House Report 104-724 - NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1997

[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

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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

Subtitle A--Authorization of Appropriations

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

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

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

Subtitle C--Ballistic Missile Defense Programs

Subtitle D--Other Matters

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

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

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

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

Subtitle F--Other Matters

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

Subtitle B--Reserve Forces

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:

(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

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

Subtitle D--Reserve Component Retirement

Subtitle E--Other Reserve Component Matters

Subtitle F--Officer Education Programs

Subtitle G--Decorations and Awards

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

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

Subtitle B--Bonuses and Special and Incentive Pays

Subtitle C--Travel and Transportation Allowances

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

Subtitle E--Other Matters

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

Subtitle B--TRICARE Program

Subtitle C--Uniformed Services Treatment Facilities

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

Subtitle E--Other Matters

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

Subtitle B--Other Matters

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

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

Subtitle B--Naval Vessels and Shipyards

Subtitle C--Counter-Drug Activities

Subtitle D--Reports and Studies

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

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

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

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

Subtitle A--Reserve Component Structure

Subtitle B--Reserve Component Accessibility

Subtitle C--Reserve Forces Sustainment

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

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

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

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. 1401. SHORT TITLE.

This title may be cited as the ``Defense Against Weapons of
Mass Destruction Act of 1996''.

SEC. 1402. FINDINGS.

Congress makes the following findings:
(1) Weapons of mass destruction and related
materials and technologies are increasingly available
from worldwide sources. Technical information relating
to such weapons is readily available on the Internet,
and raw materials for chemical, biological, and
radiological weapons are widely available for
legitimate commercial purposes.
(2) The former Soviet Union produced and maintained
a vast array of nuclear, biological, and chemical
weapons of mass destruction.
(3) Many of the states of the former Soviet Union
retain the facilities, materials, and technologies
capable of producing additional quantities of weapons
of mass destruction.
(4) The disintegration of the former Soviet Union
was accompanied by disruptions of command and control
systems, deficiencies in accountability for weapons,
weapons-related materials and technologies, economic
hardships, and significant gaps in border control among
the states of the former Soviet Union. The problems of
organized crime and corruption in the states of the
former Soviet Union increase the potential for
proliferation of nuclear, radiological, biological, and
chemical weapons and related materials.
(5) The conditions described in paragraph (4) have
substantially increased the ability of potentially
hostile nations, terrorist groups, and individuals to
acquire weapons of mass destruction and related
materials and technologies from within the states of
the former Soviet Union and from unemployed scientists
who worked on those programs.
(6) As a result of such conditions, the capability
of potentially hostile nations and terrorist groups to
acquire nuclear, radiological, biological, and chemical
weapons is greater than any time in history.
(7) The President has identified North Korea, Iraq,
Iran, and Libya as hostile states which already possess
some weapons of mass destruction and are developing
others.
(8) The acquisition or the development and use of
weapons of mass destruction is well within the
capability of many extremist and terrorist movements,
acting independently or as proxies for foreign states.
(9) Foreign states can transfer weapons to or
otherwise aid extremist and terrorist movements
indirectly and with plausible deniability.
(10) Terrorist groups have already conducted
chemical attacks against civilian targets in the United
States and Japan, and a radiological attack in Russia.
(11) The potential for the national security of the
United States to be threatened by nuclear,
radiological, chemical, or biological terrorism must be
taken seriously.
(12) There is a significant and growing threat of
attack by weapons of mass destruction on targets that
are not military targets in the usual sense of the
term.
(13) Concomitantly, the threat posed to the
citizens of the United States by nuclear, radiological,
biological, and chemical weapons delivered by
unconventional means is significant and growing.
(14) Mass terror may result from terrorist
incidents involving nuclear, radiological, biological,
or chemical materials.
(15) Facilities required for production of
radiological, biological, and chemical weapons are much
smaller and harder to detect than nuclear weapons
facilities, and biological, and chemical weapons can be
deployed by alternative delivery means other than long-
range ballistic missiles.
(16) Covert or unconventional means of delivery of
nuclear, radiological, biological, and chemical weapons
include cargo ships, passenger aircraft, commercial and
private vehicles and vessels, and commercial cargo
shipments routed through multiple destinations.
(17) Traditional arms control efforts assume large
state efforts with detectable manufacturing programs
and weapons production programs, but are ineffective in
monitoring and controlling smaller, though potentially
more dangerous, unconventional proliferation efforts.
(18) Conventional counterproliferation efforts
would do little to detect or prevent the rapid
development of a capability to suddenly manufacture
several hundred chemical or biological weapons with
nothing but commercial supplies and equipment.
(19) The United States lacks adequate planning and
countermeasures to address the threat of nuclear,
radiological, biological, and chemical terrorism.
(20) The Department of Energy has established a
Nuclear Emergency Response Team which is available in
case of nuclear or radiological emergencies, but no
comparable units exist to deal with emergencies
involving biological, or chemical weapons or related
materials.
(21) State and local emergency response personnel
are not adequately prepared or trained for incidents
involving nuclear, radiological, biological, or
chemical materials.
(22) Exercises of the Federal, State, and local
response to nuclear, radiological, biological, or
chemical terrorism have revealed serious deficiencies
in preparedness and severe problems of coordination.
(23) The development of, and allocation of
responsibilities for, effective countermeasures to
nuclear, radiological, biological, or chemical
terrorism in the United States requires well-
coordinated participation of many Federal agencies, and
careful planning by the Federal Government and State
and local governments.
(24) Training and exercises can significantly
improve the preparedness of State and local emergency
response personnel for emergencies involving nuclear,
radiological, biological, or chemical weapons or
related materials.
(25) Sharing of the expertise and capabilities of
the Department of Defense, which traditionally has
provided assistance to Federal, State, and local
officials in neutralizing, dismantling, and disposing
of explosive ordnance, as well as radiological,
biological, and chemical materials, can be a vital
contribution to the development and deployment of
countermeasures against nuclear, biological, and
chemical weapons of mass destruction.
(26) The United States lacks effective policy
coordination regarding the threat posed by the
proliferation of weapons of mass destruction.

SEC. 1403. DEFINITIONS.

In this title:
(1) The term ``weapon of mass destruction'' means
any weapon or device that is intended, or has the
capability, to cause death or serious bodily injury to
a significant number of people through the release,
dissemination, or impact of--
(A) toxic or poisonous chemicals or their
precursors;
(B) a disease organism; or
(C) radiation or radioactivity.
(2) The term ``independent states of the former
Soviet Union'' has the meaning given that term in
section 3 of the FREEDOM Support Act (22 U.S.C. 5801).
(3) The term ``highly enriched uranium'' means
uranium enriched to 20 percent or more in the isotope
U-235.

Subtitle A--Domestic Preparedness

SEC. 1411. RESPONSE TO THREATS OF TERRORIST USE OF WEAPONS OF MASS
DESTRUCTION.

(a) Enhanced Response Capability.--In light of the
potential for terrorist use of weapons of mass destruction
against the United States, the President shall take immediate
action--
(1) to enhance the capability of the Federal
Government to prevent and respond to terrorist
incidents involving weapons of mass destruction; and
(2) to provide enhanced support to improve the
capabilities of State and local emergency response
agencies to prevent and respond to such incidents at
both the national and the local level.
(b) Report Required.--Not later than January 31, 1997, the
President shall transmit to Congress a report containing--
(1) an assessment of the capabilities of the
Federal Government to prevent and respond to terrorist
incidents involving weapons of mass destruction and to
support State and local prevention and response
efforts;
(2) requirements for improvements in those
capabilities; and
(3) the measures that should be taken to achieve
such improvements, including additional resources and
legislative authorities that would be required.

SEC. 1412. EMERGENCY RESPONSE ASSISTANCE PROGRAM.

(a) Program Required.--(1) The Secretary of Defense shall
carry out a program to provide civilian personnel of Federal,
State, and local agencies with training and expert advice
regarding emergency responses to a use or threatened use of a
weapon of mass destruction or related materials.
(2) The President may designate the head of an agency other
than the Department of Defense to assume the responsibility for
carrying out the program on or after October 1, 1999, and
relieve the Secretary of Defense of that responsibility upon
the assumption of the responsibility by the designated
official.
(3) In this section, the official responsible for carrying
out the program is referred to as the ``lead official''.
(b) Coordination.--In carrying out the program, the lead
official shall coordinate with each of the following officials
who is not serving as the lead official:
(1) The Director of the Federal Emergency
Management Agency.
(2) The Secretary of Energy.
(3) The Secretary of Defense.
(4) The heads of any other Federal, State, and
local government agencies that have an expertise or
responsibilities relevant to emergency responses
described in subsection (a)(1).
(c) Eligible Participants.--The civilian personnel eligible
to receive assistance under the program are civilian personnel
of Federal, State, and local agencies who have emergency
preparedness responsibilities.
(d) Involvement of Other Federal Agencies.--(1) The lead
official may use personnel and capabilities of Federal agencies
outside the agency of the lead official to provide training and
expert advice under the program.
(2)(A) Personnel used under paragraph (1) shall be
personnel who have special skills relevant to the particular
assistance that the personnel are to provide.
(B) Capabilities used under paragraph (1) shall be
capabilities that are especially relevant to the particular
assistance for which the capabilities are used.
(3) If the lead official is not the Secretary of Defense,
and requests assistance from the Department of Defense that, in
the judgment of the Secretary of Defense would affect military
readiness or adversely affect national security, the Secretary
of Defense may appeal the request for Department of Defense
assistance by the lead official to the President.
(e) Available Assistance.--Assistance available under this
program shall include the following:
(1) Training in the use, operation, and maintenance
of equipment for--
(A) detecting a chemical or biological
agent or nuclear radiation;
(B) monitoring the presence of such an
agent or radiation;
(C) protecting emergency personnel and the
public; and
(D) decontamination.
(2) Establishment of a designated telephonic link
(commonly referred to as a ``hot line'') to a
designated source of relevant data and expert advice
for the use of State or local officials responding to
emergencies involving a weapon of mass destruction or
related materials.
(3) Use of the National Guard and other reserve
components for purposes authorized under this section
that are specified by the lead official (with the
concurrence of the Secretary of Defense if the
Secretary is not the lead official).
(4) Loan of appropriate equipment.
(f) Limitations on Department of Defense Assistance to Law
Enforcement Agencies.--Assistance provided by the Department of
Defense to law enforcement agencies under this section shall be
provided under the authority of, and subject to the
restrictions provided in, chapter 18 of title 10, United States
Code.
(g) Administration of Department of Defense Assistance.--
The Secretary of Defense shall designate an official within the
Department of Defense to serve as the executive agent of the
Secretary for the coordination of the provision of Department
of Defense assistance under this section.
(h) Funding.--(1) Of the total amount authorized to be
appropriated under section 301, $35,000,000 is available for
the program required under this section.
(2) Of the amount available for the program pursuant to
paragraph (1), $10,500,000 is available for use by the
Secretary of Defense to assist the Secretary of Health and
Human Services in the establishment of metropolitan emergency
medical response teams (commonly referred to as ``Metropolitan
Medical Strike Force Teams'') to provide medical services that
are necessary or potentially necessary by reason of a use or
threatened use of a weapon of mass destruction.
(3) The amount available for the program under paragraph
(1) is in addition to any other amounts authorized to be
appropriated for the program under section 301.

SEC. 1413. NUCLEAR, CHEMICAL, AND BIOLOGICAL EMERGENCY RESPONSE.

(a) Department of Defense.--The Secretary of Defense shall
designate an official within the Department of Defense as the
executive agent for--
(1) the coordination of Department of Defense
assistance to Federal, State, and local officials in
responding to threats involving biological or chemical
weapons or related materials or technologies, including
assistance in identifying, neutralizing, dismantling,
and disposing of biological and chemical weapons and
related materials and technologies; and
(2) the coordination of Department of Defense
assistance to the Department of Energy in carrying out
that department's responsibilities under subsection
(b).
(b) Department of Energy.--The Secretary of Energy shall
designate an official within the Department of Energy as the
executive agent for--
(1) the coordination of Department of Energy
assistance to Federal, State, and local officials in
responding to threats involving nuclear, chemical, and
biological weapons or related materials or
technologies, including assistance in identifying,
neutralizing, dismantling, and disposing of nuclear
weapons and related materials and technologies; and
(2) the coordination of Department of Energy
assistance to the Department of Defense in carrying out
that department's responsibilities under subsection
(a).
(c) Funding.--Of the total amount authorized to be
appropriated under section 301, $15,000,000 is available for
providing assistance described in subsection (a).

SEC. 1414. CHEMICAL-BIOLOGICAL EMERGENCY RESPONSE TEAM.

(a) Department of Defense Rapid Response Team.--The
Secretary of Defense shall develop and maintain at least one
domestic terrorism rapid response team composed of members of
the Armed Forces and employees of the Department of Defense who
are capable of aiding Federal, State, and local officials in
the detection, neutralization, containment, dismantlement, and
disposal of weapons of mass destruction containing chemical,
biological, or related materials.
(b) Addition to Federal Response Plan.--Not later than
December 31, 1997, the Director of the Federal Emergency
Management Agency shall develop and incorporate into existing
Federal emergency response plans and programs prepared under
section 611(b) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on the
use and deployment of the rapid response teams established
under this section to respond to emergency involving weapons of
mass destruction. The Director shall carry out this subsection
in consultation with the Secretary of Defense and the heads of
other Federal agencies involved with the emergency response
plans.

SEC. 1415. TESTING OF PREPAREDNESS FOR EMERGENCIES INVOLVING NUCLEAR,
RADIOLOGICAL, CHEMICAL, AND BIOLOGICAL WEAPONS.

(a) Emergencies Involving Chemical or Biological Weapons.--
(1) The Secretary of Defense shall develop and carry out a
program for testing and improving the responses of Federal,
State, and local agencies to emergencies involving biological
weapons and related materials and emergencies involving
chemical weapons and related materials.
(2) The program shall include exercises to be carried out
during each of five successive fiscal years beginning with
fiscal year 1997.
(3) In developing and carrying out the program, the
Secretary shall coordinate with the Director of the Federal
Bureau of Investigation, the Director of the Federal Emergency
Management Agency, the Secretary of Energy, and the heads of
any other Federal, State, and local government agencies that
have an expertise or responsibilities relevant to emergencies
described in paragraph (1).
(b) Emergencies Involving Nuclear and Radiological
Weapons.--(1) The Secretary of Energy shall develop and carry
out a program for testing and improving the responses of
Federal, State, and local agencies to emergencies involving
nuclear and radiological weapons and related materials.
(2) The program shall include exercises to be carried out
during each of five successive fiscal years beginning with
fiscal year 1997.
(3) In developing and carrying out the program, the
Secretary shall coordinate with the Director of the Federal
Bureau of Investigation, the Director of the Federal Emergency
Management Agency, the Secretary of Defense, and the heads of
any other Federal, State, and local government agencies that
have an expertise or responsibilities relevant to emergencies
described in paragraph (1).
(c) Annual Revisions of Programs.--The official responsible
for carrying out a program developed under subsection (a) or
(b) shall revise the program not later than June 1 in each
fiscal year covered by the program. The revisions shall include
adjustments that the official determines necessary or
appropriate on the basis of the lessons learned from the
exercise or exercises carried out under the program in the
fiscal year, including lessons learned regarding coordination
problems and equipment deficiencies.
(d) Option To Transfer Responsibility.--(1) The President
may designate the head of an agency outside the Department of
Defense to assume the responsibility for carrying out the
program developed under subsection (a) beginning on or after
October 1, 1999, and relieve the Secretary of Defense of that
responsibility upon the assumption of the responsibility by the
designated official.
(2) The President may designate the head of an agency
outside the Department of Energy to assume the responsibility
for carrying out the program developed under subsection (b)
beginning on or after October 1, 1999, and relieve the
Secretary of Energy of that responsibility upon the assumption
of the responsibility by the designated official.
(e) Funding.--Of the total amount authorized to be
appropriated under section 301, $15,000,000 is available for
the development and execution of the programs required by this
section, including the participation of State and local
agencies in exercises carried out under the programs.

SEC. 1416. MILITARY ASSISTANCE TO CIVILIAN LAW ENFORCEMENT OFFICIALS IN
EMERGENCY SITUATIONS INVOLVING BIOLOGICAL OR
CHEMICAL WEAPONS.

(a) Assistance Authorized.--(1) Chapter 18 of title 10,
United States Code, is amended by adding at the end the
following new section:

``Sec. 382. Emergency situations involving chemical or biological
weapons of mass destruction

``(a) In General.--The Secretary of Defense, upon the
request of the Attorney General, may provide assistance in
support of Department of Justice activities relating to the
enforcement of section 175 or 2332c of title 18 during an
emergency situation involving a biological or chemical weapon
of mass destruction. Department of Defense resources, including
personnel of the Department of Defense, may be used to provide
such assistance if--
``(1) the Secretary of Defense and the Attorney
General jointly determine that an emergency situation
exists; and
``(2) the Secretary of Defense determines that the
provision of such assistance will not adversely affect
the military preparedness of the United States.
``(b) Emergency Situations Covered.--In this section, the
term `emergency situation involving a biological or chemical
weapon of mass destruction' means a circumstance involving a
biological or chemical weapon of mass destruction--
``(1) that poses a serious threat to the interests
of the United States; and
``(2) in which--
``(A) civilian expertise and capabilities
are not readily available to provide the
required assistance to counter the threat
immediately posed by the weapon involved;
``(B) special capabilities and expertise of
the Department of Defense are necessary and
critical to counter the threat posed by the
weapon involved; and
``(C) enforcement of section 175 or 2332c
of title 18 would be seriously impaired if the
Department of Defense assistance were not
provided.
``(c) Forms of Assistance.--The assistance referred to in
subsection (a) includes the operation of equipment (including
equipment made available under section 372 of this title) to
monitor, contain, disable, or dispose of the weapon involved or
elements of the weapon.
``(d) Regulations.--(1) The Secretary of Defense and the
Attorney General shall jointly prescribe regulations concerning
the types of assistance that may be provided under this
section. Such regulations shall also describe the actions that
Department of Defense personnel may take in circumstances
incident to the provision of assistance under this section.
``(2)(A) Except as provided in subparagraph (B), the
regulations may not authorize the following actions:
``(i) Arrest.
``(ii) Any direct participation in conducting a
search for or seizure of evidence related to a
violation of section 175 or 2332c of title 18.
``(iii) Any direct participation in the collection
of intelligence for law enforcement purposes.
``(B) The regulations may authorize an action described in
subparagraph (A) to be taken under the following conditions:
``(i) The action is considered necessary for the
immediate protection of human life, and civilian law
enforcement officials are not capable of taking the
action.
``(ii) The action is otherwise authorized under
subsection (c) or under otherwise applicable law.
``(e) Reimbursements.--The Secretary of Defense shall
require reimbursement as a condition for providing assistance
under this section to the extent required under section 377 of
this title.
``(f) Delegations of Authority.--(1) Except to the extent
otherwise provided by the Secretary of Defense, the Deputy
Secretary of Defense may exercise the authority of the
Secretary of Defense under this section. The Secretary of
Defense may delegate the Secretary's authority under this
section only to an Under Secretary of Defense or an Assistant
Secretary of Defense and only if the Under Secretary or
Assistant Secretary to whom delegated has been designated by
the Secretary to act for, and to exercise the general powers
of, the Secretary.
``(2) Except to the extent otherwise provided by the
Attorney General, the Deputy Attorney General may exercise the
authority of the Attorney General under this section. The
Attorney General may delegate that authority only to the
Associate Attorney General or an Assistant Attorney General and
only if the Associate Attorney General or Assistant Attorney
General to whom delegated has been designated by the Attorney
General to act for, and to exercise the general powers of, the
Attorney General.
``(g) Relationship to Other Authority.--Nothing in this
section shall be construed to restrict any executive branch
authority regarding use of members of the armed forces or
equipment of the Department of Defense that was in effect
before the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1997.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``382. Emergency situations involving chemical or biological weapons of
mass destruction.''.

