included as part of the 
periodic selected industrial base assessments conducted by the 
Secretary of Defense. In assessing whether a case of foreign 
dependency constitutes an unacceptable risk, the Secretary 
should take into consideration the overall degree of dependence 
by the national technology and industrial base on the item or 
supply in question, the production or development risks that 
could result from the disruption of access to such item or 
supply, and the programs and initiatives in place to reduce 
dependence on such item or supply.

Expansion of report on implementation of automated information systems 
        to include additional matters regarding information resources 
        management (sec. 830)

      The Senate amendment contained a provision (sec. 809) 
that would require the Secretary of Defense to report to 
Congress on the establishment of the integrated management 
framework for the implementation of the Information Technology 
Management Reform Act of 1996 (division E of Public Law 104-
106) and to provide the Department's overall strategic 
information resources management plan.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make 
technical and clarifying changes and that would break out the 
section of the provision concerning the ``year 2000 issue'' 
into a separate provision discussed elsewhere in this report.

Year 2000 software conversion (sec. 831)

      The Senate amendment contained a provision (sec. 809(b)) 
that addressed the potential problem of converting date fields 
in software code an embedded systems in the year 2000 and 
directed the Department of Defense (DOD) to assess the risk to 
DOD information systems, and report to Congress on the 
resources necessary to complete conversion by the year 2000. 
The Senate amendment also directed the Secretary of Defense to 
ensure that after September 30, 1996 all information technology 
purchased by the Department will operate in the year 2000 
without technical modifications.
      The House had no similar provision.
      The House recedes with a clarifying amendment. The 
conferees agree it is critical for the Department to address 
immediately the matter of ``year 2000 compliance'', and to 
ensure to the greatest extent practicable that prospective 
acquisitions do not include products that are non-compliant. 
While DOD contracting personnel are authorized to consider and 
accept offers for non-compliant products, this authority should 
be conditioned on the offerors providing and committing to a 
timetable whereby products sold to the government after 
September 30, 1996 will be ``year 2000 compliant'', or will be 
modified to achieve ``year 2000 compliance'' with minimal cost 
to the government.

Procurement from firms in industrial base for production of small arms 
        (sec. 832)

      The Senate amendment contained a provision (sec. 805) 
that would authorize the Secretary of Defense to require that 
any procurement of property or services associated with repair 
parts for small arms, or modifications of parts to improve 
small arms used by the armed forces, be made only from a firm 
in the small arms industrial base. The small arms industrial 
base would include those firms described in the plan entitled 
``Preservation of Critical Elements of the Small Arms 
Industrial Base,'' dated January 8, 1994, that was prepared by 
the Army Science Board.
      The House bill contained no similar provision.
      The House recedes with an amendment.
      The conferees support the findings in Army Science Board 
study referred to in the Senate report (S. Rept. 104-267) and 
include a legislative provision (sec. 832) that authorizes the 
Secretary of Defense to limit procurement of small arms repair 
parts and modification of parts to those firms identified in 
the study which comprise the small arms production industrial 
base.

Cable television franchise agreements (sec. 833)

      The House bill contained a provision (sec. 833) that 
would express the sense of Congress that the United States 
Court of Federal Claims should transmit a report to Congress as 
specified in section 823 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106) by the date 
specified in that section.
      The Senate amendment contained a provision (sec. 807) 
that would require that cable television franchise agreements 
with the Department of Defense be considered as a contract for 
telecommunications services for purposes of part 49 of the 
Federal Acquisition Regulation (FAR) if the court sustained 
that position in its report to Congress.
      The House recedes with an amendment. Section 823 of the 
National Defense Authorization for Fiscal Year 1996 (Public Law 
104-106) required the United States Court of Federal Claims to 
render and transmit to Congress an advisory opinion on whether 
the executive branch is empowered to treat cable television 
franchise agreements as contracts under the FAR without 
violating title VI of the Cable Act (47 U.S.C. 521 et seq.) 
and, if so, whether the executive branch is required by law to 
treat such agreements as contracts. The court transmitted its 
advisory opinion to Congress on July 15, 1996. The court found 
that, as a matter of law, cable television franchise agreements 
are contracts subject to part 49 of the FAR. The conferees 
agree to a provision which reflects the opinion of the court.
      The conferees do not intend that this section should in 
any way interfere with arrangements between cable television 
operators on military bases that have closed and the public or 
private parties that have taken possession of these base 
properties after closure.

                   legislative provisions not adopted

Exclusion from certain post-education duty assignments for members of 
        the acquisition corps

      The House bill contained a provision (sec. 802) that 
would authorize the Secretary of Defense to exclude from the 
mandatory joint duty requirement military members of the 
acquisition corps who have graduated from the senior 
acquisition course at the Industrial College of the Armed 
Forces (ICAF).
      The Senate amendment contained no similar provision.
      The House recedes.

Implementation of information technology management reform

      The House bill contained a provision (sec. 821) that 
would expand the definition of national security systems items 
exempt from the application of the centralized management 
provisions of the Information Technology Management Reform Act 
of 1996 (Division E of Public Law 104-106) to include all 
classified systems.
      The Senate amendment contained a provision (sec. 1081) 
that would limit the definition of national security systems 
items exempt from the application of the centralized management 
provisions of the Information Technology Management Reform Act 
of 1996.
      The House and Senate recede from their respective 
provisions.

Repeal of annual report by advocate for competition

      The House bill contained a provision (sec. 823) that 
would repeal the requirement for agency competition advocates 
to submit an annual report to agency senior procurement 
executives.
      The Senate amendment contained no similar provision.
      The House recedes.

Testing of defense acquisition programs

      The House bill contained a provision (sec. 828) that 
would modify existing statutes governing live fire testing of 
major defense systems.
      The Senate amendment contained no similar provision.
      The House recedes.

Remedies for reprisal against contractor whistleblowers

      The Senate amendment contained a provision (sec. 808) 
that would modify the remedies in current law available to a 
contractor employee who is wrongfully terminated because he 
reported wrongdoing. The amendment would also allow for the 
payment of back pay and other compensation in the event the 
employee is not reinstated.
      The House bill contained no similar provision.
      The Senate recedes.

      Title IX--Department of Defense Organization and Management

                         legislative provisions

                      Subtitle A--General Matters

                     legislative provisions adopted

Repeal of reorganization of Office of Secretary of Defense (secs. 901 
        and 903)

      The House bill contained a provision (sec. 902) that 
would clarify that the 25 percent, five year reduction in 
personnel assigned to the Office of the Secretary of Defense 
required by section 901 of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106) must be 
implemented on an annual basis.
      The Senate amendment contained a provision (sec. 901) 
that would repeal sections 901 and 903 of the National Defense 
Authorization Act for Fiscal Year 1996 which directed the 
reorganization of the Office of the Secretary of Defense.
      The House recedes with an amendment that would retain 
section 901 of the National Defense Authorization Act for 
Fiscal Year 1996 and include the annual reductions required by 
section 901 of the House bill.
      The conferees note that section 901 required the 
Secretary of Defense to conduct a review of the organization 
and functions of the Office of the Secretary of Defense and to 
submit a report not later than March 1, 1996. The Secretary has 
failed to comply with this statutory requirement. The conferees 
direct the Secretary to complete the review and to submit the 
required report immediately.
      The conferees agreed to strike the repeal of the 
statutory basis for certain Presidential appointment positions. 
The conferees expect that the Secretary will include in the 
review of the organization and functions a zero-based review of 
the structure of the Office of the Secretary of Defense, and 
propose legislative changes, as necessary, if there is a 
recommendation to eliminate any of the current statutorily-
required positions.

Additional required reduction in defense acquisition workforce (sec. 
        902)

      The House bill contained a provision (sec. 901) that 
would require a reduction in the number of personnel assigned 
to defense acquisition organizations of 25,000 during fiscal 
year 1997.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment limiting the number 
of required reductions to 15,000 in fiscal year 1997 and 
clarifying that the reductions are required to be made in 
numbers of acquisition personnel rather than in acquisition 
positions. The conferees agree that the impact of the 
reductions required to date in this specific category should be 
properly and fully assessed prior to the consideration of 
further cuts of such magnitude.

Report on military department headquarters staffs (sec. 904)

      The House bill contained a provision (sec. 903) that 
would require the Secretary of Defense to conduct a 
comprehensive assessment on the management and functional 
responsibilities of the offices of the military department 
secretaries and chiefs of staff.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Matters to be considered in next assessment of current missions, 
        responsibilities, and force structure of the unified combatant 
        commands (sec. 905)

      The Senate amendment contained a provision (sec. 907) 
that would direct the Chairman of the Joint Chiefs of Staff to 
consider various matters (including geographic size, 
population, and threats) as part of the next review by the 
Chairman of the missions, responsibilities, and force structure 
of the unified combatant commands.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Transfer of authority to control transportation systems in time of war 
        (sec. 906)

      The House bill contained a provision (sec. 364) that 
would shift the responsibility for all systems of 
transportation during time of war from the Secretaries of the 
Army and the Air Force to the Secretary of Defense.
      The Senate amendment contained a similar provision (sec. 
904).
      The House recedes.

Codification of requirements relating to continued operation of the 
        Uniformed Services University of the Health Sciences (sec. 907)

      The House bill contained a provision (sec. 743) that 
would restate the directive to the Secretary of Defense to 
budget for ongoing operations at the Uniformed Services 
University of the Health Sciences (USUHS).
      The Senate amendment contained a provision (sec. 902) 
that would codify in title 10, United States Code, those 
portions of the National Defense Authorization Acts for Fiscal 
Years 1995 and 1996 that prohibit the closure of the Uniformed 
Services University of the Health Sciences (USUHS).
      The House recedes.

Joint Requirements Oversight Council (sec. 908)

      The House bill contained a provision (sec. 904) that 
would delay the effective date of the statutory charter for the 
Joint Requirements Oversight Council (JROC) from January 1, 
1997 to January 1, 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend the 
JROC charter to specify that the Secretary of Defense is 
required to provide Congress with analysis and rationale for 
programmatic recommendations that were accepted by the 
Secretary. The amendment would retain the January 1, 1997 
effective date.

Membership of the Ammunition Storage Board (sec. 909)

      The House bill contained a provision (sec. 906) that 
would permit qualified federal civilian employees to serve as 
board members on the Department of Defense ammunition storage 
board.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Removal of Secretary of the Army from membership on the Foreign Trade 
        Zone Board (sec. 910)

      The House bill contained a provision (sec. 905) that 
would repeal the requirement for membership of the Secretary of 
the Army on the Foreign Trade Zone Board.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees encourage the Department of Defense to 
advise the Board on infrastructure improvements and 
environmental evaluations, as appropriate.

Composition of aircraft accident investigation boards (sec. 911)

      The House bill contained a provision (sec. 1033) that 
would require the Secretaries of the military departments to 
appoint a minimum of one representative of the service's safety 
center as a voting member on all aircraft accident 
investigation boards and to appoint a majority of the 
membership of accident investigation boards from units outside 
the chain of command of the unit involved in the mishap.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the requirement that a representative of the service's safety 
center be a member of an investigation board and would 
authorize the Secretary to select other individuals possessing 
knowledge or expertise that might prove useful to those 
conducting the investigation. The amended provision also allows 
the Secretary to waive the requirement to appoint a member or 
members from outside the command if the crash site is remote; 
the need to conduct the investigation is urgent; or the 
aircraft is very unique and limited in number to the extent 
that it is not feasible to locate, within the military 
department, another unit whose personnel have sufficient 
knowledge.

Mission of the White House Communications Agency (sec. 912)

      The House bill contained a provision (sec. 1051) that 
would require the Secretary of Defense to ensure that the 
activities of the White House Communications Agency of the 
Department of Defense are limited to the provision of 
telecommunications support to the President and Vice President 
and related elements such as the National Security Council.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
permit the White House Communications Agency to provide 
services other than telecommunications so long as the 
Department of Defense is reimbursed for the cost of providing 
those services, (2) delay the effective date until October 1, 
1997, and (3) require a series of reports during fiscal year 
1997 on support provided by the White House Communications 
Agency.

                   Subtitle B--Force Structure Review

                     LEGISLATIVE PROVISIONS ADOPTED

Force Structure Review (secs. 921-926)

      The Senate amendment contained a number of provisions 
(secs. 1091-1096) in subtitle G of title 10, referred to as the 
``Armed Forces Force Structure Review Act of 1996.'' This Act 
would require the Secretary of Defense, in consultation with 
the Chairman of the Joint Chiefs of Staff, to conduct a 
Quadrennial Defense Review (QDR) as recommended by the 
Commission on Roles and Missions of the Armed Forces. This 
review would be a complete re-examination of the defense 
strategy, force structure, force modernization plans, budget 
plans, infrastructure, and other elements of the defense 
program and policies with a view toward determining and 
expressing the defense strategy of the United States, and 
establishing a national defense program, as we enter the 21st 
Century.
      In carrying out this review, the Department would examine 
the potential near- and long-term threats to U.S. national 
security including:
            (a) the proliferation of weapons of mass 
        destruction and the means to deliver them;
            (b) conventional threats across a spectrum of 
        conflicts;
            (c) the vulnerability of our information systems 
        and other advanced technologies to non-traditional 
        threats;
            (d) domestic and international terrorism; and
            (e) the potential emergence of a major adversary.
      The Act would also create an independent, non-partisan 
panel of defense experts (to be known as the National Defense 
Panel) that would provide the Secretary of Defense and the 
Congress alternative recommendations regarding the optimal 
force structure required to meet the national security needs of 
the United States. This panel would be appointed by the 
Secretary of Defense after consultation with the Chairmen and 
Ranking Members of the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives.
      The creation of the National Defense Panel is intended to 
help ensure the validity of the process by playing a very 
active role in reviewing and commenting on the QDR from the 
early stages of its development. The Panel is designed to 
provide the Congress, and the Secretary of Defense, with an 
independent review of the national security requirements of the 
United States, including the force structure necessary to meet 
those requirements. This will, hopefully, allow the Congress 
and the Secretary to consider alternative options when making 
decisions affecting the security of the United States.
      Upon completion of the QDR, the Act would require that 
the Chairman of the Joint Chiefs of Staff and the Chairman of 
the National Defense Panel prepare and submit to the Secretary 
of Defense, for inclusion in the Secretary's report to the 
Congress, their assessment of the QDR. The Secretary's report 
would also include a comprehensive discussion of the defense 
strategy of the United States, and the assumptions regarding 
the threats to our national security, mission sharing, levels 
of acceptable risk, warning times, and intensity and duration 
of the conflict. In addition, the report would address the 
effect on the force structure of preparations for, and 
participation in, peace operations and military operations 
other than war. It also would require a discussion of the 
effects which emerging technologies will have on the U.S. force 
structure and a number of other matters.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe this is an appropriate time to 
review the strategy and force structure necessary to protect 
the interests of the United States in any future conflict. The 
pace of global change requires that the United States reexamine 
its military capabilities with a view toward preparing the 
military services for the 21st century.

                      Title X--General Provisions

                         legislative provisions

                     Subtitle A--Financial Matters

                     legislative provisions adopted

Transfer authority (sec. 1001)

      The House bill contained a provision (sec. 1001) that 
would provide the authority for reprogramming involving the 
transfer of authorization between amounts authorized as set out 
in bill language.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

Incorporation of classified annex (sec. 1002)

      The House bill contained a provision (sec. 1002) that 
would incorporate the classified annex prepared by the 
Committee on National Security into this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment providing 
that the classified annex prepared by the committee of 
conference is incorporated into this Act.

Authority for obligation of certain unauthorized fiscal year 1996 
        defense appropriations (sec. 1003)

      The House bill contained a provision (sec. 1003) that 
would authorize fiscal year 1996 programs that received 
appropriations but no authorization.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

Authorization of prior emergency supplemental appropriations for fiscal 
        year 1996 (sec. 1004)

      The House bill contained a provision (sec. 1004) that 
would extend authorization to those items appropriated by the 
fiscal year 1996 emergency supplemental appropriations 
legislation.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

Format for budget requests for Navy/Marine Corps and Air Force 
        ammunition accounts (sec. 1005)

      The House bill contained a provision (sec. 1005) that 
would require the President to request funding for ammunition 
for the Navy and the Marine Corps, and ammunition for the Air 
Force in separate appropriation accounts.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Defense airborne reconnaissance program (DARP) (sec. 1006)

      The House bill contained a provision (sec. 1006) that 
would require the Secretary of Defense to identify all DARP 
research and development (R&D) programs, projects, or 
activities, with a unique program element number and 
procurement line item number, respectively, for all future 
budget requests beginning with fiscal year 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The conferees agree that the consolidated Defense 
Airborne Reconnaissance Office (DARO) budget request does not 
provide sufficient funding detail for the numerous DARO 
programs to enable the congressional defense committees to 
conduct necessary oversight. The major DARO programs currently 
consolidated in one R&D program element identification number 
and spread across three procurement line item identification 
numbers include: tactical unmanned aerial vehicles; endurance 
unmanned aerial vehicles; airborne reconnaissance systems; 
manned reconnaissance systems; and distributed common ground 
systems. The conferees therefore include a legislative 
provision that would require the Secretary of Defense to 
identify at least these major DARP R&D and procurement programs 
by unique program element identification number and procurement 
line item identification number, respectively, for all future 
budget requests beginning with the fiscal year 1998.

Limitation on use of Department of Defense funds transferred to the 
        Coast Guard (sec. 1007)

      The Senate amendment contained a provision (sec. 1004) 
that would require the Secretary of Defense and the Secretary 
of Transportation to jointly certify to the Congress that the 
funds transferred from the Department of Defense to the Coast 
Guard will be used for the national security functions of the 
Coast Guard.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Fisher House Trust Fund for the Department of the Navy (sec. 1008)

      The Senate amendment contained a provision (sec. 1008) 
that would establish a trust fund in the U.S. Treasury for the 
Navy Fisher Houses.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Designation and liability of disbursing and certifying officials for 
        the Coast Guard (sec. 1009)

      The Senate amendment contained a provision (sec. 1009) 
that would extend the authorization for the designation and 
appointment of disbursing and certifying officials within the 
Department of Defense to the Secretary of Transportation for 
the Coast Guard. The Department of Defense was authorized to 
designate and appoint disbursing and certifying officials in 
the National Defense Authorization Act for Fiscal Year 1996. 
The recommended provision would extend these financial 
management authorities to the Coast Guard.
      The House bill contained no similar provision.
      The House recedes.

Authority to suspend or terminate collection actions against deceased 
        members of the Coast Guard (sec. 1010)

       The Senate amendment contained a provision (sec. 1010) 
that would rescind the requirement to initiate and pursue 
collection actions against the estates of members of the Coast 
Guard who die while on active duty and are indebted to the 
government.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Department of Defense disbursing official check cashing and exchange 
        transactions (sec. 1011)

      The House bill contained a provision (sec. 907) that 
would permit Department of Defense disbursing officials to 
provide check cashing services and exchange services to U.S. 
chartered federal credit unions serving U.S. military personnel 
and their dependents in foreign countries where military 
banking facilities are not available.
      The Senate amendment contained a similar provision (sec. 
1011).
      The Senate recedes with a clarifying amendment.

                Subtitle B--Naval Vessels and Shipyards

                     Legislative provisions adopted

Repeal of requirement for continuous applicability of contracts for 
        phased maintenance of AE class ships (sec. 1021)

      The Senate amendment contained a provision (sec. 1023) 
that would repeal section 1016 of the National Defense 
Authorization Act of Fiscal Year 1996.
      The House bill contained no similar provision.
      The House recedes.

Funding for second and third maritime pre-positioning ships out of 
        National Defense Sealift Fund (sec. 1022)

      The budget request included $963.0 million in the 
National Defense Sealift Fund (NDSF) for strategic sealift, 
including $603.8 million for the procurement of two large 
medium speed roll-on/roll-off (LMSR) ships, $260.8 million for 
operations and maintenance of the ready reserve force (RRF), 
$90.0 million for acquisition of additional ships for the RRF, 
and $8.4 million for sealift research and development
      The Senate amendment contained a provision (sec. 311) 
that would authorize an increase of $240.0 million in the NDSF 
for the purchase and conversion, or construction if it is 
competitive based on price and timeliness, of two additional 
ships for the Marine Corps maritime prepositioning force 
enhancement (MPF(E)) program. Acquisition of these two ships 
would satisfy the Marine Corps MPF(E) threshold operational 
requirement. The Senate report (S. Rept. 104-267), which was 
published on May 13, 1996, provided the rationale for this 
provision. A subsequent MPF(E) life cycle cost comparison was 
undertaken by the Congressional Research Service (CRS) at the 
request of the Committee on Armed Services of the Senate and 
completed on June 21, 1996. CRS evaluated a number of possible 
options, including purchase and conversion of an existing hull, 
a new construction variant of the Army's LMSR, and a lengthened 
version of a national defense features roll-on/roll-off design 
that was developed as a maritime technology initiative. The 
study concluded that, with a threshold operational requirement 
and any time horizon from fiscal year 2009 out to thirty years 
of service life as the benchmarks, the purchase and conversion 
of an existing ship to satisfy the Marine Corps threshold 
requirement for an MPF(E) ship would be the most cost effective 
option.
      The House bill contained no similar provision. However, 
the House bill would authorize an increase of $160.0 million 
for the purpose of procuring a second MPF(E) ship. The House 
bill also included a separate provision, discussed elsewhere in 
this statement of managers, that would ensure that the second 
and third ships acquired to satisfy the MPF(E) requirement are 
new vessels constructed in U.S. shipyards.
      The House recedes.

Transfer of certain obsolete tugboats of the Navy (sec. 1023)

      The Senate amendment contained a provision (sec. 1022) 
that would authorize the Secretary of the Navy to transfer six 
obsolete tugboats from the Navy to an instrumentality of the 
State of Wisconsin, the Northeast Wisconsin Railroad 
Transportation Commission, if the Secretary determines that the 
tugboats are not needed for transfer, donation, or other 
disposal under title II of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.). 
The transfer would be at no expense to the Navy. The provision 
would also direct the Secretary to require, as a condition of 
transfer, that use of the vessels by the Commission not 
commence until the terms of any necessary environmental 
compliance letter have been met.
      The House bill contained no similar provision.
      The House recedes with an amendment that will clarify the 
terms under which the transfer could be made.

Transfer of the U.S.S. Drum to city of Vallejo, California (sec. 1024)

      The House bill contained a provision (sec. 1049) that 
would authorize the Secretary of the Navy to transfer the 
U.S.S. Drum (SSN-677) to the City of Vallejo, California, upon 
satisfactory completion of a ship donation application. This 
transfer would be at no cost to the government.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Sense of Congress concerning LCS 102 (LSSL 102) (sec. 1025)

      The Senate amendment contained a provision (sec. 1025) 
that would express the sense of the Senate that the Secretary 
of Defense should use existing authorities in law to seek 
return, upon completion of service, of the former U.S.S. LCS 
102 (LSSL 102) from the Government of Thailand in order for the 
ship to be transferred to the United States Shipbuilding 
Museum.
      The House bill contained no similar provision.
      The House recedes.
      The conferees agree to adopt the Senate provision as a 
sense of Congress.

                  Subtitle C--Counter-Drug Activities

                     legislative provisions adopted

Overview

      The budget request for drug interdiction and other 
counterdrug activities of the Department of Defense totals 
$782.2 million. This includes the $642.7 million drug 
interdiction account, and $139.5 million in the military 
services' operating budgets for counterdrug operations. This 
compares with a total of $810.9 million for these activities 
during fiscal year 1996, including $679.4 million for the drug 
interdiction account and $131.5 million in the services's 
operating budgets.
      The conferees recommend an additional $153.8 million for 
the counterdrug initiatives of the Department of Defense. These 
increases, along with the budget request for counter-narcotics 
activities, are shown in the table below.

 Drug Interdiction & Counterdrug Activities--Operations and Maintenance

         [In thousands of dollars; may not add due to rounding]

Fiscal Year 1997 Drug and Counterdrug Request.................   782,200
    Source Nation Support.....................................   154,000
    Detection and Monitoring..................................   232,100
    Disruption of Drug Mafia Organizations....................    57,100
    Law Enforcement Agency....................................   255,000
    Demand Reduction..........................................    84,000
  Increases:
    Support for Military Counterdrug Units of Mexico..........     8,000
    Laser Strike..............................................     8,000
    Riverine Operations in South America......................     4,000
    Signal Intelligence Equipment for Southwest Border........     2,500
    Southwest Border Fence....................................     5,000
    Refurbish and Install TPS-70 Radar........................    15,000
    P-3B AEW Retrofit (2 a/c).................................    98,000
    Non-Intrusive Inspection Systems..........................     6,000
    Gulf States Counterdrug Initiative........................     2,800
    Multi-Jurisdictional Task Force...........................     1,000
    C-26 Upgrades.............................................     3,500
Recommendation................................................   936,000

      The increase in funding will enable the Department of 
Defense and the Federal Government to more rigorously pursue 
its counter-narcotics efforts including priority programs 
identified by the Office of National Drug Control Policy.

Mexico-Southwest Border Initiative

      The conferees recognize that a substantial quantity of 
the narcotics entering the United States from South America 
continues to come across the southwest border. Some reports put 
this quantity as high as 70 percent. The conferees urge the 
Department to increase its effort in working with the 
Government of Mexico to stem the flow of narcotics across this 
border and recommend an increase of $8.0 million in fiscal year 
1997 to be used for this purpose.
      The conferees are encouraged by the Department's 
intelligence gathering activities related to the prevention of 
drug-smuggling across the southwest border. The conferees 
recommend an increase of $2.5 million for the purchase of 
signal intelligence equipment to be used for communications 
intercept activities along the southwest border.
      The conferees continue to have an interest in 
facilitating support for the border fence project along the San 
Diego-Tijuana border area in Southern California. The conferees 
are aware of the efforts of JTF-6 and the California National 
Guard in sustaining an adequate level of support to enhance 
this barrier. The conferees endorse the decision to fund the 
effort to enhance the fence from within the immigration control 
budget. However, to ensure that the existing program to extend 
the length of fence coverage is not unnecessarily interrupted, 
the conferees recommend an additional $5.0 million for 
continued support of this national project.
      In addition, the conferees recommend an additional $6.0 
million for the purchase of non-intrusive inspection devices to 
be deployed at major ports of entry along the southwest border. 
This will help to ensure that the U.S. war on drugs in this 
region is provided with the most up to date detection 
equipment.

Caribbean and South American Initiative

      The conferees are aware that the Department's request is 
insufficient to provide full funding of Operation Laser Strike 
in fiscal year 1997. Laser Strike will build on the success of 
Operation Green Clover and involves a sustained level of U.S. 
detection, monitoring and tracking resources, as well as 
assessments and training, to support expanded interdiction and 
law enforcement efforts by nations of the source region. The 
conferees support this important operation and recommend an 
increase of $8.0 million in order to provide full funding.
      The conferees are also aware that drug traffickers are 
making greater use of the vast river network in the Andean 
region to transport processed cocaine and pre-cursor materials. 
Currently, the governments in the source nations are ill-
prepared to interdict drug trafficking on their rivers and 
waterways. Therefore, the conferees recommend an increase of 
$4.0 million for assistance to the governments of the source 
nations in their efforts to stem the flow of narcotics moving 
on these rivers.
      The conferees are encouraged by the level of success 
achieved by the Department in reducing the movement of 
narcotics by air. The conferees recommend an additional $15.0 
million for the installation of a TPS-70 radar which will 
assist the Department, and those cooperative governments of the 
source nations, in efforts to further reduce the amount of 
drugs that smugglers are moving with the use of aircraft. In 
addition, the conferees recommend an additional $98.0 million 
for the retrofitting of two P-3B aircraft with airborne radars 
which will provide the U.S. Customs Service with additional 
detection and monitoring capability.

