[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)