(b) Conforming Amendment to Condition for Providing
Equipment and Facilities.--Section 372(b)(1) of title 10,
United States Code, is amended by adding at the end the
following new sentence: ``The requirement for a determination
that an item is not reasonably available from another source
does not apply to assistance provided under section 382 of this
title pursuant to a request of the Attorney General for the
assistance.''.
(c) Conforming Amendments Relating to Authority To Request
Assistance.--(1)(A) Chapter 10 of title 18, United States Code,
is amended by inserting after section 175 the following new
section:

``Sec. 175a. Requests for military assistance to enforce prohibition in
certain emergencies

``The Attorney General may request the Secretary of Defense
to provide assistance under section 382 of title 10 in support
of Department of Justice activities relating to the enforcement
of section 175 of this title in an emergency situation
involving a biological weapon of mass destruction. The
authority to make such a request may be exercised by another
official of the Department of Justice in accordance with
section 382(f)(2) of title 10.''.
(B) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section 175
the following new item:

``175a. Requests for military assistance to enforce prohibition in
certain emergencies.''.

(2)(A) The chapter 133B of title 18, United States Code,
that relates to terrorism is amended by inserting after section
2332c the following new section:

``Sec. 2332d. Requests for military assistance to enforce prohibition
in certain emergencies

``The Attorney General may request the Secretary of Defense
to provide assistance under section 382 of title 10 in support
of Department of Justice activities relating to the enforcement
of section 2332c of this title during an emergency situation
involving a chemical weapon of mass destruction. The authority
to make such a request may be exercised by another official of
the Department of Justice in accordance with section 382(f)(2)
of title 10.''.
(B) The table of sections at the beginning of such chapter
is amended by inserting after the item relating to section
2332c the following new item:

``2332d. Requests for military assistance to enforce prohibition in
certain emergencies.''.

(d) Civilian Expertise.--The President shall take
reasonable measures to reduce the reliance of civilian law
enforcement officials on Department of Defense resources to
counter the threat posed by the use or potential use of
biological and chemical weapons of mass destruction within the
United States. The measures shall include--
(1) actions to increase civilian law enforcement
expertise to counter such a threat; and
(2) actions to improve coordination between
civilian law enforcement officials and other civilian
sources of expertise, within and outside the Federal
Government, to counter such a threat.
(e) Reports.--The President shall submit to Congress the
following reports:
(1) Not later than 90 days after the date of the
enactment of this Act, a report describing the
respective policy functions and operational roles of
Federal agencies in countering the threat posed by the
use or potential use of biological and chemical weapons
of mass destruction within the United States.
(2) Not later than one year after such date, a
report describing--
(A) the actions planned to be taken to
carry out subsection (d); and
(B) the costs of such actions.
(3) Not later than three years after such date, a
report updating the information provided in the reports
submitted pursuant to paragraphs (1) and (2), including
the measures taken pursuant to subsection (d).

SEC. 1417. RAPID RESPONSE INFORMATION SYSTEM.

(a) Inventory of Rapid Response Assets.--(1) The head of
each Federal Response Plan agency shall develop and maintain an
inventory of physical equipment and assets under the
jurisdiction of that agency that could be made available to aid
State and local officials in search and rescue and other
disaster management and mitigation efforts associated with an
emergency involving weapons of mass destruction. The agency
head shall submit a copy of the inventory, and any updates of
the inventory, to the Director of the Federal Emergency
Management Agency for inclusion in the master inventory
required under subsection (b).
(2) Each inventory shall include a separate listing of any
equipment that is excess to the needs of that agency and could
be considered for disposal as excess or surplus property for
use for response and training with regard to emergencies
involving weapons of mass destruction.
(b) Master Inventory.--The Director of the Federal
Emergency Management Agency shall compile and maintain a
comprehensive listing of all inventories prepared under
subsection (a). The first such master list shall be completed
not later than December 31, 1997, and shall be updated annually
thereafter.
(c) Addition to Federal Response Plan.--Not later than
December 31, 1997, the Director of the Federal Emergency
Management Agency shall develop and incorporate into existing
Federal emergency response plans and programs prepared under
section 611(b) of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5196(b)) guidance on
accessing and using the physical equipment and assets included
in the master list developed under subsection to respond to
emergencies involving weapons of mass destruction.
(d) Database on Chemical and Biological Materials.--The
Director of the Federal Emergency Management Agency, in
consultation with the Secretary of Defense, shall prepare a
database on chemical and biological agents and munitions
characteristics and safety precautions for civilian use. The
initial design and compilation of the database shall be
completed not later than December 31, 1997.
(e) Access to Inventory and Database.--The Director of the
Federal Emergency Management Agency shall design and maintain a
system to give Federal, State, and local officials access to
the inventory listing and database maintained under this
section in the event of an emergency involving weapons of mass
destruction or to prepare and train to respond to such an
emergency. The system shall include a secure but accessible
emergency response hotline to access information and request
assistance.

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

SEC. 1421. PROCUREMENT OF DETECTION EQUIPMENT--UNITED STATES BORDER
SECURITY.

Of the amount authorized to be appropriated by section 301,
$15,000,000 is available for the procurement of--
(1) equipment capable of detecting the movement of
weapons of mass destruction and related materials into
the United States;
(2) equipment capable of interdicting the movement
of weapons of mass destruction and related materials
into the United States; and
(3) materials and technologies related to use of
equipment described in paragraph (1) or (2).

SEC. 1422. EXTENSION OF COVERAGE OF INTERNATIONAL EMERGENCY ECONOMIC
POWERS ACT.

Section 206 of the International Emergency Economic Powers
Act (50 U.S.C. 1705) is amended--
(1) in subsection (a), by inserting ``, or attempts
to violate,'' after ``violates''; and
(2) in subsection (b), by inserting ``, or
willfully attempts to violate,'' after ``violates''.

SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

(a) Sense of Congress Concerning Inadequacy of Sentencing
Guidelines.--It is the sense of Congress that the sentencing
guidelines prescribed by the United States Sentencing
Commission for the offenses of importation, attempted
importation, exportation, and attempted exportation of nuclear,
biological, and chemical weapons materials constitute
inadequate punishment for such offenses.
(b) Urging of Revision to Guidelines.--Congress urges the
United States Sentencing Commission to revise the relevant
sentencing guidelines to provide for increased penalties for
offenses relating to importation, attempted importation,
exportation, and attempted exportation of nuclear, biological,
or chemical weapons or related materials or technologies under
the following provisions of law:
(1) Section 11 of the Export Administration Act of
1979 (50 U.S.C. App. 2410).
(2) Sections 38 and 40 the Arms Export Control Act
(22 U.S.C. 2778 and 2780).
(3) The International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.).
(4) Section 309(c) of the Nuclear Non-Proliferation
Act of 1978 (22 U.S.C. 2156a(c).

SEC. 1424. INTERNATIONAL BORDER SECURITY.

(a) Secretary of Defense Responsibility.--The Secretary of
Defense, in consultation and cooperation with the Commissioner
of Customs, shall carry out programs for assisting customs
officials and border guard officials in the independent states
of the former Soviet Union, the Baltic states, and other
countries of Eastern Europe in preventing unauthorized transfer
and transportation of nuclear, biological, and chemical weapons
and related materials. Training, expert advice, maintenance of
equipment, loan of equipment, and audits may be provided under
or in connection with the programs.
(b) Funding.--Of the total amount authorized to be
appropriated by section 301, $15,000,000 is available for
carrying out the programs referred to in subsection (a).
(c) Assistance to States of the Former Soviet Union.--
Assistance under programs referred to in subsection (a) may
(notwithstanding any provision of law prohibiting the extension
of foreign assistance to any of the newly independents state of
the former Soviet Union) be extended to include an independent
state of the former Soviet Union if the President certifies to
Congress that it is in the national interest of the United
States to extend assistance under this section to that state.

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

SEC. 1431. COVERAGE OF WEAPONS-USABLE FISSILE MATERIALS IN COOPERATIVE
THREAT REDUCTION PROGRAMS ON ELIMINATION OR
TRANSPORTATION OF NUCLEAR WEAPONS.

Section 1201(b)(1) of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 469; 22
U.S.C. 5955 note) is amended by inserting ``, fissile material
suitable for use in nuclear weapons,'' after ``other weapons''.

SEC. 1432. ELIMINATION OF PLUTONIUM PRODUCTION.

(a) Replacement Program.--The Secretary of Energy, in
consultation with the Secretary of Defense, shall develop a
cooperative program with the Government of Russia to eliminate
the production of weapons grade plutonium by modifying or
replacing the reactor cores at Tomsk-7 and Krasnoyarsk-26 with
reactor cores that are less suitable for the production of
weapons-grade plutonium.
(b) Program Requirements.--(1) The program shall be
designed to achieve completion of the modifications or
replacements of the reactor cores within three years after the
modification or replacement activities under the program are
begun.
(2) The plan for the program shall--
(A) specify--
(i) successive steps for the modification
or replacement of the reactor cores; and
(ii) clearly defined milestones to be
achieved; and
(B) include estimates of the costs of the program.
(c) Submission of Program Plan to Congress.--Not later than
180 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to Congress--
(1) a plan for the program under subsection (a);
(2) an estimate of the United States funding that
is necessary for carrying out the activities under the
program for each fiscal year covered by the program;
and
(3) a comparison of the benefits of the program
with the benefits of other nonproliferation programs.

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

SEC. 1441. NATIONAL COORDINATOR ON NONPROLIFERATION.

(a) Designation of Position.--The President shall designate
an individual to serve in the Executive Office of the President
as the National Coordinator for Nonproliferation Matters.
(b) Duties.--The Coordinator, under the direction of the
National Security Council, shall advise and assist the
President by--
(1) advising the President on nonproliferation of
weapons of mass destruction, including issues related
to terrorism, arms control, and international organized
crime.
(2) chairing the Committee on Nonproliferation
established under section 1342; and
(3) taking such actions as are necessary to ensure
that there is appropriate emphasis in, cooperation on,
and coordination of, nonproliferation research efforts
of the United States, including activities of Federal
agencies as well as activities of contractors funded by
the Federal Government.
(c) Allocation of Funds.--Of the total amount authorized to
be appropriated under section 301, $2,000,000 is available to
the Department of Defense for carrying out research referred to
in subsection (b)(3).

SEC. 1442. NATIONAL SECURITY COUNCIL COMMITTEE ON NONPROLIFERATION.

(a) Establishment.--The Committee on Nonproliferation (in
this section referred to as the ``Committee'') is established
as a committee of the National Security Council.
(b) Membership.--(1) The Committee shall be composed of
representatives of the following:
(A) The Secretary of State.
(B) The Secretary of Defense.
(C) The Director of Central Intelligence.
(D) The Attorney General.
(E) The Secretary of Energy.
(F) The Administrator of the Federal Emergency
Management Agency.
(G) The Secretary of the Treasury.
(H) The Secretary of Commerce.
(I) Such other members as the President may
designate.
(2) The National Coordinator for Nonproliferation Matters
shall chair the Committee on Nonproliferation.
(c) Responsibilities.--The Committee has the following
responsibilities:
(1) To review and coordinate Federal programs,
policies, and directives relating to the proliferation
of weapons of mass destruction and related materials
and technologies, including matters relating to
terrorism and international organized crime.
(2) To make recommendations through the National
Security Council to the President regarding the
following:
(A) Integrated national policies for
countering the threats posed by weapons of mass
destruction.
(B) Options for integrating Federal agency
budgets for countering such threats.
(C) Means to ensure that the Federal,
State, and local governments have adequate
capabilities to manage crises involving
nuclear, radiological, biological, or chemical
weapons or related materials or technologies,
and to manage the consequences of a use of such
a weapon or related materials or technologies,
and that use of those capabilities is
coordinated.
(D) Means to ensure appropriate cooperation
on, and coordination of, the following:
(i) Preventing the smuggling of
weapons of mass destruction and related
materials and technologies.
(ii) Promoting domestic and
international law enforcement efforts
against proliferation-related efforts.
(iii) Countering the involvement of
organized crime groups in
proliferation-related activities.
(iv) Safeguarding weapons of mass
destruction materials and related
technologies.
(v) Improving coordination and
cooperation among intelligence
activities, law enforcement, and the
Departments of Defense, State,
Commerce, and Energy in support of
nonproliferation and
counterproliferation efforts.
(vi) Improving export controls over
materials and technologies that can
contribute to the acquisition of
weapons of mass destruction.
(vii) Reducing proliferation of
weapons of mass destruction and related
materials and technologies.

SEC. 1443. COMPREHENSIVE PREPAREDNESS PROGRAM.

(a) Program Required.--The President, acting through the
Committee on Nonproliferation established under section 1442,
shall develop a comprehensive program for carrying out this
title.
(b) Content of Program.--The program set forth in the
report shall include specific plans as follows:
(1) Plans for countering proliferation of weapons
of mass destruction and related materials and
technologies.
(2) Plans for training and equipping Federal,
State, and local officials for managing a crisis
involving a use or threatened use of a weapon of mass
destruction, including the consequences of the use of
such a weapon.
(3) Plans for providing for regular sharing of
information among intelligence, law enforcement, and
customs agencies.
(4) Plans for training and equipping law
enforcement units, customs services, and border
security personnel to counter the smuggling of weapons
of mass destruction and related materials and
technologies.
(5) Plans for establishing appropriate centers for
analyzing seized nuclear, radiological, biological, and
chemical weapons, and related materials and
technologies.
(6) Plans for establishing in the United States
appropriate legal controls and authorities relating to
the exporting of nuclear, radiological, biological, and
chemical weapons, and related materials and
technologies.
(7) Plans for encouraging and assisting governments
of foreign countries to implement and enforce laws that
set forth appropriate penalties for offenses regarding
the smuggling of weapons of mass destruction and
related materials and technologies.
(8) Plans for building the confidence of the United
States and Russia in each other's controls over United
States and Russian nuclear weapons and fissile
materials, including plans for verifying the
dismantlement of nuclear weapons.
(9) Plans for reducing United States and Russian
stockpiles of excess plutonium, reflecting--
(A) consideration of the desirability and
feasibility of a United States-Russian
agreement governing fissile material
disposition and the specific technologies and
approaches to be used for disposition of excess
plutonium; and
(B) an assessment of the options for United
States cooperation with Russia in the
disposition of Russian plutonium.
(10) Plans for studying the merits and costs of
establishing a global network of means for detecting
and responding to terroristic or other criminal use of
biological agents against people or other forms of life
in the United States or any foreign country.
(c) Report.--(1) At the same time that the President
submits the budget for fiscal year 1998 to Congress pursuant to
section 1105(a) of title 31, United States Code, the President
shall submit to Congress a report that sets forth the
comprehensive program developed under subsection (a).
(2) The report shall include the following:
(A) The specific plans for the program that are
required under subsection (b).
(B) Estimates of the funds necessary, by agency or
department, for carrying out such plans in fiscal year
1998 and the following five fiscal years.
(3) The report shall be in an unclassified form. If there
is a classified version of the report, the President shall
submit the classified version at the same time.

SEC. 1444. TERMINATION.

After September 30, 1999, the President--
(1) is not required to maintain a National
Coordinator for Nonproliferation Matters under section
1341; and
(2) may terminate the Committee on Nonproliferation
established under section 1342.

Subtitle E--Miscellaneous

SEC. 1451. SENSE OF CONGRESS CONCERNING CONTRACTING POLICY.

It is the sense of Congress that the Secretary of Defense,
the Secretary of Energy, the Secretary of the Treasury, and the
Secretary of State, to the extent authorized by law, should--
(1) contract directly with suppliers in independent
states of the former Soviet Union when such action
would--
(A) result in significant savings of the
programs referred to in subtitle C; and
(B) substantially expedite completion of
the programs referred to in subtitle C; and
(2) seek means to use innovative contracting
approaches to avoid delay and increase the
effectiveness of such programs and of the exercise of
such authorities.

SEC. 1452. TRANSFERS OF ALLOCATIONS AMONG COOPERATIVE THREAT REDUCTION
PROGRAMS.

Congress finds that--
(1) the various Cooperative Threat Reduction
programs are being carried out at different rates in
the various countries covered by such programs; and
(2) it is necessary to authorize transfers of
funding allocations among the various programs in order
to maximize the effectiveness of United States efforts
under such programs.

SEC. 1453. SENSE OF CONGRESS CONCERNING ASSISTANCE TO STATES OF FORMER
SOVIET UNION.

It is the sense of Congress that--
(1) the Cooperative Threat Reduction programs and
other United States programs authorized in the National
Defense Authorization Act for Fiscal Years 1993 and
1994 should be expanded by offering assistance under
those programs to other independent states of the
former Soviet Union in addition to Russia, Ukraine,
Kazakstan, and Belarus; and
(2) the President should offer assistance to
additional independent states of the former Soviet
Union in each case in which the participation of such
states would benefit national security interests of the
United States by improving border controls and
safeguards over materials and technology associated
with weapons of mass destruction.