Domestic Counter-Narcotics Initiative

      The conferees have learned that the number of OH-58D 
helicopters in the Army National Guard will be reduced 
dramatically under the Army's Aviation Restructure Initiative. 
These helicopters, with their forward looking infrared radar 
(FLIR), are particularly useful in the National Guard's 
detection of illicit marijuana fields. The conferees have been 
advised that the Department of Defense's Office of Drug 
Enforcement Policy and Support is reviewing this situation with 
a view towards the retention of additional OH-58D helicopters, 
as appropriate, within existing funding resources. The 
conferees support this initiative and direct that Office, in 
coordination with the Department of the Army and the National 
Guard Bureau, to ensure the allocation of additional 
helicopters to those states that have historically used these 
assets for the detection and destruction of illicit marijuana 
fields.
      The conferees are aware of a shortfall in funding for the 
National Guard C-26 aircraft photo reconnaissance and infrared 
surveillance upgrade program. Therefore, the conferees 
recommend an increase of $3.5 million to restore the number of 
aircraft involved in the C-26 photo reconnaissance upgrade 
program to its previous level.
      The conferees continue to support the Gulf States 
Counterdrug Initiative (GSCI) and are pleased to note that the 
budget request contains $3.2 million for this initiative. 
However, the conferees are concerned that this funding level 
does not adequately cover the required costs for the Regional 
Counterdrug Training Academy, integrating the state of Georgia 
into the program and other priority initiatives. Therefore, the 
committee recommends an increase of $2.8 million over the 
requested amount. The committee strongly believes that funds 
provided for this program should remain focused on training and 
improving command, control, communications, and computer 
capabilities.
      The conferees continue to support the efforts of the 
Multi-Jurisdiction Task Force to provide valuable counter-
narcotics training to our nation's state and local law 
enforcement agencies. The conferees recommend an additional 
$1.0 help in these efforts.

Legislative Provisions (secs. 1031-1032)

      In order to facilitate the Department's ability to carry 
out these initiatives, the conferees recommend two provisions. 
The first provision would authorize the transfer of both the 
non-intrusive inspection devices and 2 P-3B aircraft to the 
U.S. Customs Service. Prior to the obligation of funds for the 
P-3B aircraft, the Secretary would have to certify to Congress 
that the transfer of these aircraft to the U.S. Customs Service 
will significantly reduce the level of support that would 
otherwise be requested of the Department's E-3 AWACS aircraft.
      The conferees also include a provision from the Senate 
amendment (sec. 1031) that would grant the Secretary of Defense 
the authority to provide additional support for the counter-
drug activities of the Government of Mexico. This provision 
would authorize the Secretary to transfer non-lethal protective 
and utility personnel equipment, spare parts, and non-lethal 
specialized equipment, such as navigation equipment, 
communications equipment, and photo equipment, to Mexico. The 
conferees wish to make clear that the Secretary would only be 
authorized to transfer equipment specified by this provision 
and in no way could use this authority to transfer helicopters 
or other aircraft.

Transfer of excess personal property to support law enforcement 
        activities (sec. 1033)

      The House bill contained a provision (sec. 362) that 
would provide permanent authority for the Department of Defense 
(DOD) to provide excess personal property to state and local 
law enforcement agencies. This property includes vehicles, 
helicopters, weapons, ammunition and other property that is 
needed by law enforcement agencies. Section 1208 of the 
National Defense Authorization Act for Fiscal Years 1990 and 
1991 (Public Law 101-189) estabished a one year program to 
provide excess personal property to law enforcement agencies 
for use in drug enforcement activities. This provision was 
extended until September 30, 1997 by section 1005 of the 
National Defense Authorization Act for Fiscal Year 1991 (Public 
Law 101-510). This provision would make the section 1208 
program permanent and expand it to all law enforcement 
activities with a priority to counter-narcotics activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment which would give 
priority to counter-narcotics and counter-terrorist law 
enforcement activities. The amendment would also ensure that 
DOD would incur no cost of transferring this excess equipment 
to these law enforcement agencies except the cost associated 
with the management of the program within DOD.

Sale by Federal departments or agencies of chemicals used to 
        manufacture controlled substances (sec. 1034)

      The Senate amendment contained a provision (sec. 1082) 
that would prevent the sale of chemicals that could be used in 
the manufacture of controlled substances. These chemicals could 
be sold, however, if the head of the department or agency 
certifies that there is no reasonable cause to believe the sale 
will result in an improper use.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                    Subtitle D--Reports and Studies

                     LEGISLATIVE PROVISIONS ADOPTED

Annual report on Operation Provide Comfort and Operation Enhanced 
        Southern Watch (sec. 1041)

      The House bill contained a provision (sec. 1021) that 
would require a consolidated annual report on the conduct of 
Operations Provide Comfort and Enhanced Southern Watch over and 
within Iraq. This annual report would be required to be 
submitted to the Congress so long as the operations continue.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Annual report on emerging operational concepts (sec. 1042)

      The Senate amendment contained a provision (sec. 1051) 
that would require the Chairman of the Joint Chiefs of Staff to 
provide an annual report to Congress describing the process of 
defining emerging operational concepts in each of the services 
and the manner in which the services' processes are coordinated 
in matters of doctrine, operational concepts, organization and 
acquisition strategy.
      The House bill contained no similar provision.
      The House recedes with an amendment requiring the 
Secretary of Defense to prepare and submit the report in 
consultation with the Chairman of the Joint Chiefs of Staff.

Report on Department of Defense military child care programs (sec. 
        1043)

      The Senate amendment contained a provision (sec. 1078) 
that would express the sense of the Senate that the Department 
of Defense should share its experiences with providing child 
care services with other federal, state, and local agencies.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of the Congress.

Report on Department of Defense military youth programs (sec. 1044)

      The Senate amendment contained a provision (sec. 1077) 
that would express the sense of the Senate that the Department 
of Defense should share its experiences in conducting youth 
programs with other federal, state, and local agencies.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of the Congress.

Quarterly reports regarding coproduction agreements (sec. 1045)

      The House bill contained a provision (sec. 1046) that 
would amend the Arms Export Control Act (22 U.S.C. 2776(a)) to 
require that quarterly reports to the Congress required by this 
statute include information on specified government-to-
government agreements on foreign co-production of defense 
articles.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report on witness interview procedures for Department of Defense 
        criminal investigations (sec. 1046)

      The House bill contained a provision (sec. 1023) that 
would require the Comptroller General to survey and report on 
the policies and practices of all military criminal 
investigative agencies with respect to the manner in which 
interviews of witnesses and suspects are conducted.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would narrow 
the focus of the survey to the subject of procurement fraud 
investigations in the Department of the Navy.

Report on military readiness requirements of the Armed Forces (sec. 
        1047)

      The Senate amendment contained a provision (sec. 1053) 
that would establish a requirement for a one-time report from 
the Chairman of the Joint Chiefs of Staff on the military 
readiness requirements of all U.S. armed forces, including 
active and reserve components as well as support units, using a 
tiered readiness system. The provision would also direct the 
service chiefs and the Commander-in-Chief of the U.S. Special 
Operations Command to prepare the report for the Chairman. The 
report which they prepare should assign each force unit, 
described by type rather than unit name, to one of three tiers 
of combat readiness which are defined in the provision. The 
provision establishes parameters for the assessment. The 
provision would also direct the Chairman to provide a listing 
of all forces that are not assigned to one of the three 
readiness tiers. After the service chiefs provide the Chairman 
with this report, the Chairman shall provide the report to the 
congressional defense committees together with his comments. 
The report is required to be submitted by January 31, 1997.
      The Senate bill also contained a provision (sec. 517) 
that would require the Secretary of Defense to provide a report 
on the role of specific Guard and Reserve units in the current 
force structure.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would combine 
the two reports and would require the Secretary of Defense to 
report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives. 
The Chairman of the JCS and the service chiefs would prepare 
the report. The Chairman of the JCS would consult with the 
commander of the U.S. Special Operations Command in preparation 
of the report.

Report on NATO enlargement (sec. 1048)

      The Senate amendment contained a provision (sec. 1047) 
that would require the President to submit a report on 
enlargement of the membership of the North Atlantic Treaty 
Organization (NATO) to Congress by December 1, 1996. The 
provision would also require the appointment of congressional 
members to serve on a bipartisan review group of 
nongovernmental experts to conduct an independent assessment of 
the enlargement of NATO, and to report to Congress by December 
1, 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
date from December 1, 1996 to February 1, 1997 for the 
President's report on NATO enlargement. Additionally, the 
conferees agree to eliminate the legislative requirement for a 
congressionally-appointed group of nongovernmental experts to 
conduct an independent assessment of NATO enlargement.
      The conferees expect that Congress will conduct its own 
independent assessment on the issue of NATO enlargement.

         Subtitle E--Management of Armed Forces Retirement Home

                     LEGISLATIVE PROVISIONS ADOPTED

Retirement home boards of directors (sec. 1051)

      The House bill contained an amendment (sec. 366) that 
would amend the Armed Forces Retirement Home Act of 1991 
(Public Law 101-510) to update the terms of office for members 
of the armed forces or federal civilians who are appointed as 
members of the Retirement Home Board, authorize the disposal of 
real property, and establish annual evaluation procedures for 
the directors of the individual retirement homes.
      The Senate amendment contained a provision (sec. 581) to 
clarify references to the Armed Forces Retirement Home Act of 
1991.
      The Senate amendment also contained a provision (sec. 
584) that would enable members of the Armed Forces Retirement 
Home (AFRH) Board and local boards to be reappointed under 
certain conditions. The provision also would permit a change in 
the method by which certain AFRH employees are compensated.
      The Senate recedes on both provisions.

Acceptance of uncompensated services (sec. 1052)

      The Senate amendment contained a provision (sec. 582) 
that would enable the Chairman of the Armed Forces Retirement 
Home (AFRH) Board, or the directors of the individual homes, to 
accept uncompensated or gratuitous services from volunteers 
under procedures similar to those currently in place in the 
Department of Defense.
      The House bill contained no similar provision.
      The House recedes.

Disposal of tract of real property in the District of Columbia (sec. 
        1053)

      The House bill contained a provision (sec. 366) that 
would amend the Armed Forces Retirement Home Act of 1991 
(Public Law 101-510) to authorize the disposal of real 
property, and establish annual evaluation procedures for the 
directors of the individual retirement homes.
      The Senate amendment contained a provision (sec. 583) 
that would authorize the disposal of a 49 acre parcel of real 
property at the Armed Forces Retirement Home (AFRH) in 
accordance with title 24, United States Code.
      The Senate recedes with an amendment that would establish 
a procedure under which the Congress is notified about 
proceedings on the sale of property.

                       Subtitle F--Other Matters

                     LEGISLATIVE PROVISIONS ADOPTED

Policy on protection of national information infrastructure against 
        strategic attack (sec. 1061)

      The House bill contained a provision (sec. 1022) that 
would require the President to submit a report to Congress 
setting forth national policy on protecting the national 
information infrastructure. The provision would require a 
number of specific issues to be addressed in the report which 
would be required to be submitted no later than 180 days after 
the date of enactment of this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

Information systems security program (sec. 1062)

      The House bill contained a provision (sec. 1031) that 
would require the Secretary of Defense to allocate an 
increasing percentage of funds appropriated for the defense 
information infrastructure to security beginning in fiscal year 
1998.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delay 
implementation of the percentage allocation formula until 
fiscal year 1999, and require a report in 1997 from the 
Secretary of Defense on the Department's information security 
objectives, strategy, and investment preferences. If the 
Secretary submits an investment plan that adequately addresses 
current and projected shortfalls and vulnerabilities of the 
information infrastructure, the conferees will reconsider the 
necessity of allowing this legislative provision to take 
effect.

Authority to accept services from foreign governments and international 
        organizations for defense purposes (sec. 1063)

      The House bill contained a provision (sec. 1307) that 
would amend section 2608(a) of title 10, United States Code, to 
authorize the Department of Defense to accept services, money 
and property from foreign governments and international 
organizations. The funds and services from these additional 
sources would be used to defray the costs of U.S. military 
forces participating in multi-national operations.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Prohibition on collection and release of detailed satellite imagery 
        relating to Israel (sec. 1064)

      The Senate amendment contained a provision (sec. 1044) 
that would limit the collection and release of satellite 
imagery of Israel or other countries or geographical areas 
designated by the President.
      The House bill contained no similar provision.
      The House recedes with an amendment.

George C. Marshall European Center for Strategic Security Studies (sec. 
        1065)

      The House bill contained a provision (sec. 1037) that 
would authorize the Secretary of Defense to accept 
contributions of money or services from any foreign nation 
intended to defray the cost of, or enhance the operations of, 
the George G. Marshall European Center For Strategic Studies. 
This provision would also authorize the Secretary of Defense to 
approve the participation of European or Eurasian nations in 
Marshall Center programs.
      The Senate amendment contained a provision (sec. 1068) 
that would authorize the George C. Marshall Center for 
Strategic Security to accept contributions from foreign 
governments, foundations, charitable organizations, and 
individuals in foreign countries.
      The Senate recedes with an amendment that would combine 
the two provisions.

Authority to award to civilian participants in the defense of Pearl 
        Harbor the congressional medal previously authorized only for 
        military participants in the defense of Pearl Harbor (sec. 
        1066)

      The Senate amendment contained a provision (sec. 1069) 
that would extend to civilians who participated in the defense 
of Pearl Harbor eligibility for award of a bronze medal to 
commemorate the services of those persons.
      The House bill contained no similar provision.
      The House recedes.

Assimilative crimes authority for traffic offenses on military 
        installations (sec. 1067)

      The Senate amendment contained a provision (sec. 1079) 
that would allow the Secretary of Defense or his designee to 
promulgate rules or regulations concerning traffic offenses 
committed on military installations and apply the surrounding 
community's authorized punishments to those offenses in 
specified circumstances.
      The House bill contained no similar provision.
      The House recedes.

Uniform Code of Military Justice amendments (sec. 1068)

      The Senate amendment contained a provision (sec. 1061) 
that would make a series of amendments to the Uniform Code of 
Military Justice: a technical amendment to existing legislation 
governing forfeitures adjudged at special courts-martial to 
conform 10 U.S.C. 858b(a)(1) to the maximum punishment 
currently prescribed by law; and a provision that would amend 
Article 143(c) of the Uniform Code of Military Justice (10 
U.S.C. 943(c)) to allow judges of the United States Court of 
Appeals for the Armed Forces to make excepted service 
appointments to non-attorney positions on the personal staff of 
a judge;
      The House bill contained a similar provision.
      The Senate amendment contained a provision that would 
extend the length of one of the transitional judges on the 
United States Court of Appeals for the Armed Forces from 13 
years to 15 years.
      The House bill contained no similar provision.
      The House recedes with an amendment that would combine 
Senate provision 1061 and House provision 564.

Punishment of interstate stalking (sec. 1069)

      The Senate amendment contained a provision (sec. 543) 
that would make it a Federal crime to stalk members of the 
armed forces or a member of their immediate family.
      The House bill contained no similar provision.
      The House recedes with an amendment that would broaden 
the provision to apply to any incident of stalking involving 
interstate movement or which occurs on Federal property.

Participation of members, dependents, and other persons in crime 
        prevention efforts at installations (sec. 1070)

      The House bill contained a provision (sec. 1038) that 
would require the Secretary of Defense to promulgate 
regulations to require service members, dependents, civilian 
employees and defense contractors working on a military 
installation to report to military law enforcement officials 
any criminal activity that occurs on a military installation. 
It also would require the Secretary of Defense to report to 
Congress by February 1, 1997, on efforts to implement this 
provision.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to prepare an incentive-based plan to 
encourage the reporting of crimes.

Display of State flags at installations and facilities of the 
        Department of Defense (sec. 1071)

      The Senate amendment contained a provision (sec. 1067) 
that would prohibit the adoption or enforcement of any rule 
that discriminates against the display of any official state or 
United States' Territory flag. This prohibition involves 
official ceremonies conducted on Department of Defense 
installations that display all state flags.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

Treatment of excess operational support airlift aircraft (sec. 1072)

      The Senate amendment contained a provision (sec. 1083) 
that would require that all excess operational support airlift 
aircraft (OSA) be placed in inactive status and stored pending 
completion of any study or analysis of the costs and benefits 
of disposing or operating such aircraft.
      The House bill contained no similar provision. The House 
Report (H. Rept. 104-563) would prevent the Secretary of the 
Army from making changes in the Army OSA program until the 
Secretary of Defense submits a detailed plan for reducing and 
redistributing all OSA aircraft.
      The House recedes with an amendment that would direct the 
Secretary of Defense to ensure that attempts to reuse or sell 
the aircraft are given precedence over reutilization or sale of 
individual parts of those aircraft.
      The conferees understand that the Department has 
submitted the plan and analysis directed in the House report.

Correction to statutory references to certain Department of Defense 
        organizations (secs. 1073-1074)

      The House bill contained a provision (sec. 1039(a)) that 
would make a number of minor technical and clerical amendments.
      The Senate amendment contained similar provisions (secs. 
112, 905, 1063).
      The conference agreement includes all provisions.

Modification to third-party liability to United States for tortious 
        infliction of injury or disease on members of the uniformed 
        services (sec. 1075)

      The Senate amendment contained a provision (sec. 1066) 
that would amend section one of the Medical Care Recovery Act 
(42 U.S.C. 2651) to enable the United States to recover the 
costs of compensation provided to members of the armed forces 
by the United States when they are unable to perform their 
regular military duties due to circumstances in which a third 
party has tort liability.
      The House bill contained no similar amendment.
      The House recedes.

Chemical Stockpile Emergency Preparedness Program (sec. 1076)

      The House bill contained a provision (sec. 1045) that 
would require the Secretary of the Army to submit a report to 
Congress assessing the implementation and success of 
establishing site-specific integrated product and process teams 
as a management tool for the chemical stockpile emergency 
preparedness program (CSEPP).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Exemption from requirements applicable to savings associations for 
        certain savings institutions serving military personnel (sec. 
        1077)

      The Senate amendment contained a provision (sec. 1089) 
that would amend the Home Owners' Loan Act to permit an 
exemption to the act for a savings association subsidiary of a 
savings and loan holding company if not less than 90 percent of 
the customers are active or former officers in the military 
services or their survivors.
      The House bill contained no similar provision.
      The House recedes with an amendment that would permit 
these savings institutions to serve all military personnel.

Improvements to National Security Education Program (sec. 1078)

      The Senate amendment contained a provision (sec. 1075) 
that would revise government service requirements for student 
recipients of undergraduate scholarships and graduate 
fellowships awarded under the National Security Education Act 
of 1991 (NSEA) and administered by the National Security 
Education Program (NSEP).
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the terms of the service agreement between the recipient and 
the NSEP.
      The conferees support the intended purpose of NSEA to 
promote international education and foreign language study by 
U.S. students, who later serve in defense and intelligence 
related positions in the U.S. government. If administered 
effectively, the conferees regard this program as constructive 
in assisting the education of qualified students, while 
strengthening national security institutions by introducing 
prospective candidates to the workforce. In this light, the 
conferees expect the Secretary of Defense to emphasize that 
student experience from foreign studies be reinvested in the 
government's national security efforts, establish greater 
awareness in the national security agencies about the 
availability and skills of such resources, and pursue an active 
and effective program in utilizing these individuals realizing 
their service obligation.

Aviation and vessel war risk insurance (sec. 1079)

      The House bill contained a provision (sec. 1032) that 
would authorize the Department of Defense to transfer funds to 
the Department of Transportation in the event of a loss 
incurred incident to aviation insurance issued by the Federal 
Aviation Administration pursuant to title 49, United States 
Code, or vessel war risk insurance issued by the Maritime 
Administration pursuant to title 46, United States Code, when 
reimbursement is required by those statutes or implementing 
agreements. In the case of a reimbursement required as the 
result of an aviation incident, reimbursement to the Secretary 
of Transportation would be required within 30 days following 
the presentment of a valid claim to the Administrator of the 
Federal Aviation Administration. For vessel war risk claims, 
such reimbursement would be made not later than 90 days 
following adjudication of the claim by the Administrator of the 
Maritime Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit 
payments to mortgage responsibilities on the lost or damaged 
aircraft or a vessel until such time as the claim is 
adjudicated and settled.

Designation of memorial as National D-Day Memorial (sec. 1080)

      The Senate amendment contained a provision (sec. 1074) 
that would designate the D-Day Memorial in Bedford, Virginia as 
the National D-Day Memorial.
      The House bill contained no similar provision.
      The House recedes.

Sense of Congress regarding semiconductor trade agreement between 
        United States and Japan (sec. 1081)

      The Senate amendment contained a sense of the Senate 
provision (sec. 1072) urging the President to negotiate an 
extension of the United States-Japan Semiconductor agreement 
that is set to expire on July 31, 1996.
      The House bill contained no similar provision.
      The House recedes with an amendment making the sense of 
the Senate a sense of Congress.

Agreements for exchange of defense personnel between the United States 
        and foreign countries (sec. 1082)

      The Senate amendment contained a provision (sec. 1041) 
that would authorize the Secretary of Defense to enter into 
agreements with governments of allies of the United States and 
other friendly countries for the exchange of military and 
civilian personnel of the Department of Defense and military 
and civilian personnel of the defense ministries. The purpose 
of the agreement would be to facilitate greater understanding, 
standardization, and interoperability.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that no funds are authorized by this 
provision for familiarization, orientation, or certification of 
exchange personnel.
      The conferees agree that the authority granted to the 
Secretary by this provision shall be implemented specifically 
as written. This authority is not to be used as a mechanism to 
require the Department of Defense to fund visits and training 
of military and civilian personnel from allied and other 
foreign countries without reciprocal exchanges that provide 
substantially equivalent benefits to the United States.

Sense of the Senate regarding Bosnia and Herzegovina (sec. 1083)

      The Senate amendment contained a provision (sec. 1084) 
that would express the sense of the Senate that the price of 
equipment transferred to Bosnia and Herzegovina should not 
exceed the lowest level price for the same or similar equipment 
transfer to any other country under a government program.
      The House bill contained no similar provision.
      The House recedes.

Defense burdensharing (sec. 1084)

      The House bill contained a provision (sec. 1041) that 
would express the sense of the Congress about discrepancies 
between U.S. and allied defense spending, concluding that the 
United States continues to bear a greater burden for the common 
defense than its allies. The provision would also direct the 
President to seek increases to allied defense spending through 
increased contributions in any of four areas: increasing the 
cost share of all non-U.S. nations where U.S. military forces 
are deployed by reaching specific percentages by certain dates; 
increasing defense spending comparable to that of the United 
States; increasing foreign assistance; or, increasing the 
amount of military resources contributed to multinational 
military activities. Additionally, the provision would require 
two reports regarding actions taken to increase allied 
burdensharing and progress in increasing allied burdensharing.
      The Senate amendment contained a similar provision (sec. 
1045) that would express the concerns of the Senate that the 
United States is bearing a disproportionate share of the common 
defense; directs the President to seek increases to allied 
defense burdensharing through one or a combination of four 
areas, similar to the four areas identified in the House 
language. Additionally, the provision would require the 
Department of Defense to report to Congress by March 1, 1997 on 
progress in increasing allied burdensharing and the 
relationship of burdensharing and forward deployment of U.S. 
military forces. In addition, the provision modifies the 
current burdensharing reporting requirement from an annual to a 
biannual frequency.
      The conferees agree to a provision that would provide the 
President with the latitude to seek increases to allied 
burdensharing in one or more of four areas; would require a 
consolidated report to Congress addressing progress in 
increasing allied burdensharing as well as the relationship 
between forward deployment of United States military forces 
outside the U.S. and allied burdensharing.
      In seeking increases in allied levels of support, the 
conferees are mindful that the success of such efforts will 
justifiably differ depending upon a number of variables, 
including the gross domestic product and the unique aspects of 
the U.S. relationship with each ally. The conferees recognize, 
for example, that a goal of securing financial contributions at 
high levels to offset the nonpersonnel costs incurred by the 
U.S. Government for overseas force presence may be 
inappropriate with regard to many U.S. allies.

                   legislative provisions not adopted

Authority to transport health professionals seeking to provide health-
        related humanitarian relief services

      The House bill contained a provision (sec. 1042) that 
would provide the Department of Defense with the authority to 
provide transportation to civilian health professionals engaged 
in humanitarian activities.
      The Senate amendment contained no similar provision.
      The House recedes.

Treatment of excess defense articles of Coast Guard under Foreign 
        Assistance Act of 1961

      The House bill contained a provision (sec. 1043) that 
would permit excess property of the Coast Guard to be treated 
in the same manner as the excess property of the other armed 
services under the Foreign Assistance Act of 1961 (22 U.S.C. 
2403(g)).
      The Senate amendment contained no similar provision.
      The House recedes. The intent of this provision has been 
accomplished by separate legislation.

Authority to transfer naval vessels

      The House bill contained a provision (sec. 1052) and the 
Senate amendment contained a provision (sec. 1021) that would 
authorize transfer of six Knox class frigates, one Oliver 
Hazard Perry class guided missile frigate, one Newport class 
tank landing ship, and two Stalwart class ocean surveillance 
ships to various countries.
      These provisions were not included in the conference 
agreement. The transfer of these ships has been authorized by 
separate legislation (H.R. 3121).

Southwest Border States Anti-drug Information System

      The House bill contained a provision (sec. 1055) that 
would express the sense of Congress that the Federal Government 
should support and encourage the full utilization of the 
Southwest Border States Anti-Drug Information System.
      The Senate amendment contained no similar provision.
      The House recedes. The conferees recognize the valuable 
contribution that the Southwest Border States Anti-Drug 
Information System continues to make to the national 
counterdrug effort and have agreed to fully fund the request.

Sikes Act improvements amendments

      The House bill contained a provision (secs. 1401-1414) 
that would amend the Sikes Act (Public Law 99-561) to address 
issues related to the preparation and implementation of 
integrated natural resource management plans at military 
installations.
      The Senate amendment contained no similar provision.
      The House recedes.

                   LEGISLATIVE PROVISION NOT ADOPTED

Use of hunting and fishing permit fees collected at closed military 
        reservations

      The House bill contained a provision (sec. 1407) that 
would amend section 670(a) of title 16, United States Code, 
commonly known as the ``Sikes Act'' to authorize the transfer 
of fees collected on a closing military installation for 
hunting and fishing permits. The provision would allow the 
transfer of those fees collected at a closing installation to 
another open installation for the conservation purposes 
expressed in the Act.
      The Senate amendment contained a similar provision (sec. 
351).
      The House recedes from its provision and the Senate 
recedes from its provision.

Defense and security assistance

      The House bill contained provisions (secs. 1501-1553) 
that would amend the Foreign Assistance Act of 1961 and the 
Arms Export Control Act, and address matters relating to 
International Military Education and Training, anti-terrorism 
assistance, and narcotics control assistance.
      The Senate amendment contained no similar provisions.
      The House recedes.
      The intent of this title has been accomplished by 
separate legislation.

General limitations

      The Senate amendment contained a provision (sec. 4) that 
would limit the total amount authorized to be appropriated by 
this Act for fiscal year 1997 for the national defense function 
to $265,583,000,000.
      The House bill contained no similar provision.
      The Senate recedes.

Fees for residents

      The Senate amendment contained a provision (sec. 585) 
that would direct the Secretary of Defense, in conjunction with 
the military departments and the Armed Forces Retirement Home 
(AFRH) Board, to report to the congressional defense committees 
on aspects of the AFRH resident fees structure and the monthly 
assessment on active duty service members
      The House bill contained no similar provision.
      The Senate recedes.

Military-to-Military Contacts program

      The Senate amendment contained a provision (sec. 1005) 
that would expand the authority of the Military-to-Military 
Contacts program within the Department of Defense in order to 
permit the Department to use this program to pay for 
international military education and training activities.
      The House bill contained no similar provision.
      The Senate recedes.

Reimbursement of Department of Defense for costs of disaster assistance 
        provided outside the United States

      The Senate amendment contained a provision (sec. 1007) 
that would express the sense of Congress that whenever the 
President directs the Secretary of Defense to provide disaster 
assistance outside the United States, the President should also 
direct the Administrator of the Agency for International 
Development (AID) to reimburse the Department of Defense for 
the cost of the assistance provided.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees are concerned with the current practice of 
using funds appropriated to the Department of Defense to 
provide disaster assistance to foreign nations. The conferees 
believe that funds appropriated to AID should be used to 
provide such assistance. The conferees urge the Secretary of 
Defense and the Director of AID to establish procedures to 
reimburse the DOD for its funding of international disaster 
assistance.

Contract options for LMSR vessels

      The Senate amendment contained a provision (sec. 1024) 
that would amend section 1013 of the National Defense 
Authorization Act for Fiscal Year 1996 to prohibit the 
Secretary of the Navy from negotiating and awarding contracts 
or contract options for two large medium speed roll-on/roll-off 
(LMSR) vessels before fiscal year 1998.
      The House bill contained no similar provision.
      The Senate recedes.

National Drug Intelligence Center

      The Senate amendment contained a provision (sec. 1032) 
that would prohibit the funding of the National Drug 
Intelligence Center by the Department of Defense. The Senate 
amendment also contained a provision (sec. 1033) that would 
require an investigation of the National Drug Intelligence 
Center by the Inspectors General of the Department of Defense, 
the Department of Justice, the Central Intelligence Agency, and 
the Comptroller General of the United States.
      The House bill contained no similar provisions.
      The Senate recedes.

Authority for reciprocal exchange of personnel between the United 
        States and foreign countries for flight training

      The Senate amendment contained a provision (sec. 1042) 
that would authorize the exchange of students from U.S. 
military flight training schools on a one-for-one basis to 
comparable flight training schools of foreign countries.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees understand that legislation passed by both 
the House and Senate, which amended the Foreign Assistance Act 
of 1961 and the Arms Export Control Act to make improvements to 
certain defense and security assistance provisions under those 
Acts, contains a similar provision.

Report on facilities used for testing launch vehicle engines

      The Senate amendment contained a provision (sec. 1056) 
that would require the Secretary of Defense, in consultation 
with the Administrator of the National Aeronautics and Space 
Administration, to provide a report to Congress on the 
facilities used for testing launch vehicle engines.
      The House bill contained no similar provision.
      The Senate recedes.

Equitable treatment for the generic drug industry

      The Senate amendment contained a provision (sec. 1080) 
that would allow companies that successfully demonstrate that 
they have made a ``substantial investment'' in certain generic 
drugs before adoption of the 1994 changes to General Agreement 
on Tariffs and Trade (GATT) to market those drugs despite a 
three-year patent extension granted by GATT that would 
otherwise block their marketing.
      The House bill contained no similar provision.
      The Senate recedes.

Facility for military dependent children with disabilities, Lackland 
        Air Force Base, Texas

      The Senate amendment contained a provision (sec. 1087) 
that would authorize the Secretary of the Air Force to transfer 
$2.0 million to the Children's Association for Maximum 
Potential (CAMP) for the construction of a facility for 
military dependent children with disabilities at Lackland Air 
Force Base, Texas. The grant is contingent upon an agreement 
between the Secretary and CAMP that would specify a 25-year 
lease for the facility and, as consideration for the lease 
CAMP, would be responsible for operations and maintenance cost 
of the facility.
      The House bill amendment contained no similar provision.
      The Senate recedes.

Prohibition on the distribution of information relating to explosive 
        materials for a criminal purpose

      The Senate amendment contained a provision (sec. 1088) 
that would prohibit the teaching or demonstration of the 
manufacture of explosive materials to certain individuals. 
Violations of this section would be punishable by fines and 
imprisonment.
      The House bill contained no similar provision.
      The Senate recedes.

Sense of the Senate regarding the reopening of Pennsylvania Avenue

      The Senate amendment contained a provision (sec. 3601) 
that would express the sense of the Senate that the President 
should request the Department of the Treasury and the Secret 
Service to work with the Government of the District of Columbia 
to develop a plan to reopen Pennsylvania Avenue in front of the 
White House to vehicular traffic. The Secretary of the Treasury 
and the Secret Service would be required to certify that the 
plan protects the people who live and work in the White House.
      The House bill contained no similar provision.
      The Senate recedes.

             Title XI--National Imagery and Mapping Agency

National Imagery and Mapping Agency (secs. 1101-1124)

      The Senate amendment contained provisions (secs. 911-934) 
that would establish a new organization known as the National 
Imagery and Mapping Agency (NIMA).
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
address NIMA's support for the all-source analysis and 
production process; (2) address NIMA's personnel provisions in 
a consolidated Department of Defense Intelligence Personnel 
provision, discussed elsewhere in this report; and (3) 
establish a uniform standard (in a provision separate from the 
NIMA legislation) regarding the Secretary of Defense's 
recommendation to the President on the appointment of the 
Directors of NIMA, the National Security Agency, and the 
National Reconnaissance Office.
      The conferees expect that the creation of NIMA will 
enhance support to the all source analysis and production 
process. Because of the importance attached to the achievement 
of this goal, the conferees agree to highlight it as one of the 
key mission areas to be reviewed in the overall review of 
NIMA's performance of its assigned national missions.
      The conferees endorse the grant of authority recently 
given to the Director of the National Security Agency by the 
Deputy Secretary of Defense over research and development and 
urge the Secretary of Defense and the Director of Central 
Intelligence to grant to the Director of NIMA similar approval 
authority over tactical imagery programs and intelligence 
agency investment programs.
      NIMA will provide a single agency focus for imagery and 
geospatial information within the United States Government. 
NIMA would: (1) be the focal point for the growing and diverse 
number and types of customers of imagery and geospatial 
information; (2) ensure visibility and accountability for 
imagery and geospatial resources; (3) harness, leverage, and 
focus rapid technological developments to serve imagery, 
imagery intelligence, and geospatial information customers; and 
(4) identify and advocate customer needs for this growing and 
diverse customer pool. The term ``imagery'', as defined and 
used in this Act, includes products produced from space-based 
national intelligence reconnaissance systems, in accordance 
with Executive Order 12951 and any successor or superseding 
Orders.
      Although NIMA would carry out its mission 
responsibilities under the authority, direction, and control of 
the Secretary of Defense, with the advice of the Chairman of 
the Joint Chiefs of Staff, it would have a vital ``national'' 
mission to serve the imagery and geospatial information needs 
of consumers outside the Department of Defense. It would carry 
out its responsibilities to national intelligence customers in 
accordance with the policies and priorities of the Director of 
Central Intelligence (DCI). The Central Intelligence Agency 
(CIA) would have clear, affirmative authorization to provide 
administrative and contracting services to the NIMA to insure 
accomplishment of the national mission of the NIMA or the 
performance of intelligence community activities of common 
concern, notwithstanding provisions of law that would otherwise 
limit such an authorization. The CIA also would be permitted to 
provide security police services for NIMA facilities, 
notwithstanding any limitations on jurisdiction of such 
personnel contained in section 15 of the Central Intelligence 
Agency Act of 1949.
      NIMA would be established by bringing together various 
agencies and organizations already in existence within the 
Department of Defense and the Intelligence Community. 
Specifically, NIMA would be made up of: the Defense Mapping 
Agency; the Central Imagery Office; other elements of the 
Department of Defense identified in the classified annex to 
this Act; the National Photographic Interpretation Center of 
the CIA; and other elements of the CIA identified in the 
classified annex to this Act.
      NIMA would be responsible for imagery requirements 
management, exploitation, dissemination, and archiving. It 
would define and recommend policies on imagery and geospatial 
information, and coordinate requirements for an end-to-end 
architecture, integrated into the National and Defense 
Information Infrastructure, to satisfy customer needs and to 
ensure appropriate interoperability.
      NIMA would not be responsible for developing, procuring, 
or operating imagery collection systems, which are 
responsibilities currently held by the National Reconnaissance 
Office, the Defense Airborne Reconnaissance Office, and the 
intelligence elements of the military services. Nor would NIMA 
include or replace current organizations for tactical military 
exploitation and use of imagery products. In effect, NIMA would 
provide a coherent and uniform linkage between these two ends 
of the imagery spectrum.
      NIMA would not replace or diminish the current 
responsibilities of Federal civilian agencies for mapping, 
charting, and geodesy, or change their existing 
responsibilities for disaster or emergency response or civil 
imagery archives. Rather, NIMA would facilitate their access to 
critical national security information, when appropriate, and 
promote technology exchange through established interagency 
mechanisms, such as the Civil Applications Committee. The 
ability of all members of the intelligence community to obtain 
both imagery intelligence support regarding matters of common 
concern and support necessary for individual agency 
requirements would be maintained and expanded, as appropriate.
      The conferees believe that the legislative charter for 
NIMA contained in this Act strikes an appropriate balance 
between the needs of ``national'' intelligence and combat 
support. As a Combat Support Agency, NIMA must be under the 
clear authority, direction, and control of the Secretary of 
Defense. But the charter also provides for a clear and 
prominent role for the DCI to task imagery systems and exploit 
imagery products in support of the national mission. The 
committee notes that the Director of Central Intelligence 
strongly supports establishment of NIMA as a Combat Support 
Agency in Title 10, United States Code. The DCI has testified 
that his peacetime imagery tasking authorities are protected 
under this arrangement and that he does not believe that 
support to national customers will be in any way jeopardized. 
Except as otherwise provided in this Act, establishment of NIMA 
will not derogate from the existing authorities of the 
Secretary of Defense or the DCI.
      The conferees also note that the Commission on the Roles 
and Capabilities of the United States Intelligence Community 
strongly endorsed the establishment of NIMA as a combat support 
agency within the Department of Defense. The conferees share 
the Commission's conclusion that NIMA will significantly 
improve imagery support to both military operations and 
planning, as well as to national consumers of intelligence.
      The conferees note that limited collective bargaining 
would be permitted in NIMA. Collective bargaining units that 
were recognized by the Defense Mapping Agency at the time its 
employees and positions were transferred to NIMA would continue 
to represent the same categories of employees in the NIMA, 
although expansion of those units or the creation of new 
bargaining units in NIMA would be prohibited. Positions 
determined at any time to be engaged in intelligence, 
counterintelligence, investigative, or security work directly 
affecting national security would be excluded, at the 
discretion of the NIMA Director. Permitting continuation of 
limited collective bargaining in NIMA would not be intended to 
be a precedent affecting current or future employees or 
agencies of the Intelligence Community. It would be a one-time 
solution to a unique situation.

                Title XII--Reserve Forces Revitalization

Short title (sec. 1201)

      The House bill contained a provision (sec. 1201) that 
would establish the short title for the follow-on sections as 
the Reserve Forces Revitalization Act of 1996.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Purpose (sec. 1202)

      The House bill contained a provision (sec. 1202) that 
would establish the purpose of the Reserve Forces 
Revitalization Act for 1996.
      The Senate amendment contained no similar provision
      The Senate recedes.

                         LEGISLATIVE PROVISIONS

                Subtitle A--Reserve Component Structure

                     LEGISLATIVE PROVISIONS ADOPTED

Reserve component commands (sec. 1211)

      The House bill contained a provision (sec. 1211) that 
would establish separate reserve commands and commanders for 
the Army, Navy, Marine Corps and Air Force reserves. The 
section would also delineate the forces to be assigned to each 
reserve command, as well as prescribe the subsequent assignment 
of the reserve forces to the commanders-in-chief (CINCs) of the 
joint combatant commands.
      The Senate amendment contained a provision (sec. 903) 
that would codify the requirement for the United States Army 
Reserve Command. The recommended provision would establish that 
the chain of command for the United States Army Reserve Command 
shall be prescribed by the Secretary of the Army.
      The House recedes with an amendment that would strike the 
portion of the House provision pertaining to the Army Reserve 
Command and include the Senate language pertaining to the Army 
Reserve Command.

Reserve component chiefs (sec. 1212)

      The House bill contained a provision (sec. 1212) that 
would establish separate offices of the military reserve chiefs 
as part of the staffs of the senior military headquarters of 
each of the services. In addition, the section would also 
prescribe the appointment criteria and procedures, and term of 
office, for the reserve chiefs, and would also assign budget, 
annual reporting, and other management responsibilities to the 
reserve component chiefs.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Review of active duty and reserve general and flag officer 
        authorizations (sec. 1213)

      The House bill contained a provision (sec. 1213) that 
would require the Secretary of Defense to conduct a 
comprehensive review of the existing statutory reserve and 
active general and flag officer authorizations and report to 
Congress any recommendations for revisions to those 
authorizations, as well as recommendations for the statutory 
designation of other general and flag officers. The section 
would also require the Secretary to report on whether reserve 
component general and flag officers should be exempt from 
existing active duty general officer ceilings.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees stress that the Comptroller General has a 
broad right of access to agency records under section 716 of 
title 31, United States Code. Accordingly, it is expected that 
the Department of Defense will provide the Comptroller General 
with timely access, before the due date for the Secretary's 
report to Congress, to all analyses, memoranda, drafts, 
reports, and other documents prepared or used by the Department 
in connection with meeting the requirements of this section.

Guard and reserve technicians (sec. 1214)

      The House bill contained a provision (sec. 1214) that 
would mandate that military technicians be authorized and 
accounted for as a separate category of civilian employees who 
are exempt from general civilian personnel reductions in the 
Department of Defense. The section would permit military 
technician reductions only if the reductions were related to 
force structure changes.
      The Senate amendment contained no similar provision.
      The Senate recedes.

              Subtitle B--Reserve Component Accessibility

                     legislative provisions adopted

Report to Congress on measures to improve national guard and reserve 
        ability to respond to emergencies (sec. 1231)

      The House bill contained a provision (sec. 1231) that 
would require the Secretary of Defense to report 
comprehensively on the measures taken or planned to improve the 
timeliness, adequacy, and effectiveness of reserve component 
responses to domestic emergencies. The section would also 
require the Secretary of Defense to assess the recommendations 
of the 1995 RAND report, ``Assessing the State and Federal 
Missions of the National Guard.''
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report to Congress concerning tax incentives for employers of members 
        of reserve components (sec. 1232)

      The House bill contained a provision (sec. 1232) that 
would require the Secretary of Defense to report to Congress on 
tax incentives for employers of members of the reserve 
components.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report to Congress concerning income insurance program for activated 
        reservists (sec. 1233)

      The House bill contained a provision (sec. 1233) that 
would require the Secretary of Defense to report to Congress on 
income insurance programs for activated reservists.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Report to Congress concerning small business loans for members released 
        from reserve service during contingency operations (sec. 1234)

      The House bill contained a provision (sec. 1234) that 
would would require the Secretary of Defense to report to 
Congress on small business loans for reservists released from 
active duty following contingency operations.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                 Subtitle C--Reserve Forces Sustainment

                     Legislative provisions adopted

Report concerning tax deductibility of nonreimbursable expenses (sec. 
        1351)

      The House bill contained a provision (sec. 1251) that 
would require the Secretary of Defense to sumbit a report to 
Congress that includes recommended legislation to restore tax 
deductibility of nonreimbursable expenses incurred by members 
of the reserve components in conjunction with military service.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Authority to pay transient housing charges for members performing 
        active duty for training (sec. 1252)

      The House bill contained a provision (sec. 1252) that 
would authorize reimbursement of housing service charges 
incurred by reserve component personnel while participating in 
active duty training. It would authorize the reserve component 
personnel participating in active duty training to stay in 
contract quarters at no expense to the member.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that strikes the 
authority for reserve component personnel participating in 
active duty training to stay in contract quarters.
      The conferees believe that military personnel should use 
on-base transient lodging facilities when training or on 
temporary duty away from their home station. The conferees 
direct the Secretary of Defense to review the current policies 
and practices concerning use of on-base facilities and 
provision of contract lodging and to report the results of that 
review, including any recommended legislative changes, to the 
Committee on Armed of the Senate and the Committee on National 
Security of the House of Representatives not later than March 
31, 1997.

Sense of Congress concerning quarters allowance during service on 
        active duty for training (sec. 1253)

      The House bill contained a provision (sec. 1253) that 
would express the sense of the Congress that members of the 
reserve components should receive appropriate quarters 
allowances during periods of service on active duty for 
training.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Sense of Congress concerning military leave policy (sec. 1254)

      The House bill contained a provision (sec. 1254) that 
would express the sense of the Congress that military leave 
policies pertaining to members of the reserve components in 
effect upon enactment of the National Defense Authorization Act 
for Fiscal Year 1997 should not be changed.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees intend that military leave referred to in 
this provision is the non-chargeable leave available to 
civilian employees of federal, state or local government 
agencies while these employees are participating in active duty 
for training.

Reserve Forces Policy Board (sec. 1255)

      The House bill contained a provision (sec. 1255) that 
would commend the Reserve Forces Policy Board for its good work 
as an independent body that provides advice to the Secretary of 
Defense on reserve component matters.
      The Senate amendment contained a provision (sec. 1054) 
that would correct references in title 10, United States Code, 
pertaining to the annual report of the Armed Forces Policy 
Board and specify that the annual report shall be a separate 
report transmitted to the Congress by the Secretary of Defense 
in conjunction with the Secretary's annual report.
      The Senate recedes with an amendment that would combine 
the two provisions.

Report on parity of benefits for active duty service and reserve 
        service (sec. 1256)

      The House bill contained a provision (sec. 1256) that 
would require the Secretary of Defense to submit a report to 
the Congress providing recommendations, where appropriate, to 
reduce disparities in pay and benefits that occur between 
active component members and reserve component members as a 
result of eligibility based on length of time on active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Information on proposed funding for the Guard and Reserve components 
        (sec. 1257)

      The Senate amendment contained a provision (sec. 1055) 
that would require the Secretary of Defense to specify, in each 
year of the Future-Years Defense Plan, the estimated 
expenditures and proposed appropriations for the procurement of 
equipment and for military construction for each of the Guard 
and Reserve components.
      The House bill contained no similar provision.
      The House recedes.

              Title XIII--Arms Control and Related Matters

                       items of special interest

Implementation of arms control agreements

      The budget request included $282.3 million in 
procurement, operation and maintenance, and research and 
development in the defense and military service accounts for 
the implementation of arms control agreements. The budget 
request for these accounts is based on anticipated dates of 
implementation of the various arms control agreements and 
treaties.
      The conferees agree to a $24.0 million reduction to the 
budget request due to changes in the anticipated dates of 
implementation of the various arms control agreements and 
treaties. The reductions are as follows: $14.0 million from the 
operation and maintenance account for the On-Site Inspection 
Agency (OSIA); $2.0 million from weapons procurement, Navy; 
$7.0 million from operation and maintenance, Army; and $1.0 
million from operation and maintenance, Air Force.
      The conferees agree that the Department of Defense shall 
keep the Congress informed on the status of the OSIA mission to 
implement Annex 1-B of the General Framework for Peace in 
Bosnia and Herzegovina Agreement (known as the Dayton 
Agreement), and any impact this mission may have on the ability 
of OSIA to conduct its other arms control inspection 
responsibilities.
      Additionally, the conferees reiterate the concerns that 
were expressed in the statement of managers in the conference 
report accompanying the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106) with regard to limiting 
the expenditure of funds to provide reimbursement for arms 
control implementation inspection costs borne by the inspected 
party to a treaty or agreement. As expressed in the statement 
of managers, funds may only be expended if the Congress has 
been notified 30 days in advance of an agreement by the 
President to a policy or policy agreement, and that policy or 
policy agreement does not modify any obligation imposed by the 
arms control agreement. Currently, the Congress is aware of 
only two such policy agreements that would reimburse Belarus, 
Kazakhstan, and Ukraine for the costs of U.S. inspections 
conducted within those states. The conferees understand that 
those reimbursements occur on a six-month basis after the 
inspections have been conducted. Those policy agreements are 
with regard to the Intermediate-Range Nuclear Forces (INF) 
Treaty and the Strategic Arms Reduction Treaty (START), 
concluded in May 1994 and February 1995.
      Once again, the conferees express their concern that arms 
control consultative commissions are being used as a mechanism 
to make substantive changes or modifications to arms control 
treaties and agreements that should be brought to the Senate 
for its review and subsequent advice and consent. There may be 
very good reasons for changes in implementation of specific 
arms control treaties or agreements. However, if a change or 
modification to the treaty or agreement would result in a 
substantive change to the understanding under which the Senate 
provided its advice and consent prior to ratification, the 
Congress should be consulted about the recommended change or 
modification in advance of any agreement in the consultative 
commissions, and must provide its subsequent agreement to the 
change or modification.
      The conferees support the ratification and full 
implementation by all parties of the Chemical Weapons 
Convention (CWC), as negotiated. However, the conferees remain 
concerned that Russia continues to engage in chemical weapons 
activities inconsistent with the accord. In addition, Iran, a 
signatory to the convention, has been characterized by one U.S. 
official as having ``the most active chemical weapons program'' 
in the Third World. Further, a number of states that possess 
active chemical weapons programs, such as Libya, are not 
signatories to the accord. For example, the Secretary of 
Defense and the Director of Central Intelligence have confirmed 
that Libya is engaged in the construction of an underground 
chemical weapons facility carved into a mountain near Tarhunah. 
This extensive project demonstrates the Libyan commitment to 
the acquisition of a significant chemical weapons capability 
and raises questions about the ability of arms control 
agreements like the CWC to restrain the rogue regimes from 
acquiring these types of weapons of terror.
      With regard to the negotiations on a comprehensive test 
ban, many experts believe that a Comprehensive Test Ban Treaty 
(CTBT) is unlikely to be effectively verifiable. Countries 
intent on cheating could identify and implement evasive 
measures that would make it virtually impossible for U.S. 
sensors to detect low-yield tests. This thesis is given 
additional credibility by reports that the Russians may have 
recently conducted a nuclear test, in violation of their self-
imposed moratorium, at Novaya Zemlya.
      The conferees support the budget request for arms control 
implementation, which includes $26.7 million for research, 
development, test and evaluation of technologies to aid in the 
detection of nuclear tests. As discussed elsewhere in the 
statement of managers, the conferees recommend $6.5 million for 
basic research on seismic nuclear monitoring, which could be 
used to detect low-yield nuclear tests.

                                   FY 1997 ARMS CONTROL IMPLEMENTATION BUDGET                                   
----------------------------------------------------------------------------------------------------------------
                  Account                                  Program                Request     Recomm    Rec auth
----------------------------------------------------------------------------------------------------------------
WPN........................................  Arms control compliance...........     14.840     -2.000     12.840
OPAF.......................................  Spares & repairs..................      0.207      0.000      0.207
PDA........................................  OSIA..............................      3.286      0.000      3.286
RDT&E, AF..................................  Arms control implementation.......     26.786      0.000     26.786
RDT&E, DA..................................  Ver tech dem, DNA (603711)........     26.199      0.000     26.199
O&M, Army..................................  ..................................     37.255     -7.000     31.255
O&M, Navy..................................  ..................................     35.402      0.000     35.402
O&M, AF....................................  ..................................     29.331     -1.000     28.331
O&M, DA....................................  OSIA..............................    109.030    -14.000     95.030
                                                                                --------------------------------
      Total................................  ..................................    282.336    -24.000    258.336
----------------------------------------------------------------------------------------------------------------

                         LEGISLATIVE PROVISIONS

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

                     LEGISLATIVE PROVISIONS ADOPTED

Extension of counterproliferation authorities (sec. 1301)

      The House bill contained a provision (sec. 1301) that 
would extend the authority of the Department of Defense to 
provide support to the United Nations Commission on Iraq 
(UNSCOM) through the end of fiscal year 1997.
      The Senate amendment contained a similar provision (sec. 
1043) that would extend the authority of the Department of 
Defense to provide support to UNSCOM through the end of fiscal 
year 1998.
      The Senate recedes with an amendment that would extend 
the authority of the Department of Defense to provide support 
to UNSCOM through the end of fiscal year 1997. Additionally, 
the conferees agree to a provision that would provide the 
Department with authority to exceed the levels authorized in 
fiscal year 1997 for DOD support to UNSCOM in the event of a 
significant unforeseen development. In that event, the 
Secretary of Defense would be required to notify the 
congressional defense committees in writing, prior to providing 
assistance that would exceed the levels authorized for DOD 
support. However, if the Secretary of Defense determines that 
prior notification of such action is not possible, he must 
notify the congressional defense committees of his actions no 
later than 15 days after the date the additional assistance was 
provided.

Limitation on retirement or dismantlement of strategic nuclear delivery 
        systems (sec. 1302)

      The House bill contained a provision (sec. 1302) that 
would prohibit the use of funds appropriated to the Department 
of Defense during fiscal year 1997 for retiring or dismantling 
any B-52H bombers, Trident ballistic missile submarines, 
Minuteman III intercontinental ballistic missiles (ICBMs), or 
Peacekeeper ICBMs.
      The Senate amendment contained a similar provision (sec. 
1062) that would prohibit the use of funds during fiscal year 
1997 for the retirement of B-52H bombers, Trident ballistic 
missile submarines, Minuteman III intercontinental ballistic 
missiles, or Peacekeeper intercontinental ballistic missiles, 
or preparing to retire or dismantle such systems. The provision 
would allow the Secretary of Defense to waive the funding 
restrictions on retiring or dismantling strategic nuclear 
delivery systems, other than for B-52H bombers, to the extent 
necessary to implement the START II Treaty.
      The House recedes with an amendment that would limit the 
obligation of funds during fiscal year 1997 for early 
deactivation of U.S. strategic nuclear delivery systems until 
30 days after the date on which the President submits to 
Congress a report concerning such actions. The conferees note 
that discussions have been held between the governments of the 
United States and the Russian Federation regarding an agreement 
on early deactivations of strategic nuclear weapons and/or 
strategic nuclear delivery systems, once the START II Treaty 
has entered into force. However, the conferees have not been 
given information about the substance of these discussions or 
negotiations.
      In order to retain 94 B-52H aircraft in an operational 
status (28 in attrition reserve), the conferees recommend an 
increase of $42.9 million in Operation and Maintenance, Air 
Force. Of the amounts available in Aircraft procurement, Air 
Force, $42.7 million shall be available for B-52H aircraft 
modifications. Of the amounts available in Military Personnel, 
Air Force, $3.3 million shall be available for support of the 
28 attrition reserve aircraft. In making these recommendations, 
the conferees do not intend to alter the Air Force's ongoing 
effort to consolidate B-52 squadrons. The conferees also do not 
intend to preclude long-range pre-planning, design, or 
evaluation efforts to allow the Navy and Air Force to be ready 
to execute various retirement and dismantlement options in an 
efficient manner.

Strengthening certain sanctions against nuclear proliferation 
        activities (sec. 1303)

      The Senate amendment contained a provision (sec. 1085) 
that would authorize the President to impose Export-Import Bank 
sanctions against specific persons or entities that knowingly 
aid or abet countries to acquire nuclear weapons, or nuclear 
materials for such weapons, by amending the Export-Import Bank 
Act of 1945 (12 U.S.C. 635(b)(4)).
      The House bill contained no similar provision.
      The House recedes with a technical and clarifying 
amendment.
      The global spread of nuclear weapons constitutes one of 
the gravest threats to the national security of the United 
States and that our friends and allies. The persistent and 
ever-changing nature of this threat, together with the numerous 
pathways available to countries to acquire these weapons, 
require both the Congress and the Executive Branch to ensure 
that the United States possesses tools, including necessary 
statutes, to combat this threat.
      Current law requires the denial of Export-Import Bank 
credits: to finance goods destined to countries that violate 
safeguards or a U.S. nuclear agreement, to any non-nuclear 
weapon state that has detonated a nuclear weapon or device, 
and, to any country that has willfully aided or abetted a non-
nuclear weapon state to acquire or develop a nuclear weapon.
      In 1996, a Chinese government-owned entity transferred 
sensitive uranium enrichment technology to Pakistan. This 
action raised the possibility that several billion dollars of 
Export-Import Bank-financed credits for U.S. exports to China 
would be denied. However, the specific entity, the China 
Nuclear Energy Industry Corporation (CNEIC), escaped sanctions 
under current law because the administration judged that 
current law, which prescribes sanctions only against a 
``country'' that willfully aids and abets proliferation, does 
not authorize sanctions against a person or entity, such as the 
CNEIC.
      The conferees agree that enabling the President to target 
sanctions against specific proliferators that are not countries 
will provide important additional options to the President and 
thereby strengthen the U.S. ability to use sanctions as a tool 
to discourage future business with enterprises that knowingly 
promote the global spread of nuclear weapons and materials.

Authority to pay certain expenses relating to humanitarian and civic 
        assistance for clearance of landmines (sec. 1304)

      The Senate amendment contained a provision (sec. 1006) 
that would allow funds appropriated to the overseas 
humanitarian, disaster, and civic assistance program to be used 
to pay for the travel, transportation, and subsistence expenses 
of Department of Defense personnel providing humanitarian 
demining assistance. The provision would also allow for the 
purchase of supplies, services, and equipment to be used in 
providing such assistance and the transfer of this equipment 
and supplies to a foreign country in furtherance of the 
Department's landmine clearance program. The cost of equipment 
and supplies transferred, or services hired to support 
Department of Defense humanitarian demining deployments, may 
not exceed $5.0 million in any given fiscal year.
      The House bill contained a similar provision (sec. 1304).
      The House recedes.