SEC. 1454. PURCHASE OF LOW-ENRICHED URANIUM DERIVED FROM RUSSIAN HIGHLY
ENRICHED URANIUM.

(a) Sense of Congress.--It is the sense of Congress that
the allies of the United States and other nations should
participate in efforts to ensure that stockpiles of weapons-
grade nuclear material are reduced.
(b) Actions by the Secretary of State.--Congress urges the
Secretary of State to encourage, in consultation with the
Secretary of Energy, other countries to purchase low-enriched
uranium that is derived from highly enriched uranium extracted
from Russian nuclear weapons.

SEC. 1455. SENSE OF CONGRESS CONCERNING PURCHASE, PACKAGING, AND
TRANSPORTATION OF FISSILE MATERIALS AT RISK OF
THEFT.

It is the sense of Congress that--
(1) the Secretary of Defense, the Secretary of
Energy, the Secretary of the Treasury, and the
Secretary of State should purchase, package, and
transport to secure locations weapons-grade nuclear
materials from a stockpile of such materials if such
officials determine that--
(A) there is a significant risk of theft of
such materials; and
(B) there is no reasonable and economically
feasible alternative for securing such
materials; and
(2) if it is necessary to do so in order to secure
the materials, the materials should be imported into
the United States, subject to the laws and regulations
that are applicable to the importation of such
materials into the United States.

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

SEC. 1501. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS.

(a) In General.--For purposes of section 301 and other
provisions of this Act, Cooperative Threat Reduction programs
are the programs specified in subsection (b).
(b) Specified Programs.--The programs referred to in
subsection (a) are the following programs with respect to
states of the former Soviet Union:
(1) Programs to facilitate the elimination, and the
safe and secure transportation and storage, of nuclear,
chemical, and other weapons and their delivery
vehicles.
(2) Programs to facilitate the safe and secure
storage of fissile materials derived from the
elimination of nuclear weapons.
(3) Programs to prevent the proliferation of
weapons, weapons components, and weapons-related
technology and expertise.
(4) Programs to expand military-to-military and
defense contacts.

SEC. 1502. FISCAL YEAR 1997 FUNDING ALLOCATIONS.

(a) In General.--Of the amount appropriated pursuant to the
authorization of appropriations in section 301 for Cooperative
Threat Reduction programs, not more than the following amounts
may be obligated for the purposes specified:
(1) For planning and design of a chemical weapons
destruction facility in Russia, $78,500,000.
(2) For elimination of strategic offensive arms in
Russia, $52,000,000.
(3) For strategic nuclear arms elimination in
Ukraine, $47,000,000.
(4) For planning and design of a storage facility
for Russian fissile material, $66,000,000.
(5) For fissile material containers in Russia,
$38,500,000.
(6) For weapons storage security in Russia,
$15,000,000.
(7) For activities designated as Defense and
Military-to-Military Contacts in Russia, Ukraine,
Belarus, and Kazakhstan, $10,000,000.
(8) For activities designated as Other Assessments/
Administrative Support $20,900,000.
(9) For materials protection, control, and
accounting assistance or for destruction of nuclear,
radiological, biological, or chemical weapons or
related materials at any site within the former Soviet
Union, $10,000,000.
(10) For transfer to the Secretary of Energy to
develop a cooperative program with the Government of
Russia to eliminate the production of weapons grade
plutonium at Russian reactors, $10,000,000.
(11) For dismantlement of biological and chemical
weapons facilities in the former Soviet Union,
$15,000,000.
(12) For expanding military-to-military programs of
the United States that focus on countering the threat
of proliferation of weapons of mass destruction to
include the security forces of the independent states
of the former Soviet Union, particularly states in the
Caucasus region and Central Asia, $2,000,000.
(b) Limited Authority To Vary Individual Amounts.--(1) If
the Secretary of Defense determines that it is necessary to do
so in the national interest, the Secretary may, subject to
paragraph (2), obligate amounts for the purposes stated in any
of the paragraphs of subsection (a) in excess of the amount
specified for those purposes in that paragraph, but not in
excess of 115 percent of that amount. However, the total amount
obligated for the purposes stated in the paragraphs in
subsection (a) may not by reason of the use of the authority
provided in the preceding sentence exceed the sum of the
amounts specified in those paragraphs.
(2) An obligation for the purposes stated in any of the
paragraphs in subsection (a) in excess of the amount specified
in that paragraph may be made using the authority provided in
paragraph (1) only after--
(A) the Secretary submits to Congress a
notification of the intent to do so together with a
complete discussion of the justification for doing so;
and
(B) 15 days have elapsed following the date of the
notification.

SEC. 1503. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

(a) In General.--None of the funds appropriated pursuant to
the authorization in section 301 for Cooperative Threat
Reduction programs, or appropriated for such programs for any
prior fiscal year and remaining available for obligation, may
be obligated or expended for any of the following purposes:
(1) Conducting with Russia any peacekeeping
exercise or other peacekeeping-related activity.
(2) Provision of housing.
(3) Provision of assistance to promote
environmental restoration.
(4) Provision of assistance to promote job
retraining.
(b) Limitation With Respect to Defense Conversion
Assistance.--None of the funds appropriated to the Department
of Defense for fiscal year 1997 may be obligated or expended
for defense conversion.

SEC. 1504. LIMITATION ON USE OF FUNDS UNTIL SPECIFIED REPORTS ARE
SUBMITTED.

None of the funds appropriated pursuant to the
authorization in section 301 for Cooperative Threat Reduction
programs may be obligated or expended until 15 days after the
date which is the latest of the following:
(1) The date on which the President submits to
Congress the determinations required under subsection
(c) of section 211 of Public Law 102-228 (22 U.S.C.
2551 note) with respect to any certification
transmitted to Congress under subsection (b) of that
section before the date of the enactment of this Act.
(2) The date on which the Secretary of Defense
submits to Congress the first report under section
1206(a) of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 471).
(3) The date on which the Secretary of Defense
submits to Congress the report for fiscal year 1996
required under section 1205(c) of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-
337; 108 Stat. 2883).

SEC. 1505. AVAILABILITY OF FUNDS.

Funds appropriated pursuant to the authorization of
appropriations in section 301 for Cooperative Threat Reduction
programs shall be available for obligation for three fiscal
years.

TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

Subtitle B--Department of Defense Intelligence Personnel Policy

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

SEC. 1601. MODIFICATION OF REQUIREMENT FOR CONVERSION OF MILITARY
POSITIONS TO CIVILIAN POSITIONS.

(a) Elimination of Requirement for Fiscal Year 1997
Conversions.--Paragraph (1) of section 1032(a) of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 429; 10 U.S.C. 129a note) is amended--
(1) by striking out ``September 30, 1997'' and
inserting in lieu thereof ``September 30, 1996''; and
(2) by striking out ``10,000'' and inserting in
lieu thereof ``3,000''.
(b) Conforming Amendments.--Such section is further
amended--
(1) by striking out paragraph (2); and
(2) by redesignating paragraph (3) as paragraph
(2).
(c) Effective Date.--(1) The amendments made by this
section shall take effect 30 days after the date on which the
Secretary of Defense submits to Congress a certification that
at least 3,000 military positions have been converted to
civilian positions during fiscal year 1996 as required by
section 1032(a) of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 429).
(2) The Secretary shall publish in the Federal Register a
notice of the submission of any certification to Congress under
paragraph (1), including the date on which the certification
was submitted to Congress.

SEC. 1602. RETENTION OF CIVILIAN EMPLOYEE POSITIONS AT MILITARY
TRAINING BASES TRANSFERRED TO NATIONAL GUARD.

(a) Retention of Employee Positions.--In the case of a
military training installation described in subsection (b), the
Secretary of Defense shall retain civilian employee positions
of the Department of Defense at the installation after transfer
to the National Guard to facilitate active and reserve
component training at the installation. The Secretary shall
determine the extent to which positions at the installation are
to be retained as positions of the Department of Defense in
consultation with the Adjutant General of the National Guard of
the State in which the installation is located.
(b) Military Training Installations Affected.--This section
applies with respect to each military training installation
that--
(1) was approved for closure in 1995 under the
Defense Base Closure and Realignment Act of 1990 (part
A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note);
(2) is scheduled for transfer to National Guard
operation and control; and
(3) will continue to be used, after such transfer,
to provide training support to active and reserve
components of the Armed Forces.
(c) Maximum Positions Retained.--The number of civilian
employee positions retained at an installation under this
section may not exceed 20 percent of the Federal civilian
workforce employed at the installation as of September 8, 1995.
(d) Removal of Position.--The requirement to maintain a
civilian employee position at an installation under this
section terminates upon the later of the following:
(1) The date of the departure or retirement from
that position by the civilian employee initially
employed or retained in the position as a result of
this section.
(2) The date on which the Secretary certifies to
Congress that the position is no longer required to
ensure that effective support is provided at the
installation for active and reserve component training.

SEC. 1603. CLARIFICATION OF APPLICABILITY OF CERTAIN MANAGEMENT
CONSTRAINTS ON MAJOR RANGE AND TEST FACILITY BASE
STRUCTURE.

Section 129 of title 10, United States Code, is amended--
(1) in subsection (c)(1), by inserting ``, the
Major Range and Test Facility Base,'' after
``industrial-type activities''; and
(2) by adding at the end the following:
``(e) Subsections (a), (b), and (c) apply to the Major
Range and Test Facility Base (MRTFB) at the installation level.
With respect to the MRTFB structure, the term `funds made
available' includes both direct appropriated funds and funds
provided by MRTFB customers.''.

SEC. 1604. TRAVEL EXPENSES AND HEALTH CARE FOR CIVILIAN EMPLOYEES OF
THE DEPARTMENT OF DEFENSE ABROAD.

(a) In General.--Chapter 81 of title 10, United States
Code, is amended by adding at the end the following new
section:

``Sec. 1599b. Employees abroad: travel expenses; health care

``(a) In General.--The Secretary of Defense may provide
civilian employees, and members of their families, abroad with
benefits that are comparable to certain benefits that are
provided by the Secretary of State to members of the Foreign
Service and their families abroad as described in subsections
(b) and (c). The Secretary may designate the employees and
members of families who are eligible to receive the benefits.
``(b) Travel and Related Expenses.--The Secretary of
Defense may pay travel expenses and related expenses for
purposes and in amounts that are comparable to the purposes for
which, and the amounts in which, travel and related expenses
are paid by the Secretary of State under section 901 of the
Foreign Service Act of 1980 (22 U.S.C. 4081).
``(c) Health Care Program.--The Secretary of Defense may
establish a health care program that is comparable to the
health care program established by the Secretary of State under
section 904 of the Foreign Service Act of 1980 (22 U.S.C.
4084).
``(d) Assistance.--The Secretary of Defense may enter into
agreements with the heads of other departments and agencies of
the Government in order to facilitate the payment of expenses
authorized by subsection (b) and to carry out a health care
program authorized by subsection (c).
``(e) Abroad Defined.--In this section, the term `abroad'
means outside--
``(1) the United States; and
``(2) the territories and possessions of the United
States.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by adding at the end the
following new item:

``1599b. Employees abroad: travel expenses; health care.''.

SEC. 1605. TRAVEL, TRANSPORTATION, AND RELOCATION ALLOWANCES FOR
CERTAIN FORMER NONAPPROPRIATED FUND EMPLOYEES.

(a) In General.--(1) Subchapter II of chapter 57 of title
5, United States Code, is amended by adding at the end the
following new section:

``Sec. 5736. Travel, transportation, and relocation expenses of certain
nonappropriated fund employees

``An employee of a nonappropriated fund instrumentality of
the Department of Defense or the Coast Guard described in
section 2105(c) of this title who moves, without a break in
service of more than 3 days, to a position in the Department of
Defense or the Coast Guard, respectively, may be authorized
travel, transportation, and relocation expenses and allowances
under the same conditions and to the same extent authorized by
this subchapter for transferred employees.''.
(2) The table of sections at the beginning of chapter 57 of
such title is amended by inserting after the item relating to
section 5735 the following new item:

``5736. Travel, transportation, and relocation expenses of certain
nonappropriated fund employees.''.

(b) Applicability.--Section 5736 of title 5, United States
Code (as added by subsection (a)(1)), shall apply to moves
between positions as described in such section that are
effective on or after October 1, 1996.

SEC. 1606. EMPLOYMENT AND SALARY PRACTICES APPLICABLE TO DEPARTMENT OF
DEFENSE OVERSEAS TEACHERS.

(a) Expansion of Scope of Educators Covered.--Section 2 of
the Defense Department Overseas Teachers Pay and Personnel
Practices Act (20 U.S.C. 901) is amended--
(1) in subparagraph (A) of paragraph (1), by
inserting ``, or are performed by an individual who
carried out certain teaching activities identified in
regulations prescribed by the Secretary of Defense''
after ``Defense,''; and
(2) by striking out subparagraph (C) of paragraph
(2) and inserting in lieu thereof the following:
``(C) who is employed in a teaching
position described in paragraph (1).''.
(b) Transfer of Responsibility for Employment and Salary
Practices.--Section 5 of such Act (20 U.S.C. 903) is amended--
(1) in subsection (a)--
(A) by striking out ``secretary of each
military department in the Department of
Defense'' and inserting in lieu thereof
``Secretary of Defense''; and
(B) by striking out ``his military
department'' and inserting in lieu thereof
``the Department of Defense'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1),
by striking out ``secretary of each military
department--'' and inserting in lieu thereof
``Secretary of Defense--''; and
(B) in paragraph (1), by striking out ``his
military department,'' and inserting in lieu
thereof ``the Department of Defense'';
(3) in subsection (c)--
(A) by striking out ``Secretary of each
military department'' and inserting in lieu
thereof ``Secretary of Defense''; and
(B) by striking out ``his military
department'' and inserting in lieu thereof
``the Department of Defense''; and
(4) in subsection (d), by striking out ``Secretary
of each military department'' and inserting in lieu
thereof ``Secretary of Defense''.

SEC. 1607. EMPLOYMENT AND COMPENSATION OF CIVILIAN FACULTY MEMBERS AT
CERTAIN DEPARTMENT OF DEFENSE SCHOOLS.

(a) Faculties.--Subsection (c) of section 1595 of title 10,
United States Code, is amended by adding at the end the
following new paragraphs:
``(4) The English Language Center of the Defense
Language Institute.
``(5) The Asia-Pacific Center for Security
Studies.''.
(b) Certain Administrators.--Such section is further
amended by adding at the end the following new subsection:
``(f) Application to Director and Deputy Director at Asia-
Pacific Center for Security Studies.--In the case of the Asia-
Pacific Center for Security Studies, this section also applies
with respect to the Director and the Deputy Director.''.

SEC. 1608. REIMBURSEMENT OF DEPARTMENT OF DEFENSE DOMESTIC DEPENDENT
SCHOOL BOARD MEMBERS FOR CERTAIN EXPENSES.

Section 2164(d) of title 10, United States Code, is amended
by adding at the end the following new paragraph:
``(7) The Secretary may provide for reimbursement of a
school board member for expenses incurred by the member for
travel, transportation, lodging, meals, program fees, activity
fees, and other appropriate expenses that the Secretary
determines are reasonable and necessary for the performance of
school board duties by the member.''.

SEC. 1609. MODIFICATION OF AUTHORITY FOR CIVILIAN EMPLOYEES OF
DEPARTMENT OF DEFENSE TO PARTICIPATE VOLUNTARILY IN
REDUCTIONS IN FORCE.

Subsection (f) of section 3502 of title 5, United States
Code, is amended to read as follows:
``(f)(1) The Secretary of Defense or the Secretary of a
military department may--
``(A) separate from service any employee who
volunteers to be separated under this subparagraph even
though the employee is not otherwise subject to
separation due to a reduction in force; and
``(B) for each employee voluntarily separated under
subparagraph (A), retain an employee in a similar
position who would otherwise be separated due to a
reduction in force.
``(2) The separation of an employee under paragraph (1)(A)
shall be treated as an involuntary separation due to a
reduction in force.
``(3) An employee with critical knowledge and skills (as
defined by the Secretary concerned) may not participate in a
voluntary separation under paragraph (1)(A) if the Secretary
concerned determines that such participation would impair the
performance of the mission of the Department of Defense or the
military department concerned.
``(4) The regulations prescribed under this section shall
incorporate the authority provided in this subsection.
``(5) No authority under paragraph (1) may be exercised
after September 30, 2001.''.

SEC. 1610. WAGE-BOARD COMPENSATORY TIME OFF.

(a) In General.--Section 5543 of title 5, United States
Code, is amended--
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a) the following
new subsection (b):
``(b) The head of an agency may, on request of an employee,
grant the employee compensatory time off from the employee's
scheduled tour of duty instead of payment under section 5544 or
section 7 of the Fair Labor Standards Act of 1938 for an equal
amount of time spent in irregular or occasional overtime work.
An agency head may not require an employee to be compensated
for overtime work with an equivalent amount of compensatory
time-off from the employee's tour of duty.''.
(b) Conforming Amendment.--Section 5544(c) of title 5,
United States Code, is amended by inserting ``and the
provisions of section 5543(b)'' after ``the last two sentences
of subsection (a)''.

SEC. 1611. LIQUIDATION OF RESTORED ANNUAL LEAVE THAT REMAINS UNUSED
UPON TRANSFER OF EMPLOYEE FROM INSTALLATION BEING
CLOSED OR REALIGNED.

(a) Lump-Sum Payment Required.--Section 5551 of title 5,
United States Code, is amended by adding at the end the
following:
``(c)(1) Annual leave that is restored to an employee of
the Department of Defense under section 6304(d) of this title
by reason of the operation of paragraph (3) of such section and
remains unused upon the transfer of the employee to a position
described in paragraph (2) shall be liquidated by payment of a
lump-sum for such leave to the employee upon the transfer.
``(2) A position referred to in paragraph (1) is a position
in a department or agency of the Federal Government outside the
Department of Defense or a Department of Defense position that
is not located at a Department of Defense installation being
closed or realigned as described in section 6304(d)(3) of this
title.''.
(b) Applicability.--Subsection (c) of section 5551 of title
5, United States Code (as added by subsection (a)), shall apply
with respect to transfers described in such subsection (c) that
take effect on or after the date of the enactment of this Act.

SEC. 1612. WAIVER OF REQUIREMENT FOR REPAYMENT OF VOLUNTARY SEPARATION
INCENTIVE PAY BY FORMER DEPARTMENT OF DEFENSE
EMPLOYEES REEMPLOYED BY THE GOVERNMENT WITHOUT PAY.