Report on military capabilities of People's Republic of China (sec. 
        1305)

      The House bill contained a provision (sec. 1305) that 
would require an unclassified report and a classified report be 
submitted to Congress, no later than February 1, 1997, on the 
potential for, and likelihood of, the People's Liberation Army 
pursuing modernization of its military capabilities.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Presidential report regarding weapons proliferation and policies of the 
        People's Republic of China (sec. 1306)

      The House bill contained a provision (sec. 1048) that 
would express the concerns of the Congress with regard to the 
transfer by China to Pakistan of sophisticated equipment 
important to the development of nuclear weapons in Pakistan, 
China's compliance with nuclear proliferation regimes, and the 
decision of the United States not to impose sanctions against 
China for its transfer of equipment to Pakistan. The provision 
would express the sense of the Congress that the President 
should not have decided that the evidence of China's actions 
was not sufficient to warrant sanctions. The provision would 
also require the President to report to Congress on the 
administration's response to China's transfer of equipment to 
Pakistan, on specific information related to the justification 
for the President's determination not to enforce sanctions 
against China, and on subsequent actions taken by the United 
States to enforce compliance with nonproliferation and export 
control regimes.
      The Senate had no similar provision.
      The Senate recedes with an amendment that would express 
congressional concerns regarding China's transfer of assistance 
to Iran and Pakistan that could contribute to the manufacture 
of nuclear weapons; transfer of nuclear weapons technology and 
assistance, as well as the transfer of M-11 missiles, to 
Pakistan; and China's compliance with proliferation regimes 
such as the nuclear Nonproliferation Treaty and the Missile 
Technology Control Regime (MTCR). The provision would also 
require the President to submit a report to Congress within 60 
days of enactment of this Act regarding the transfer of nuclear 
weapons technology and assistance, as well as their means of 
delivery, by China to Pakistan, subsequent actions taken by the 
President to express concern with China's compliance with 
nuclear proliferation regimes, and information related to the 
specific justification by the Secretary of State that there was 
no sufficient basis for imposing sanctions against China.

United States-People's Republic of China Joint Defense Conversion 
        Commission (sec. 1307)

      The House bill contained a provision (sec. 1306) that 
would prohibit obligation or expenditure of fiscal year 1997 
funds for activities associated with the United States-People's 
Republic of China Joint Defense Conversion Commission until 
Congress receives reports required by section 1343 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106).
      The Senate amendment contained no similar provision.
      The Senate recedes.

Sense of the Congress concerning export controls (sec. 1308)

      The Senate amendment contained a provision (sec. 1046) 
that would express the sense of the Senate that an 
international export control regime is critically important; 
that agreement on an international export control regime should 
be a top priority of the United States; that the United States 
should encourage the adoption by friends and allies of a 
commodity control list similar to the U.S. list; that 
enforcement activities should be strengthened; and, that the 
United States should use unilateral controls.
      The House bill contained no similar provision.
      The House recedes with a technical and clarifying 
amendment.
      During the Cold War, the Coordinating Committee for 
Multilateral Export Controls (COCOM) regime assisted the North 
Atlantic Treaty Organization (NATO) in maintaining a 
qualitative military edge over the Warsaw Pact. However, in the 
post-Cold War era, while allies have a strong interest in 
coordinating exports, they have rejected efforts to implement 
restrictive procedures, such as those used in COCOM, to ensure 
the restriction of exports of militarily significant dual use 
technologies and commodities.
      Dual-use technologies and commodities are civilian items 
which have military application; they are not munitions. The 
United States controls the export of its dual use technologies 
and commodities for national security, foreign policy, and 
short supply purposes. The legislative framework that controls 
the exports of these dual use items is the Export 
Administrative Act (EAA).
      The world has changed dramatically since 1988 (the last 
time the Export Administration Act (EAA) was revised). COCOM 
coordinated NATO restrictions on exports of conventional 
weapons and related dual use goods to communists countries, but 
was disbanded in March 1994. To date, the administration's 
effort to negotiate an effective successor regime to COCOM, 
which would restrict exports to targeted countries (Iran, Iraq, 
Libya and North Korea) from former COCOM members and new 
members from neutral and eastern European countries, has 
failed.
      Additionally, the Export Administration Act (EAA) expired 
in August 1994 and new legislation has not been adopted by 
Congress. Currently, the President's authority to control the 
export of dual use technologies is exercised under Executive 
Order 12938. Executive Order 12938 declared a national 
emergency with respect to the threat posed to U.S. national 
security by the proliferation of weapons of mass destruction. 
Under this executive order the President can enforce most 
export controls on dual use technologies and commodities that 
would contribute to the proliferation of weapons of mass 
destruction. The executive order, however, does not provide 
full enforcement authority.
      The capability to build weapons of mass destruction 
(WMD), including nuclear, chemical and biological weapons, and 
missiles to deliver WMD, is spreading. Without adequate export 
controls on sensitive dual use technologies and commodities, 
their export could enable an adversary to design, develop, 
test, produce, stockpile or use weapons of mass destruction, 
missile delivery systems, and other significant military 
capabilities.
      The availability of sensitive military technologies to 
countries, without sufficient safeguards to ensure that these 
technologies cannot be transferred to a third country (which 
could be a rogue nation), remains a fundamental concern to the 
United States and should be eliminated through deterrence, 
negotiations, and other appropriate means.
      Export controls remain part of a comprehensive approach 
that effectively responds to U.S. national security interests. 
The United States should continue to work with its friends and 
allies to negotiate an agreement to restrict exports of dual 
use technologies and commodities to foreign countries that 
threaten U.S. national security, nonproliferation, or foreign 
policy interests.

Sense of Congress concerning assisting other countries to improve 
        security of fissile material (sec. 1310)

      The House bill contained a provision (sec. 1054) that 
would express the sense of Congress that it is in the national 
interest of the United States to take actions to assist other 
countries in securing and accounting for plutonium and highly 
enriched uranium from dismantled nuclear weapons.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Review by Director of Central Intelligence of National Intelligence 
        Estimate 95-19 (sec. 1311)

      The House bill contained a provision (sec. 1308) that 
would direct the Director of Central Intelligence (DCI) to 
review the underlying assumptions and conclusions of the 
November, 1995, National Intelligence Estimate on ``Emerging 
Missile Threats to North America During the Next 15 Years,'' to 
convene a panel of independent, non-governmental experts, and 
to report the panel's findings to Congress, along with the 
DCI's comments.
      The Senate amendment contained no similar provision.
      The Senate recedes.

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

                     legislative provisions adopted

Commission to assess the ballistic missile threat to the United States 
        (secs. 1321-1329)

      The House bill contained provisions (secs. 1321-1329) 
that would establish a commission to be known as the 
``Commission to Assess the Ballistic Missile Threat to the 
United States.'' The commission's members would be private 
citizens with knowledge and expertise in the political and 
military aspects of proliferation of ballistic missiles and the 
ballistic missile threat to the United States, and would have 
access to the resources and information of the intelligence 
community necessary to carry out their responsibilities. The 
commission would consist of nine members appointed by the 
Director of Central Intelligence. Consistent with the 
consultative nature of the appointment process used by the 
Defense Base Closure and Realignment Commission (Public Law 
101-510), three members would be chosen in consultation with 
the Speaker of the House of Representatives, three members 
would be chosen in consultation with the Majority Leader of the 
Senate, and three members would be chosen in consultation with 
the minority leaders of the House and Senate.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Certification required before observance of moratorium on use by armed 
        forces of antipersonnel landmines

      The House bill contained a provision (sec. 1303) that 
would require the Secretary of Defense, after consultation with 
the Chairman of the Joint Chiefs of Staff, to certify to 
Congress that a moratorium on the use of antipersonnel 
landmines would not adversely affect the ability of U.S. armed 
forces to defend against attack and that effective substitutes 
for antipersonnel landmines exist, prior to implementation of 
such a moratorium.
      The Senate amendment contained no similar provision.
      The House recedes with the understanding that further 
legislation on a landmine moratorium will not be introduced or 
enacted in the remainder of this Congress.
      The conferees support efforts to minimize and eliminate 
post-combat civilian casualties, and note that the United 
States has been the global leader in working toward this 
objective. U.S. military forces use non-self-destructing 
landmines only along internationally recognized borders or in 
demilitarized zones within perimeter-marked areas that are 
monitored by military personnel and protected by adequate means 
to ensure the exclusion of civilians.
      The conferees note the announcement by the President on 
May 16, 1996, regarding U.S. military use of antipersonnel 
landmines, that is, to cease immediately the use of non-self-
destructing landmines, except for training purposes and 
deployment along the demilitarized zone in Korea; and, with 
regard to self-destructing antipersonnel landmines, a 
commitment to cease the use of self-destructing antipersonnel 
landmines, when an international agreement is reached, with 
exceptions for training and in Korea.

         TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Cooperative threat reduction (CTR) program, domestic emergency 
        assistance programs and programs for the defense against 
        weapons of mass destruction (secs. 1401-1505)

      The House bill contained provisions (sec. 1101-1105) that 
would: authorize $302.9 million for the Cooperative Threat 
Reduction (CTR) program, a $25.0 million reduction to the 
budget request; would specify CTR programs; allocate fiscal 
year 1997 funding for the various CTR programs and activities; 
prohibit the use of CTR funds for specific purposes; prohibit 
the obligation of CTR funds until various reports are submitted 
to Congress; and make fiscal year 1997 CTR funds available for 
three fiscal years. Additionally, the House report (H. Rept. 
104-563) encouraged the Secretary of Defense to report to the 
Congress by September 30, 1996, an assessment of the 
advisability of the Department of Defense's establishing a 
program for enhancing the capability of the Department to 
assist law enforcement agencies in responding to terrorism or 
natural disasters involving chemical or biological agents and 
recommended an increase of $12.0 million in PE 65160D to 
preserve the option of initiating such a program in fiscal year 
1997.
      The Senate amendment would fully fund the budget request 
for CTR at $327.9 million. In addition, the Senate amendment 
contained provisions (secs. 1301-1356) that would increase the 
overall budget request for defense operation and maintenance by 
$150.0 million, and add $85.0 million to the budget request for 
the Department of Energy to establish a comprehensive program 
to improve U.S. capabilities to deal with the use, or 
threatened use, of weapons of mass destruction. In that regard, 
the amendment would expand the scope of the DOD CTR program and 
the DOE arms control and materials, protection, control and 
accountability programs to include additional activities, 
especially assistance to the independent states of the former 
Soviet Union. Of the $235.0 million budget increase for DOD and 
DOE, $80.0 million would be authorized for the establishment of 
a DOD and DOE domestic emergency assistance program; $59.0 
would be authorized for domestic and international border 
security assistance DOD CTR and DOE materials, protection, 
control and accountability activities would be increased by 
$94.0 million; and $2.0 million would be authorized for 
research activities of the proliferation coordinator.
      Additionally, the provision would provide the President 
with more specific authorities than exist under current law by 
authorizing the limited use of U.S. military forces to assist 
the Department of Justice in domestic emergency situations 
involving the terrorist use of WMD and by amending the 
International Emergency Economic Powers Act.
      The House recedes with an amendment to the Senate 
provisions.
      The Senate recedes with an amendment to the House 
provisions.
      Since the end of the Cold War, materials and technologies 
related to weapons of mass destruction--nuclear, radiological, 
chemical, and biological weapons--have become increasingly more 
available to rogue states, terrorist groups, and unstable 
individuals. Controls over nuclear materials in the former 
Soviet Union continue to require significant improvement. Easy 
access to dual-use materials and technologies to fabricate 
chemical and biological weapons make the proliferation of these 
weapons arguably the most urgent and serious threat the United 
States faces today.
      The United States government must improve and make 
comprehensive the way it addresses this threat. To this end, 
the conferees agree to a series of provisions that address all 
aspects of the threat of the proliferation of weapons of mass 
destruction. The conferees agree to recommend an additional 
$201.0 million to the budget to address this issue. These 
increased funds would: increase the budget request for the 
Cooperative Threat Reduction (CTR) program by $37.0 million; 
authorize a $10.0 million increase to the budget request for 
the counterproliferation support program; authorize $30.0 
million for U.S. and international border security activities; 
add $65.0 million for the establishment of a domestic emergency 
response program; and add $57.0 for DOE materials, protection, 
control and accountability.

Domestic Preparedness

      Enhancing the nation's ability to prevent, and, if 
necessary, to respond to a terrorist incident involving 
nuclear, radiological, chemical, or biological weapons or 
materials is the cornerstone of this program. The conferees 
note that an interagency group, composed of the Federal 
Response Plan signatory agencies led by the Federal Emergency 
Management Agency (FEMA) completed and forwarded to the 
President on July 1, 1996, a report titled ``Consequences 
Management for Nuclear, Biological, and Chemical (NBC) 
Terrorism.'' The report documents the inadequacy of the Federal 
Response Plan to deal with NBC terrorist incidents and makes 
specific recommendations regarding capability enhancements. The 
conferees agree to a provision (sec. 1411) that would require 
the President to take immediate action to enhance the 
capability of the Federal Government to respond to such 
incidents and to provide enhanced support to improve the 
capabilities of State and local emergency response and law 
enforcement agencies to respond to such incidents. The 
provision would further require the President to provide to the 
Congress by January 31, 1997, a report containing an assessment 
of such capabilities, improvements required, and measures that 
should be taken to achieve such improvements, including 
additional resources and legislative authority that might be 
necessary.
      The conferees agree to recommend $50.0 million for the 
establishment of a domestic emergency assistance program for 
the Department of Defense to immediately begin sharing its 
unique expertise, experience, and equipment in dealing with 
chemical and biological weapons and materials with local 
emergency first respondents (firemen, policemen, and medical 
workers).
      The conferees expect that the Secretary of Defense will 
work expeditiously with the Secretary of Health and Human 
Services in providing DOD resources and expertise to the Office 
of Emergency Preparedness for the formation of emergency 
medical teams that are trained and equipped to handle incidents 
involving weapons of mass destruction.
      The conferees agree to provide $15.0 million for DOD to 
conduct interagency exercises that will focus on testing and 
improving the U.S. Government's ability to respond to incidents 
involving weapons of mass destruction.
      The conferees have agreed to an additional provision 
(sec. 1414) that would require DOD to establish at least one 
Chemical-Biological Emergency Response Team for rapid response 
to domestic terrorism. The conferees expect that such teams 
would be similar in concept to the Nuclear Emergency Search 
Team and Accident Response Groups that are maintained by DOE 
for response to a nuclear incident. The conferees note in the 
joint DOD/DOE report to the Congress, ``Preparedness and 
Response to a Nuclear, Radiological, Biological, or Chemical 
Terrorist Attack,'' dated June 13, 1996, that the DOD is 
attempting to establish such a capability. The conferees note 
that many of the capabilities sought for such teams are already 
present in the Army's Technical Escort Unit, Edgewood Research, 
Development, and Engineering Center, and Chemical Defense and 
Infectious Disease Medical Research Institutes. The conferees 
also note the Counterproliferation Program Review Committee's 
``Report on Activities and Programs for Countering 
Proliferation'', dated May 1996, which states that U.S. Marine 
Forces, Atlantic was scheduled to activate a Department of the 
Navy/Marine Corps Chemical/Biological Incident Response Force 
on June 1, 1996, to respond to chemical and biological 
incidents (terrorist or otherwise) occurring on Naval 
installations and Department of State legations worldwide. The 
conferees understand that the unit has been activated and is 
now in training.
      In section 1416, the conferees agree to provide 
authority, very narrowly defined and carefully constructed, for 
the President and the Attorney General to request military 
support to local authorities in incidents involving chemical 
and biological weapons. This authority is in addition to the 
authorities otherwise provided in Chapter 18 of title 10, U.S. 
Code. The conferees agree that the use of the military in any 
emergency situation involving biological or chemical weapons or 
materials should be limited both in time and scope to dealing 
with the specific chemical or biological weapons-related 
incident.
      Finally, the conferees have included a provision (sec. 
1417) that would require Federal Response Plan agencies to 
develop and maintain an inventory of equipment and other assets 
that could be made available to aid State and local officials 
in search and rescue and other disaster management and 
mitigation efforts associated with an emergency involving 
weapons of mass destruction, and would require FEMA to maintain 
a comprehensive master list of the inventory. The provision 
would also require FEMA to establish a data base on chemical 
and biological agent and munitions characteristics and safety 
precautions and to develop a system to provide federal, State, 
and local officials access to the data base and to the master 
inventory.

Interdiction of weapons of mass destruction and related materials

      This section focuses attention on enhancing our efforts 
at interdicting and detecting nuclear, radiological, chemical, 
and biological weapons and related materials, the next step of 
protecting the United States against the threat posed by the 
proliferation of weapons of mass destruction. The conferees 
agree to recommend $15.0 million for the DOD to assist the U.S. 
Customs Service in interdicting these materials before they 
enter the United States.
      As mentioned above, the conferees also agree to an 
increase of $10.0 million to the DOD counterproliferation 
support program and an increase of $17.0 million to the DOE 
nonproliferation and verification research and development 
program to conduct research and development of technical means 
for detecting the presence, transportation, production, and use 
of weapons of mass destruction and related materials and 
technologies.
      Additionally, the conferees agree to provisions that 
would amend the International Emergency Economic Powers Act to 
provide penalties to cover attempts to import or export weapons 
of mass destruction and related materials, and would express 
the sense of the Congress that criminal penalties for 
proliferation-related activities should be increased.
      Finally, the conferees agree to recommend $15.0 million 
for DOD training and assistance to customs services and border 
guards in the former Soviet Union, the Baltic states, and 
Eastern Europe in detecting and interdicting the smuggling of 
weapons of mass destruction and related materials. This program 
is intended to be separate and distinct from the existing DOD/
FBI counterproliferation assistance program, which focuses 
largely on training law enforcement officials in the 
interdiction of these materials. The conferees believe that law 
enforcement and Customs agents, and border guards, must be 
familiar with proliferation issues if any counterproliferation 
effort is to be viable. While there may be some beneficial 
overlap between the DOD/FBI effort and the DOD/Customs program 
envisioned in this legislation, it is the view of the conferees 
that the most effective way to reach and establish productive 
relations is through expanding relations between analogous 
counterparts. The conferees expect the Secretary of Defense to 
make DOD equipment and related materials and technologies 
available to the Commissioner of Customs for use in detecting 
and interdicting the movement of weapons of mass destruction 
into the United States to the extent authorized under existing 
law. The Secretary of Defense and the U.S. Customs Commissioner 
shall provide to Congress a joint report on the scope and 
impact of this program and an inventory of items provided under 
this authority. This report should also include the extent to 
which it will interface with the DoD/FBI effort.

Control and disposition of weapons of mass destruction and related 
        materials threatening the United States

      With regard to the DOD budget request for the CTR program 
and the DOE budget request for materials, protection, control 
and accountability, the conferees agree to recommend authority 
for a variety of programs that focus on assisting the states of 
the former Soviet Union to better control and/or eliminate 
their stockpiles of weapons of mass destruction and related 
materials. Programs include: $15.0 million for DOE MPC&A 
activity; $10.0 million for DOD MPC&A activity; $10.0 million 
for a DOE program to develop technologies associated with 
improving the verification of nuclear warhead dismantlement; 
$15.0 million for DOD activities related to the dismantlement 
of chemical and biological weapons-related facilities; $9.0 
million for DOE's Lab-to-Lab program; and $6.0 million for DOE 
to work with the Russian government in enhancing the security 
of fissile material used for the propulsion of Russian military 
and civilian ships.
      It is the view of the conferees that both DOE and DOD 
should seek to expand these activities in the former Soviet 
Union beyond nuclear activities in Russia, Ukraine, Kazakhstan, 
and Belarus. While programs to date have appropriately focused 
on the most pressing strategic concerns, critical work remains 
to be done in combating the threat of proliferation at a 
variety of sites in the other states of the former Soviet Union 
where nuclear, chemical, and biological weapons-related 
materials and technologies continue to be vulnerable to 
proliferation.
      The conferees agree to transfer $10.0 million in DOD 
funds to DOE for activities related to the conversion of 
several Russian nuclear core reactors so they no longer produce 
weapons-grade plutonium. It is the view of the conferees that 
the Secretary of Defense should transfer these funds to the 
Secretary of Energy expeditiously so that the Department of 
Energy can continue to move forward on this program.

Coordination of policy and countermeasures against proliferation of 
        weapons of mass destruction

      The conferees agree that the nation's overall 
coordination of policy, efforts, and activities addressing the 
threat posed by the increasing availability of nuclear, 
chemical, and biological weapons, materials, and technology 
must be improved. The conferees agree to a provision that would 
direct the appointment by the President of a national 
coordinator on proliferation within the Executive Office of the 
President, to advise the President on nonproliferation and 
related issues regarding terrorism and international organized 
crime. The provision would establish a committee on 
nonproliferation, to be chaired by the coordinator, and 
composed of members of the Executive Branch who have 
responsibilities for crisis and consequence management, 
nonproliferation, and related issues. This committee will 
review and coordinate programs, policies, and directives 
related to the proliferation of weapons of mass destruction and 
the threat they pose to our national security. The conference 
agreement also requires the President, through the committee on 
nonproliferation, to submit a comprehensive report for carrying 
out this amendment.

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

          TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

                         legislative provisions

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

                     legislative provisions adopted

Modification of requirement for conversion of military positions to 
        civilian positions (sec. 1601)

      The Senate amendment contained a provision (sec. 1101) 
that would repeal the portion of section 1032 of the National 
Defense Authorization Act for Fiscal Year 1996 that would 
require the Secretary of Defense to convert 7,000 military 
positions to civilian positions during fiscal year 1997.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal the 
requirement for the conversion of 7,000 military positions to 
civilian positions during fiscal year 1997, contingent on the 
Secretary of Defense's having certified to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives that the Department of 
Defense has completed the conversion of 3,000 military 
positions to civilian positions during fiscal year 1996, as 
required by section 1032 of the National Defense Authorization 
Act for Fiscal Year 1996.
      The certification shall include: (1) a description of the 
types and grades of positions converted; (2) the distribution 
of converted positions across the services and defense 
agencies; (3) the extent to which any military positions 
converted to civilian positions were vacant when converted; (4) 
the extent to which any newly-converted civilian positions 
remain vacant; (5) an analysis of the follow-on assignment of 
those military personnel whose positions were converted to 
civilian positions; (6) a discussion of any costs associated 
with the required conversion; and (7) the effect on operational 
readiness, if any, caused by the required conversion.

Retention of civilian employee positions at military training bases 
        transferred to national guard (sec. 1602)

      The House bill contained a provision (sec. 368) that 
would require the Secretary of Defense to retain civilian 
employee positions at installations being transferred to the 
National Guard during fiscal year 1997 to provide transitional 
support to active and reserve component training missions on 
the installations.
      The Senate amendment contained a provision (sec. 1102) 
that, while similar, did not specify that the transfer of an 
installation to the National Guard had to occur in 1997 in 
order for the provision to have effect.
      The Senate recedes with an amendment that would retain 
the directive nature of the House provision while eliminating 
the requirement that transfers occur in 1997.

Clarification of applicability of certain management constraints on 
        major range and test facility base structure (sec. 1603)

      The House bill contained a provision (sec. 508) that 
would clarify that major range and test facility base 
activities are covered by certain limitations on the use of end 
strengths or other personnel management caps that are used to 
reduce personnel levels or restrict funding for Federal 
employees. The provision would also clarify that funding 
available to major range and test facility base activities 
includes both direct appropriated funds and funds provided by 
major range and test facility customers.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Travel expenses and health care for civilian employees of the 
        Department of Defense abroad (sec. 1604)

      The Senate amendment contained a provision (sec. 1104) 
that would authorize the Secretary of Defense, under certain 
circumstances, to pay allowances and benefits to civilian 
personnel serving overseas comparable to those paid to members 
of other government agencies that routinely assign personnel 
overseas.
      The House bill contained no similar provision.
      The House recedes.

Travel, transportation, and relocation allowances for certain former 
        nonappropriated fund employees (sec. 1605)

      The Senate amendment contained a provision (sec. 1105) 
that would authorize a nonappropriated fund employee who moves 
in conjunction with being hired as an appropriated fund 
employee to receive the same travel, transportation, and 
relocation expenses authorized for appropriated fund employees.
      The House bill contained no similar provision.
      The House recedes.

Employment and salary practices applicable to Department of Defense 
        overseas teachers (sec. 1606)

      The Senate amendment contained a provision (sec. 1106) 
that would permit the Secretary of Defense to reclassify 
General Schedule professional educator positions as ``overseas 
teachers'' compensable under the Overseas Teacher Pay and 
Personnel Act.
      The House bill contained no similar provision.
      The House recedes.

Employment and compensation of civilian faculty members at certain 
        Department of Defense schools (sec. 1607)

      The Senate amendment contained a provision (sec. 1107) 
that would authorize the Asia-Pacific Center for Security 
Studies and the English Language Center of the Defense Language 
Institute to employ and compensate the civilian faculty, 
including the Director and Deputy Director of the Asia-Pacific 
Center, in the same manner as the George C. Marshall European 
Center for Security Studies and other Department of Defense 
education facilities.
      The House bill contained no similar provision.
      The House recedes.

Reimbursement of Department of Defense domestic dependent school board 
        members for certain expenses (sec. 1608)

      The Senate amendment contained a provision (sec. 1108) 
that would authorize Department of Defense domestic dependent 
school board members to be reimbursed for travel and 
transportation expenses, program fees, and activity fees that 
the Secretary of Defense determines reasonable and necessary in 
the performance of their duties.
      The House bill contained no similar provision.
      The House recedes with an amendment that would include 
lodging expenses among those expenses for which domestic 
dependent school board members could be reimbursed.

Modification of authority for civilian employees of Department of 
        Defense to participate voluntarily in reductions in force (sec. 
        1609)

      The House bill contained a provision (sec. 336) that 
would extend until September 30, 2001, the authority to allow 
employees who are not affected by a reduction-in-force (RIF) to 
volunteer to be RIF-separated in place of other employees who 
are scheduled for RIF separation.
      The Senate amendment contained a similar provision (sec. 
1109).
      The conference agreement includes this provision.

Wage-board compensatory time off (sec. 1610)

      The House bill contained a provision (sec. 333) that 
would provide federal managers of wage-board employees the same 
flexibility to use compensatory time off afforded federal 
managers of general schedule employees, by authorizing agency 
heads to grant compensatory time off in lieu of overtime pay 
under certain circumstances.
      The Senate amendment contained a similar provision (sec. 
1110).
      The Senate recedes with an amendment that would preclude 
agency heads from directly or indirectly forcing employees to 
accept compensatory time off in lieu of pay for overtime work.

Liquidation of restored annual leave that remains unused upon transfer 
        of employee from installation being closed or realigned (sec. 
        1611)

      The Senate amendment contained a provision (sec. 1111) 
that would require, under certain circumstances, automatic 
liquidation of annual leave restored under section 6304(d) of 
title 5, United States Code.
      The House bill contained no similar provision.
      The House recedes.

Waiver of requirement for repayment of voluntary separation incentive 
        pay by former Department of Defense employees reemployed by the 
        Government without pay (sec. 1612)

      The House bill contained a provision (sec. 332) that 
would allow civilian employees who have previously received 
separation or incentive pay to leave federal employment to 
volunteer for government service without the loss of their 
separation or incentive pay.
      The Senate amendment contained a similar provision (sec. 
1112).
      The conference agreement includes this provision.

Simplification of rules relating to the observance of certain holidays 
        (sec. 1613)

      The House bill contained a provision (sec. 334) that 
would allow the head of an agency within the Department of 
Defense to change the Federal day off from Monday to an 
alternate day for those employees who would normally have 
Monday off under a compressed work schedule.
      The Senate amendment contained a similar provision (sec. 
1113).
      The Senate recedes.
      The conferees intend that when a Federal holiday falls on 
a Monday and that day is a day off for certain employees, that 
those employees will receive the next normal work day off. The 
conferees do not intend that this authority would be used to 
disrupt what would have been an extended weekend break by 
forcing employees to take a mid-week day off.

Revision of certain travel management authorities (sec. 1614)

      The House bill contained a provision (sec. 331) that 
would provide Department of Defense (DOD) civilian personnel 
with the flexibility to make more efficient lodging decisions 
based on overall mission requirements by considering overall 
travel costs.
      The Senate amendment contained a provision (sec. 1114) 
that would repeal a reporting requirement and repeal the 
prohibition on paying lodging expenses to DOD civilian 
employees who do not use adequate government quarters when they 
are available.
      The House recedes.
      The conferees believes that these and other provisions 
related to travel reform can assist the DOD in its ongoing 
efforts to simplify the travel management system and, in doing 
so, improve efficiency and reduce costs associated with 
official travel.
      The conferees note, however, that the success or failure 
of travel management initiatives will not depend on the 
relaxation of the many detailed rules and regulations which 
have governed travel management over the years. Rather, the 
success or failure will be a direct reflection of the courage 
and discipline with which executives and supervisors at every 
level approach their individual responsibilities in overseeing 
their own official travel and lodging decisions and those of 
their subordinates. Official travel is not a prerequisite of 
position to be exploited. Individual responsibility and the 
effective stewardship of official travel funds must be 
institutionalized as fundamental management principles at all 
levels.