(a) In General.--Section 5597(g) of title 5, United States
Code, is amended by adding at the end the following new
paragraph:
``(5) If the employment is without compensation, the
appointing official may waive the repayment.''.
(b) Applicability.--The amendment made by subsection (a)
shall apply with respect to employment accepted on or after the
date of the enactment of this Act.

SEC. 1613. SIMPLIFICATION OF RULES RELATING TO THE OBSERVANCE OF
CERTAIN HOLIDAYS.

Section 6103 of title 5, United States Code, is amended by
adding at the end the following new subsection:
``(d)(1) For purposes of this subsection--
``(A) the term `compressed schedule' has the
meaning given such term by section 6121(5); and
``(B) the term `adverse agency impact' has the
meaning given such term by section 6131(b).
``(2) An agency may prescribe rules under which employees
on a compressed schedule may, in the case of a holiday that
occurs on a regularly scheduled non-workday for such employees,
and notwithstanding any other provision of law or the terms of
any collective bargaining agreement, be required to observe
such holiday on a workday other than as provided by subsection
(b), if the agency head determines that it is necessary to do
so in order to prevent an adverse agency impact.''.

SEC. 1614. REVISION OF CERTAIN TRAVEL MANAGEMENT AUTHORITIES.

(a) Repeal of Requirements Relating to Fire-Safe
Accommodations.--(1) Section 5707 of title 5, United States
Code, is amended by striking out subsection (d).
(2) Subsection (b) of section 5 of the Hotel and Motel Fire
Safety Act of 1990 (Public Law 101-391; 104 Stat. 751; 5 U.S.C.
5707 note) is repealed.
(b) Repeal of Prohibition on Payment of Lodging Expenses of
Department of Defense Employees and Other Civilians When
Adequate Government Quarters Are Available.--(1) Section 1589
of title 10, United States Code, is repealed.
(2) The table of sections at the beginning of chapter 81 of
such title is amended by striking out the item relating to such
section.

SEC. 1615. FAILURE TO COMPLY WITH VETERANS' PREFERENCE REQUIREMENTS TO
BE TREATED AS A PROHIBITED PERSONNEL PRACTICE.

(a) In General.--(1) Chapter 81 of title 10, United States
Code, as amended by section 1604, is further amended by adding
at the end the following new section:

``Sec. 1599c. Veterans' preference requirements: Department of Defense
failure to comply treated as a prohibited personnel
practice

``(a) Prohibited Personnel Practice.--It is a prohibited
personnel practice for a person referred to in subsection (b)
who has authority described in that subsection--
``(1) knowingly to take, recommend, or approve any
personnel action with respect to such authority if the
taking of such action violates a veterans' preference;
or
``(2) knowingly to fail to take, recommend, or
approve any personnel action with respect to such
authority, if the failure to take such action violates
a veterans' preference.
``(b) Persons Covered.--Subsection (a) applies with respect
to--
``(1) an officer or employee of the Department of
Defense who has authority to take, direct others to
take, recommend, or approve a personnel action with
respect to an employee of the Department of Defense;
and
``(2) a member of the armed forces who has such
authority.
``(c) Veterans' Preference Defined.--(1) In this section,
the term `veterans' preference' means any of the following
provisions of law:
``(A) Sections 2108, 3305(b), 3309, 3310, 3311,
3312, 3313, 3314, 3315, 3316, 3317(b), 3318, 3320,
3351, 3352, 3363, 3501, 3502(b), 3504, and 4303(e) of
title 5 and (with respect to a preference eligible
referred to in section 7511(a)(1)(B) of such title)
subchapter II of chapter 75 and section 7701 of such
title.
``(B) Sections 943(c)(2) and 1784(c) of this title.
``(C) Section 1308(b) of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3198(b)).
``(D) Section 301(c) of the Foreign Service Act of
1980 (22 U.S.C. 3941(c)).
``(E) Section 3(a)(11) of the Administrative Office
of the United States Courts Personnel Act of 1990 (28
U.S.C. 602 note).
``(F) Sections 106(f), 7281(e), and 7802(5) of
title 38.
``(G) Section 1005(a) of title 39.
``(H) Any other provision of law that the Director
of the Office of Personnel Management designates in
regulations as being a veterans' preference for the
purposes of this section.
``(2) For the purposes of this section, such term includes
any regulation prescribed under subsection (b) or (c) of
section 1302 of title 5 and any other regulation that
implements a provision of law referred to in paragraph (1).
``(d) Personnel Action Defined.--In this section, the term
`personnel action' has the meaning given that term in section
2302 of title 5.''.
(2) The table of sections at the beginning of such chapter
is amended by adding at the end the following new item:

``1599c. Veterans' preference requirements: Department of Defense
failure to comply treated as a prohibited personnel
practice.''.

(b) Applicability of Title 5 Procedures and Sanctions.--
Paragraph (1) of section 2302(a) of title 5, United States
Code, is amended to read as follows:
``(1) For purposes of this title, `prohibited personnel
practice' means the following:
``(A) Any action described in subsection (b) of
this section.
``(B) Any action or failure to act that is
designated as a prohibited personnel action under
section 1599c(a) of title 10.''.
(c) Reporting Requirement.--Not later than six months after
the date of the enactment of this Act, the Secretary of Defense
shall submit to Congress a written report on--
(1) the implementation of--
(A) section 1599c of title 10, United
States Code, as added by subsection (a); and
(B) subparagraph (B) of section 2302(a)(1)
of title 5, United States Code, as added by
subsection (b); and
(2) the administration of veterans' preference
requirements by the Department of Defense generally.

SEC. 1616. PILOT PROGRAMS FOR DEFENSE EMPLOYEES CONVERTED TO CONTRACTOR
EMPLOYEES DUE TO PRIVATIZATION AT CLOSED MILITARY
INSTALLATIONS.

(a) Pilot Programs Authorized.--(1) The Secretary of
Defense, after consultation with the Director of the Office of
Personnel Management, may establish one or more pilot programs
under which Federal retirement benefits are provided in
accordance with this section to persons who convert from
Federal employment to employment by a Department of Defense
contractor in connection with the privatization of the
performance of functions at selected military installations
being closed under the base closure and realignment process.
(2) The Secretary of Defense shall select the military
installations to be covered by a pilot program under this
section.
(b) Eligible Converted Employees.--(1) A person is a
converted employee eligible for Federal retirement benefits
under this section if the person is a former employee of the
Department of Defense (other than a temporary employee) who--
(A) while employed by the Department of Defense at
a military installation selected to participate in a
pilot program, performed a function that was
recommended, in a report of the Defense Base Closure
and Realignment Commission submitted to the President
under the Defense Base Closure and Realignment Act of
1990 (title XXIX of Public Law 101-510; 10 U.S.C. 2687
note), to be privatized for performance by a defense
contractor at the same installation or in the vicinity
of the installation;
(B) while so employed, separated from Federal
service after being notified that the employee would be
separated in a reduction in force resulting from such
privatization;
(C) at the time separated from Federal service, was
covered under the Civil Service Retirement System, but
was not eligible for an immediate annuity under the
Civil Service Retirement System;
(D) does not withdraw retirement contributions
under section 8342 of title 5, United States Code;
(E) within 60 days following such separation, is
employed by the defense contractor selected to
privatize the function to perform substantially the
same function performed by the person before the
separation; and
(F) remains employed by the defense contractor (or
a successor defense contractor) or subcontractor of the
defense contractor (or successor defense contractor)
until attaining early deferred retirement age (unless
the employment is sooner involuntarily terminated for
reasons other than performance or conduct of the
employee).
(2) A person who, under paragraph (1), would otherwise be
eligible for an early deferred annuity under this section shall
not be eligible for such benefits if the person received
separation pay or severance pay due to a separation described
in subparagraph (B) of that paragraph unless the person repays
the full amount of such pay with interest (computed at a rate
determined appropriate by the Director of the Office of
Personnel Management) to the Department of Defense before
attaining early deferred retirement age.
(c) Retirement Benefits of Converted Employees.--In the
case of a converted employee covered by a pilot program,
payment of a deferred annuity for which the converted employee
is eligible under section 8338(a) of title 5, United States
Code, shall commence on the first day of the first month that
begins after the date on which the converted employee attains
early deferred retirement age, notwithstanding the age
requirement under that section. If the employment of a
converted employee is involuntarily terminated by the defense
contractor or subcontractor as described in subsection
(b)(1)(F) and the converted employee resumes Federal service
before the converted employee attains early deferred retirement
age, the converted employee shall once again be covered under
the Civil Service Retirement System instead of the pilot
program.
(d) Computation of Average Pay.--(1)(A) This paragraph
applies to a converted employee who was employed in a position
classified under the General Schedule immediately before the
employee's covered separation from Federal service.
(B) Subject to subparagraph (C), for purposes of computing
the deferred annuity for a converted employee referred to in
subparagraph (A), the average pay of the converted employee,
computed under section 8331(4) of title 5, United States Code,
as of the date of the employee's covered separation from
Federal service, shall be adjusted at the same time and by the
same percentage that rates of basic pay are increased under
section 5303 of such title during the period beginning on that
date and ending on the date on which the converted employee
attains early deferred retirement age.
(C) The average pay of a converted employee, as adjusted
under subparagraph (B), may not exceed the amount to which an
annuity of the converted employee could be increased under
section 8340 of title 5, United States Code, in accordance with
the limitation in subsection (g)(1) of such section (relating
to maximum pay, final pay, or average pay).
(2)(A) This paragraph applies to a converted employee who
was a prevailing rate employee (as defined under section
5342(2) of title 5, United States Code) immediately before the
employee's covered separation from Federal service.
(B) For purposes of computing the deferred annuity for a
converted employee referred to in subparagraph (A), the average
pay of the converted employee, computed under section 8331(4)
of title 5, United States Code, as of the date of the
employee's covered separation from Federal service, shall be
adjusted at the same time and by the same percentage that pay
rates for positions that are in the same area as, and are
comparable to, the last position the converted employee held as
a prevailing rate employee, are increased under section 5343(a)
of such title during the period beginning on that date and
ending on the date on which the converted employee attains
early deferred retirement age.
(e) Payment of Unfunded Liability.--(1) The military
department concerned shall be liable for that portion of any
estimated increase in the unfunded liability of the Civil
Service Retirement and Disability Fund established under
section 8348 of title 5, United States Code, which is
attributable to any benefits payable from such Fund to a
converted employee, and any survivor of a converted employee,
when the increase results from--
(A) an increase in the average pay of the converted
employee under subsection (d) upon which such benefits
are computed; and
(B) the commencement of an early deferred annuity
in accordance with this section before the attainment
of 62 years of age by the converted employee.
(2) The estimated increase in the unfunded liability for
each department referred to in paragraph (1) shall be
determined by the Director of the Office of Personnel
Management. In making the determination, the Director shall
consider any savings to the Fund as a result of a pilot program
established under this section. The Secretary of the military
department concerned shall pay the amount so determined to the
Director in 10 equal annual installments with interest computed
at the rate used in the most recent valuation of the Civil
Service Retirement System, with the first payment thereof due
at the end of the fiscal year in which an increase in average
pay under subsection (d) becomes effective.
(f) Contractor Service Not Creditable.--Service performed
by a converted employee for a defense contractor after the
employee's covered separation from Federal service is not
creditable service for purposes of subchapter III of chapter 83
of title 5, United States Code.
(g) Receipt of Benefits While Employed by a Defense
Contractor.--A converted employee may commence receipt of an
early deferred annuity in accordance with this section while
continuing to work for a defense contractor.
(h) Lump-Sum Credit Payment.--If a converted employee dies
before attaining early deferred retirement age, such employee
shall be treated as a former employee who dies not retired for
purposes of payment of the lump-sum credit under section
8342(d) of title 5, United States Code.
(i) Continued Federal Health Benefits Coverage.--
Notwithstanding section 8905a(e)(1)(A) of title 5, United
States Code, the continued coverage of a converted employee for
health benefits under chapter 89 of such title by reason of the
application of section 8905a of such title to such employee
shall terminate 90 days after the date of the employee's
covered separation from Federal employment. For the purposes of
the preceding sentence, a person who, except for subsection
(b)(2), would be a converted employee shall be considered a
converted employee.
(j) Report by General Accounting Office.--The Comptroller
General shall conduct a study of each pilot program, if any,
established under this section and submit a report on the pilot
program to Congress not later than two years after the date on
which the program is established. The report shall contain the
following:
(1) A review and evaluation of the program,
including--
(A) an evaluation of the success of the
privatization outcomes of the program;
(B) a comparison and evaluation of such
privatization outcomes with the privatization
outcomes with respect to facilities at other
military installations closed or realigned
under the base closure laws;
(C) an evaluation of the impact of the
program on the Federal workforce and whether
the program results in the maintenance of a
skilled workforce for defense contractors at an
acceptable cost to the military department
concerned; and
(D) an assessment of the extent to which
the program is a cost-effective means of
facilitating privatization of the performance
of Federal activities.
(2) Recommendations relating to the expansion of
the program to other installations and employees.
(3) Any other recommendation relating to the
program.
(k) Implementing Regulations.--Not later than 30 days after
the Secretary of Defense notifies the Director of the Office of
Personnel Management of a decision to establish a pilot program
under this section, the Director shall prescribe regulations to
carry out the provisions of this section with respect to that
pilot program. Before prescribing the regulations, the Director
shall consult with the Secretary.
(l) Definitions.--In this section:
(1) The term ``converted employee'' means a person
who, pursuant to subsection (b), is eligible for
benefits under this section.
(2) The term ``covered separation from Federal
service'' means a separation from Federal service as
described under subsection (b)(1)(B).
(3) The term ``Civil Service Retirement System''
means the retirement system under subchapter III of
chapter 83 of title 5, United States Code.
(4) The term ``defense contractor'' means any
entity that--
(A) contracts with the Department of
Defense to perform a function previously
performed by Department of Defense employees;
(B) performs that function at the same
installation at which such function was
previously performed by Department of Defense
employees or in the vicinity of that
installation; and
(C) is the employer of one or more
converted employees.
(5) The term ``early deferred retirement age''
means the first age at which a converted employee would
have been eligible for immediate retirement under
subsection (a) or (b) of section 8336 of title 5,
United States Code, if such converted employee had
remained an employee within the meaning of section
8331(1) of such title continuously until attaining such
age.
(6) The term ``severance pay'' means severance pay
payable under section 5595 of title 5, United States
Code.
(7) The term ``separation pay'' means separation
pay payable under section 5597 of title 5, United
States Code.
(m) Application of Pilot Program.--In the event that a
pilot program is established for a military installation, the
pilot program shall apply to a covered separation from Federal
service by an employee of the Department of Defense at the
installation occurring on or after August 1, 1996.

Subtitle B--Department of Defense Intelligence Personnel Policy

SEC. 1631. SHORT TITLE.

This subtitle may be cited as the ``Department of Defense
Civilian Intelligence Personnel Policy Act of 1996''.

SEC. 1632. MANAGEMENT OF CIVILIAN INTELLIGENCE PERSONNEL.

(a) Consolidation and Standardization of Civilian Personnel
Policy.--Chapter 83 of title 10, United States Code, is
amended--
(1) by redesignating section 1602 as section 1621
and transferring that section so as to appear after
section 1605;
(2) by redesignating sections 1606 and 1608 as
section 1622 and 1623, respectively; and
(3) by striking out the chapter heading, the table
of sections, and sections 1601, 1603, and 1604 and
inserting in lieu thereof the following:

``CHAPTER 83--CIVILIAN DEFENSE INTELLIGENCE EMPLOYEES

``Subchapter Sec.
``I. Defense-Wide Intelligence Personnel Policy................... 1601
``II. Defense Intelligence Agency Personnel....................... 1621

``SUBCHAPTER I--DEFENSE-WIDE INTELLIGENCE PERSONNEL POLICY

``Sec.
``1601. Civilian intelligence personnel: general authority to establish
excepted positions, appoint personnel, and fix rates of pay.
``1602. Basic pay.
``1603. Additional compensation, incentives, and allowances.
``1605. Benefits for certain employees assigned outside the United
States.
``1606. Defense Intelligence Senior Executive Service.
``1607. Intelligence Senior Level positions.
``1608. Time-limited appointments.
``1609. Termination of defense intelligence employees.
``1610. Reductions and other adjustments in force.
``1611. Postemployment assistance: certain terminated intelligence
employees.
``1612. Merit system principles and civil service protections:
applicability.
``1613. Miscellaneous provisions.
``1614. Definitions.

``Sec. 1601. Civilian intelligence personnel: general authority to
establish excepted positions, appoint personnel,
and fix rates of pay

``(a) General Authority.--The Secretary of Defense may--
``(1) establish, as positions in the excepted
service, such defense intelligence positions in the
intelligence components of the Department of Defense
and the military departments as the Secretary
determines necessary to carry out the intelligence
functions of those components and departments,
including--
``(A) Intelligence Senior Level positions
designated under section 1607 of this title;
and
``(B) positions in the Defense Intelligence
Senior Executive Service;
``(2) appoint individuals to those positions (after
taking into consideration the availability of
preference eligibles for appointment to those
positions); and
``(3) fix the compensation of such individuals for
service in those positions.
``(b) Construction With Other Laws.--The authority of the
Secretary of Defense under subsection (a) applies without
regard to the provisions of any other law relating to the
appointment, number, classification, or compensation of
employees.

``Sec. 1602. Basic pay

``(a) Authority To Fix Rates of Basic Pay.--The Secretary
of Defense (subject to the provisions of this section) shall
fix the rates of basic pay for positions established under
section 1601 of this title in relation to the rates of basic
pay provided in subpart D of part III of title 5 for positions
subject to that subpart which have corresponding levels of
duties and responsibilities.
``(b) Maximum Rates.--A rate of basic pay fixed under
subsection (a) for a position established under section 1601 of
this title may not (except as otherwise provided by law)
exceed--
``(1) in the case of a Defense Intelligence Senior
Executive Service position, the maximum rate provided
in section 5382 of title 5;
``(2) in the case of an Intelligence Senior Level
position, the maximum rate provided in section 5382 of
title 5; and
``(3) in the case of any other position, the
maximum rate provided in section 5306(e) of title 5.
``(c) Prevailing Rate Systems.--The Secretary of Defense
may, consistent with section 5341 of title 5, adopt such
provisions of that title as provide for prevailing rate systems
of basic pay and may apply those provisions to positions for
civilian employees in or under which the Department of Defense
may employ individuals described by section 5342(a)(2)(A) of
that title.