Failure to comply with veterans' preference requirements to be treated 
        as a prohibited personnel practice (sec. 1615)

      The House bill contained a provision (sec. 1047) that 
would make failure to take, recommend or approve any personnel 
action involving a veteran's preference a prohibited personnel 
practice.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

Pilot programs for defense employees converted to contractor employees 
        due to privatization at closed military installations (sec. 
        1616)

      The Senate amendment contained a provision (sec. 1121) 
that would permit certain federal workers who accept employment 
with a contractor in conjunction with a privatization 
initiative, referred to as ``transferred'' employees, to 
continue to accrue years of federal service for the purpose of 
determining eligibility for federal retirement, but not for 
determining the amount of the employees retirement benefit.
      The House bill contained no similar provision.
      The House recedes with an amendment clarifying that the 
facility must have been recommended for privatization in place 
by the Base Realignment and Closure Commission.

    Subtitle B--Department of Defense Intelligence Personnel Policy

                     legislative provisions adopted

Department of Defense intelligence personnel policy (secs. 1631-1635)

      The Senate amendment contained several provisions (sec. 
1131-1134) that would provide new personnel management 
authorities to the Secretary of Defense for managing the 
civilian personnel in the DOD intelligence community.
      These provisions would authorize the Secretary of Defense 
to: 1) establish Senior Executive Service (SES) positions in 
the intelligence community without regard to individual service 
or agency caps while retaining the overall DOD cap; 2) 
establish senior-level positions in the intelligence community 
to provide upward mobility for individuals whose career 
patterns and areas of expertise do not afford or require the 
management experience required of an SES; 3) establish term-
limited non-competitive positions for periods of up to two 
years to permit the rapid expansion or contraction of portions 
of the workforce to meet evolving needs; 4) terminate the 
employment of a member of the intelligence community in the 
interests of the United States; 5) adjust the size, quality and 
skill mix of the intelligence community workforce by allowing 
greater weight to be given to performance and skill than is 
currently possible under existing reduction-in-force rules.
      The Senate amendment also contained several provisions 
(secs. 921, 924, and 925) that would provide personnel 
management authorities to the Secretary of Defense for managing 
the civilian personnel in the National Imagery and Mapping 
Agency that are consistent with other authorities affecting the 
defense intelligence community.
      The House bill contained no similar provision.
      The House recedes with an amendment that would 
consolidate those provisions addressing the management of 
civilian personnel of the defense intelligence community 
including those assigned to the National Imagery and Mapping 
Agency.
      The conferees intend that the section concerning time-
limited appointments be used for non-competitive appointments 
to meet crisis or surge requirements. The conferees do not 
intend to limit the temporary limited appointment or ``not-to 
exceed'' authorities currently in effect.

                   LEGISLATIVE PROVISIONS NOT ADOPTED

Phased retirement

      The House bill contained a provision (sec. 335) that 
would authorize the Department of Defense to establish a pilot 
program to encourage some civilians to retire in stages by 
changing current annuity offset rules.
      The Senate amendment contained no similar provision.
      The House recedes.

               Title XVII--Federal Employee Travel Reform

Federal Employee Travel Reform (secs. 1701-1725)

      The Senate amendment contained several provisions (secs. 
1401-1434) that would reform federal travel policy to provide 
employees who transfer in the interest of the government more 
effective and efficient delivery of relocation services, 
alleviate administrative burdens associated with travel and 
employee relocations, and reduce travel and relocation costs.
      These provisions are the product of the Joint Financial 
Management Improvement Program: a multi-agency task force that 
includes the Office of Management and Budget; the General 
Accounting Office; the Department of the Treasury; and the 
Office of Personnel Management. The provisions would: (1) 
provide authority to offer employees a choice of methods of 
reimbursement for house-hunting trips and reimbursement for 
subsistence expenses when lodged in temporary quarters; (2) 
establish a cap on reimbursement of residence transaction 
expenses based on a percentage of the price of a home; (3) 
provide authority for reimbursement for property management 
services expenses; (4) authorize the transportation of an 
employee's privately owned vehicle within the continental 
United States under certain circumstances; and (5) authorize 
the use of home marketing incentives and other streamlining 
initiatives.
      The House bill contained no similar provision.
      The House recedes.
      The conferees recognize that the Committee on Government 
Reform and Oversight of the House of Representatives has been 
active in seeking reform of federal travel processes and has 
developed separate legislation that incorporates many of the 
provisions in the conference agreement. In the legislation 
being considered by the Committee on Government Reform and 
Oversight of the House of Representatives, there are 
significant new measures that warrant further attention and 
review. One such provision would require the use of the 
government-wide travel charge card program. The conferees urge 
that executive branch agencies, when appropriate, use their 
discretionary authority to maximize the use of the travel 
charge card in order to maximize the rebate the government 
receives for the purchases of travel and travel related 
services.

     Title XVIII--Federal Charter for the Fleet Reserve Association

Federal Charter for the Fleet Reserve Association (secs. 1801-1816)

      The Senate amendment contained provisions (sec. 1201-
1216) that would establish a Federal charter for the Fleet 
Reserve Association.
      The House bill contained no similar provision.
      The House bill recedes with a technical amendment.

            Division b--military construction authorizations

Overview

      The budget request for fiscal year 1997 included 
$9,132,311,000 for military construction and family housing.
      The House bill would authorize $10,032,311,000 for 
military construction and family housing.
      The Senate amendment would provide $9,832,711,000 for 
this purpose.
      The conferees recommend authorization of apppropriations 
of $9,982,311,000 for military construction and family housing, 
including general reductions and termination of prior year 
projects.
      The conferees are deeply concerned about the condition of 
the military infrastructure and troubled by the shortfalls 
evident in the administration's budget request for fiscal year 
1997 for military construction and military family housing 
programs. The conferees note that the construction and 
modernization of facilities and their upkeep and maintenance 
are a critical component of military readiness, which has been 
under funded in recent years. The conferees are also mindful of 
the serious deficiencies in facilities designed to support the 
quality of life of military personnel and their families.
      From an operational and readiness perspective, shortfalls 
in the construction and repair and maintenance accounts have 
exacerbated problems in the facilities infrastructure. Needed 
improvements to basic infrastructure have often been deferred, 
leading to the creation of a steep backlog in facilities, 
construction and maintenance. For example, approximately 20 
percent of the Army's facilities are unsuitable, either due to 
deteriorated conditions or they are unable to meet mission 
requirements. Additionally, the Army lacks 30 percent of the 
facilities required to meet specific mission requirements, 
making do with work-arounds that impair efficiency. To cite 
another example, over two-thirds of the Navy's piers were 
constructed during the Second World War. According to the 
Navy's estimates, by the year 2010, only 20 percent of existing 
piers and wharves would adequately be able to service the 
fleet.
      The condition of military housing for families and 
unaccompanied personnel and other quality of life 
infrastructure is in a similar state of deterioration. 
According to the Defense Science Board Task Force on Quality of 
Life, 62 percent of barracks and dormitories are currently 
unsuitable and 64 percent of family housing units are in the 
same condition. In spite of these serious deficiencies, the 
administration's budget request fails to keep pace with current 
levels of funding to support the construction of barracks and 
dormitories. The budget request for fiscal year 1997 further 
proposes to reduce sharply the expenditure of funds on new 
construction of military family housing and improvements to 
existing family housing units. The administration also proposes 
to reduce funding for basic maintenance of family housing.
      The conferees believe the administration's budget request 
for military construction and military family housing programs 
for fiscal year 1997, which is $1.56 billion below the fiscal 
year 1996 request, is seriously under funded. The conferees 
recommend an increase in new budget authority for these 
programs of $850,000,000. Approximately 60 percent of that 
amount is dedicated to a major quality of life initiative. The 
conferees recommend an additional $200,816,000 for the 
construction of new barracks and dormitories and an additional 
$266,170,000 for the construction of military family housing 
and improvements to existing family housing units. The 
conferees also recommend an additional $30,410,000 for the 
construction of child development centers. The conferees 
reiterate their support for the military housing privatization 
initiative authorized in section 2801 of the Military 
Construction Authorization Act of Fiscal Year 1996 (division B 
of Public Law 104-106) and recommend an additional $10,000,000 
to support both the family housing and unaccompanied housing 
privatization initiatives.
      The conferees remain concerned about the instability in 
funding for the military construction and military family 
housing programs contemplated by the current Future Years 
Defense Plan. The conferees believe the serious backlog of 
military construction requirements can no longer be deferred. 
The conferees urge the Secretary of Defense to address the need 
to reduce the backlog of military construction requirements 
affecting the operational needs of the military departments and 
to enhance those programs that directly support improvements in 
the quality of life for military personnel and their families.
      A tabular summary of the authorizations provided in 
Division B for fiscal year 1997 follows:


                            Title XXI--Army

                            fiscal year 1997

Overview

      The House bill would authorize $2,037,653,000 for Army 
military construction and family housing programs for fiscal 
year 1997.
      The Senate amendment would authorize $1,913,297,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $1,942,557,000 for Army military construction and family 
housing for fiscal year 1997.

                       items of special interest

Improvements Of Military Family Housing, Army

      The conferees recommend that, within authorized amounts 
for improvements of military family housing and facilities, the 
Secretary of the Army execute the following projects: 
$16,000,000 for Whole Neighborhood Revitalization, Phase II 
(228 units) at Fort Rucker, Alabama; $7,800,000 for family 
housing improvements (48 units) at Fort Richardson, Alaska; 
$8,600,000 for family housing improvements (52 units) at Fort 
Wainwright, Alaska; $7,300,000 for family housing improvements 
(120 units) at Stuttgart, Germany; $4,600,000 for family 
housing improvements (64 units) at Baumholder, Germany; 
$8,200,000 for family housing improvements (136 units) at 
Mannheim, Germany; $9,600,000 for Whole Neighborhood 
Revitalization, Phase III (102 units) at Fort Campbell, 
Kentucky; $7,200,000 for family housing improvements (250 
units) at Fort Polk, Louisiana; and $2,300,000 for family 
housing improvements (42 units) at Tobyhanna Army Depot, 
Pennsylvania.

                         legislative provisions

                     legislative provisions adopted

Land acquisition, National Ground Intelligence Center, Charlottesville, 
        Virginia (sec. 2105)

      The conferees include a provision that would authorize 
the Secretary of the Army to acquire real property for the 
National Ground Intelligence Center, Charlottesville, Virginia. 
The acquisition would be contingent upon the Secretary 
certifying to the congressional defense committees that the 
acquisition of the property would provide the most cost-
effective means of securing a location for the National Ground 
Intelligence Center.

                   legislative provisions not adopted

Correction in authorized uses of funds, Fort Irwin, California

      The House bill contained a provision (sec. 2105) that 
would correct the authorized use of funds authorized for 
appropriation in prior years for a military construction 
project at Fort Irwin, California. The provision would permit 
the use of previously authorized funds to construct a heliport 
at Fort Irwin to support the National Training Center.
      The Senate amendment contained no similar provision.
      The House recedes.

                            TITLE XXII--NAVY

                            fiscal year 1997

Overview

      The House bill would authorize $2,303,173,000 for Navy 
military construction and family housing programs for fiscal 
year 1997.
      The Senate amendment would authorize $2,054,793,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,213,731,000 for Navy military construction and family 
housing for fiscal year 1997.
      The conferees agree to a general reduction of $12,000,000 
in the authorization of appropriations for the Navy military 
construction account. The general reduction is to be offset by 
savings from favorable bids, reduction in overhead costs, and 
cancellation of projects due to force structure changes. The 
general reduction shall not cancel any military construction 
authorized by title XXII of this Act.

                       items of special interest

Improvements of Military Family Housing, Navy

      The conferees recommend that, within authorized amounts 
for improvements of military family housing and facilities, the 
Secretary of the Navy execute the following projects: 
$6,600,000 for Whole House Revitalization, Phase I (160 units) 
at Naval Air Station Meridian, Mississippi; $5,900,000 for 
family housing improvements (1,257 units) at Marine Corps Air 
Station Beaufort, South Carolina; $2,400,000 for Whole House 
Revitalization (55 units) at Joint Reserve Base Fort Worth, 
Texas; and $6,900,000 for Whole House Revitalization (100 
units) at Naval Air Station Whidbey Island, Washington.

                         legislative provisions

                     legislative provisions adopted

Beach replenishment, Naval Air Station, North Island, California (sec. 
        2205)

      The House bill contained a provision (sec. 2205) that 
would provide for a cost-sharing agreement between the 
Secretary of the Navy, the State of California, and local 
governments concerning beach replenishment executed as part of 
a military construction project at Naval Air Station, North 
Island, California.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                   legislative provisions not adopted

Defense access roads

      The Senate amendment contained a provision (sec. 2204) 
that would authorize the Secretary of the Navy to make 
advances, in the amount of $300,000, to the Secretary of 
Transportation for the construction of defense access roads at 
various locations.
      The House bill contained no similar provision.
      The Senate recedes.

                         TITLE XXIII--AIR FORCE

                            fiscal year 1997

Overview

      The House bill would authorize $1,823,456,000 for Air 
Force military construction and family housing programs for 
fiscal year 1997.
      The Senate amendment would authorize $1,844,786,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $1,894,594,000 for Air Force military construction and 
family housing for fiscal year 1997.

                       items of special interest

Improvements of Military Family Housing, Air Force

      The conferees recommend that, within authorized amounts 
for improvements of military family housing and facilities, the 
Secretary of the Air Force execute the following projects: 
$8,600,000 for family housing improvements (112 units) at Eglin 
Air Force Base, Florida; $6,000,000 for Whole House 
Revitalization (52 units) at Wright-Patterson Air Force Base, 
Ohio; $13,000,000 for family housing improvements (133 units) 
at Laughlin Air Force Base, Texas; and $7,500,000 for Whole 
House Revitalization (92 units) at Hill Air Force Base, Utah.

                         legislative provisions

                     legislative provisions adopted

Elimination of authority to carry out fiscal year 1995 project, 
        Spangdahlem Air Force Base, Germany (sec. 2305)

      The conferees recommend a provision (sec.  ) that would 
amend the table in 2301(b) of the Military Construction 
Authorization Act for Fiscal Year 1995 (Division B of Public 
Law 103-337) relating to Spangdahlem Air Force Base, Germany by 
reducing the authorization by $2.1 million and terminating the 
authority to upgrade the sewage and storm water system.

                      TITLE XXIV--DEFENSE AGENCIES

                            fiscal year 1997

Overview

      The House bill would authorize $3,396,336,000 for Defense 
Agencies military construction and family housing programs for 
fiscal year 1997.
      The Senate amendment would authorize $3,399,136,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $3,379,703,000 for Defense Agencies military construction 
and family housing for fiscal year 1997.

                         LEGISLATIVE PROVISIONS

                     legislative provisions adopted

Reduction in amounts authorized to be appropriated for fiscal year 1996 
        defense agencies military construction, land acquisition, and 
        military family housing functions (sec. 2407)

      The conferees recommend a provision (sec.  ) that would 
amend section 2405 of the Military Construction Authorization 
Act for Fiscal Year 1996 (Division B of Public Law 104-106) by 
reducing the authorization of appropriations for defense 
agencies by $7.0 million.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                            fiscal year 1997

Overview

      The House bill would authorize $177,000,000 for the U.S. 
contribution to the NATO Security Investment Program for fiscal 
year 1997.
      The Senate amendment would authorize $172,000,000 for 
this purpose.
      The conferees authorize $172,000,000 for the U.S. 
contribution to the NATO Security Investment Program.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

                            fiscal year 1997

Overview

      The House bill would authorize $294,693,000 for military 
construction and land acquisition for fiscal year 1997 for the 
Guard and Reserve components.
      The Senate amendment would authorize $451,099,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $388,826,000 for military construction and land acquisition 
for fiscal year 1997. This authorization would be distributed 
as follows:

Army National Guard.....................................     $59,194,000
Army Reserve............................................      55,543,000
Naval/Marine Corps Reserve..............................      32,779,000
Air National Guard......................................     188,505,000
Air Force Reserve.......................................      52,805,000

                         legislative provisions

                     legislative provisions adopted

Authorization and funding for construction and improvement of Naval 
        Reserve Centers (sec. 2602)

      The Senate amendment contained a provision (sec. 2602) 
that would reallocate $10.4 million appropriated under the 
heading ``Military Construction, Naval Reserve'' in the 
Military Construction Appropriations Act, 1995 (P.L. 103-307) 
for the construction of a Joint Reserve Center at Fort Lawton, 
Washington and the construction of other reserve facilities in 
the State of Washington.
      The House bill contained no similar provision.
      The House recedes with an amendment that would broaden 
the availability of funds for unspecified minor construction 
and planning and design. The amendment would also make a 
technical correction by designating a new section (sec. 2835) 
regarding a modification to the related land conveyance 
language in the Military Construction Appropriations Act, 1995.

Upgrade Air National Guard facilities, Bangor International Airport, 
        Maine (sec. 2603)

      The conferees recommend a provision that would authorize 
the Secretary of the Army to carry out a construction project 
to upgrade Air National Guard Base and support facilities at 
Bangor International Airport, Maine. The total cost of the 
project authorized may not exceed $13,000,000. The amount 
authorized to be appropriated for fiscal year 1997 is 
$7,000,000.

                   legislative provisions not adopted

Authorized Guard and Reserve construction and land acquisition projects

      The Senate amendment contained a provision (sec. 
2601(1)(A)) that would prohibit the obligation of funds 
authorized for the combined maintenance shop at Camp Guernsey, 
Wyoming until the Secretary of Defense certifies to Congress 
that the project is in the current future years defense 
program.
      The House bill contained no similar provision.
      The Senate recedes.

        Title XXVII--Expiration and Extension of Authorizations

                         legislative provisions

                     legislative provisions adopted

Extension of authorizations of certain fiscal year 1994 projects (sec. 
        2702)

      The House bill contained a provision (sec. 2702) that 
would provide for extension of certain fiscal year 1994 
military construction authorizations until October 1, 1997, or 
the date of the enactment of an Act authorizing funds for 
military construction for fiscal year 1997, whichever is later.
      The Senate amendment contained a similar provision.
      The Senate recedes with an amendment that would add the 
following project:
      South Carolina; Summerville; Organizational Maintenance 
Shop; $834,000.

Extension of authorizations of certain fiscal year 1993 projects (sec. 
        2703)

      The Senate amendment contained a provision (sec. 2703) 
that would provide for extension of certain fiscal year 1993 
military construction authorizations until October 1, 1997, or 
the date of the enactment of the Act authorizing funds for 
military construction for fiscal year 1997, whichever is later.
      The House bill contained a similar provision.
      The House recedes with an amendment that would add the 
following project:
      New Mexico; Clayton; Armory; $1,400,000.

                   legislative provisions not adopted

Prohibition on use of funds for certain projects

      The Senate amendment contained a provision (sec. 2705) 
that would prohibit the obligation or expenditure of funds for 
certain military construction projects in Kentucky until the 
Secretary of Defense certifies that the projects are included 
in the current future years defense program.
      The House bill contained no similar provision.
      The Senate recedes.

                    Title XXVIII--General Provisions

                         legislative provisions

     Subtitle A--Military Construction and Military Family Housing

                     legislative provisions adopted

Increase in certain thresholds for unspecified minor construction 
        projects (sec. 2801)

      The Senate amendment contained a provision (sec. 2801) 
that would amend sections 2805 and 18233(a) of title 10, United 
States Code, to increase the operations and maintenance minor 
construction limit from $300,000 to $500,000 for the active and 
reserve components. The provision would further amend section 
18233(a) to increase the reserve component minor military 
construction limit from $400,000 to $1.5 million.
      The House bill amendment contained no similar provision.
      The House recedes.

Redesignation of North Atlantic Treaty Organization Infrastructure 
        Program (sec. 2802)

      The Senate amendment contained a provision (sec. 2503) 
that would amend section 2806 of title 10, United States Code, 
by redesignating the North Atlantic Treaty Organization 
Infrastructure Program as the North Atlantic Treaty 
Organization Security Investment Program. The provision would 
establish in law the name change implemented by the North 
Atlantic Treaty Organization when it revamped the 
infrastructure program in 1993.
      The House bill contained a similar provision.
      The House recedes.

Improvements to military family housing units (sec. 2803)

      The House bill contained a provision (sec. 2803) that 
would make technical changes to the calculation of cost of 
major maintenance and repair to military housing units.
      The Senate amendment contained a similar provision.
      The Senate recedes with a technical amendment.

Availability of funds for planning, execution, and administration of 
        contracts for family housing and unaccompanied housing (sec. 
        2804)

      The conferees recommend an amendment to section 2883 of 
title 10, United States Code, to make a technical correction 
that would authorize the Department of Defense to pay expenses 
incurred for planning, execution, and administration of 
contracts entered into under the Military Housing Privatization 
Initiative authority from the funds established under the 
Initiative and from other Department of Defense funds that are 
otherwise available for such purposes.

            Subtitle B--Defense Base Closure and Realignment

                     Legislative Provisions Adopted

Restoration of authority for certain intragovernmental transfers under 
        1988 Base Closure Law (sec. 2811)

      The House bill contained a provision (sec. 2811) that 
would restore the ability of the Secretary of Defense to 
transfer property at a closing or realigning military 
installation to a military department, including a 
nonappropriated fund instrumentality, or to the Coast Guard. 
The previous authority for such transfers was inadvertently 
repealed in a prior year through a technical drafting error.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Contracting for certain services at facilities remaining on closed 
        installations (sec. 2812)

      The House bill contained a provision (sec. 2812) that 
would authorize the Department of Defense to contract out for 
certain services at facilities remaining on military 
installations closed under the base closure and realignment 
process.
      The Senate amendment contained a provision (sec. 2812) 
that would amend section 204(b)(8)(A) of the Defense 
Authorization Amendments and Base Closure and Realignment Act 
of 1988 (P.L. 100-526) and section 2905(b)(8)(A) of the Defense 
Base Closure and Realignment Act of 1990 (P.L. 101-510) to 
increase the authority of the service secretaries to contract 
for services, such as fire fighting or security guards, for 
facilities not yet transferred or otherwise disposed of at 
installations closed under the applicable closure law.
      The House recedes.

Authority to compensate owners of manufactured housing (sec. 2813)

      The House bill contained a provision (sec. 2813) that 
would authorize payments from the base closure and realignment 
accounts to compensate owners of manufactured housing at 
military installations to be closed or realigned. Under the 
provision, the payment may be made if the manufactured housing 
park is eliminated or relocated. No payment authorized by this 
section may exceed 90 percent of the purchase price of the 
manufactured housing unit.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Additional purpose for which adjustment and diversification assistance 
        is authorized (sec. 2814)

      The House bill contained a provision (sec. 2814) that 
would restore the authority of the Secretary of Defense to make 
grants, conclude cooperation agreements, and supplement other 
Federal funds to assist base reuse planning by the States and 
local redevelopment authorities at military installations to be 
closed. The previous authority for such support was 
inadvertently repealed in a prior year through a technical 
drafting error.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Payment of stipulated penalties assessed under CERCLA in connection 
        with Loring Air Force Base, Maine (sec. 2815)

      The House bill contained a provision (sec. 2815) that 
would authorize payments from the base closure and realignment 
accounts for stipulated penalties assessed under the 
Comprehensive Environmental Response, Compensation, and 
Liability Act (CERCLA) of 1980 in connection with the closure 
of Loring Air Force Base, Maine.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Plan for utilization, reutilization, or disposal of Mississippi Army 
        Ammunition Plant (sec. 2816)

      The House bill contained a provision (sec. 2816) that 
would require the Secretary of the Army to submit to the 
Congress a plan for the utilization, reutilization, or disposal 
of the Mississippi Army Ammunition Plant. The plan shall be 
submitted not later than 180 days after enactment of this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.

                      Subtitle C--Land Conveyances

                     legislative provisions adopted

                        Part I--Army Conveyances

Transfer of lands, Arlington National Cemetery, Arlington, Virginia 
        (sec. 2821)

      The Senate amendment contained a provision (sec. 2821) 
that would authorize the Secretary of the Interior to transfer 
to the Secretary of the Army a parcel of real property in 
section 29 of the National Park System known as the Arlington 
Cemetery Internment Zone and all those lands in the area of 
section 29 known as the Robert E. Lee Memorial Preservation 
Zone, except those lands in the Preservation Zone that the 
Secretary of the Interior determines must be retained because 
of historical significance. The conveyance would be carried out 
in accordance with the Interagency Agreement dated February 22, 
1995.
      Prior to executing a transfer of property in the Robert 
E. Lee Memorial Preservation Zone, the Secretaries would be 
required to submit a report to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives, which includes a summary of the 
cultural resource study, a summary of any environmental 
analysis, and a summary of the general manner in which the 
Secretary of the Army plans to develop the property.
      The provision would further authorize the Secretary of 
the Interior to convey to the Secretary of the Army a parcel of 
real property and improvements containing 2.43 acres. It would 
also authorize the Secretary of the Army to transfer to the 
Secretary of the Interior a parcel of real property and 
improvements containing 0.17 acre.
      The House bill contained a similar provision.
      The House recedes with an amendment that would include in 
the summary required by paragraph (2)(A)(ii) any analysis 
required by the National Historic Preservation Act of 1966.

Transfer of jurisdiction and land transfer, Fort Sill, Oklahoma (sec. 
        2822)

      The Senate amendment contained a provision (sec. 2828) 
that would authorize the Secretary of the Army to transfer to 
the Secretary of Veterans Affairs administrative jurisdiction 
of approximately 400 acres of real property, comprising a 
portion of Fort Sill, Oklahoma. The property transferred is to 
be used as a national cemetery.
      The House bill contained no similar provision.
      The House recedes.

Land conveyance, Army Reserve Center, Rushville, Indiana (sec. 2823)

      The House bill contained a provision (sec. 2822) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements, to 
the City of Rushville, Indiana. The property is to be used for 
the benefit of public safety. The cost of any surveys necessary 
for the conveyance shall be borne by the City.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Army Reserve Center, Anderson, South Carolina (sec. 
        2824)

      The House bill contained a provision (sec. 2823) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements, to 
the County of Anderson, South Carolina. The property is to be 
used for educational purposes. The cost of any surveys 
necessary for the conveyance shall be borne by the County.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Army Reserve Center, Montpelier, Vermont (sec. 2825)

      The Senate amendment contained a provision (sec. 2823) 
that would authorize the Secretary of the Army to convey, 
without consideration, the Army Reserve Center, Montpelier, 
Vermont consisting of approximately 4.3 acres and improvements, 
to the City of Montpelier, Vermont. The provision would require 
the City to lease, at no rental charge, to the Civil Air Patrol 
the space that the Civil Air Patrol leases from the Army at the 
time of enactment of the National Defense Authorization Act for 
Fiscal Year 1997. The conveyance would be contingent on a 
determination that no other Federal agency has an interest in 
the property.
      The House bill contained no similar provision.
      The House recedes with an amendment that would strike the 
language pertaining to expressions of interest by other Federal 
agencies.

Land conveyance, Craft Brothers Reserve Training Center, Manchester, 
        New Hampshire (sec. 2826)

      The Senate amendment contained a provision (sec. 2832) 
that would authorize the Secretary of the Army to convey, 
without consideration, approximately 3.5 acres of real property 
containing the Craft Brothers Reserves Center in Manchester, 
New Hampshire to Saint Anselm College. The Secretary would be 
prohibited from initiating the conveyance until the Army 
reserve units currently located at the Craft Brothers Reserves 
Center are relocated to the Joint Reserve Center to be 
constructed at the Manchester Airport, New Hampshire. The 
conveyance would be contingent on a determination that no other 
federal agency has an interest in the property.
      The House bill contained no similar provision.
      The House recedes.

Land conveyance, Pine Bluff Arsenal, Arkansas (sec. 2827)

      The Senate amendment contained a provision (sec. 2835) 
that would authorize the Secretary of the Army to convey, 
without consideration, a 1500-acre parcel of land located at 
Pine Bluff Arsenal, Arkansas to the Economic Development 
Alliance of Jefferson County, Arkansas for economic 
development. The conveyance would be conditioned on the 
following: that the Secretary of the Army must have all 
required permits for the operation of the Chemical 
Demilitarization (DEMIL) facility prior to the conveyance; that 
the Secretary of Defense must certify that the proposed 
conveyance would not negatively impact the ability of the 
Department of Defense to carry out the DEMIL mission; and that 
the Federal government must be reimbursed if, at any time 
during the 25 years after the conveyance, the County sells the 
property.
      The House bill contained no similar provision.
       The House recedes.

Reaffirmation of land conveyances, Fort Sheridan, Illinois (sec. 2828)

      The House bill contained a provision (sec. 2824) that 
would provide authority to the Secretary of the Army to 
complete, as soon as practicable, the previously authorized 
land conveyance at Fort Sheridan, Illinois.
       The Senate amendment contained an identical provision. 
The conference agreement includes this provision.