``Sec. 1603. Additional compensation, incentives, and allowances

``(a) Additional Compensation Based on Title 5
Authorities.--The Secretary of Defense may provide employees in
defense intelligence positions compensation (in addition to
basic pay), including benefits, incentives, and allowances,
consistent with, and not in excess of the level authorized for,
comparable positions authorized by title 5.
``(b) Allowances Based on Living Costs and Environment.--
(1) In addition to basic pay, employees in defense intelligence
positions who are citizens or nationals of the United States
and are stationed outside the continental United States or in
Alaska may be paid an allowance, in accordance with regulations
prescribed by the Secretary of Defense, while they are so
stationed.
``(2) An allowance under this subsection shall be based
on--
``(A) living costs substantially higher than in the
District of Columbia;
``(B) conditions of environment which (i) differ
substantially from conditions of environment in the
continental United States, and (ii) warrant an
allowance as a recruitment incentive; or
``(C) both of the factors specified in
subparagraphs (A) and (B).
``(3) An allowance under this subsection may not exceed the
allowance authorized to be paid by section 5941(a) of title 5
for employees whose rates of basic pay are fixed by statute.''.
(b) Matters Other Than Pay and Benefits.--Such chapter is
further amended by inserting after section 1605 the following
new sections:

``Sec. 1606. Defense Intelligence Senior Executive Service

``(a) Establishment.--The Secretary of Defense may
establish a Defense Intelligence Senior Executive Service for
defense intelligence positions established pursuant to section
1601(a) of this title that are equivalent to Senior Executive
Service positions. The number of positions in the Defense
Intelligence Senior Executive Service may not exceed 492.
``(b) Regulations Consistent With Title 5 Provisions.--The
Secretary of Defense shall prescribe regulations for the
Defense Intelligence Senior Executive Service which are
consistent with the requirements set forth in sections 3131,
3132(a)(2), 3396(c), 3592, 3595(a), 5384, and 6304 of title 5,
subsections (a), (b), and (c) of section 7543 of such title
(except that any hearing or appeal to which a member of the
Defense Intelligence Senior Executive Service is entitled shall
be held or decided pursuant to those regulations), and
subchapter II of chapter 43 of such title. To the extent that
the Secretary determines it practicable to apply to members of,
or applicants for, the Defense Intelligence Senior Executive
Service other provisions of title 5 that apply to members of,
or applicants for, the Senior Executive Service, the Secretary
shall also prescribe regulations to implement those provisions
with respect to the Defense Intelligence Senior Executive
Service.
``(c) Award of Rank to Members of the Defense Intelligence
Senior Executive Service.--The President, based on the
recommendations of the Secretary of Defense, may award a rank
referred to in section 4507 of title 5 to members of the
Defense Intelligence Senior Executive Service. The award of
such rank shall be made in a manner consistent with the
provisions of that section.

``Sec. 1607. Intelligence Senior Level positions

``(a) Designation of Positions.--The Secretary of Defense
may designate as an Intelligence Senior Level position any
defense intelligence position that, as determined by the
Secretary--
``(1) is classifiable above grade GS-15 of the
General Schedule;
``(2) does not satisfy functional or program
management criteria for being designated a Defense
Intelligence Senior Executive Service position; and
``(3) has no more than minimal supervisory
responsibilities.
``(b) Regulations.--Subsection (a) shall be carried out in
accordance with regulations prescribed by the Secretary of
Defense.

``Sec. 1608. Time-limited appointments

``(a) Authority for Time-Limited Appointments.--The
Secretary of Defense may by regulation authorize appointing
officials to make time-limited appointments to defense
intelligence positions specified in the regulations.
``(b) Review of Use of Authority.--The Secretary of Defense
shall review each time-limited appointment in a defense
intelligence position at the end of the first year of the
period of the appointment and determine whether the appointment
should be continued for the remainder of the period. The
continuation of a time-limited appointment after the first year
shall be subject to the approval of the Secretary.
``(c) Condition on Permanent Appointment to Defense
Intelligence Senior Executive Service.--An employee serving in
a defense intelligence position pursuant to a time-limited
appointment is not eligible for a permanent appointment to a
Defense Intelligence Senior Executive Service position
(including a position in which the employee is serving) unless
the employee is selected for the permanent appointment on a
competitive basis.
``(d) Time-Limited Appointment Defined.--In this section,
the term `time-limited appointment' means an appointment
(subject to the condition in subsection (b)) for a period not
to exceed two years.

``Sec. 1609. Termination of defense intelligence employees

``(a) Termination Authority.--Notwithstanding any other
provision of law, the Secretary of Defense may terminate the
employment of any employee in a defense intelligence position
if the Secretary--
``(1) considers that action to be in the interests
of the United States; and
``(2) determines that the procedures prescribed in
other provisions of law that authorize the termination
of the employment of such employee cannot be invoked in
a manner consistent with the national security.
``(b) Finality.--A decision by the Secretary of Defense to
terminate the employment of an employee under this section is
final and may not be appealed or reviewed outside the
Department of Defense.
``(c) Notification to Congressional Committees.--Whenever
the Secretary of Defense terminates the employment of an
employee under the authority of this section, the Secretary
shall promptly notify the congressional oversight committees of
such termination.
``(d) Preservation of Right To Seek Other Employment.--Any
termination of employment under this section does not affect
the right of the employee involved to seek or accept employment
with any other department or agency of the United States if
that employee is declared eligible for such employment by the
Director of the Office of Personnel Management.
``(e) Limitation on Delegation.--The authority of the
Secretary of Defense under this section may be delegated only
to the Deputy Secretary of Defense, the head of an intelligence
component of the Department of Defense (with respect to
employees of that component), or the Secretary of a military
department (with respect to employees of that department). An
action to terminate employment of such an employee by any such
official may be appealed to the Secretary of Defense.

``Sec. 1610. Reductions and other adjustments in force

``(a) In General.--The Secretary of Defense shall prescribe
regulations for the separation of employees in defense
intelligence positions, including members of the Defense
Intelligence Senior Executive Service and employees in
Intelligence Senior Level positions, during a reduction in
force or other adjustment in force. The regulations shall apply
to such a reduction in force or other adjustment in force
notwithstanding sections 3501(b) and 3502 of title 5.
``(b) Matters To Be Given Effect.--The regulations shall
give effect to the following:
``(1) Tenure of employment.
``(2) Military preference, subject to sections
3501(a)(3) and 3502(b) of title 5.
``(3) The veteran's preference under section
3502(b) of title 5.
``(4) Performance.
``(5) Length of service computed in accordance with
the second sentence of section 3502(a) of title 5.
``(c) Regulations Relating to Defense Intelligence SES.--
The regulations relating to removal from the Defense
Intelligence Senior Executive Service in a reduction in force
or other adjustment in force shall be consistent with section
3595(a) of title 5.
``(d) Right of Appeal.--(1) The regulations shall provide a
right of appeal regarding a personnel action under the
regulations. The appeal shall be determined within the
Department of Defense. An appeal determined at the highest
level provided in the regulations shall be final and not
subject to review outside the Department of Defense. A
personnel action covered by the regulations is not subject to
any other provision of law that provides appellate rights or
procedures.
``(2) Notwithstanding paragraph (1), a preference eligible
referred to in section 7511(a)(1)(B) of title 5 may elect to
have an appeal of a personnel action taken against the
preference eligible under the regulation determined by the
Merit Systems Protection Board instead of having the appeal
determined within the Department of Defense. Section 7701 of
title 5 shall apply to any such appeal to the Merit Systems
Protection Board.
``(e) Consultation With OPM.--Regulations under this
section shall be prescribed in consultation with the Director
of the Office of Personnel Management.''.
(c) Transfer of Section 1599.--Subtitle A of title 10,
United States Code, is amended by transferring section 1599 to
chapter 83 of such title, inserting such section after section
1610 (as added by subsection (b)), redesignating such section
as section 1611, and in subsection (f) striking out ``means''
and all that follows and inserting in lieu thereof ``includes
the National Reconnaissance Office and any intelligence
component of a military department.''.
(d) Additional Provisions.--Such chapter is further amended
by inserting after section 1611 (as so transferred and
redesignated) the following new sections:

``Sec. 1612. Merit system principles and civil service protections:
applicability

``(a) Applicability of Merit System Principles.--Section
2301 of title 5 shall apply to the exercise of authority under
this subchapter (other than sections 1605 and 1611).
``(b) Civil Service Protections.--(1) If, in the case of a
position established under authority other than section
1601(a)(1) of this title that is reestablished as an excepted
service position under that section, the provisions of law
referred to in paragraph (2) applied to the person serving in
that position immediately before the position is so
reestablished and such provisions of law would not otherwise
apply to the person while serving in the position as so
reestablished, then such provisions of law shall, subject to
paragraph (3), continue to apply to the person with respect to
service in that position for as long as the person continues to
serve in the position without a break in service.
``(2) The provisions of law referred to in paragraph (1)
are the following provisions of title 5:
``(A) Section 2302, relating to prohibited
personnel practices.
``(B) Chapter 75, relating to adverse actions.
``(3)(A) Notwithstanding any provision of chapter 75 of
title 5, an appeal of an adverse action by an individual
employee covered by paragraph (1) shall be determined within
the Department of Defense if the employee so elects.
``(B) The Secretary of Defense shall prescribe the
procedures for initiating and determining appeals of adverse
actions pursuant to elections made under subparagraph (A).

``Sec. 1613. Miscellaneous provisions

``(a) Collective Bargaining Agreements.--Nothing in
sections 1601 through 1604 and 1606 through 1610 may be
construed to impair the continued effectiveness of a collective
bargaining agreement with respect to an agency or office that
is a successor to an agency or office covered by the agreement
before the succession.
``(b) Notice to Congress of Regulations.--The Secretary of
Defense shall notify Congress of any regulations prescribed to
carry out this subchapter (other than sections 1605 and 1611).
Such notice shall be provided by submitting a copy of the
regulations to the congressional oversight committees not less
than 60 days before such regulations take effect.

``Sec. 1614. Definitions

``In this subchapter:
``(1) The term `defense intelligence position'
means a civilian position as an intelligence officer or
intelligence employee of an intelligence component of
the Department of Defense or of a military department.
``(2) The term `intelligence component of the
Department of Defense' means any of the following:
``(A) The National Security Agency.
``(B) The Defense Intelligence Agency.
``(C) The National Imagery and Mapping
Agency.
``(D) Any other component of the Department
of Defense that performs intelligence functions
and is designated by the Secretary of Defense
as an intelligence component of the Department
of Defense.
``(E) Any successor to a component
specified in, or designated pursuant to, this
paragraph.
``(3) The term `congressional oversight committees'
means--
``(A) the Committee on Armed Services and
the Select Committee on Intelligence of the
Senate; and
``(B) the Committee on National Security
and the Permanent Select Committee on
Intelligence of the House of Representatives.
``(4) The term `excepted service' has the meaning
given such term in section 2103 of title 5.
``(5) The term `preference eligible' has the
meaning given such term in section 2108(3) of title 5.
``(6) The term `Senior Executive Service position'
has the meaning given such term in section 3132(a)(2)
of title 5.
``(7) The term `collective bargaining agreement'
has the meaning given such term in section 7103(8) of
title 5.''.
(e) Designation of New Subchapter II.--Chapter 83 of such
title is further amended by inserting after section 1614 (as
added by subsection (d)) the following:

``SUBCHAPTER II--DEFENSE INTELLIGENCE AGENCY PERSONNEL

``Sec.
``1621. Defense Intelligence Agency merit pay system.
``1622. Uniform allowance: civilian employees.
``1623. Financial assistance to certain employees in acquisition of
critical skills.''.

SEC. 1633. REPEAL OF SUPERSEDED SECTIONS AND CLERICAL AND CONFORMING
AMENDMENTS.

(a) Repeal of Separate Military Department Authorities.--
Section 1590 of title 10, United States Code, is repealed.
(b) Repeal of Separate National Security Agency
Authorities.--The following provisions of law are repealed:
(1) Sections 2 and 4 of the National Security
Agency Act of 1959 (50 U.S.C. 402 note).
(2) Section 303 of the Internal Security Act of
1950 (50 U.S.C. 833).
(c) Clerical Amendments.--Title 10, United States Code, is
amended as follows:
(1) The heading for section 1605 is amended to read
as follows:

``Sec. 1605. Benefits for certain employees assigned outside the United
States''.

(2) The table of sections at the beginning of
chapter 81 is amended by striking out the items
relating to sections 1590 and 1599.
(3) The tables of chapters at the beginning of
subtitle A, and at the beginning of part II of subtitle
A, are amended by striking out the item relating to
chapter 83 and inserting in lieu thereof the following:

``83. Civilian Defense Intelligence Employees....................1601''.

(d) Conforming Amendment.--Section 1621 of such title, as
transferred and redesignated by section 1632(a)(1), is amended
by striking out ``and Central Imagery Office''.
(e) Cross Reference Amendments.--Chapter 81 of title 10,
United States Code, is amended as follows:
(1) Section 1593(a)(3) is amended by striking out
``section 1606'' and inserting in lieu thereof
``section 1622''.
(2) Section 1596(c) is amended by striking out
``section 1604(b)'' and inserting in lieu thereof
``section 1602''.

SEC. 1634. OTHER PERSONNEL MANAGEMENT AUTHORITIES.

(a) Applicability of Federal Labor-Management Relations
System.--Section 7103(a)(3) of title 5, United States Code is
amended--
(1) by inserting ``or'' at the end of subparagraph
(F);
(2) by striking out ``; or'' at the end of
subparagraph (G) and inserting in lieu thereof a
period; and
(3) by striking out subparagraph (H).
(b) Applicability of Authority and Procedures for Imposing
Certain Adverse Actions.--Section 7511(b)(8) of such title is
amended by striking out ``the National Security Agency'' and
all that follows through ``title 10'' and inserting in lieu
thereof ``an intelligence component of the Department of
Defense (as defined in section 1614 of title 10), or an
intelligence activity of a military department covered under
subchapter I of chapter 83 of title 10''.

SEC. 1635. EFFECTIVE DATE.

This subtitle and the amendments made by this subtitle
shall take effect on October 1, 1996.

TITLE XVII--FEDERAL EMPLOYEE TRAVEL REFORM

Sec. 1701. Short title.

Subtitle A--Relocation Benefits

Subtitle B--Miscellaneous Provisions

SEC. 1701. SHORT TITLE.

This title may be cited as the ``Federal Employee Travel
Reform Act of 1996''.

Subtitle A--Relocation Benefits

SEC. 1711. ALLOWANCE FOR SEEKING PERMANENT RESIDENCE QUARTERS.

Section 5724a of title 5, United States Code, is amended to
read as follows:

``Sec. 5724a. Relocation expenses of employees transferred or
reemployed

``(a) An agency shall pay to or on behalf of an employee
who transfers in the interest of the Government, a per diem
allowance or the actual subsistence expenses, or a combination
thereof, of the immediate family of the employee for en route
travel of the immediate family between the employee's old and
new official stations.
``(b)(1) An agency may pay to or on behalf of an employee
who transfers in the interest of the Government between
official stations located within the United States--
``(A) the expenses of transportation of the
employee and the employee's spouse for travel to seek
permanent residence quarters at a new official station;
and
``(B) either--
``(i) a per diem allowance or the actual
subsistence expenses (or a combination of
both); or
``(ii) an amount for subsistence expenses.
``(2) Expenses may be allowed under paragraph (1) only for
one round trip in connection with each change of station of the
employee.''.

SEC. 1712. TEMPORARY QUARTERS SUBSISTENCE EXPENSES ALLOWANCE.

Section 5724a of title 5, United States Code, as amended by
section 1712, is further amended by adding at the end the
following new subsection:
``(c)(1) An agency may pay to or on behalf of an employee
who transfers in the interest of the Government--
``(A) actual subsistence expenses of the employee
and the employee's immediate family for a period of up
to 60 days while the employee or family is occupying
temporary quarters when the new official station is
located within the United States; or
``(B) an amount for subsistence expenses instead of
the actual subsistence expenses authorized in
subparagraph (A) of this paragraph.
``(2) The period authorized in paragraph (1) of this
subsection for payment of expenses for residence in temporary
quarters may be extended up to an additional 60 days if the
head of the agency concerned or the designee of such head of
the agency determines that there are compelling reasons for the
continued occupancy of temporary quarters.
``(3) The regulations implementing paragraph (1)(A) shall
prescribe daily rates and amounts for subsistence expenses per
individual.''.

SEC. 1713. MODIFICATION OF RESIDENCE TRANSACTION EXPENSES ALLOWANCE.

(a) Expenses of Sale.--Section 5724a of title 5, United
States Code, as amended by section 1712, is further amended by
adding at the end the following new subsection:
``(d)(1) An agency shall pay to or on behalf of an employee
who transfers in the interest of the Government, expenses of
the sale of the residence (or the settlement of an unexpired
lease) of the employee at the old official station and purchase
of a residence at the new official station that are required to
be paid by the employee, when the old and new official stations
are located within the United States.
``(2) An agency shall pay to or on behalf of an employee
who transfers in the interest of the Government from a post of
duty located outside the United States to an official station
within the United States (other than the official station
within the United States from which the employee was
transferred when assigned to the foreign tour of duty)--
``(A) expenses required to be paid by the employee
for the sale of the residence (or the settlement of an
unexpired lease) of the employee at the old official
station from which the employee was transferred when
the employee was assigned to the post of duty located
outside the United States; and
``(B) expenses required to be paid by the employee
for the purchase of a residence at the new official
station within the United States.
``(3) Reimbursement of expenses under paragraph (2) of this
subsection shall not be allowed for any sale (or settlement of
an unexpired lease) or purchase transaction that occurs prior
to official notification that the employee's return to the
United States would be to an official station other than the
official station from which the employee was transferred when
assigned to the post of duty outside the United States.
``(4) Reimbursement for brokerage fees on the sale of the
residence and other expenses under this subsection may not
exceed those customarily charged in the locality where the
residence is located.
``(5) Reimbursement may not be made under this subsection
for losses incurred by the employee on the sale of the
residence.
``(6) This subsection applies regardless of whether title
to the residence or the unexpired lease is--
``(A) in the name of the employee alone;
``(B) in the joint names of the employee and a
member of the employee's immediate family; or
``(C) in the name of a member of the employee's
immediate family alone.
``(7)(A) In connection with the sale of the residence at
the old official station, reimbursement under this subsection
shall not exceed 10 percent of the sale price.
``(B) In connection with the purchase of a residence at the
new official station, reimbursement under this subsection shall
not exceed 5 percent of the purchase price.''.
(b) Relocation Services.--Section 5724c of title 5, United
State Code, is amended to read as follows:

``Sec. 5724c. Relocation services

``Under regulations prescribed under section 5738 of this
title, each agency may enter into contracts to provide
relocation services to agencies and employees for the purpose
of carrying out this subchapter. An agency may pay a fee for
such services. Such services include arranging for the purchase
of a transferred employee's residence.''.

SEC. 1714. AUTHORITY TO PAY FOR PROPERTY MANAGEMENT SERVICES.

Section 5724a of title 5, United States Code, as amended by
section 1713, is further amended--
(1) in subsection (d), by adding at the end the
following:
``(8) An agency may pay to or on behalf of an employee who
transfers in the interest of the Government expenses of
property management services, instead of expenses under
paragraph (2) or (3) of this subsection for sale of the
employee's residence, when the agency determines that such
transfer is advantageous and cost-effective for the
Government.''; and
(2) by adding at the end the following new
subsection:
``(e) An agency may pay to or on behalf of an employee who
transfers in the interest of the Government, the expenses of
property management services when the employee transfers to a
post of duty outside the United States. Such payment shall
terminate upon return of the employee to an official station
within the United States.''.

SEC. 1715. AUTHORITY TO TRANSPORT A PRIVATELY OWNED MOTOR VEHICLE
WITHIN THE CONTINENTAL UNITED STATES.

(a) In General.--Section 5727 of title 5, United States
Code, is amended--
(1) by redesignating subsections (c) through (e) as
subsections (d) through (f), respectively;
(2) by inserting after subsection (b) the following
new subsection:
``(c) Under regulations prescribed under section 5738 of
this title, the privately owned motor vehicle or vehicles of an
employee, including a new appointee or a student trainee for
whom travel and transportation expenses are authorized under
section 5723 of this title, may be transported at Government
expense to a new official station of the employee when the
agency determines that such transport is advantageous and cost-
effective to the Government.''; and
(3) in subsection (e) (as so redesignated), by
inserting ``or (c)'' after ``subsection (b)''.
(b) Availability of Appropriations.--(1) Section 5722(a) of
title 5, United States Code, is amended--
(A) by striking out ``and'' at the end of paragraph
(1);
(B) by striking out the period at the end of
paragraph (2) and inserting in lieu thereof ``; and'';
and
(C) by adding at the end the following:
``(3) the expenses of transporting a privately
owned motor vehicle as authorized under section 5727(c)
of this title.''.
(2) Section 5723(a) of title 5, United States Code, is
amended--
(A) by striking out ``and'' at the end of paragraph
(1);
(B) by inserting ``and'' after the semicolon at the
end of paragraph (2); and
(C) by adding at the end the following:
``(3) the expenses of transporting a privately
owned motor vehicle as authorized under section 5727(c)
of this title;''.

SEC. 1716. AUTHORITY TO PAY LIMITED RELOCATION ALLOWANCES TO AN
EMPLOYEE WHO IS PERFORMING AN EXTENDED ASSIGNMENT.

Subchapter II of chapter 57 of title 5, United States Code,
as amended by section 1605, is further amended by adding at the
end the following new section:

``Sec. 5737. Relocation expenses of an employee who is performing an
extended assignment

``(a) Under regulations prescribed under section 5738 of
this title, an agency may pay to or on behalf of an employee
assigned from the employee's official station to a duty station
for a period of not less than six months and not greater than
30 months, the following expenses in lieu of payment of
expenses authorized under subchapter I of this chapter:
``(1) Travel expenses to and from the assignment
location in accordance with section 5724 of this title.
``(2) Transportation expenses of the immediate
family and household goods and personal effects to and
from the assignment location in accordance with section
5724 of this title.
``(3) A per diem allowance for en route travel of
the employee's immediate family to and from the
assignment location in accordance with section 5724a(a)
of this title.
``(4) Travel and transportation expenses of the
employee and spouse to seek new residence quarters at
the assignment location in accordance with section
5724a(b) of this title.
``(5) Subsistence expenses of the employee and the
employee's immediate family while occupying temporary
quarters upon commencement and termination of the
assignment in accordance with section 5724a(c) of this
title.
``(6) An amount, in accordance with section
5724a(f), to be used by the employee for miscellaneous
expenses of this title.
``(7) The expenses of transporting a privately
owned motor vehicle or vehicles to the assignment
location in accordance with section 5727 of this title.
``(8) An allowance as authorized under section
5724b of this title for Federal, State, and local
income taxes incurred on reimbursement of expenses paid
under this section or on services provided in kind
under this section.
``(9) Expenses of nontemporary storage of household
goods and personal effects as defined in section
5726(a) of this title, subject to the limitation that
the weight of the household goods and personal effects
stored, together with the weight of property
transported under section 5724(a) of this title, may
not exceed the total maximum weight which could be
transported in accordance with section 5724(a) of this
title.
``(10) Expenses of property management services.
``(b) An agency shall not make payment under this section
to or on behalf of the employee for expenses incurred after
termination of the temporary assignment.''.

SEC. 1717. AUTHORITY TO PAY A HOME MARKETING INCENTIVE.

Subchapter IV of chapter 57 of title 5, United States Code,
is amended by adding at the end the following new section:

``Sec. 5756. Home marketing incentive payment

``(a) Under regulations prescribed under subsection (b), an
agency may pay to an employee who transfers in the interest of
the Government an amount to encourage the employee to
aggressively market the employee's residence at the official
station from which transferred when--
``(1) the residence is entered into a relocation
services program established under a contract in
accordance with section 5724c of this title to arrange
for the purchase of the residence;
``(2) the employee finds a buyer who completes the
purchase of the residence through the program; and
``(3) the sale of the residence results in a
reduced cost to the Government.
``(b)(1) The Administrator of General Services shall
prescribe regulations to carry out this section.
``(2) The regulations shall include a limitation on the
maximum amount payable with respect to an employee's residence.
The Administrator shall establish the limitation in
consultation with the Director of the Office of Management and
Budget. For fiscal years 1997 and 1998, the maximum amount
shall be the amount equal to five percent of the sale price of
the residence.''.

SEC. 1718. REVISION AND REENACTMENT OF ADDITIONAL PROVISIONS RELATING
TO RELOCATION EXPENSES.

Section 5724a of title 5, United States Code, as amended by
section 1714, is further amended by adding at the end the
following new subsections:
``(f)(1) Subject to paragraph (2), an employee who is
reimbursed under subsections (a) through (e) of this section or
section 5724(a) of this title is entitled to an amount for
miscellaneous expenses--
``(A) not to exceed two weeks' basic pay, if such
employee has an immediate family; or
``(B) not to exceed one week's basic pay, if such
employee does not have an immediate family.
``(2) Amounts paid under paragraph (1) may not exceed
amounts determined at the maximum rate payable for a position
at GS-13 of the General Schedule.
``(g) A former employee separated by reason of reduction in
force or transfer of function who within one year after the
separation is reemployed by a nontemporary appointment at a
different geographical location from that where the separation
occurred, may be allowed and paid the expenses authorized by
sections 5724, 5725, 5726(b), and 5727 of this title, and may
receive the benefits authorized by subsections (a) through (f)
of this section, in the same manner as though the employee had
been transferred in the interest of the Government without a
break in service to the location of reemployment from the
location where separated.
``(h) Payments for subsistence expenses, including amounts
in lieu of per diem or actual subsistence expenses or a
combination thereof, authorized under this section may not
exceed the maximum payment allowed under regulations which
implement section 5702 of this title.
``(i) Subsections (a), (b), and (c) shall be implemented
under regulations issued under section 5738 of this title.
``(j) For purposes of subsections (c), (d), and (e), the
term `United States' includes the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the Northern
Mariana Islands, the territories and possessions of the United
States, and the areas and installations in the Republic of
Panama that are made available to the United States pursuant to
the Panama Canal Treaty of 1977 and related agreements (as
described in section 3(a) of the Panama Canal Act of 1979 (22
U.S.C. 3602(a))).''.

Subtitle B--Miscellaneous Provisions

SEC. 1721. REPEAL OF THE LONG-DISTANCE TELEPHONE CALL CERTIFICATION
REQUIREMENT.

Section 1348 of title 31, United States Code, is amended--
(1) by striking the last sentence of subsection
(a)(2);
(2) by striking subsection (b); and
(3) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.

SEC. 1722. TRANSFER OF AUTHORITY TO PRESCRIBE REGULATIONS.

Subchapter II of chapter 57 of title 5, United States Code,
as amended by section 1716, is further amended by adding at the
end the following new section:

``Sec. 5738. Regulations

``(a)(1) Except as specifically provided in this
subchapter, the Administrator of General Services shall
prescribe regulations necessary for the administration of this
subchapter.
``(2) The Administrator of General Services shall include
in the regulations authority for the head of an agency or his
designee to waive any limitation of this subchapter or in any
implementing regulation for any employee relocating to or from
a remote or isolated location who would suffer hardship if the
limitation were not waived. A waiver of a limitation under
authority provided in the regulations pursuant to this
paragraph shall be effective notwithstanding any other
provision of this subchapter.
``(b) In prescribing regulations for the implementation of
section 5724b of this title, the Administrator of General
Services shall consult with the Secretary of the Treasury.
``(c) The Secretary of Defense shall prescribe regulations
necessary for the implementation of section 5735 of this
title.''.

SEC. 1723. CONFORMING AND CLERICAL AMENDMENTS.

(a) Cross References.--(1) Title 5, United States Code, is
amended as follows:
(A) Section 3375 is amended--
(i) in subsection (a)(3), by striking out
``section 5724a(a)(1)'' and inserting in lieu
thereof ``section 5724a(a)'';
(ii) in subsection (a)(4), by striking out
``section 5724a(a)(3)'' and inserting in lieu
thereof ``section 5724a(c)''; and
(iii) in subsection (a)(5), by striking out
``section 5724a(b)'' and inserting in lieu
thereof ``section 5724a(g)''; and
(B) Section 5724(e) is amended by striking out
``section 5724a(a), (b)'' and inserting in lieu thereof
``section 5724a(a) through (f)''.
(2) Section 707 of title 38, United States Code, is
amended--
(A) in subsection (a)(6), by striking out ``Section
5724a(a)(3)'' and inserting in lieu thereof ``Section
5724a(c)''; and
(B) in subsection (a)(7), by striking out ``Section
5724a(a)(4)'' and inserting in lieu thereof ``Section
5724a(d)''.
(3) The Public Health Service Act is amended as follows:
(A) Section 501(g)(2)(A) (42 U.S.C. 290aa(g)(2)(A))
is amended by striking out ``5724a(a)(1), 5724a(a)(3)''
and inserting in lieu thereof ``5724a(a), 5724a(c)''.
(B) Section 925(f)(2)(A) (42 U.S.C. 299c-
4(f)(2)(A)) is amended by striking out ``5724a(a)(1),
5724a(a)(3)'' and inserting in lieu thereof ``5724a(a),
5724a(c)''.
(b) Regulations.--Title 5, United States Code, is amended
as follows:
(1) Sections 5722, 5723, 5724, (in subsections (a),
(b), and (c)), 5724b, 5726 (in subsections (b) and
(c)), 5727(b), 5728 (in subsections (a), (b), and
(c)(1)), and 5729 (in subsections (a) and (b)) of title
5, United States Code, are amended by striking out
``Under such regulations as the President may
prescribe'', and inserting in lieu thereof ``Under
regulations prescribed under section 5738 of this
title''.
(2) Section 5724 of title 5, United States Code, is
amended--
(A) by striking out ``under regulations
prescribed by the President'' each place it
appears in subsections (c) and (e) and
inserting in lieu thereof ``under regulations
prescribed under section 5738 of this title'';
and
(B) in subsection (f), by striking out
``under the regulations of the President'' and
inserting in lieu thereof ``under regulations
prescribed under section 5738 of this title''.
(3) Section 5726(a) of title 5, United States Code,
is amended by striking out ``as the President may by
regulation authorize'' and inserting in lieu thereof
``as authorized under regulations prescribed under
section 5738 of this title''.
(4) Section 5731(a) of title 5, United States Code,
is amended by striking out ``in accordance with
regulations prescribed by the President'' and inserting
in lieu thereof ``in accordance with regulations
prescribed under section 5738 of this title''.
(c) Clerical Amendments.--The table of sections at the
beginning of chapter 57 of title 5, United States Code, as
amended by section 1605, is further amended--
(1) by inserting after the item relating to section
5736 the following:

``5737. Relocation expenses of an employee who is performing an extended
assignment.
``5738. Regulations.'';

and
(2) by inserting at the end the following:

``5756. Home marketing incentive payment.''.

SEC. 1724. ASSESSMENT OF COST SAVINGS.

No later than one year after the effective date set forth
in section 1725(a), the Comptroller General shall submit to the
Committee on Governmental Affairs of the Senate and the
Committee on Government Reform and Oversight of the House of
Representatives an assessment of the costs of Federal travel
administration that are saved as a result of the amendments
made by this title and the regulations prescribed to carry out
the amendments.

SEC. 1725. EFFECTIVE DATE AND ISSUANCE OF REGULATIONS.

(a) Effective Date.--The amendments made by this title
shall take effect 180 days after the date of the enactment of
this Act.
(b) Regulations.--The Administrator of General Services
shall, not later than the effective date set forth under
subsection (a), issue final regulations implementing the
amendments made by this title.

TITLE XVIII--FEDERAL CHARTER FOR THE FLEET RESERVE ASSOCIATION

SEC. 1801. RECOGNITION AND GRANT OF FEDERAL CHARTER.

The Fleet Reserve Association, a nonprofit corporation
organized under the laws of the State of Delaware, is
recognized as such and granted a Federal charter.

SEC. 1802. POWERS.

The Fleet Reserve Association (in this title referred to as
the ``association'') shall have only those powers granted to it
through its bylaws and articles of incorporation filed in the
State of Delaware and subject to the laws of that State.

SEC. 1803. PURPOSES.

The purposes of the association are those provided in its
bylaws and articles of incorporation and shall include the
following:
(1) Upholding and defending the Constitution of the
United States.
(2) Aiding and maintaining an adequate naval
defense for the United States.
(3) Assisting the recruitment of the best personnel
available for the United States Navy, United States
Marine Corps, and United States Coast Guard.
(4) Providing for the welfare of the personnel who
serve in the United States Navy, United States Marine
Corps, and United States Coast Guard.
(5) Continuing to serve loyally the United States
Navy, United States Marine Corps, and United States
Coast Guard.
(6) Preserving the spirit of shipmanship by
providing assistance to shipmates and their families.
(7) Instilling love of the United States and the
flag and promoting soundness of mind and body in the
youth of the United States.

SEC. 1804. SERVICE OF PROCESS.

With respect to service of process, the association shall
comply with the laws of the State of Delaware and those States
in which it carries on its activities in furtherance of its
corporate purposes.

SEC. 1805. MEMBERSHIP.

Except as provided in section 1808(g), eligibility for
membership in the association and the rights and privileges of
members shall be as provided in the bylaws and articles of
incorporation of the association.

SEC. 1806. BOARD OF DIRECTORS.

Except as provided in section 1808(g), the composition of
the board of directors of the association and the
responsibilities of the board shall be as provided in the
bylaws and articles of incorporation of the association and in
conformity with the laws of the State of Delaware.

SEC. 1807. OFFICERS.

Except as provided in section 1808(g), the positions of
officers of the association and the election of members to such
positions shall be as provided in the bylaws and articles of
incorporation of the association and in conformity with the
laws of the State of Delaware.

SEC. 1808. RESTRICTIONS.

(a) Income and Compensation.--No part of the income or
assets of the association may inure to the benefit of any
member, officer, or director of the association or be
distributed to any such individual during the life of this
charter. Nothing in this subsection may be construed to prevent
the payment of reasonable compensation to the officers and
employees of the association or reimbursement for actual and
necessary expenses in amounts approved by the board of
directors.
(b) Loans.--The association may not make any loan to any
member, officer, director, or employee of the association.
(c) Issuance of Stock and Payment of Dividends.--The
association may not issue any shares of stock or declare or pay
any dividends.
(d) Disclaimer of Congressional or Federal Approval.--The
association may not claim the approval of the Congress or the
authorization of the Federal Government for any of its
activities by virtue of this title.
(e) Corporate Status.--The association shall maintain its
status as a corporation organized and incorporated under the
laws of the State of Delaware.
(f) Corporate Function.--The association shall function as
an educational, patriotic, civic, historical, and research
organization under the laws of the State of Delaware.
(g) Nondiscrimination.--In establishing the conditions of
membership in the association and in determining the
requirements for serving on the board of directors or as an
officer of the association, the association may not
discriminate on the basis of race, color, religion, sex,
handicap, age, or national origin.

SEC. 1809. LIABILITY.

The association shall be liable for the acts of its
officers, directors, employees, and agents whenever such
individuals act within the scope of their authority.

SEC. 1810. MAINTENANCE AND INSPECTION OF BOOKS AND RECORDS.

(a) Books and Records of Account.--The association shall
keep correct and complete books and records of account and
minutes of any proceeding of the association involving any of
its members, the board of directors, or any committee having
authority under the board of directors.
(b) Names and Addresses of Members.--The association shall
keep at its principal office a record of the names and
addresses of all members having the right to vote in any
proceeding of the association.
(c) Right To Inspect Books and Records.--All books and
records of the association may be inspected by any member
having the right to vote in any proceeding of the association,
or by any agent or attorney of such member, for any proper
purpose at any reasonable time.
(d) Application of State Law.--This section may not be
construed to contravene any applicable State law.

SEC. 1811. AUDIT OF FINANCIAL TRANSACTIONS.

The first section of the Act entitled ``An Act to provide
for audit of accounts of private corporations established under
Federal law'', approved August 30, 1964 (36 U.S.C. 1101), is
amended by adding at the end the following:
``(77) Fleet Reserve Association.''.

SEC. 1812. ANNUAL REPORT.

The association shall annually submit to Congress a report
concerning the activities of the association during the
preceding fiscal year. The annual report shall be submitted on
the same date as the report of the audit required by reason of
the amendment made in section 1811. The annual report shall not
be printed as a public document.

SEC. 1813. RESERVATION OF RIGHT TO ALTER, AMEND, OR REPEAL CHARTER.

The right to alter, amend, or repeal this title is
expressly reserved to Congress.

SEC. 1814. TAX-EXEMPT STATUS REQUIRED AS CONDITION OF CHARTER.

If the association fails to maintain its status as an
organization exempt from taxation as provided in the Internal
Revenue Code of 1986 the charter granted in this title shall
terminate.