                       Part II--Navy Conveyances

Land transfer, Potomac Annex, District of Columbia (sec. 2831)

      The Senate amendment contained a provision (sec. 2822) 
that would direct the Secretary of the Navy to transfer 
approximately three acres of real property located at the 
Potomac Annex in the District of Columbia to the administrative 
jurisdiction of the United States Institute of Peace. As a 
condition of the transfer, the Institute shall agree to make 
available to the Navy permanent parking space at the 
headquarters building and interim parking during construction 
of the headquarters building.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
conveyance permissive.
      The conferees urge the Secretary and the Institute to 
move forward with the transfer and expect the Institute to 
proceed with its plans to raise private funds for the 
construction of a headquarters facility on the site.

Land Exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia (sec. 
        2832)

      The House bill contained a provision (sec. 2832) that 
would authorize an exchange of real property, with 
consideration, relating to Norfolk Naval Shipyard, Virginia. As 
consideration for the real property located at the Shipyard 
conveyed by the Secretary, the transferee shall convey to the 
United States a parcel or parcels of real property, with 
improvements, located in the area of Portsmouth, Virginia, and 
shall pay to the Secretary an amount equal to the amount by 
which the fair market value of the parcel conveyed by the 
Secretary exceeds the fair market value of the parcel conveyed 
to the United States. In lieu of such consideration, the 
Secretary and the transferee may agree upon in-kind 
consideration under which the transferee would provide for the 
improvement, maintenance, or repair of real property under the 
control of the Secretary in the area of Hampton Roads, 
Virginia. The exact acreage and legal description of the 
parcels shall be determined by a survey satisfactory to the 
Secretary. The cost of the survey shall be borne by the 
transferee.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial 
        Reserve Plant, Calverton, New York (sec. 2833)

      The House bill contained a provision (sec. 2833) that 
would authorize the Secretary of the Navy to convey a parcel of 
real property, comprising the Calverton Pine Barrens and 
located at the Naval Weapons Industrial Reserve Plant, 
Calverton, New York, to the Department of Environmental 
Conservation of the State of New York. The property is to be 
used as a nature preserve. The cost of any surveys necessary 
for the conveyance shall be borne by the Department of 
Environmental Conservation.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Land conveyance, former Naval Reserve Facility, Lewes, Delaware (sec. 
        2834)

      The Senate amendment contained a provision (sec. 2824) 
that would authorize the Secretary of the Navy to convey, 
without consideration, to the State of Delaware a parcel of 
real property, consisting of approximately 16.8 acres and 
improvements, at the former Naval Reserve Facility, Lewes, 
Delaware. The provision would require the State to use the 
property, in perpetuity, solely as a public park or 
recreational area. The property would revert to the United 
States if at any time, the Secretary of the Interior determines 
that the property is not being used in accordance with the 
conditions of conveyance. The conveyance would be contingent on 
a determination that no other Federal agency has an interest in 
the property.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of the Navy to determine that the property is not 
being used in accordance with the conditions of conveyance. The 
amendment would also strike the language pertaining to 
expressions of interest by other Federal agencies.

Modification of land conveyance authority, Naval Reserve Center, 
        Seattle, Washington (sec. 2835)

      The Senate amendment contained a provision (sec. 2602) 
that would reallocate $10.4 million appropriated under the 
heading ``Military Construction, Naval Reserve'' in the 
Military Construction Appropriations Act, 1995 for the 
construction of a Joint Reserve Center at Fort Lawton, 
Washington and the construction of other reserve facilities in 
the State of Washington.
      The House bill contained no similar provision.
      The House recedes with an amendment that would broaden 
the availability of funds for unspecified minor construction 
and planning and design. The amendment would also make a 
technical correction by designating a new section regarding a 
modification to the related land conveyance language in the 
Military Construction Appropriations Act, 1995.

Release of condition on reconveyance of transferred land, Guam (sec. 
        2836)

      The House bill contained a provision (sec. 2831) that 
would repeal section 818(b)(2) of the Military Construction 
Authorization Act for Fiscal Year 1981 (Public Law 96-418) 
relating to a condition on the disposal by the Government of 
Guam of real property conveyed by the United States.
      The Senate bill contained no similar provision.
      The Senate recedes.

Lease to facilitate construction of reserve center, Naval Air Station, 
        Meridian, Mississippi (sec. 2837)

      The House bill contained a provision (sec. 2206) that 
would permit the Secretary of the Navy to lease to the State of 
Mississippi, without reimbursement, approximately five acres of 
real property at Naval Air Station, Meridian, Mississippi. The 
State shall use the property to construct a reserve center and 
ancillary supporting facilities. The section also would provide 
for a leaseback of the reserve center by the Navy.
      The Senate amendment contained a similar provision.
      The Senate recedes.

                    Part III--Air Force Conveyances

Land conveyance, Radar Bomb Scoring Site, Belle Fourche, South Dakota 
        (sec. 2841)

      The House bill contained a provision (sec. 2842) that 
would authorize the Secretary of the Air Force to convey, 
without consideration, approximately 37 acres of real property 
and improvements to the Belle Fourche School District, Belle 
Fourche, South Dakota. The property is to be used for 
educational, economic development, and housing purposes. The 
cost of any surveys necessary for the conveyance shall be borne 
by the School District.
      The Senate amendment contained a similar provision.
      The Senate recedes.

Conveyance of primate research complex and Air Force-owned chimpanzees, 
        Holloman Air Force Base, New Mexico (sec. 2842)

      The Senate amendment contained a provision (sec. 2826) 
that would authorize the Secretary of the Air Force to convey, 
on a competitive basis and at no cost to the Air Force, the 
primate research complex and the colony of Air Force-owned 
chimpanzees located at Holloman Air Force Base, New Mexico. The 
authorized conveyance would not include the real property on 
which the research complex is sited. The Secretary, in 
cooperation with the Department of Agriculture and the National 
Institutes of Health, would be required to develop standards of 
care and use of the primate research complex and of the 
chimpanzees, to be used in solicitation of bids. The conditions 
of conveyance would require that the recipient use the 
chimpanzees for scientific research, medical research, or 
retire and provide adequate care for the chimpanzees.
      The House bill contained a similar provision.
      The House recedes with an amendment that would: clarify 
that the Air Force-owned chimpanzees are included in the 
transfer; specify competitive negotiations required in the 
disposal; make the recipient of the complex and chimpanzees 
subject to the existing lease; and make certain technical 
corrections.

                       Part IV--Other Conveyances

Land conveyance, Tatum Salt Dome Test Site, Mississippi (sec. 2851)

      The House bill contained a provision (sec. 2851) that 
would authorize the Secretary of Energy to convey the Tatum 
Salt Dome Test Site to the State of Mississippi after 
certification by the Administrator of the Environmental 
Protection Agency and the State that any contamination of the 
property has been remediated in accordance with applicable 
Federal and state statutory and regulatory requirements. The 
property is to be used by the State as a wildlife refuge and is 
to be designated as the Jamie Whitten Wilderness Area.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would designate 
the property as the Jamie Whitten Forest Management Area and 
specify that all subsurface estate be retained by the United 
States.

Land conveyance, William Langer Jewel Bearing Plant, Rolla, North 
        Dakota (sec. 2852)

      The House bill contained a provision (sec. 2852) that 
would authorize the Administrator of the General Services 
Administration to convey, without consideration, approximately 
9.77 acres of real property with improvements comprising the 
formerly Army-owned William Langer Jewel Bearing Plant, Rolla, 
North Dakota to the Job Development Authority of the City of 
Rolla, North Dakota. The property is to be used for economic 
development. The cost of any surveys necessary for the 
conveyance shall be borne by the Authority.
      The Senate Amendment contained a similar provision.
      The House recedes with an amendment that would make the 
funds made available under the Department of Defense 
Appropriations Act, 1995 (Public Law 103-335) for the 
maintenance of the William Langer Jewel Bearing Plant available 
pending the conveyance of the plant.

Land conveyance, Air Force Plant No. 85, Columbus, Ohio (sec. 2853)

      The Senate amendment contained a provision (sec. 2834) 
that would authorize the Secretary of the Air Force to instruct 
the Administrator of General Services to convey, without 
consideration, a parcel of real property consisting of 
approximately 240 acres of land and improvements, known as Air 
Force Plant No. 85, to the Columbus Municipal Airport 
Authority. The conveyance would be contingent on a 
determination that no other Federal agency has an interest in 
the property.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

Modification of boundaries of White Sands National Monument and White 
        Sands Missile Range (sec. 2854)

      The Senate amendment contained a provision (sec. 2836) 
that would authorize the Secretary of the Interior and the 
Secretary of the Army to exchange administrative jurisdiction 
of certain parcels of real property to facilitate the 
administration of the White Sands National Monument and the 
White Sands Missile Range, New Mexico.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
exchange permissive.

                       Subtitle D--Other Matters

                     Legislative Provisions Adopted

Authority to grant easements for rights-of-way (sec. 2861)

      The Senate amendment contained a provision (sec. 2803) 
that would amend section 2668(a) of title 10, United States 
Code, by including poles, lines, structures, and facilities 
used for transmission or distribution of electrical power and 
communication signals in the authority for which the Secretary 
may grant easements on military installations. The provision 
would also make section 2668(a) the only easement authority for 
the military departments.
      The House bill contained a similar provision.
      The House recedes.

Authority to enter into cooperative agreements for the management of 
        cultural resources on military installations (sec. 2862)

      The House bill contained a provision (sec. 2862) that 
would authorize the military departments to enter into 
cooperative agreements for the management of cultural 
resources. In the absence of specific statutory authority, the 
military departments have been reluctant to enter into such 
cooperative agreements. The Sikes Act (Public Law 99-561) 
currently authorizes the Secretary of Defense to plan, develop, 
maintain, and coordinate wildlife conservation and 
rehabilitation efforts on Department of Defense installations 
through the use of cooperative agreements.
      The Senate amendment contained a similar provision (sec. 
349).
      The Senate recedes.

Demonstration project for installation and operation of electric power 
        distribution systems at Youngstown Air Reserve Station, Ohio 
        (sec. 2863)

      The House bill contained a provision (sec. 2863) that 
would authorize the Secretary of the Air Force to carry out a 
demonstration project to assess the feasibility of permitting 
private entities to install, operate, and maintain electric 
power distribution systems at military installations. The 
demonstration project would be conducted at Youngstown Air 
Reserve Station, Ohio.
      The Senate amendment contained a similar provision.
      The Senate recedes with an amendment that would specify 
the source of funding to support the demonstration project and 
would establish a reporting requirement.

Renovation of the Pentagon Reservation (sec. 2864)

      The Senate amendment contained a provision (sec. 2829) 
that would reduce, by $100.0 million, the $1.2 billion cap on 
the renovation of the Pentagon.
      The House bill contained no similar provision.
      The House recedes.

Plan for repairs and stabilization of the historic district at the 
        Forest Glen Annex of the Walter Reed Medical Center, Maryland 
        (sec. 2865)

      The Senate amendment contained a provision (sec. 2105) 
that would require the Secretary of the Army to submit to the 
congressional defense committees a comprehensive plan for basic 
repairs and stabilization measures for the historic district at 
the Forest Glen Annex of Walter Reed Army Medical Center, 
Maryland, together with funding options for implementing the 
plan. The provision would require the report to be submitted 
not later than 30 days after the date of enactment of the 
National Defense Authorization Act for Fiscal Year 1997.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
report submission time to 120 days.

Naming of range at Camp Shelby, Mississippi (sec. 2866)

      The House bill contained a provision (sec. 2602) that 
would designate the Multi-Purpose Range Complex (Heavy) at Camp 
Shelby, Mississippi as the ``G.V. (Sonny) Montgomery Range''. 
The provision would take effect at noon, January 3, 1997, or 
the first day on which G.V. Montgomery otherwise ceases to be a 
Member of the House of Representatives.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Designation of Michael O'Callaghan Military Hospital (sec. 2867)

      The House bill contained a provision (sec. 2864) that 
would designate the Nellis Federal Hospital, Las Vegas, Nevada, 
as the Michael O'Callaghan Military Hospital.
      The Senate amendment contained a similar provision (sec. 
1070).
      The Senate recedes.

Naming of building at the Uniformed Services University of the Health 
        Sciences (sec. 2868)

      The Senate amendment contained a provision (sec. 1071) 
that would express the sense of the Senate that the Secretary 
of Defense name Building A at the Uniformed Services University 
of the Health Sciences the ``David Packard Building.''
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the sense of the Congress.

                   legislative provisions not adopted

Authority to demolish excess facilities

      The House bill contained a provision (sec. 2802) that 
would authorize a program to demolish excess facilities. Funds 
authorized for appropriation under the authorities contained in 
this section may not be used for the demolition of military 
family housing, facilities involved in a base closure and 
realignment action, or facilities which would be demolished as 
an integral part of a specific military construction project.
      The Senate amendment contained no similar provision.
      The House recedes.

Land transfer, Vernon Ranger District, Kisatchie National Forest, 
        Louisiana

      The Senate amendment contained a provision (sec. 2833) 
that would direct the Secretary of Agriculture to transfer 
85,000 acres of the Kisatchie National Forest in Louisiana to 
the Secretary of the Army for use as training and maneuver 
space at Fort Polk, Louisiana. Within 6 months of enactment of 
the Act, the transfer shall occur unless the two Secretaries 
reach an agreement on land management and conservation 
activities related to National Forest land available for 
military training activities. The deadline may be extended by 6 
months. If after the last deadline an agreement is not reached, 
the Secretary of Agriculture shall transfer the property to the 
Army for training use.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees recognize the requirement for expanded 
training acreage to accommodate the training mission at Fort 
Polk. The conferees also recognize the administration's concern 
for addressing the Army's needs and note the administration's 
commitment to reaching an agreement between the Department of 
the Army and the Department of Agriculture through other than 
legislative means.
      The conferees understand that the Department of the Army 
and the Department of Agriculture have agreed on a statement of 
principles which will be incorporated in a Memorandum of 
Agreement for the use of Kisatchie National Forest lands for 
Army training at Fort Polk. The conferees also understand that 
the Departments are committed to reaching an agreement on a 
final Memorandum of Agreement by August 1, 1996. The conferees 
support this effort and request that the administration provide 
a copy of the Memorandum of Agreement to the Committee on Armed 
Services of the Senate and National Security Committee of the 
House of Representatives as soon as it is available.

Bandelier National Monument

      The Senate amendment contained a provision (sec. 2837) 
that would authorize the Secretary of the Interior and the 
Secretary of Energy to exchange administrative jurisdiction 
over certain parcels of land to facilitate the administration 
of the Bandelier National Monument.
      The House bill contained no similar provision.
      The Senate recedes.

                 Title XXIX--Military Land Withdrawals

                         Legislative Provisions

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

                     Legislative Provisions Adopted

Fort Carson-Pinon Canyon military lands withdrawal (sec. 2901-2913)

      The House bill contained provisions (sec. 2901-2913) that 
would: withdraw and reserve, subject to valid existing rights, 
approximately 3,133 acres of public lands and approximately 
11,415 acres of mineral rights in the State of Colorado for use 
by the Secretary of the Army for military maneuvering, 
training, and other defense-related purposes at Fort Carson, 
Colorado; withdraw and reserve, subject to valid existing 
rights approximately 2,517 acres of public lands and 
approximately 130,139 acres of mineral rights in the State of 
Colorado for use by the Secretary of the Army for military 
maneuvering, training, and other defense-related purposes at 
the Pinon Canyon Maneuver Site, Colorado; require that maps and 
legal descriptions of the lands withdrawn and reserved by this 
subtitle be prepared and published by the Secretary of the 
Interior; provide for the management by the Secretary of the 
Army, in coordination with the Secretary of the Interior, of 
the withdrawn lands under this subtitle; provide that the 
management of withdrawn and acquired mineral resources shall be 
conducted, as applicable, pursuant to the Military Lands 
Withdrawal Act of 1986 (Public Law 99-606); provide that 
hunting, fishing, and trapping activities on the lands 
withdrawn and reserved under this subtitle shall be conducted 
in accordance with section 2671 of title 10, United States 
Code; and provide that the withdrawal and reservation of public 
lands and mineral rights will terminate 15 years after the date 
of enactment of this subtitle.
      The provisions would also: provide for procedures to 
permit a determination of continuing military need for the 
withdrawn and reserved public lands and mineral rights; provide 
for procedures under which the Secretary of the Army could 
relinquish all or part of the lands withdrawn and reserved 
under this subtitle; provide for decontamination of the 
withdrawn lands, both during the period of withdrawal and upon 
relinquishment of the lands by the Department of the Army; 
provide that the functions of the Secretary of the Army and the 
Secretary of the Interior under this subtitle may be delegated 
without restriction, except that an order by the Department of 
the Interior accepting jurisdiction over withdrawn lands 
relinquished by the Department of the Army may be signed only 
by the Secretary of the Interior, the Deputy Secretary of the 
Interior, or an Assistant Secretary of the Interior; provide 
that any party conducting any mining, mineral, or geothermal 
leasing activity on lands withdrawn under this subtitle shall 
indemnify the Untied States against any costs, fees, damages, 
or other liabilities incurred by the United States, arising 
from those activities; amend the Military Lands Withdrawal Act 
of 1986 (Public Law 99-606) to permit, subject to valid 
existing rights, military use of sand, gravel, and similar 
construction materials on the lands withdrawn by that Act; and 
authorize such sums as may be necessary to carry out the 
purposes of this subtitle.
      The Senate amendment contained no similar provision.
      The Senate recedes.

       Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

                     legislative provisions adopted

El Centro Naval Air Facility ranges withdrawal (sec. 2921-2931)

      The House bill contained provisions (sec. 2921-2931) that 
would: withdraw and reserve, subject to valid existing rights, 
approximately 46,600 acres of public lands in the State of 
California for use by the Secretary of the Navy for defense-
related purposes at Naval Air Facility, El Centro, California; 
require that maps and legal descriptions of the lands withdrawn 
and reserved be prepared and published by the Secretary of the 
Interior; and provide for the management by the Secretary of 
the Interior, in coordination with the Secretary of the Navy.
      The provision would also provide: that the withdrawal and 
reservation of lands at Naval Air Facility, El Centro, 
California, shall terminate 25 years after the date of 
enactment of this Act; that the Secretary of the Navy maintain 
a program of decontamination of the lands; for procedures to 
permit a determination of continuing military need for the 
lands; for procedures under which the Secretary of the Navy 
could relinquish all or part of the lands; that the functions 
of the Secretary of the Navy and the Secretary of the Interior 
under this provision may be delegated without restriction, 
except that an order by the Department of the Interior 
accepting jurisdiction over withdrawn lands relinquished by the 
Department of the Navy may be signed only by the Secretary of 
the Interior, the Deputy Secretary of the Interior, or an 
Assistant Secretary of the Interior; that hunting, fishing, and 
trapping activities on the lands withdrawn and reserved under 
this subtitle shall be conducted in accordance with section 
2671 of title 10, United States Code; and that any party 
conducting any mining, mineral, or geothermal leasing activity 
on lands withdrawn under this subtitle shall indemnify the 
United Sates against any costs, fees, damages, or other 
liabilities incurred by the United States arising from those 
activities.
      The Senate amendment contained no similar provision.
      The Senate recedes.

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

      Title XXXI--Department of Energy National Security Programs

Overview

      The budget request for fiscal year 1977 contained an 
authorization of $11,049.5 million for the Department of Energy 
National Security Programs. The House bill would authorize 
$11,214.1 million. The Senate amendment would authorize 
$11,499.5 million. The conferees recommended an authorization 
of $11,399.5 million. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.


                         legislative provisions

         Subtitle A--National Security Programs Authorizations

                     legislative provisions adopted

Weapons Activities (sec. 3101)

      The House bill contained a provision (sec. 3101) that 
would authorize $3,935.0 million for Department of Energy (DOE) 
weapons activities.
      The Senate amendment contained a similar provision (sec. 
3101) that would authorize $3,949.0 million for Department of 
Energy weapons activities.
      The Senate recedes with an amendment that would authorize 
$3,918.0 million for weapons activities, an increase of $208.0 
million above the requested amount, for the following 
activities: $1,661.8 million for stockpile stewardship 
activities; $1,962.8 million for stockpile management 
activities; $313.4 million for program direction. The 
authorization includes an undistributed reduction of $20.0 
million to be offset by the availability of prior year funds 
that have not been obligated, or if obligated, have not been 
expended and would not be needed for the projects that were the 
basis for obligation.
      In balancing the stockpile stewardship and stockpile 
management programs, the conferees continue to be concerned 
that the Department is placing an undue reliance on the long-
term, unproven science-based stockpile stewardship program at 
the expense of modernizing the more traditional production, 
engineering, and surveillance approaches needed to maintain 
stockpile safety and reliability over the next ten to fifteen 
years. The conferees direct the Department to seek an 
appropriate balance between the two approaches to ensure that 
the United States can maintain the safety, effectiveness, and 
reliability of its nuclear stockpile.
      Of the amount made available for technology transfer and 
education, the conferees recommend $13.0 million for the 
American Textiles Partnership project.
      In the stockpile management program, the conferees 
believe that the United States must maintain viable weapons 
manufacturing capabilities and capacities to rebuild aging 
weapons and to retain the ability to reconstitute, if 
necessary, its nuclear forces, consistent with U.S. treaty 
obligations. In this regard, the conferees are concerned that 
the underlying rationale of the Department's Draft Programmatic 
Environmental Impact Statement for Stockpile Stewardship and 
Management could negatively impact production capabilities and 
capacities by needlessly downsizing the production plants (Y-
12, Pantex, Kansas City, and Savannah River Site) and stripping 
those facilities of unique skills and expertise. The conferees 
also raised additional concerns regarding the Department's 
phased approach to restore tritium production elsewhere in this 
bill.
      Of the amounts made available for stockpile management 
activities, the conferees authorize an additional $90.0 million 
for the four weapons production plants to begin a long-term 
modernization and upgrade programs; an additional $60.0 million 
for tritium production; an additional $5.0 million for a surety 
program to improve waste minimization efforts in the new 
stockpile management modernization program; an additional $6.0 
million for tritium recycling plant upgrades; and an additional 
$3.0 million for planning and construction of a tritium 
extraction facility.
      Weapons activities program direction is authorized at 
$313.4 million, a reduction of $21.0 million. The conferees 
direct that this decrease be used to continue reductions in 
Federal employee staffing, foreign and domestic travel, and 
non-technical support service contracts. The conferees direct 
that reductions to the Federal workforce at DOE headquarters 
and the non-technical contract support services workforce at 
DOE headquarters be balanced. Further, the conferees direct the 
Secretary of Energy to submit a report to Congress identifying 
the frequency, destination, and cost of foreign travel funded 
by the Department through grants, cooperative agreements, and 
subcontracts.
      The conferees note that the report required by section 
3160 of the National Defense Authorization Act for Fiscal year 
1996 has not been provided to the congressional defense 
committees. The conferees direct the Secretary to provide the 
required report not later than February 1, 1997. The conferees 
further require that the report include information relating to 
past instances in which safety or reliability issues in the 
stockpile have resulted in a requirement to conduct nuclear 
tests at yields above hydronuclear yields. The described data 
shall include the types of problems identified, the solutions 
to those problems, the type of nuclear test deemed necessary to 
assure the resolution of each problem, and the element of the 
stockpile stewardship program being undertaken as a substitute 
for testing that could provide the analytical capacity to 
understand, monitor, and make judgements regarding the impact 
such a problem or problems would have on the reliability of the 
stockpile. For each such instance, the report should indicate 
the methods that were available to address the identified 
problem which did not rely on nuclear testing, and the 
confidence the Department could have expected from those 
methods.
      The conferees direct the Secretary to update the Warhead 
Master Plan report required under Section 3153 of the National 
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106) on a biennial basis and to inform the congressional 
defense committees of noteworthy changes in the plan.

Environmental restoration and waste management (sec. 3102)

      The House bill contained a provision (sec. 3102) that 
would authorize funds for Department of Energy (DOE) defense 
environmental restoration and waste management activities for 
fiscal year 1997 at $5,409.3 million, the level of the budget 
request.
      The Senate amendment contained a provision (sec. 3102) 
that would authorize $5,607.3 million for DOE defense 
environmental restoration and waste management activities for 
fiscal year 1997.
      The conferees agree to provide $5,509.3 for DOE defense 
environmental restoration and waste management activities for 
fiscal year 1997 for the following activities: $1,762.1 million 
for environmental restoration; $1,578.6 million for waste 
management; $1,291.2 million for nuclear material and facility 
stabilization; $411.5 million for program direction; $303.7 
million for technology development; $23.1 million for policy 
and management; $62.1 million for the environmental science 
program; $185.0 million for privatization; and $50.0 million 
for closure-acceleration activities. The conferees recommend 
approval of the Department's request for a reduction of $150.4 
million for prior year balances and an $8.0 million offset for 
the Savannah River Site Pension Refund.
      Of the funds authorized to be appropriated under section 
3102(b), the conferees recommend: an additional $15.0 million 
to accelerate Defense Waste Processing Facility operations and 
associated high-level waste treatment; an additional $20.0 
million for a one-time payment to the State of New Mexico 
pursuant to a provision contained elsewhere in this bill; and 
an additional $7.0 million for the Waste Isolation Pilot Plant 
to make preparations for receipt of waste shipments.
      Of the funds authorized to be appropriated under section 
3102(c), the conferees recommend an additional $43.0 million 
for nuclear material stabilization operations at the F- and H-
canyon facilities and an additional $15.0 million for the 
National Spent Nuclear Fuel Program.
      To provide additional resources for cleanup, the 
conferees recommend reducing the budget request for the office 
of policy and management (sec. 3102(f)) by $25.0 million. This 
reduction would result in an authorization for this subaccount 
that is comparable to that authorized and appropriated in 
fiscal year 1996. Approximately $4.0 to $7.0 million of this 
reduction would be derived by eliminating the requirement to 
submit to Congress, on an annual basis, the baseline 
environmental management report as required by the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
360). The conferees recommend elsewhere in this title that the 
annual reporting requirement be converted to a biennial 
requirement.
      The conferees recommend a reduction to the budget request 
for program direction (sec. 3102(d)) of $35.0 million. The 
conferees direct that the Department absorb this funding 
reduction by reducing the number of Federal employees assigned 
to the Department's headquarters, by reducing administrative 
overhead and travel expenses at DOE headquarters, and by 
reducing non-technical contract support services at DOE 
headquarters. The conferees direct that reductions to the 
Federal workforce at DOE headquarters and the non-technical 
contract support services workforce at DOE headquarters be 
balanced. The conferees encourage the Department to examine 
options for moving programmatic functions that currently reside 
at DOE headquarters to Department field offices. Further, the 
conferees direct the Secretary of Energy to submit a report to 
the congressional defense committees identifying the frequency, 
destination, and cost of foreign and domestic travel funded by 
the Department through grants, cooperative agreements, and 
subcontracts.
      The conferees decline to accept the recommendation to 
create a separate budget account for the office of site 
operations. The conferees appreciate the role of this new 
office and have no objection to this activity being performed 
within the office of nuclear materials and facilities 
stabilization. The conferees recommend funding the construction 
projects associated with the office of site operations under 
the budget function for the office of nuclear materials and 
facilities stabilization. All of these projects have been 
funded in the past under the latter office's budget function.
      The conferees encourage the Department to continue 
implementation of a viable stakeholder involvement program, 
such as site specific advisory boards and other public 
participation initiatives, at a level of activity equivalent to 
that in fiscal year 1996. As with section 3153, in which the 
conferees establish a requirement to develop future use plans, 
the conferees believe strongly that public participation is 
critical to the development of public trust and acceptance of 
cleanup plans and programs, and that the public can be an 
effective partner in helping the Department accelerate cleanup 
schedules and thereby reduce long-term cleanup costs. The 
conferees, therefore, urge the Secretary to work to preserve 
resources for public participation in DOE cleanup activities.
      The conferees recommend the creation of a new initiative 
to be managed by the Assistant Secretary for Environmental 
Management to accelerate the closure of facilities or 
significantly reduce out year mortgage costs associated with 
management of radioactive and other hazardous materials. In 
doing so, the conferees direct that increased funding be 
applied to those sites in the field where actual remediation 
occurs. The conferees recommend that resources be applied to 
sites such as Rocky Flats, Hanford, Oak Ridge, Savannah River, 
and Idaho, where additional funding could be used to reduce 
life-cycle costs significantly through acceleration of existing 
activities, initiation of cost reducing deactivation and 
decommissioning activities, and the application of innovative 
cleanup technologies. Criteria for selection of projects under 
this closure acceleration program are contained elsewhere in 
this title.
      The conferees recommend funding to establish a 
privatization program for the treatment of high and low level 
wastes at the Hanford facility. The conferees direct that the 
Department provide a report to the congressional defense 
committees no later than December 31, 1996, on the projected 
cost savings, the extent of commercial competition and 
participation in this initiative, and a recommendation on 
changes that should be made to Federal procurement regulations 
to make the program more effective.
      The conferees encourage the Department to explore all 
available options, including alternative allocation processes, 
use of prior year balances, and other means, to ensure that 
fiscal year 1997 funding for the Hanford privatization program 
does not serve to slow the pace of cleanup at Hanford.
      The conferees are aware that the Department will soon 
select a new lead contractor for the Hanford facility. New 
contract provisions should result in cost savings at this site. 
The conferees strongly encourage the Department, to the maximum 
extent possible, to allocate those savings that result from the 
new management contract to the privatization program discussed 
earlier. This approach should help to diminish any potential 
negative budgetary impacts resulting from the creation of the 
privatization fund in fiscal year 1997 and should eliminate any 
negative impact on current cleanup activities at the Hanford 
facility. Creation of a privatization fund is not intended to 
interfere with or impede on-going critical stabilization, 
maintenance, and cleanup operations at this site.
      Finally, the conferees have been advised that a small 
number of current and former employees at the Hanford facility 
have failed to receive credit for the total years of service 
performed at this facility, because of changes in contractors 
on at least four occasions. While the four Hanford site pension 
plans have been consolidated into a single pension plan, 
apparently all of the service has not been included. The 
conferees direct that the Department examine this issue and 
provide a report to the congressional defense committees no 
later than December 31, 1996, with a recommendation on how to 
correct this problem or certifying that sufficient corrective 
action has been taken.