SEC. 1815. TERMINATION.

The charter granted in this title shall expire if the
association fails to comply with any of the provisions of this
title.

SEC. 1816. DEFINITION OF STATE.

For purposes of this title, the term ``State'' includes the
District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, and the
territories and possessions of the United States.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

This division may be cited as the ``Military Construction
Authorization Act for Fiscal Year 1997''.

TITLE XXI--ARMY

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

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(1), and, in the case of the projects described in
paragraphs (2) and (3) of section 2104(b), other amounts
appropriated pursuant to authorizations enacted after this Act
for the projects, the Secretary of the Army may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

ARMY: INSIDE THE UNITED STATES
------------------------------------------------------------------------
State Installation or location Total
------------------------------------------------------------------------
Alabama...................... Fort Rucker.............. $3,250,000
California................... Army project, Naval
Weapons Station, Concord $27,000,000
Camp Roberts............. $5,500,000
Colorado..................... Fort Carson.............. $17,550,000
District of Columbia......... Fort McNair.............. $6,900,000
Georgia...................... Fort Benning............. $53,400,000
Fort McPherson........... $3,500,000
Fort Stewart, Hunter Army $6,000,000
Air Field.
Hawaii....................... Schofield Barracks....... $16,500,000
Kansas....................... Fort Riley............... $26,000,000
Kentucky..................... Fort Campbell............ $51,100,000
Fort Knox................ $45,000,000
New Jersey................... Picatinny Arsenal........ $5,000,000
New Mexico................... White Sands Missile Range $41,000,000
New York..................... Fort Drum................ $11,400,000
North Carolina............... Fort Bragg............... $14,000,000
Texas........................ Fort Hood................ $47,300,000
Fort Sam Houston......... $3,100,000
Virginia..................... Fort Eustis.............. $3,550,000
National Ground
Intelligence Center,
Charlottesville......... $1,000,000
Washington................... Fort Lewis............... $54,600,000
CONUS Classified............. Classified Locations..... $4,600,000
---------------
Total:................. $447,250,000
------------------------------------------------------------------------

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

ARMY: OUTSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
Country location Total
------------------------------------------------------------------------
Germany........................ Lincoln Village, $7,300,000
Darmstadt.
Spinelli Barracks, $8,100,000
Mannheim.
Taylor Barracks, $9,300,000
Mannheim.
Italy.......................... Camp Ederle............ $3,100,000
Korea.......................... Camp Casey............. $16,000,000
Camp Red Cloud......... $14,000,000
Overseas Classified............ Classified Locations... $64,000,000
---------------
Total:............... $121,800,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

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

ARMY: FAMILY HOUSING
----------------------------------------------------------------------------------------------------------------
State Installation Purpose Total
----------------------------------------------------------------------------------------------------------------
Hawaii.................................. Schofield Barracks........ 54 Units.................. $10,000,000
North Carolina.......................... Fort Bragg................ 88 Units.................. $9,800,000
Pennsylvania............................ Tobyhanna Army Depot...... 200 Units................. $890,000
Texas................................... Fort Bliss................ 64 Units.................. $11,000,000
Fort Hood................. 140 Units................. $18,500,000
---------------
Total:.................. $50,190,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2104(a)(5)(A), the Secretary of the Army may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
family housing units in an amount not to exceed $2,963,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2104(a)(5)(A), the Secretary of the
Army may improve existing military family housing units in an
amount not to exceed $105,350,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1996, for military construction, land acquisition, and military
family housing functions of the Department of the Army in the
total amount of $1,942,557,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2101(a),
$394,250,000.
(2) For military construction projects outside the
United States authorized by section 2101(b),
$121,800,000.
(3) For unspecified minor military construction
projects authorized by section 2805 of title 10, United
States Code, $5,000,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $50,538,000.
(5) For military family housing functions:
(A) For construction and acquisition,
planning and design, and improvement of
military family housing and facilities,
$158,503,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$1,212,466,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2101 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a);
(2) $31,000,000 (the balance of the amount
authorized under section 2101(a) for the construction
of the National Range Control Center at White Sands
Missile Range, New Mexico); and
(3) $22,000,000 (the balance of the amount
authorized under section 2101(a) for the whole barracks
complex renewal at Fort Knox, Kentucky).

SEC. 2105. LAND ACQUISITION, NATIONAL GROUND INTELLIGENCE CENTER,
CHARLOTTESVILLE, VIRGINIA.

(a) Acquisition Authorized.--Subject to subsection (b), the
Secretary of the Army may acquire real property for the
National Ground Intelligence Center, Charlottesville, Virginia.
(b) Requirement Relating to Acquisition.--The Secretary may
not acquire real property pursuant to the authorization in
subsection (a) until the Secretary certifies to the
congressional defense committees, based on the results of an
assessment of property currently owned or operated by the
Federal Government in the vicinity of Charlottesville,
Virginia, that the acquisition of the property would provide
the most cost-effective means of securing a location for the
National Ground Intelligence Center that satisfies the mission
requirements of the center.
(c) Funding.--Of the amounts authorized to be appropriated
by section 2104(a)(1), $1,000,000 shall be available for the
acquisition of real property pursuant to the authorization in
subsection (a).

TITLE XXII--NAVY

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

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(1), and, in the case of the projects described in
paragraphs (2) and (3) of section 2204(b), other amounts
appropriated pursuant to authorizations enacted after this Act
for the projects, the Secretary of the Navy may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

NAVY: INSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Arizona........................ Navy Detachment, Camp $3,920,000
Navajo.
California..................... Marine Corps Air-Ground
Combat Center,
Twentynine Palms...... $4,020,000
Marine Corps Air
Station, Camp
Pendleton............. $6,240,000
Marine Corps Base, Camp
Pendleton............. $51,630,000
Marine Corps Recruit
Detachment, San Diego. $8,150,000
Naval Air Station, $86,502,000
North Island.
Naval Command Control &
Ocean Surveillance
Center, San Diego..... $1,960,000
Naval Facility, San $17,000,000
Clemente Island.
Naval Station, San $7,050,000
Diego.
Connecticut.................... Naval Submarine Base, $13,830,000
New London.
District of Columbia........... Naval District, $19,300,000
Washington.
Florida........................ Naval Air Station, Key $2,250,000
West.
Naval Station, Mayport. $2,800,000
Georgia........................ Naval Submarine Base, $1,550,000
Kings Bay.
Hawaii......................... Marine Corps, Air $20,080,000
Station, Kaneohe Bay.
Naval Station, Pearl $19,600,000
Harbor.
Naval Submarine Base, $35,890,000
Pearl Harbor.
Idaho.......................... Naval Surface Warfare $7,150,000
Center, Bayview.
Illinois....................... Naval Hospital, Great $15,200,000
Lakes.
Naval Training Center, $22,900,000
Great Lakes.
Indiana........................ Naval Surface Warfare $5,000,000
Center, Crane.
Maryland....................... Naval Air Warfare
Center, Patuxent River $1,270,000
United States Naval $10,480,000
Academy.
Mississippi.................... Navy Project, Stennis $7,960,000
Space Center.
Nevada......................... Naval Air Station, $21,630,000
Fallon.
North Carolina................. Marine Corps Air $1,630,000
Station, Cherry Point.
Marine Corps Air $20,290,000
Station, New River.
Marine Corps Base, Camp $20,750,000
Lejeune.
Pennsylvania................... Philadelphia Naval $8,300,000
Shipyard.
South Carolina................. Marine Corps Recruit
Depot, Parris Island.. $2,540,000
Texas.......................... Naval Air Station, $1,810,000
Kingsville.
Naval Station, $16,850,000
Ingleside.
Virginia....................... Armed Forces Staff
College, Norfolk...... $12,900,000
Marine Corps Combat
Development Command,
Quantico.............. $14,570,000
Naval Station, Norfolk. $56,120,000
Naval Surface Warfare $8,030,000
Center, Dahlgren.
Washington..................... Naval Station, Everett. $25,740,000
Naval Undersea Warfare
Center, Keyport....... $6,800,000
CONUS Various.................. Defense access roads... $300,000
---------------
Total:............... $589,992,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(2), and, in the case of the project described in
section 2204(b)(4), other amounts appropriated pursuant to
authorizations enacted after this Act for the project, the
Secretary of the Navy may acquire real property and carry out
military construction projects for the installations and
locations outside the United States, and in the amounts, set
forth in the following table:

NAVY: OUTSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Bahrain........................ Administrative Support $5,980,000
Unit, Bahrain.
Greece......................... Naval Support Activity, $7,050,000
Souda Bay.
Italy.......................... Naval Air Station, $15,700,000
Sigonella.
Naval Support Activity, $8,620,000
Naples.
Puerto Rico.................... Naval Station, $23,600,000
Roosevelt Roads.
United Kingdom................. Joint Maritime
Communications Center,
St. Mawgan............ $4,700,000
---------------
Total:............... $65,650,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

NAVY: FAMILY HOUSING
----------------------------------------------------------------------------------------------------------------
State Installation Purpose Amount
----------------------------------------------------------------------------------------------------------------
Arizona................................. Marine Corps Air Station,
Yuma..................... Ancillary Facility........ $709,000
California.............................. Marine Corps Air-Ground
Combat Center, Twentynine
Palms.................... Ancillary Facilities...... $2,938,000
Marine Corps Base, Camp
Pendleton................ 202 Units................. $29,483,000
Naval Air Station, Lemoore 276 Units................. $39,837,000
Navy Public Works Center,
San Diego................ 366 Units................. $48,719,000
Florida................................. Naval Station, Mayport.... 100 Units................. $10,000,000
Hawaii.................................. Marine Corps Air Station,
Kaneohe Bay.............. 54 Units.................. $11,676,000
Navy Public Works Center,
Pearl Harbor............. 264 Units................. $52,586,000
Maine................................... Naval Air Station
Brunswick................ 92 Units.................. $10,925,000
Maryland................................ Naval Air Warfare Center,
Patuxent River........... Ancillary Facility........ $1,233,000
North Carolina.......................... Marine Corps Base, Camp
Lejeune.................. Ancillary Facility........ $845,000
Marine Corps Base, Camp
Lejeune.................. 94 Units.................. $10,110,000
South Carolina.......................... Marine Corps Air Station,
Beaufort................. 140 Units................. $14,000,000
Texas................................... Corpus Christi Naval
Complex.................. 104 Units................. $11,675,000
Naval Air Station,
Kingsville............... 48 Units.................. $7,550,000
Virginia................................ AEGIS Combat Systems
Center, Wallops Island... 20 Units.................. $2,975,000
Naval Security Group
Activity, Northwest...... Ancillary Facility........ $741,000
Washington.............................. Naval Station, Everett.... 100 Units................. $15,015,000
Naval Submarine Base,
Bangor................... Ancillary Facility........ $934,000
---------------
Total:.................. $281,951,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2204(a)(5)(A), the Secretary of the Navy may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$22,552,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2204(a)(5)(A), the Secretary of the
Navy may improve existing military family housing units in an
amount not to exceed $205,383,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1996, for military construction, land acquisition, and military
family housing functions of the Department of the Navy in the
total amount of $2,213,731,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2201(a),
$579,312,000.
(2) For military construction projects outside the
United States authorized by section 2201(b),
$51,550,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $5,115,000.
(4) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $49,927,000.
(5) For military family housing functions:
(A) For construction and acquisition,
planning and design, and improvement of
military family housing and facilities,
$499,886,000.
(B) For support of military housing
(including functions described in section 2833
of title 10, United States Code),
$1,014,241,000.
(6) For the construction of a bachelor enlisted
quarters at the Naval Construction Battalion Center,
Port Hueneme, California, authorized by section 2201(a)
of the Military Construction Authorization Act for
Fiscal Year 1996 (division B of Public Law 104-106; 110
Stat. 525), $7,700,000.
(7) For the construction of a Strategic Maritime
Research Center at the Naval War College, Newport,
Rhode Island, authorized by section 2201(a) of the
Military Construction Authorization Act for Fiscal Year
1995 (division B of Public Law 103-337; 108 Stat.
3031), $8,000,000.
(8) For the construction of the large anachoic
chamber facility at the Patuxent River Naval Warfare
Center, Aircraft Division, Maryland, authorized by
section 2201(a) of the Military Construction
Authorization Act for Fiscal Year 1993 (division B of
Public Law 102-484; 106 Stat. 2590), $10,000,000.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853
of title 10, United States Code, and any other cost variation
authorized by law, the total cost of all projects carried out
under section 2201 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a);
(2) $5,200,000 (the balance of the amount
authorized under section 2201(a) for the construction
of a bachelors enlisted quarters at Naval Hospital,
Great Lakes, Illinois);
(3) $5,480,000 (the balance of the amount
authorized under section 2201(a) for the construction
of a chiller system upgrade at the United States Naval
Academy, Maryland); and
(4) $14,100,000 (the balance of the amount
authorized under section 2201(b) for the construction
of a bachelor enlisted quarters at Naval Station,
Roosevelt Roads, Puerto Rico).
(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (8) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $12,000,000, which
represents the combination of project savings resulting from
favorable bids, reduced overhead costs, and cancellations due
to force structure changes.

SEC. 2205. BEACH REPLENISHMENT, NAVAL AIR STATION, NORTH ISLAND,
CALIFORNIA.

(a) Cost-Sharing Agreement.--With regard to the portion of
the military construction project for Naval Air Station, North
Island, California, authorized by section 2201(a) and involving
on-shore and near-shore beach replenishment, the Secretary of
the Navy shall enter into an agreement with the State of
California and local governments in the vicinity of the
project, under which the State and local governments agree to
cover not less than 50 percent of the cost incurred by the
Secretary to carry out the beach replenishment portion of the
project. Within amounts appropriated for the project, Federal
expenditures may not exceed $9,630,000 for beach replenishment.
(b) Activities Pending Agreement.--The Secretary shall not
delay commencement of, or activities under, the construction
project described in subsection (a), including the beach
replenishment portion of the project, pending the execution of
the cost-sharing agreement.

TITLE XXIII--AIR FORCE

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

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

AIR FORCE: INSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
State location Amount
------------------------------------------------------------------------
Alabama........................ Maxwell Air Force Base. $7,875,000
Alaska......................... Elmendorf Air Force $21,530,000
Base.
Eielson Air Force Base. $3,900,000
King Salmon Air Force $5,700,000
Base.
Arizona........................ Davis-Monthan Air Force $9,920,000
Base.
Luke Air Force Base.... $6,700,000
Arkansas....................... Little Rock Air Force $18,105,000
Base.
California..................... Beale Air Force Base... $14,425,000
Edwards Air Force Base. $20,080,000
Travis Air Force Base.. $14,980,000
Vandenberg Air Force $3,290,000
Base.
Colorado....................... Buckley Air National $17,960,000
Guard Base.
Falcon Air Force $2,095,000
Station.
Peterson Air Force Base $20,720,000
United States Air Force $12,165,000
Academy.
Delaware....................... Dover Air Force Base... $19,980,000
Florida........................ Eglin Air Force Base... $4,590,000
Eglin Auxiliary Field 9 $6,825,000
Patrick Air Force Base. $2,595,000
Tyndall Air Force Base. $3,600,000
Georgia........................ Moody Air Force Base... $3,350,000
Robins Air Force Base.. $25,045,000
Idaho.......................... Mountain Home Air Force $15,945,000
Base.
Kansas......................... McConnell Air Force $19,130,000
Base.
Louisiana...................... Barksdale Air Force $4,890,000
Base.
Maryland....................... Andrews Air Force Base. $8,140,000
Mississippi.................... Keesler Air Force Base. $14,465,000
Montana........................ Malstrom Air Force Base $6,300,000
Nevada......................... Indian Springs Air
Force Auxiliary Air
Field................. $4,690,000
Nellis Air Force Base.. $9,900,000
New Mexico..................... Cannon Air Force Base.. $7,100,000
Kirtland Air Force Base $10,000,000
New Jersey..................... McGuire Air Force Base. $8,080,000
North Carolina................. Pope Air Force Base.... $5,915,000
Seymour Johnson Air $11,280,000
Force Base.
North Dakota................... Grand Forks Air Force $12,470,000
Base.
Minot Air Force Base... $3,940,000
Ohio........................... Wright-Patterson Air $7,400,000
Force Base.
Oklahoma....................... Tinker Air Force Base.. $9,880,000
South Carolina................. Charleston Air Force $37,410,000
Base.
Shaw Air Force Base.... $14,465,000
South Dakota................... Ellsworth Air Force $4,150,000
Base.
Tennessee...................... Arnold Engineering
Development Center.... $12,481,000
Texas.......................... Brooks Air Force Base.. $5,400,000
Dyess Air Force Base... $12,295,000
Kelly Air Force Base... $3,250,000
Lackland Air Force Base $9,413,000
Sheppard Air Force Base $9,400,000
Utah........................... Hill Air Force Base.... $3,690,000
Virginia....................... Langley Air Force Base. $8,005,000
Washington..................... Fairchild Air Force $18,155,000
Base.
McChord Air Force Base. $57,065,000
Wyoming........................ F.E. Warren Air Force $3,700,000
Base.
---------------
Total:............... $603,834,000
------------------------------------------------------------------------

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

AIR FORCE: OUTSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
Country location Amount
------------------------------------------------------------------------
Germany........................ Ramstein Air Force Base $5,370,000
Spangdahlem Air Base... $1,890,000
Italy.......................... Aviano Air Base........ $10,060,000
Korea.......................... Osan Air Base.......... $9,780,000
Turkey......................... Incirlik Air Base...... $7,160,000
United Kingdom................. Croughton Royal Air $1,740,000
Force Base.
Lakenheath Royal Air $17,525,000
Force Base.
Mildenhall Royal Air $6,195,000
Force Base.
Overseas Classified............ Classified Locations... $18,395,000
---------------
Total:............... $78,115,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

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

AIR FORCE: FAMILY HOUSING
----------------------------------------------------------------------------------------------------------------
State Installation Purpose Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Eielson Air Force Base.... 72 units.................. $21,127,000
Eielson Air Force Base.... Ancillary Facility........ $2,950,000
California.............................. Beale Air Force Base...... 56 Units.................. $8,893,000
Los Angeles Air Force Base 25 units.................. $6,425,000
Travis Air Force Base..... 70 Units.................. $8,631,000
Vandenberg Air Force Base. 112 Units................. $20,891,000
District of Columbia.................... Bolling Air Force Base.... 40 units.................. $5,000,000
Florida................................. Eglin Auxiliary Field 9... 1 Unit.................... $249,000
MacDill Air Force Base.... 56 Units.................. $8,822,000
Patrick Air Force Base.... Ancillary Facility........ $2,430,000
Tyndall Air Force Base.... 42 Units.................. $6,000,000
Georgia................................. Robins Air Force Base..... 46 Units.................. $5,252,000
Louisiana............................... Barksdale Air Force Base.. 80 Units.................. $9,570,000
Massachusetts........................... Hanscom Air Force Base.... 32 Units.................. $5,100,000
Missouri................................ Whiteman Air Force Base... 68 Units.................. $9,600,000
Montana................................. Malstrom Air Force Base... 98 Units.................. $15,688,000
Nevada.................................. Nellis Air Force Base..... 50 Units.................. $7,955,000
New Mexico.............................. Kirtland Air Force Base... 50 Units.................. $5,450,000
North Dakota............................ Grand Forks Air Force Base 66 Units.................. $7,784,000
Minot Air Force Base...... 46 Units.................. $8,740,000
Texas................................... Lackland Air Force Base... 82 Units.................. $11,500,000
Lackland Air Force Base... Ancillary Facility........ $800,000
Washington.............................. McChord Air Force Base.... 50 Units.................. $5,659,000
---------------
Total:.................. $184,516,000
----------------------------------------------------------------------------------------------------------------

(b) Planning and Design.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2304(a)(5)(A), the Secretary of the Air Force may carry out
architectural and engineering services and construction design
activities with respect to the construction or improvement of
military family housing units in an amount not to exceed
$9,590,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriations in section 2304(a)(5)(A), the Secretary of the
Air Force may improve existing military family housing units in
an amount not to exceed $123,650,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

SEC. 2305. ELIMINATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1995
PROJECT, SPANGDAHLEM AIR FORCE BASE, GERMANY.