Defense fixed asset acquisition/privatization (sec. 3103)

      The House bill contained a provision (sec. 3103) that 
would authorize $182.0 million to establish a new asset 
acquisition and privatization program for the Department of 
Energy's national security assets.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees recommend: $77.0 million for the advanced 
mixed waste treatment project, Idaho Falls, Idaho; $15.0 
million for the advanced mixed waste treatment project, Oak 
Ridge, Tennessee; $70.0 million for the transuranic waste 
treatment project, Oak Ridge, Tennessee; and $20.0 million for 
other projects. No outlays are anticipated in fiscal year 1997 
under this program. The conferees intend that pre-construction 
planning expenditures for each of these projects be funded from 
operating and maintenance funds authorized in section 3102 of 
this Act.
      The conferees recommend $7.0 million in pre-construction 
funding for the advanced mixed waste treatment project. The 
conferees believe this project is important to fulfilling the 
Department's agreement with the State of Idaho and the 
Department of the Navy with respect to the interim storage of 
Naval nuclear spent fuel in Idaho.

Other defense activities (sec. 3104)

      The budget request included $1.548 billion for Other 
Defense Activities of the Department of Energy (DOE) for the 
fiscal year 1997. The House bill contained a provision (sec. 
3104) that would authorize $1.493 billion for Other Defense 
Activities, a reduction of $55.0 million to the budget request.
      The Senate amendment contained a provision (sec. 3103) 
that would authorize $1.561 billion for the Other Defense 
Activities, an increase of $85.0 million to the budget request.
      The conferees agree to a provision that would authorize 
$1.590 billion for these activities.

Verification and control technology

      The conferees agree to authorize $513.3 million for 
verification and control technology, an increase of $57.0 
million to the budget request. Of the funds available in 
nonproliferation and verification research and development, the 
conferees agree that $10.0 million shall be available to 
accelerate the Department's forensic analytical program to 
develop capabilities to address the prevention, detection, 
interception, and attribution of international nuclear 
smuggling events. Additionally, $1.5 million shall be available 
for the conduct of a joint DOE-National Defense study on 
nuclear smuggling.
      The conferees agree to provide $17.0 million to carry out 
research and development of technical means for detecting the 
presence, transportation, production, and use of weapons of 
mass destruction and related technologies and materials. In 
addition, the conferees direct the Secretary of Energy to 
produce an annual evaluation of the expected powers and 
expected limits that define the extent to which science and 
technology can aid the nonproliferation effort. Additionally, 
the conferees agree to provide $10.0 million for continuing and 
expediting cooperative activities with the Government of Russia 
to develop: (1) technologies for improving verification of 
nuclear warhead dismantlement; (2) technologies for converting 
plutonium from weapons into forms that are better suited for 
long-term storage, to facilitate verification; and (3) 
technologies that promote openness in Russian production, 
storage, use, and final and interim disposition of weapons 
usable fissile material.
      With regard to arms control and control technology, the 
budget request included $181.2 million. The conferees agree to 
provide $246.2 million, an increase to the budget request of 
$65.0 million for materials, protection and control activities. 
Of these funds, the conferees agree to a $35.0 million increase 
to the budget request for the Industrial Partnering Program 
(IPP) and $7.9 million shall be available to complete the 
canning of spent fuel rods in North Korea, pursuant to the 
Agreed Framework, and to initiate post-canning technical 
activities.
      The conferees recommend an increase to the budget request 
of $9.0 million for Lab-to-Lab activities. It is the view of 
the conferees that DOE should seek to expand these activities 
in the former Soviet Union beyond nuclear activities in Russia, 
Ukraine, Kazakstan, and Belarus. While programs to date have 
appropriately focused on the most pressing, strategic concerns, 
critical work remains to be done in combating the threat of 
proliferation at a variety of sites in the other states of the 
former Soviet Union where nuclear, radiological, chemical, and 
biological weapons-related materials and technologies continue 
to be vulnerable to proliferation.
      In addition, the conferees agree to provide $6.0 million 
for DOE to carry out cooperative activities with the government 
of Russia to improve the security of highly enriched uranium 
that is used for propulsion of Russian military and civilian 
ships. The Secretary of Energy is directed to develop and 
periodically update a plan for such cooperative activities, and 
shall coordinate the development and updating of this plan with 
the Secretary of Defense, who shall involve the Joint Chiefs of 
Staff in the coordination.

Intelligence

      The conferees recommend an authorization of $35.2 million 
for the intelligence program, a $6.0 million increase to the 
budget request for fiscal year 1996 to expand 
counterintelligence activities at the nuclear weapons 
laboratories and at other high-risk facilities, and for 
expanded analysis of the Russian and Chinese nuclear weapons 
programs.

International Nuclear Safety

      In addition to the $6.0 million recommended by the 
conferees for core conversion activities at plutonium 
production reactors in Russia, the conferees agree that 
Department of Defense will transfer $10.0 million to DOE for 
the replacement of core reactors at Tomsk and Krasnoyarsk.

Naval Reactors

      The conferees recommend an additional $18.0 million for 
the naval reactors program to allow the prototype plant 
inactivation plan endorsed by the Department's Office of Naval 
Reactors to proceed.

Defense nuclear waste disposal (sec. 3105)

      The House bill contained a provision (sec. 3105) that 
would authorize $200.0 million for defense nuclear waste 
disposal activities of the Department for fiscal year 1997, the 
requested amount.
      The Senate amendment contained a similar provision (sec. 
3104).
      The Senate recedes.

                Subtitle B--Recurring General Provisions

                     Legislative Provisions Adopted

Reprogramming (sec. 3121)

      The House bill contained a provision (sec. 3121) that 
would prohibit the reprogramming of funds in excess of 110 
percent of the amount authorized for the program, or in excess 
of $1.0 million above the amount authorized for the program 
until the Secretary of Energy has notified the congressional 
defense committees and a period of 30 days has elapsed after 
the date on which the report is received. Should the Department 
demonstrate that it has improved its procedures for handling 
reprogramming requests, the committee would consider returning 
a more flexible reprogramming statute in the future.
      The Senate amendment contained an identical provision 
(sec. 3121).
      The conference agreement includes this provision.

Limits on general plant projects (sec. 3122)

      The House bill contained a provision (sec. 3122) that 
would limit the initiation of ``general plant projects'' if the 
current estimated cost for any project exceeded $2.0 million. 
If the Secretary of Energy found that the estimated cost of any 
project would exceed $2.0 million, the appropriate committees 
of Congress would have to be notified of the reasons for the 
cost variation.
      The Senate amendment contained a similar provision (sec. 
3122) that would limit the initiation of ``general plant 
projects'' if the current estimated cost of the project 
exceeded $5.0 million dollars. The Senate amendment further 
required the Secretary of Energy to conduct a study on the 
establishment of a permanent authorization formula for 
determining defense and civilian ``general plant projects'' 
limitations. Such a limitation would be adjusted periodically 
for inflation and other factors. The Senate provision would 
require the Secretary to report to Congress on the findings of 
the study not later than February 1, 1997.
      The Senate recedes with an amendment that would require 
the Secretary of Energy to conduct a study and report to 
Congress on a permanent formula for ``general plant projects'' 
not later than February 1, 1997.

Limits on construction projects (sec. 3123)

      The House bill contained a provision (sec. 3123) that 
would permit any construction project to be initiated and 
continued only if the estimated cost for the project does not 
exceed 125 percent of the higher of: (1) the amount authorized 
for the project; or (2) the most recent total estimated cost 
presented to the Congress as justification for such project. To 
exceed such limits, the Secretary of Energy must report in 
detail to the appropriate committees of Congress and the report 
must be before the committees for 30 legislative days. This 
provision would also specify that the 125 percent limitation 
would not apply to projects estimated to cost under $5.0 
million.
      The Senate amendment contained an identical provision 
(sec. 3123).
      The conference agreement includes this provision.

Fund transfer authority (sec. 3124)

      The House bill contained a provision (sec. 3124) that 
would permit the transfer of authorized funds to other agencies 
of the government for performance of work for which their funds 
were authorized. The provision would allow the transferred 
funds to be merged with the authorizations of the receiving 
agency. The provision would also establish a five percent limit 
for funds that may be transferred.
      The Senate amendment contained an identical provision 
(sec. 3124).
      The conference agreement includes this provision.

Authority for conceptual and construction design (sec. 3125)

      The House bill contained a provision (sec. 3125) that 
would limit the Secretary of Energy's authority to a request 
construction funding until the Secretary has certified a 
conceptual design. This limitation would apply to construction 
projects with a total estimated cost in excess of $2.0 million. 
The provision would provide an exception in the case of 
emergencies.
      The Senate amendment contained a similar provision (sec. 
3125) that would limit that Secretary's authority to 
construction projects with a total estimated cost in excess of 
$5.0 million. The Senate amendment would also require the 
Secretary to provide a report on each conceptual design 
completed under this paragraph.
      The House recedes with an amendment that would exempt 
construction project with a total estimated cost of less than 
$2.0 million.

Authority for emergency planning, design, and construction activities 
        (sec. 3126)

      The House bill contained a provision (sec. 3126) that 
would permit, in addition to any authorized advance planning 
and construction design, the Secretary of Energy to perform 
planning and design with available funds for any Department of 
Energy national security program construction project whenever 
the Secretary determines that the design must proceed 
expeditiously to protect the public health and safety, to meet 
the needs of national defense, or to protect property.
      The Senate amendment contained an identical provision 
(sec. 3126).
      The conference agreement includes this provision.

Funds available for all national security programs of the Department of 
        Energy (sec. 3127)

      The House bill contained a provision (sec. 3127) that 
would authorize amounts appropriated for management and support 
activities and for general plant projects to be made available 
for use, when necessary, in connection with all national 
security programs of the Department of Energy.
      The Senate amendment contained an identical provision 
(sec. 3127).
      The conference agreement includes this provision.

Availability of funds (sec. 3128)

      The House bill contained a provision (sec. 3128) that 
would authorize amounts appropriated for operating expenses or 
for plant and capital equipment to remain available until 
expended.
      The Senate amendment contained an identical provision 
(sec. 3128).
      The conference agreement includes this provision.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

                     legislative provisions adopted

Stockpile Stewardship Program (sec. 3131)

      The House bill contained a provision (sec. 3131) that 
would authorize an additional $100.0 million for various 
stockpile stewardship activities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
an additional $85.0 million for stockpile stewardship and 
management activities.
      The conferees direct that a portion of the additional 
funds be used for enhanced surveillance of the nuclear weapons 
stockpile, dual revalidation of the warheads in the nuclear 
weapons stockpile, stockpile life extension programs, 
production capability assurance programs for critical non-
nuclear components, accelerating capability to produce 
prototype war reserve-quality plutonium pits, and conducting 
subcritical tests among other programs, as the Secretary shall 
determine.
      The conferees note the postponement of subcritical 
experiments at the Nevada Test Site. As a result, the conferees 
direct the Secretary to report to the Congress within ninety 
days of enactment of this Act on the reasons for the 
postponement of the experiments planned to be conducted in 
fiscal year 1996. As part of this report, the conferees direct 
that the Secretary set out the basis for the requirement to 
undertake subcritical tests to include the use of the tests to 
baseline aspects of an aging stockpile, the date at which those 
aspects might be expected to manifest themselves in the 
stockpile, how the subcritical tests will add to the baseline 
data on the reliability of the stockpile, and any other 
information relevant to the decision to undertake subcritical 
tests or to further postpone tests. Such a report should be 
submitted both in classified and unclassified form.
      Although the majority of additional funds authorized for 
stockpile stewardship would be spent at the nuclear weapons 
laboratories, the conferees strongly endorse and encourage a 
continued, close collaboration among the weapons laboratories 
and the production sites.

Manfacturing infrastructure for nuclear weapons stockpile (sec. 3132)

      The House bill contained a provision (sec. 3132) that 
would authorize an additional $125.0 million for the stockpile 
manufacturing infrastructure program at the four Department of 
Energy (DOE) weapons production plants (Savannah River Site, 
South Carolina; Pantex Plant, Texas; Kansas City Plant, 
Missouri; and Y-12 Plant, Tennessee) established in section 
3137 of the National Defense Authorization Act for Fiscal Year 
1996 (Public Law 104-106). The additional funds would be used 
to: establish and maintain the necessary capability and 
competencies fully to support the evaluation, surveillance, 
maintenance, repair, and dismantlement of the nuclear 
stockpile; provide flexibility to respond to new production 
requirements; maintain and improve the manufacturing technology 
necessary to support fully the stockpile; and achieve 
significant reductions in operating costs for the complex. This 
provision would also require the Secretary of Energy to submit 
a report to the congressional defense committees on obligations 
under the program.
      The Senate amendment contained a similar provision (sec. 
3133) that would require DOE to pursue modernization activities 
within the stockpile management program to assist in assuring 
near-term confidence in the nuclear stockpile.
      The House recedes with an amendment that would provide 
$90.0 million above the budget request to pursue a 
modernization initiative within the stockpile management 
program.
      The conferees find that the ``technology capability 
alone'' approach to the nuclear weapons infrastructure 
reconstitution requirement of the Nuclear Posture Review is 
insufficient to meet national security requirements. The 
conferees are troubled that the Department has not complied 
with congressional direction included in section 3137 of the 
National Defense Authorization Act for Fiscal Year 1996, and 
continue to believe that this directed initiative is not only 
prudent, but essential to maintaining nuclear weapons core 
competence in order to repair and refabricate weapons at a 
START I or START II stockpile level.
      The conferees agree that funds authorized under this 
section shall be divided approximately evenly among the four 
plants. Furthermore, the funds allocated for the Savannah River 
Site shall be used in part to: consolidate further the tritium 
capabilities, beginning in fiscal year 1997, a year earlier 
than the Department's current plans; accelerate the schedule 
for producing tritium; support a more robust and aggressive 
rapid reconstitution approach for plutonium pit manufacturing 
by initiating a pre-conceptual design study for a replacement 
pit fabrication facility; and increase core stockpile 
management operation and maintenance (O&M) activities. The 
funds allocated for the Y-12 Plant shall be used in part to: 
accelerate the consolidation of facilities to manufacture and 
disassemble secondaries; modernize production plant 
infrastructure elements required for long-term operations; and 
increase core stockpile management O&M activities. The funds 
allocated for the Pantex Plant shall be used in part for a 
consolidated pit packaging system and for increased core 
stockpile management O&M activities. The funds allocated for 
the Kansas City Plant shall be used in part to: upgrade current 
manufacturing technologies; replace aging processing equipment; 
invest in information systems upgrades to maintain 
compatibility with advancements at the DOE national 
laboratories; and increase core stockpile management O&M 
activities.

Tritium production (sec. 3133)

      The Senate amendment contained a provision (sec. 3131) 
that would authorize $160.0 million for tritium production, an 
increase of $60.0 million to the budget request. Increases 
would be used to accelerate the Department of Energy's phased 
approach to restore tritium production, including proceeding in 
parallel with site preparation for new tritium production 
facility.
      The House bill would authorize $100.0 million for tritium 
production (sec. 3101), the amount requested.
      The House recedes.
      The conferees note that the Department has established a 
tritium production program in response to congressional 
concerns about the lack of progress in this area. The conferees 
consider this program critical to maintaining the nation's 
nuclear deterrent capability.
      The conferees believe that the tritium production program 
must be accelerated to meet the requirements of the Nuclear 
Weapons Stockpile Memorandum, which identified a new tritium 
production date of 2005 if a reactor option is selected, or 
2007 if an accelerator option is chosen. The conferees continue 
to be concerned with the Department's failure to develop a 
technically sound data base sufficient to select a preferred 
option in fiscal year 1997, and its continuing underestimates 
of funding requirements in this area. On this basis, the 
conferees agree to recommend an increase of $50.0 million to 
the budget request for a total fiscal year 1997 program of 
$150.0 million.
      The conferees direct the Department to accelerate its 
phased approach to restoring the tritium production needs of 
the United States, including proceeding in parallel with site 
preparation for a new tritium production facility. The 
conferees recognize the need to enhance ongoing accelerator 
research and development and testing programs at the Los Alamos 
National Laboratory, in conjunction with Savannah River Site 
personnel. The conferees support these joint efforts and direct 
the Department to provide the congressional defense committees 
with a report on the planning and design of the accelerator.
      The conferees also direct the continued test and 
development of tritium targets for the light water reactor 
program option by the Idaho National Engineering Laboratory, 
and the initiation of planning for construction of a tritium 
extraction facility that would be located at the selected site 
identified in the Secretary's Record of Decision relating to 
tritium production.
      The conferees strongly support full consideration of all 
technically feasible tritium production options, including 
accelerator, existing commercial reactor, and multipurpose 
reactor options; among others.

Modernization and consolidation of tritium recycling facilities (sec. 
        3134)

      The House bill contained a provision (sec. 3132) that 
referred to modernization and consolidation of tritium 
recycling facilities.
      The Senate amendment contained a provision (sec. 3132) 
that would provide an additional $6.0 million to the budget 
request to upgrade existing tritium recycling plant facilities 
at the Savannah River Site.
      The House recedes with an amendment that would also 
direct the Secretary of Energy to modernize the Savannah River 
tritium extraction facility.
      The conferees direct that, of the amounts authorized to 
be appropriated in section 3101, $6.0 million shall be 
available for tritium recycling plant upgrades and $3.0 million 
shall be available for planning and designing a tritium 
extraction facility at the Savannah River Site.

Production of high explosives (sec. 3135)

      The House bill contained a provision (sec. 3133) that 
would direct that the manufacture and fabrication of high 
explosives and energetic materials for use a components in 
nuclear weapons systems be carried out at the Pantex Plant, 
Amarillo, Texas. The provision would also prohibit the 
expenditure of funds to move, or prepare to move, the 
manufacture and fabrication of high explosives and energetic 
materials for use as components in nuclear weapons systems from 
the Pantex Plant to any other Department of Energy (DOE) site 
or facility.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the obligation of expenditure of fiscal year 1997 or prior year 
funds to move, or prepare to move, the manufacture and 
fabrication of high explosives and energetic materials for use 
as components in nuclear weapons systems from the Pantex Plant 
to any other site or facility.
      Nothing in this provision should be construed to limit 
ongoing research, development and testing activities involving 
high explosives and energetic materials at any Department of 
Energy national laboratory.

Limitation on use of funds for certain research and development 
        purposes (sec. 3136)

      The House bill contained a provision (sec. 3134) that 
would reduce beginning in fiscal year 1997 the funding 
percentage for Laboratory-Directed Research and Development 
(LDRD) activities to two percent. The House provision would 
prohibit expenditure of funds authorized for LDRD activities in 
fiscal year 1997 until 15 days after the Secretary of Energy 
issued a report on the manner in which such funds are planned 
to be used.
      The Senate amendment contained a provision (sec. 3134) 
that would limit the use of LDRD and technology transfer 
program funds appropriated or otherwise made available to the 
Department in fiscal year 1997 under Section 3101 of this Act 
to activities that support the national security mission of the 
Department. This provision extends the limits described in 
section 3141 of the National Defense Authorization Act for 
Fiscal Year 1996 for another year.
      The House recedes.
      The conferees believe that the scientific and engineering 
challenges embodied in the emerging stockpile stewardship and 
stockpile management programs are sufficient to sustain the 
preeminence of the laboratories in the areas of science and 
engineering.
      The conferees encourage the Department of Energy national 
laboratories to direct a significant portion of these funds to 
validating and implementing new technology for insertion in the 
Navy's submarine construction program for the four transition 
submarines to built between fiscal years 1998 and 2003. This 
effort should be a cooperative venture among the national 
laboratories, U.S. industry, and the Navy.

Prohibition on funding nuclear weapons activities with the People's 
        Republic of China (sec. 3137)

      The House bill contained a provision (sec. 3135) that 
would prohibit the obligation or expenditure of funds for any 
cooperative nuclear weapons technology programs, to include 
stockpile stewardship and safety programs with the People's 
Republic of China (PRC). The provision would also require the 
Department of Energy to report to Congress on past and planned 
discussions or activities between the United States and the 
PRC.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment making technical 
changes and changing the date on which the report shall be 
submitted.
      The conferees note that it is possible that United States 
national security interests might warrant cooperation on 
nuclear weapons use controls. The conferees request that the 
Secretary of Defense and the Secretary of Energy report on 
whether having authority to undertake cooperative programs with 
regard to use controls would be in the national security 
interest of the United States.

International cooperative stockpile stewardship programs (sec. 3138)

      The House bill contained a provision (sec. 3136) that 
would prohibit the use of fiscal year 1997 and prior year funds 
to conduct activities associated with international cooperative 
stockpile stewardship programs, with the exception of 
activities conducted with the United Kingdom and France.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make 
clear that the prohibition contained in subsection (a) does not 
apply to activities carried out under the Cooperative Threat 
Reduction (CTR) program as defined in this Act.

Temporary authority relating to transfers of defense environmental 
        management funds (sec. 3139)

      The House bill contained a provision (sec. 3137) that 
would direct the Secretary of Energy to grant authority to a 
site manager to transfer up to $5.0 million between program 
functions within his jurisdiction or to transfer a similar sum 
between projects within his area of operation. A site manager 
would only be authorized to conduct such a transfer one time in 
a fiscal year to or from each program or project. The provision 
would establish a limited expansion of the Department's current 
reprogramming authority and would allow a site manager to 
transfer money based on a finding that the transfer is 
necessary to reduce a risk to health, safety, or the 
environment, or to assure the most efficient use of site 
environmental management funds.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary of Energy to report to Congress on the efficiency 
of the authority and whether the Secretary believes that the 
authority should be extended.

Management structure for nuclear weapons production facilities and 
        nuclear weapons laboratories (sec. 3140)

      The House bill contained a provision (sec. 3138) that 
would: impose a limitation on the delegation of authority; 
require consultations with area offices of the Department of 
Energy (DOE); require DOE area offices to report directly to 
DOE Headquarters; require the Secretary of Energy to provide a 
Defense Programs reorganization plan and report; and require 
establishment of a Defense Programs Management Council.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Accelerated schedule for isolating high-level nuclear waste at the 
        Defense Waste Processing Facility, Savannah River Site (sec. 
        3141)

      The Senate amendment contained a provision (sec. 3135) 
that would require the Secretary of Energy to accelerate the 
schedule for the isolation of high-level nuclear waste in glass 
canisters at the Savannah River Site, if acceleration would 
result in long-term savings to the Federal Government and if it 
would accelerate the removal and isolation of waste from long-
term storage tanks at the site.
      The House bill contained no similar provision.
      The House recedes.
      The conferees believe that accelerating the treatment and 
stabilization of high-level wastes will significantly reduce 
out-year waste management costs and that the Department of 
Energy should not restrict canister production capability and 
capacity because of limited funds within the overall 
Environmental Management budget. Therefore, the conferees 
authorize an additional $15.0 million for the Department to 
maximize canister production at Savannah River if the 
aforementioned criteria are met.

Processing and treatment of high-level nuclear waste and spent nuclear 
        fuel rods (sec. 3142)

      The Senate amendment contained a provision (sec. 3136) 
that would authorize an additional $43.0 million above the 
budget request for the Department of Energy (DOE), for the F-
canyon and H-canyon facilities. The provision would also 
provide for the Implementation of the Department's plan to 
address the Defense Nuclear Facility Safety Board (DNFSB) 
Recommendation 94-1 concerning the processing of spent nuclear 
fuel rods and other nuclear material at the Savannah River 
Site. An additional $15.0 million above the budget request 
would be authorized for the DOE National Spent Fuel Program to 
support program planning, fuel characterization, transportation 
planning, waste acceptance criteria development, and technology 
development, that are necessary to move forward toward a 
permanent disposition of DOE-controlled spent fuel.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
any funds made available under this section to the Idaho 
National Engineering Laboratory to be considered as partial 
fulfillment of the settlement agreement entered into by the 
United States with the State of Idaho on October 17, 1995.
      The conferees also incorporated portions of the Senate 
amendment relating to ``Plans for Activities to Process Nuclear 
Materials and Clean up Nuclear Waste at the Savannah River 
Site'' (Sec. 3154). This provision would require the Secretary 
of Energy to prepare a near-term plan for the treatment, 
packaging, and disposal of spent nuclear fuel located at or 
anticipated to be shipped to the Savannah River Site. Such a 
plan would address any requirements for upgrading and improving 
the F-canyon and H-canyon material processing facilities 
necessary to meet DNFSB recommendations. The provision would 
require the Secretary of Energy to prepare a multi-year 
utilization plan for the F-canyon and H-canyon material 
processing facilities.
      The multi-year program plan should address how the 
Department proposes to use these facilities for efficient 
management, stabilization, and disposition of nuclear materials 
such as surplus uranium and plutonium, domestic and foreign 
spent fuel, and any other nuclear materials requiring 
stabilization to be received at the Savannah River Site. The 
plan should provide options for chemical processing, reduction, 
and isolation of nuclear materials. The plan should also 
identify how the Department proposes to ensure that any 
fissionable materials that may be separated or purified in the 
canyons will not be used for nuclear weapons activities.
      The provision would further require the Secretary of 
Energy to continue operations and maintain a high state of 
readiness at the F-canyon and H-canyon facilities, as 
recommended by the DNFSB.
      The conferees understand that a strategic goal of the DOE 
Environmental Management (EM) program is to manage or eliminate 
urgent risks in the EM system. The conferees believe that DOE 
created an urgent risk situation with the fiscal year 1995 
consolidation decision regarding storage of DOE spent nuclear 
fuel rods at the Idaho National Engineering Laboratory (non-
aluminum clad) and at the Savannah River Site (aluminum clad). 
The National Defense Authorization Act for Fiscal Year 1996 
required the initiation of a specific program for the 
disposition of spent nuclear fuel rods. The conferees continue 
to be concerned with the Department's inadequate progress in 
establishing a credible program and with the under-utilization 
of the Department's resources. A clearly defined plan and 
commitment are necessary for the safe storage, processing, and 
ultimate disposition of these materials in a permanent 
repository.
      The conferees agree with the DNFSB that both F-canyon and 
H-canyon facilities at the Savannah River Site have an 
important future role.

Projects to accelerate closure activities at defense nuclear facilities 
        (sec. 3143)

      The House bill contained a provision (sec. 3102) to 
provide additional funding to Department of Energy field sites 
for the purpose of accelerating clean up and facility closure 
activities.
      The Senate amendment contained similar provisions in 
various sections.
      The conferees agree to a provision that would provide 
more detailed guidance to the Department on the criteria to be 
used in implementing projects to accelerate the closure or 
decommissioning of defense nuclear facilities. The conferees 
recommend the creation of a new initiative and authorize 
additional funding for closure acceleration projects at sites 
such as Rocky Flats, Hanford, Oak Ridge, Savannah River, and 
Idaho, where additional funding could be used to reduce life-
cycle costs significantly through the acceleration of existing 
activities, initiation of cost reducing deactivation and 
decommissioning activities, and the application of enhanced 
cleanup technologies.
      The conferees note that the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) 
required the Secretary of Energy to accelerate the schedule for 
remedial activities at sites where the accelerated schedule 
will achieve meaningful, long-term cost savings to the Federal 
Government and accelerate the release of land for local reuse. 
In reviewing the sites selected pursuant to the last year's 
program, the conferees are concerned that the additional 
funding provided was used on relatively small projects and that 
the long term impact on reducing life cycle costs throughout 
the defense nuclear complex will be minimal.
      It is for this reason that the conferees established 
additional criteria to assure that the projects selected will 
achieve significant long-term cost savings to the Federal 
Government. The conferees believe that taxpayers must see real 
progress if they are to continue to support large expenditures 
in environmental management funds that have increased five-fold 
in just seven years.
      To assure management discipline, the Secretary would be 
required to develop a plan that will: define clearly the 
delineated scope of work; demonstrate that, where required, 
regulatory agreements are in place with appropriate regulatory 
authorities that would allow for the successful completion of 
the project; and demonstrate support of State and local elected 
officials.
      Contracts for the performance of these projects should be 
performance and incentive based and not the traditional cost 
plus contracts. While the conferees believe that contractors 
should bear the risk for non-performance of activities within 
their control, it is important that provisions be made to 
include traditional commercial force majeure and risk sharing 
concepts. All projects selected under this program must be 
completed within 10 years.
      Finally, with respect to the selection of projects that 
meet the general eligibility requirements, the Secretary is 
required to select those projects that will result in the most 
significant long-term costs savings to the government and the 
most significant reduction of imminent risk. Multi-year 
contracting authority is granted to the Secretary to carry out 
projects selected under this section and funds appropriated 
would remain available until expended. The clear intent is to 
identify those projects that are capable of being accelerated 
using currently available technology and to reward those sites 
that are aggressively seeking closure or decommissioning of 
existing facilities. To encourage closure, the conferees have 
made it clear that the existing budget projections for sites 
are not to be reduced based on the award of funding under this 
section for cleanup and closure.
      The conferees have included language to the effect that 
nothing in this section is to be construed as modifying 
applicable statutory or regulatory environmental restoration 
requirements. The conferees have included initial funding for 
this program as a separate line item in section 3102 of this 
title.

Payment of costs of operation and maintenance of infrastructure at 
        Nevada Test Site (sec. 3144)

      The Senate amendment contained a provision (sec. 3138) 
that would permit the Department of Energy to defer charging 
the Department of Defense site overhead costs for work-for-
others activities carried out at the Nevada Test Site.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle D--Other Matters

                     legislative provisions adopted

Report on plutonium pit production and remanufacturing plans (sec. 
        3151)

      The House bill contained a provision (sec. 3142) that 
would require the Secretary to submit to the congressional 
defense committees a report on plans for achieving a capability 
to produce and remanufacture plutonium pits.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Amendments relating to baseline environmental management reports (sec. 
        3152)

      The House bill contained a provision (sec. 3143) that 
would amend section 3153 of the National Defense Authorization 
Act for Fiscal Year 1994 (Public Law 104-360) to authorize the 
submission of the Baseline Environmental Management Report on a 
biennial basis rather than an annual basis.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Requirement to develop future use plans for environmental management 
        program (sec. 3153)

      The House bill contained a provision (sec. 3144) that 
would require the Secretary of Energy to develop and implement, 
as part of the Defense Environmental Restoration and Waste 
Management Program, a future land use plan at sites where the 
Secretary is planning or implementing environmental restoration 
activities. The provision would direct the creation of a future 
use advisory board at defense nuclear facilities where the 
Secretary of Energy intends to develop a future use plan and 
there is no existing advisory board.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would replace 
references to future use advisory boards with site specific 
advisory boards.

Report on Department of Energy liability at Department Superfund sites 
        (sec. 3154)

      The Senate amendment contained a provision (sec. 3161) 
that would require the Secretary of Energy to carry out a study 
of sites controlled or operated by the Department of Energy to 
determine the extent, the valuation of the injury, the 
destruction, or loss of natural resources under section 
107(a)(4)(c) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 
9607(a)(4)(c). The Secretary would then submit a report to 
Congress on the results of the study.
      The House bill contained no similar provision.
      The House recedes with an amendment that clarifies the 
scope and methodology of the study.

Requirement for annual five-year budget for the national security 
        programs of the Department of Energy (sec. 3155)

      The Senate amendment contained a provision (sec. 3151) 
that would require the Secretary of Energy to submit an annual 
National Security Five-Year Budget Plan to the congressional 
defense committees. The plan would be submitted no later than 
the day on which the President's annual budget request is 
submitted to Congress.
      The House bill contained no similar provision.
      The House recedes.
      The Secretary shall obligate no more than ninety-five 
percent of the Department's annual appropriation for Atomic 
Energy Defense Activities until the plan is submitted to the 
congressional defense committees. The conferees direct the 
Secretary of Energy to submit the plan for fiscal years 1997-
2001 as soon as possible, but no later than September 30, 1996.

Requirements for Department of Energy weapons activities budgets for 
        fiscal years after fiscal year 1997 (sec. 3156)

      The Senate amendment contained a provision (sec. 3152) 
that would require the Department of Energy to relate the 
elements of its nuclear weapons program budget submission to 
the specific requirements of the Nuclear Weapons Stockpile 
Memorandum and the Nuclear Posture Review. In the context of 
that submission, the Secretary of Energy would be required to 
provide a long-term program plan, and a near-term program plan 
for the certification and stewardship of the nuclear stockpile.
      The House bill contained no similar provision.
      The House recedes.

Repeal of requirement relating to accounting procedures for Department 
        of Energy funds (sec. 3157)

      The Senate amendment contained a provision (sec. 3153) 
that would repeal section 3151 of the National Defense 
Authorization Act for Fiscal Year 1995. In 1994, at the time 
this provision was enacted, the Department of Energy did not 
have adequate control of uncosted and unobligated balances in a 
number of areas. In many instances, the Department could not 
identify the original fiscal year for which uncosted balances 
were appropriated.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that subsequent to the enactment of 
the National Defense Authorization Act for Fiscal Year 1995, 
the Department succeeded in significantly reducing its uncosted 
and unobligated balances. In addition, the Department has 
initiated a regular reporting methodology that allows the 
congressional defense committees to track unobligated and 
uncosted funds appropriated for national security activities. 
The conferees support the continued use of such reports as a 
cost effective substitute for section 3151.

Update of report on nuclear test readiness postures (sec. 3158)

      The Senate amendment contained a provision (sec. 3155) 
that would require an update of the Nuclear Test Readiness 
Posture Report required by the National Defense Authorization 
Act for Fiscal Year 1996. That report pertains to the readiness 
and maintenance of the requisite underground testing expertise 
at the Nevada Test Site and at the Nuclear Weapons 
Laboratories. The report would be due to the congressional 
defense committees no later than February 15, 1997.
      The House bill contained no similar provision.
      The House recedes with an amendment to change the due 
date of the report to June 1, 1997.

Reports on critical difficulties at nuclear weapons laboratories and 
        nuclear weapons production plants (sec. 3159)

      The Senate amendment contained a provision (sec. 3156) 
that would require the head of any nuclear weapons laboratory 
or nuclear weapons production plant to notify the Assistant 
Secretary for Defense Programs immediately if there is any 
difficulty associated with the nuclear weapons complex that 
would have a significant bearing on the confidence relating to 
the safety, surety, or reliability of a nuclear weapon within 
the nuclear stockpile. The provision would also require the 
Nuclear Weapons Council to notify Congress in the event that 
the Council become aware of any difficulties within the purview 
of the Council.
      The House bill contained no similar provision.
      The House recedes.

Extension of applicability of notice- and wait-required regarding 
        proposed cooperation agreements (sec. 3160)

      The Senate amendment contained a provision (sec. 3157) 
that would extend the date by which notice is to be made to 
Congress regarding the release of restricted data or formerly 
restricted data pursuant to a cooperative agreement with a 
foreign country by amending Section 3155(b) of the National 
Defense Authorization Act for Fiscal Year 1995.
      The House bill contained no similar provision.
      The House recedes with an amendment to extend until 
October 1, 1997, the authority of the Department of Energy and 
the Department of Defense to release data, as necessary, to 
further fissile material and other weapons material control and 
accountability program; to support atomic weapons control and 
accountability; to assist in treaty verification; and to assist 
in establishing a uniform international system of 
classification.

Sense of Senate relating to redesignation of Defense Environmental 
        Restoration and Waste Management Program (sec. 3161)

      The Senate amendment contained a provision (sec. 3158) 
that would express the sense of the Congress that the 
Department of Energy (DOE) redesignate the Defense 
Environmental Restoration and Waste Management Program (also 
known as the Environmental Management Program) as the Defense 
Nuclear Waste Management Program. The provision would further 
direct the Department of Energy to prepare and transmit to the 
congressional defense committees, no later than January 31, 
1997, a report that describes any difficulties or problems that 
arise as a result of the name change, including any related 
costs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
provision to a sense of the Senate.

Commission on Maintaining United States Nuclear Weapons Expertise (sec. 
        3162)

      The Senate amendment contained a provision (sec. 3159) 
that would direct the Department of Energy to organize a high-
level commission to address problems associated with attracting 
a new generation of nuclear weapons experts to ensure the 
safety and reliability of the U.S. nuclear stockpile.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Energy to appoint two members to the 
commission and would require that all commission appointments 
be made no later than 60 days after the date of enactment of 
this section.

Sense of the Congress regarding reliability and safety of remaining 
        nuclear forces (sec. 3163)

      The Senate amendment contained a provision (sec. 3160) 
that would express concerns about maintaining confidence in the 
nuclear stockpile and our Nation's commitment to ensuring the 
safety, security, reliability, and performance of U.S. nuclear 
forces.
      The House bill contained no similar provision.
      The House recedes.
      The conferees remain concerned with the ability of the 
Department of Defense and the Department of Energy to maintain 
confidence in the safety and reliability of the strategic 
nuclear weapons stockpile in the absence of underground nuclear 
tests. As long as the United States continues to depend on a 
deterrent nuclear force, as articulated in the Nuclear Posture 
Review, it is necessary for both the Department of Defense and 
the Department of Energy to maintain the following: weapons 
production capabilities and capacities; adequate funding to 
maintain the remaining stockpile at a state of full readiness; 
ability to meet full fabrication and tritium production 
requirements; capabilities for tritium recycling and pit 
manufacturing; and, to replace underground nuclear testing, a 
successful science-based stockpile stewardship program.

Study on worker protection at the Mound facility in (sec. 3164)

      The House bill contained a provision (sec. 3145) that 
would authorize, out of existing funds, $5.0 million to be used 
to enhance worker health and safety at the Department of 
Energy's (DOE) Mound facility near Miamisburg, Ohio.
      The Senate amendment contained a similar provision (sec. 
3166) that would require DOE to prepare a report on programs 
and projects undertaken to protect worker health and safety at 
the DOE Mound facility.
      The House recedes.

Fiscal year 1998 funding for Greenville Road Improvement Project, 
        Livermore, California (sec. 3165)

      The Senate amendment contained a provision (sec. 3162) 
that would require the Secretary of Energy to include in the 
fiscal year 1998 budget a request for sufficient funds to pay 
the United States portion of the cost of transportation 
improvements under the Greenville Road Improvement Project, 
Livermore, California.
      The House bill contained no similar provision.
      The House recedes.

Fellowship program for development of skills critical to Department of 
        Energy nuclear weapons complex (sec. 3166)

      The Senate amendment contained a provision (sec. 3137) 
that would require the Department of Energy (DOE) to initiate a 
university fellowship program for recruiting engineers and 
other technical experts at nuclear weapons plants. The 
Department would be authorized to use up to $5.0 million of the 
amount authorized for Stockpile Management activities to carry 
out the plant fellowship program.
      The house bill contained no similar provision.
      The House recedes.
      In the National Defense Authorization Act for fiscal Year 
1996, the Department was directed to initiate a university 
fellowship program for recruiting the next generation of 
engineers and technical experts for the modernized nuclear 
weapons repair and refabrication plants. The Department was 
directed to fund the program through authorized appropriations 
within the stockpile management program. The Department has not 
complied with this congressional direction.
      Testimony before the Senate Armed Services Committee has 
suggested that DOE's skilled workforce for nuclear weapons 
design, fabrication, and remanufacturing is eroding, due both 
to worker aging and limited near-term challenges. The conferees 
do not propose a massive remanufacturing approach, but they do 
expect that DOE will take the steps necessary to attract, 
mentor and retain the next generation of nuclear weapons 
refabrication experts. The absence of such a program could 
accentuate the negative impacts of the progressing ``brain 
drain,'' identified in testimony before the Senate Armed 
Services Committee and could undermine long-term efforts to 
repair and rebuild aging nuclear weapons in the stockpile.

    Subtitle E--Defense Nuclear Environmental Cleanup and Management

                     legislative provisions adopted

Defense nuclear environmental cleanup and management (sec. 3171-3180)

      The House bill contained a series of provisions (secs. 
3151-3157) that would establish cost-effective management 
mechanisms and innovative technologies for the purpose of 
improving the Department of Energy (DOE) Defense Environmental 
Restoration and Waste Management Program. These provisions 
would apply to any DOE defense nuclear facility with a fiscal 
year 1996 Environmental Management (EM) budget of $350.0 
million or more. The Secretary of Energy would delegate 
oversight authority to the site manager and encourage the site 
manager to promote deployment of innovative remediation 
technologies. The House bill also would direct the Secretary to 
develop and implement a program to encourage the use of 
performance-based contracts, as opposed to cost-plus contracts.
      The Senate amendment contained a series of similar 
provisions (secs. 3171-3179) that would provide for a pilot 
program at the Hanford Reservation that would demonstrate cost-
effective management mechanisms and innovative technologies to 
be used in environmental restoration and remediation at other 
defense nuclear facilities. Upon request by a State, the 
Secretary of Energy would have the discretion to include other 
defense nuclear facilities in the pilot program. The Secretary 
would delegate oversight authority to the site manager and the 
site manager would have the direct authority to promote the 
demonstration, certification, and implementation of innovative 
remediation technologies. The Senate provision also included a 
congressional reporting requirement and a sunset provision.
      The Senate recedes with an amendment that would adopt the 
following elements for the cost-effective management and 
innovative technologies demonstration program: delegation of 
direct oversight authority to the site manager; automatic 
applicability to DOE facilities with a fiscal year 1996 EM 
budget of $350.0 million or more and applicability to other 
facilities upon application by the governor of a State and 
approval by the Secretary of Energy; Secretarial development 
and implementation of performance-based contracts program; site 
manager promotion and deployment of innovative remediation 
technologies; a congressional reporting requirement; and a 
program termination date.

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

                     legislative provisions adopted

Waste Isolation Pilot Plant Land Withdrawal Act amendments (secs. 3181-
        3191)

      The Senate amendment contained a series of provisions 
(secs. 3181-3191) that would modify the Waste Isolation Pilot 
Plant (WIPP) Land Withdrawal Act (Public Law 102-579). 
Requirements of the WIPP Land Withdrawal Act associated with 
the now-canceled WIPP ``test phase'' would be eliminated. The 
prerequisites to opening WIPP would be clarified and the 180-
day congressional notification requirement would be reduced to 
30 days. The requirement that WIPP meet land disposal 
restrictions of the Solid Waste Disposal Act (42 U.S.C. 6901 et 
seq.) would be eliminated. DOE would be granted greater 
authority to determine whether engineered or natural barriers 
are sufficient to meet compliance with applicable environmental 
regulations. The Environmental Protection Agency would retain 
its ability to conduct timely reviews of DOE compliance 
applications. A sense of the Congress provision would encourage 
the Secretary to pursue all necessary actions to begin waste 
disposal operations not later than November 30, 1997. Finally, 
the Department of Energy would be authorized to make a one-time 
payment of $20.0 million to the State of New Mexico to begin 
road upgrades necessary to begin full scale shipping operations 
to WIPP. This payment would be considered an advance payment of 
amounts due to the State of New Mexico pursuant to the 
provisions of section 15(a) of the WIPP Land Withdrawal Act.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment that would 
add a provision that would reduce by one the total number of 
payments due to the State of New Mexico under section 15(a) of 
the WIPP Land Withdrawal Act and clarify that all applicable 
health and safety regulations would be met prior to 
commencement of disposal operations.

                   legislative provisions not adopted

Report on Nuclear Weapons Stockpile Memorandum

      The House bill contained a provision (sec. 3141) that 
would require the President to submit to the congressional 
defense committees a copy of the Nuclear Weapons Stockpile 
Memorandum, and to submit reports on any future updates or 
changes to the Memorandum.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees direct the Department of Energy to continue 
to provide members of Congress and congressional staff (with 
the appropriate security clearance) with access to the Nuclear 
Weapons Stockpile Memorandum.

Plans for activities to process nuclear materials and clean up nuclear 
        waste at the Savannah River Site

      The Senate amendment contained a provision (sec. 3154) 
that would require the Secretary of Energy to develop a multi-
year program plan to use the H-canyon and the F-canyon 
materials processing facilities for treating Department of 
Energy and foreign spent nuclear fuel rods. The provision would 
also require the Secretary of Energy to develop a near-term 
plan on F-canyon and H-canyon utilization. The Secretary would 
be required to continue operations and maintain a high state of 
readiness at the F-canyon and H-canyon facilities.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees combined the elements of this provision 
with the provision regarding processing of high-level nuclear 
waste and spent nuclear fuel.

Opportunity for review and comment by State of Oregon regarding certain 
        remedial actions at Hanford Reservation

      The Senate amendment contained a provision (sec. 3163) 
that would, in consultation with the signatories to the Hanford 
Reservation, Washington, Tri-Party Agreement for site 
remediation, require the Site Manager to provide the State of 
Oregon with an opportunity to review and comment upon any 
information available to the State of Washington under the 
agreement. The provision also contained certain limitations 
related to the State of Oregon's access to information and 
participation in the site remediation process.
      The House bill contained no similar provision.
      The Senate recedes. The conferees determined that the 
provision would establish a bad precedent regarding a state's 
right to participate in remedial activities conducted at a site 
within a neighboring state.

Sense of Senate on Hanford memorandum of understanding

      The Senate amendment contained a provision (sec. 3164) 
that would express the sense of Senate that the State of Oregon 
has the authority to enter into a memorandum of understanding 
with the State of Washington, or a memorandum of understanding 
with the State of Washington and the Site Manager of the 
Hanford Reservation, Washington, to address issues of mutual 
concerns at the site.
      The House bill contained no similar provision.
      The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     legislative provisions adopted

                Title XXXIII--National Defense Stockpile

                         legislative provisions

        Subtitle A--Authorization of Disposals and Use of Funds

                     legislative provisions adopted

Overview

      The budget request for fiscal year 1997 contained an 
authorization of $17.0 million for the Defense Nuclear 
Facilities Safety Board. The House bill would authorize $17.0 
million. The Senate amendment would authorize $17.0 million. 
The conferees recommended an authorization of $17.0 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.

Stockpile definitions (sec. 3301)

      The House bill contained a provision (sec. 3301) that 
would define the National Defense Stockpile and the National 
Defense Stockpile Transaction Fund.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Authorized uses of stockpile funds (sec. 3302)

      The House bill contained a provision (sec. 3302) that 
would authorize the National Defense Stockpile Manager to 
obligate up to $60.0 million of the funds in the National 
Defense Stockpile Transaction Fund for the operation of the 
National Defense Stockpile.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

Additional authority to dispose of materials in National Defense 
        Stockpile (sec. 3303)

      The Senate amendment contained a provision (sec. 3303) 
that would authorize the Secretary of Defense to dispose of 
specific materials in the National Defense Stockpile in order 
to offset the lost revenues resulting from the amendments made 
by subsection (a) of section 4303 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
materials authorized for disposal and use the revenues to 
offset those lost due to amendments made by subsection (a) of 
section 4303 of the National Defense Authorization Act for 
Fiscal Year 1996 and other direct spending provisions in this 
bill.

                    Subtitle B--Programmatic Change

                     legislative provisions adopted

Biennial report on stockpile requirements (sec. 3311)

      The House bill contained a provision (sec. 3311) that 
would amend the Strategic and Critical Materials Stock Piling 
Act, section 3203 of the National Defense Authorization Act for 
Fiscal Year 1988 (Public Law 100-180), concerning the 
requirements addressed in the report provided to Congress every 
other year by the Department of Defense (DOD).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the report to identify the amount of materials that would be 
necessary to replace the materiel and equipment that would be 
required after a military conflict.

Notification requirements (sec. 3312)

      The House bill contained a provision (sec. 3312) that 
would update several sections of the Strategic and Critical 
Materials Stock Piling Act, section 3203 of the National 
Defense Authorization Act for Fiscal Year 1988 (Public Law 100-
180), to standardize reporting requirements throughout the act. 
The provision would establish that all legislative reporting 
waiting periods are to be 45 days.
      The Senate amendment contained no similar provision.
      The Senate recedes.

Importation of strategic and critical materials (sec. 3313)

      The House bill contained an amendment (sec. 3313) that 
would amend the Strategic and Critical Materials Stock Piling 
Act, section 3203 of the National Defense Authorization Act for 
Fiscal Year 1988 (Public Law 100-180), to remove reference to 
``communist-dominated country or area.''
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   legislative provisions not adopted

Disposal of certain materials in National Defense Stockpile

      The Senate amendment contained a provision (sec. 3302) 
that would authorize the Secretary of Defense to dispose of 
specific materials currently in the National Defense Stockpile.
      The House bill contained no similar provision.
      The Senate recedes.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     legislative provisions adopted

Authorization of appropriations (sec. 3401)

      The House bill contained a provision (sec. 3401) that 
would authorize the appropriation of $149.5 million for fiscal 
year 1997 for the Department of Energy for the operation of the 
Naval Petroleum Reserves.
      The Senate amendment contained a similar provision (sec. 
3401).
      The Senate recedes.

Price requirement on sale of certain petroleum during fiscal year 1997 
        (sec. 3402)

      The House bill contained a provision (sec. 3402) that 
would require the Secretary of Energy to sell petroleum 
produced for the Naval Petroleum Reserves at not less than 90 
percent of the price of comparable oil.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                  TITLE XXXV--PANAMA CANAL COMMISSION

                         legislative provisions

                     legislative provisions adopted

Panama Canal Commission (secs. 3501-3549)

      The House bill contained several provisions (secs. 3501-
3504) that would authorize expenditure of funds by the Panama 
Canal Commission to cover its operating, maintenance, 
administrative, and capital improvement expenses, and to 
purchase vehicles built in the United States.
      The Senate amendment contained similar provisions (secs. 
3501-3504).
      The Senate recedes with respect to the House provisions 
authorizing expenditure of funds to cover expenses (secs. 3501, 
3502, and 3504). The House recedes with respect to the Senate 
provision (sec. 3503) that would authorize the purchase of 
vehicles without the requirement that they be built in the 
United States. The conferees note, however, that the Commission 
has in the past purchased only vehicles built in the United 
States and encourage the continuation of that practice.
      The House bill also included provisions (secs. 3521-
3550), not in the Senate amendment, that would give the 
Commission greater autonomy to facilitate the transition of the 
Canal to Panamanian control in December 1999. Most of these 
provisions would expand the Commission's discretion in 
tailoring government employee regulations to the unique needs 
of Commission personnel.
      The Senate recedes with respect to these House 
provisions, with an amendment that would give the Commission 
the authority to contract with Panamanian carriers for the 
official travel of its Panamanian employees (sec. 3528) and an 
amendment that specifies that U.S. Government agencies in 
Panama may elect to discontinue the applicability of provisions 
of the Panama Canal Employment System, a system which is 
changing to reflect the transition to Panamanian control, to 
their civilian employees (sec. 3530).
                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Randy ``Duke'' Cunningham,
                                   Steve Buyer,
                                   Peter G. Torkildsen,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   J.C. Watts, Jr.,
                                   John N. Hostettler,
                                   Saxby Chambliss,
                                   Van Hilleary,
                                   Doc Hastings,
                                   G.V. Montgomery,
                                   Ike Skelton,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Glen Browder,
                                   Gene Taylor,
                                   Frank Tejeda,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Rosa L. DeLauro,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Larry Combest,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Banking and Financial Services, for 
                consideration of sections 1085 and 1089 of the 
                Senate amendment, and modifications committed 
                to conference:
                                   Michael N. Castle,
                                   Spencer Bachus,
                                   Henry Gonzalez,
                As additional conferees from the Committee on 
                Commerce, for consideration of sections 601, 
                741, 742, 2863, 3154, and 3402 of the House 
                bill, and sections 345-47, 561, 562, 601, 1080, 
                2827, 3174, 3175, and 3181-91 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Thomas Bliley,
                                   Michael Bilirakis,
                Provided that Mr. Richardson is appointed in 
                lieu of Mr. Dingell and Mr. Schaefer is 
                appointed in lieu of Mr. Bilirakis for 
                consideration of sections 3181-91 of the Senate 
                amendment:
                                   Dan Schaefer,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Bilirakis for the consideration of section 
                3154 of the House bill, and sections 345-47, 
                3174, and 3175 of the Senate amendment:
                                   Michael G. Oxley,
                Provided that Mr. Schaefer is appointed in lieu 
                of Mr. Bilirakis for the consideration of 
                sections 2863 and 3402 of the House bill, and 
                section 2827 of the Senate amendment:
                                   Dan Schaefer,
                As additional conferees from the Committee on 
                Government Reform and Oversight, for 
                consideration of sections 332-36, 362, 366, 
                807, 821-25, 1047, 3523-39, 3542, and 3548 of 
                the House bill, and sections 636, 809(b), 921, 
                924, 925, 1081, 1082, 1101, 1102, 1104, 1105, 
                1109-34, 1401-34, and 2826 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   W.F. Clinger,
                Provided that Mr. Horn is appointed in lieu of 
                Mr. Mica for consideration of sections 362, 
                366, 807, and 821-25 of the House bill, and 
                sections 809(b), 1081, 1401-34, and 2826 of the 
                Senate amendment:
                                   Stephen Horn,
                Provided that Mr. Zeliff is appointed in lieu 
                of Mr. Mica for consideration of section 1082 
                of the Senate amendment:
                                   Bill Zeliff,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                sections 233-34, 237, 1041, 1043, 1052, 1101-
                05, 1301, 1307, and 1501-53 of the House bill, 
                and sections 234, 1005, 1021, 1031, 1041-43, 
                1045, 1323, 1332-35, 1337, 1341-44, and 1352-54 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                As additional conferees from the Committee on 
                the Judiciary, for consideration of sections 
                537, 543, 1066, 1080, 1088, 1201-16, and 1313 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Henry Hyde,
                                   Bill McCollum,
                                   John Conyers Jr.,
                Provided that Mr. Moorhead is appointed in lieu 
                of Mr. McCollum for consideration of sections 
                537 and 1080 of the Senate amendment:
                                   Carlos J. Moorhead,
                Provided that Mr. Smith of Texas is appointed 
                in lieu of Mr. McCollum for consideration of 
                sections 1066 and 1201-16 of the Senate 
                amendment:
                                   Lamar Smith,
                As additional conferees from the Committee on 
                Resources, for consideration of sections 247, 
                601, 2821, 1401-14, 2901-13, and 2921-31 of the 
                House bill, and sections 251-52, 351, 601, 
                1074, 2821, 2836, and 2837 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   James V. Hansen,
                                   Jim Saxton,
                As additional conferees from the Committee on 
                Science, for consideration of sections 203, 
                211, 245, and 247 of the House bill, and 
                sections 211, 251-52, and 1044 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Robert S. Walker,
                                   James Sensenbrenner Jr.,
                                   Jane Harman,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for 
                consideration of sections 324, 327, 501, and 
                601 of the House bill, and sections 345-48, 
                536, 601, 641, 1004, 1009, 1010, 1311, 1314, 
                and 3162 of the Senate amendment, and 
                modifications committed to conference:
                                   Bud Shuster,
                As additional conferees from the Committee on 
                Veterans' Affairs, for consideration of 
                sections 556, 638, and 2821 of the House bill, 
                and sections 538 and 2828 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Bob Stump,
                                   Christopher H. Smith,
                                   G.V. Montgomery,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   Bill Cohen,
                                   John McCain,
                                   Dan Coats,
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Sheila Frahm,
                                   Sam Nunn,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   J. Lieberman,
                                   Richard H. Bryan,
                                Managers on the Part of the Senate.

                                
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