(a) Elimination of Project.--The table in section 2301(b)
of the Military Construction Authorization Act for Fiscal Year
1995 (division B of Public Law 103-337; 108 Stat. 3037) is
amended in the item relating to Spangdahlem Air Base, Germany,
by striking out ``$9,473,000'' in the amount column and
inserting in lieu thereof ``$7,373,000'', such reduction
corresponding to the project to upgrade the sewage and storm
water system at the installation.
(b) Conforming Amendment to Authorization of
Appropriations.--Section 2304(a) of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3038) is amended--
(1) in the matter preceding paragraph (1), by
striking out ``$1,601,602,000'' and inserting in lieu
thereof ``$1,599,502,000''; and
(2) in paragraph (2), by striking out
``$38,273,000'' and inserting in lieu thereof
``$36,173,000''.

TITLE XXIV--DEFENSE AGENCIES

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

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

(a) Inside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2406(a)(1), and, in the case of the projects described in
paragraphs (2) and (3) of section 2406(b), other amounts
appropriated pursuant to authorizations enacted after this Act
for the projects, the Secretary of Defense may acquire real
property and carry out military construction projects for the
installations and locations inside the United States, and in
the amounts, set forth in the following table:

DEFENSE AGENCIES: INSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Chemical Demilitarization
Program....................... Pueblo Chemical
Activity, Colorado.... $179,000,000
Defense Finance & Accounting
Service....................... Charleston, South
Carolina.............. $6,200,000
Fort Sill, Oklahoma.... $12,864,000
Gentile Air Force
Station, Ohio......... $11,400,000
Griffiss Air Force
Base, New York........ $10,200,000
Loring Air Force Base,
Maine................. $6,900,000
Naval Training Center,
Orlando, Florida...... $2,600,000
Norton Air Force Base,
California............ $13,800,000
Offutt Air Force Base,
Nebraska.............. $7,000,000
Rock Island Arsenal,
Illinois.............. $14,400,000
Defense Intelligence Agency.... Bolling Air Force Base,
District of Columbia.. $6,790,000
Defense Logistics Agency....... Altus Air Force Base,
Oklahoma.............. $3,200,000
Andrews Air Force Base,
Maryland.............. $12,100,000
Barksdale Air Force
Base, Louisiana....... $4,300,000
Defense Construction
Supply Center,
Columbus, Ohio........ $600,000
Defense Distribution,
San Diego, California. $15,700,000
Elmendorf Air Force
Base, Alaska.......... $21,000,000
McConnell Air Force
Base, Kansas.......... $2,200,000
Naval Air Facility, El
Centro, California.... $5,700,000
Naval Air Station,
Fallon, Nevada........ $2,100,000
Naval Air Station,
Oceana, Virginia...... $1,500,000
Shaw Air Force Base,
South Carolina........ $2,900,000
Travis Air Force Base,
California............ $15,200,000
Defense Medical Facility Office Andrews Air Force Base,
Maryland.............. $15,500,000
Charleston Air Force
Base, South Carolina.. $1,800,000
Fort Bliss, Texas...... $6,600,000
Fort Bragg, North
Carolina.............. $11,400,000
Fort Hood, Texas....... $1,950,000
Marine Corps Base, Camp
Pendleton, California. $3,300,000
Maxwell Air Force Base,
Alabama............... $25,000,000
Naval Air Station, Key
West, Florida......... $15,200,000
Naval Air Station,
Norfolk, Virginia..... $1,250,000
Naval Air Station,
Lemoore, California... $38,000,000
Special Operations Command..... Fort Bragg, North
Carolina.............. $14,000,000
Fort Campbell, Kentucky $4,200,000
MacDill Air Force Base,
Florida............... $9,600,000
Naval Amphibious Base,
Coronado, California.. $7,700,000
Naval Station, Ford
Island, Pearl Harbor,
Hawaii................ $12,800,000
---------------
Total................ $525,454,000
------------------------------------------------------------------------

(b) Outside the United States.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2406(a)(2), the Secretary of Defense may acquire real property
and carry out military construction projects for the
installations and locations outside the United States, and in
the amounts, set forth in the following table:

DEFENSE AGENCIES: OUTSIDE THE UNITED STATES
------------------------------------------------------------------------
Installation or
Agency location Amount
------------------------------------------------------------------------
Defense Logistics Agency....... Moron Air Base, Spain.. $12,958,000
Naval Air Station,
Sigonella, Italy...... $6,100,000
Defense Medical Facility Office Administrative Support
Unit, Bahrain, Bahrain $4,600,000
---------------
Total................ $23,658,000
------------------------------------------------------------------------

SEC. 2402. MILITARY HOUSING PLANNING AND DESIGN.

Using amounts appropriated pursuant to the authorization of
appropriation in section 2406(a)(14)(A), the Secretary of
Defense may carry out architectural and engineering services
and construction design activities with respect to the
construction or improvement of military family housing units in
an amount not to exceed $500,000.

SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

Subject to section 2825 of title 10, United States Code,
and using amounts appropriated pursuant to the authorization of
appropriation in section 2406(a)(14)(A), the Secretary of
Defense may improve existing military family housing units in
an amount not to exceed $3,871,000.

SEC. 2404. MILITARY HOUSING IMPROVEMENT PROGRAM.

(a) Availability of Funds for Credit to Family Housing
Improvement Fund.--(1) Of the amount authorized to be
appropriated pursuant to section 2406(a)(14)(C), $25,000,000
shall be available for credit to the Department of Defense
Family Housing Improvement Fund established by section
2883(a)(1) of title 10, United States Code.
(2) Of the amount authorized to be appropriated pursuant to
section 2406(a)(14)(D), $5,000,000 shall be available for
credit to the Department of Defense Military Unaccompanied
Housing Improvement Fund established by section 2883(a)(2) of
such title.
(b) Use of Funds.--(1) The Secretary of Defense may use
funds credited to the Department of Defense Family Housing
Improvement Fund under subsection (a)(1) to carry out any
activities authorized by subchapter IV of chapter 169 of such
title with respect to military family housing.
(2) The Secretary of Defense may use funds credited to the
Department of Defense Military Unaccompanied Housing
Improvement Fund under subsection (a)(2) to carry out any
activities authorized by subchapter IV of chapter 169 of such
title with respect to military unaccompanied housing.

SEC. 2405. ENERGY CONSERVATION PROJECTS.

Using amounts appropriated pursuant to the authorization of
appropriations in section 2406(a)(12), the Secretary of Defense
may carry out energy conservation projects under section 2865
of title 10, United States Code.

SEC. 2406. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

(a) In General.--Funds are hereby authorized to be
appropriated for fiscal years beginning after September 30,
1996, for military construction, land acquisition, and military
family housing functions of the Department of Defense (other
than the military departments), in the total amount of
$3,379,703,000 as follows:
(1) For military construction projects inside the
United States authorized by section 2401(a),
$344,854,000.
(2) For military construction projects outside the
United States authorized by section 2401(b),
$23,658,000.
(3) For military construction projects at Naval
Hospital, Portsmouth, Virginia, hospital replacement,
authorized by section 2401(a) of the Military
Construction Authorization Act for Fiscal Years 1990
and 1991 (division B of Public Law 101-189; 103 Stat.
1640), $24,000,000.
(4) For military construction projects at Walter
Reed Army Institute of Research, Maryland, hospital
replacement, authorized by section 2401(a) of the
Military Construction Authorization Act for Fiscal Year
1993 (division B of Public Law 102-484; 106 Stat.
2599), $72,000,000.
(5) For military construction projects at Fort
Bragg, North Carolina, hospital replacement, authorized
by section 2401(a) of the Military Construction
Authorization Act for Fiscal Year 1993 (106 Stat.
2599), $89,000,000.
(6) For military construction projects at Pine
Bluff Arsenal, Arkansas, authorized by section 2401(a)
of the Military Construction Authorization Act for
Fiscal Year 1995 (division B of the Public Law 103-337;
108 Stat. 3040), $46,000,000.
(7) For military construction projects at Umatilla
Army Depot, Oregon, authorized by section 2401(a) of
the Military Construction Authorization Act for Fiscal
Year 1995 (108 Stat. 3040), $64,000,000.
(8) For military construction projects at the
Defense Finance and Accounting Service, Columbus, Ohio,
authorized by section 2401(a) of the Military
Construction Authorization Act of Fiscal Year 1996
(division B of Public Law 104-106; 110 Stat. 535),
$20,822,000.
(9) For contingency construction projects of the
Secretary of Defense under section 2804 of title 10,
United States Code, $4,500,000.
(10) For unspecified minor construction projects
under section 2805 of title 10, United States Code,
$21,874,000.
(11) For architectural and engineering services and
construction design under section 2807 of title 10,
United States Code, $12,239,000.
(12) For energy conservation projects under section
2865 of title 10, United States Code, $47,765,000.
(13) For base closure and realignment activities as
authorized by the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-
510; 10 U.S.C. 2687 note), $2,507,476,000.
(14) For military family housing functions:
(A) For improvement and planning of
military family housing and facilities,
$4,371,000.
(B) For support of military housing
(including functions described in section 2833
of title 10, United States Code), $30,963,000,
of which not more than $25,637,000 may be
obligated or expended for the leasing of
military family housing units worldwide.
(C) For credit to the Department of Defense
Family Housing Improvement Fund as authorized
by section 2404(a)(1) of this Act, $25,000,000.
(D) For credit to the Department of Defense
Military Unaccompanied Housing Improvement Fund
as authorized by section 2404(a)(2) of this
Act, $5,000,000.
(E) For the Homeowners Assistance Program
as authorized by section 2832 of title 10,
United States Code, $36,181,000, to remain
available until expended.
(b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853
of title 10, United States Code, and any other cost variations
authorized by law, the total cost of all projects carried out
under section 2401 of this Act may not exceed--
(1) the total amount authorized to be appropriated
under paragraphs (1) and (2) of subsection (a);
(2) $179,000,000 (the balance of the amount
authorized under section 2401(a) of this Act for the
construction of a chemical demilitarization facility at
Pueblo Army Depot, Colorado); and
(3) $1,600,000 (the balance of the amount
authorized under section 2401(a) of this Act for the
construction of a replacement facility for the medical
and dental clinic, Key West Naval Air Station,
Florida).

SEC. 2407. REDUCTION IN AMOUNTS AUTHORIZED TO BE APPROPRIATED FOR
FISCAL YEAR 1996 DEFENSE AGENCIES MILITARY
CONSTRUCTION, LAND ACQUISITION, AND MILITARY FAMILY
HOUSING FUNCTIONS.

Section 2405 of the Military Construction Authorization Act
for Fiscal Year 1996 (division B of Public Law 104-106; 110
Stat. 537) is amended by adding at the end the following new
subsection:
``(c) Adjustment.--The total amount authorized to be
appropriated pursuant to paragraphs (1) through (11) of
subsection (a) is the sum of the amounts authorized to be
appropriated in such paragraphs, reduced by $7,000,000, which
represents the combination of project savings resulting from
favorable bids, reduced overhead costs, and cancellations due
to force structure changes.''.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

The Secretary of Defense may make contributions for the
North Atlantic Treaty Organization Security Investment program
as provided in section 2806 of title 10, United States Code, in
an amount not to exceed the sum of the amount authorized to be
appropriated for this purpose in section 2502 and the amount
collected from the North Atlantic Treaty Organization as a
result of construction previously financed by the United
States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

Funds are hereby authorized to be appropriated for fiscal
years beginning after September 30, 1996, for contributions by
the Secretary of Defense under section 2806 of title 10, United
States Code, for the share of the United States of the cost of
projects for the North Atlantic Treaty Security Investment
program as authorized by section 2501, in the amount of
$172,000,000.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND
ACQUISITION PROJECTS.

There are authorized to be appropriated for fiscal years
beginning after September 30, 1996, for the costs of
acquisition, architectural and engineering services, and
construction of facilities for the Guard and Reserve Forces,
and for contributions therefor, under chapter 1803 of title 10,
United States Code (including the cost of acquisition of land
for those facilities), the following amounts:
(1) For the Department of the Army--
(A) for the Army National Guard of the
United States, $59,194,000; and
(B) for the Army Reserve, $55,543,000.
(2) For the Department of the Navy, for the Naval
and Marine Corps Reserve, $32,779,000.
(3) For the Department of the Air Force--
(A) for the Air National Guard of the
United States, $188,505,000; and
(B) for the Air Force Reserve, $52,805,000.

SEC. 2602. AUTHORIZATION AND FUNDING FOR CONSTRUCTION AND IMPROVEMENT
OF NAVAL RESERVE CENTERS.

(a) Army Reserve Centers.--Using amounts appropriated under
the heading ``Military Construction, Naval Reserve'' in the
Military Construction Appropriations Act, 1995 (Public Law 103-
307; 108 Stat. 1661), for the construction of a Naval Reserve
Center in Seattle, Washington, the Secretary of the Army may
carry out a military construction project for the construction
of an Army Reserve Center at Fort Lawton, Washington, in the
total amount of $5,200,000, of which $700,000 may be used for
program and design activities relating to such construction.
(b) Naval Reserve Facilities.--Using amounts appropriated
under the heading ``Military Construction, Naval Reserve'' in
the Military Construction Appropriations Act, 1995 (Public Law
103-307; 108 Stat. 1661), for the construction of a Naval
Reserve Center in Seattle, Washington, the Secretary of the
Navy may carry out--
(1) a military construction project for the
construction of an addition to the Naval Reserve Center
in Tacoma, Washington, in the total amount of
$4,200,000;
(2) unspecified minor construction at Naval Reserve
facilities in the total amount of $500,000; and
(3) planning and design activities with respect to
improvements at Naval Reserve facilities in the total
amount of $500,000.

SEC. 2603. UPGRADE AIR NATIONAL GUARD FACILITIES, BANGOR INTERNATIONAL
AIRPORT, MAINE.

(a) Project Authorized.--Using amounts appropriated
pursuant to the authorization of appropriations in section
2601(3)(A) and amounts appropriated pursuant to authorizations
of appropriations enacted after the date of the enactment of
this Act, the Secretary of the Air Force may carry out a
construction project to upgrade Air National Guard base and
support facilities at Bangor International Airport, Maine. The
Secretary may contract for architectural and engineering
services and construction design services in connection with
the construction project.
(b) Limitation on Total Cost of Project.--The total cost of
the construction project authorized by subsection (a) may not
exceed $13,000,000.
(c) Fiscal Year 1997 Funding.--Of the amount authorized to
be appropriated in section 2601(3)(A), $7,000,000 shall be
available to carry out the construction project authorized by
subsection (a).

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE
SPECIFIED BY LAW.

(a) Expiration of Authorizations After Three Years.--Except
as provided in subsection (b), all authorizations contained in
titles XXI through XXVI for military construction projects,
land acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor) shall expire on the later of--
(1) October 1, 1999; or
(2) the date of the enactment of an Act authorizing
funds for military construction for fiscal year 2000.
(b) Exception.--Subsection (a) shall not apply to
authorizations for military construction projects, land
acquisition, family housing projects and facilities, and
contributions to the North Atlantic Treaty Organization
Security Investment program (and authorizations of
appropriations therefor), for which appropriated funds have
been obligated before the later of--
(1) October 1, 1999; or
(2) the date of the enactment of an Act authorizing
funds for fiscal year 2000 for military construction
projects, land acquisition, family housing projects and
facilities, or contributions to the North Atlantic
Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1994
PROJECTS.

(a) Extensions.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1994
(division B of Public Law 103-160; 107 Stat. 1880),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101, 2102, 2201, 2301,
or 2601 of that Act, shall remain in effect until October 1,
1997, or the date of the enactment of an Act authorizing funds
for military construction for fiscal year 1998, whichever is
later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

ARMY: EXTENSION OF 1994 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
New Jersey.............................. Picatinny Arsenal......... Advance Warhead
Development Facility..... $4,400,000
North Carolina.......................... Fort Bragg................ Land Acquisition.......... $15,000,000
Wisconsin............................... Fort McCoy................ Family Housing
Construction (16 units).. $2,950,000
----------------------------------------------------------------------------------------------------------------

NAVY: EXTENSION OF 1994 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State or Location Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
California.............................. Camp Pendleton Marine
Corps Base............... Sewage Facility........... $7,930,000
Connecticut............................. New London Naval Submarine
Base..................... Hazardous Waste Transfer
Facility................. $1,450,000
New Jersey.............................. Earle Naval Weapons
Station.................. Explosives Holding Yard... $1,290,000
Virginia................................ Oceana Naval Air Station.. Jet Engine Test Cell
Replacement.............. $5,300,000
Various Locations....................... Various Locations......... Land Acquisition Inside
the United States........ $540,000
Various Locations....................... Various Locations......... Land Acquisition Outside
the United States........ $800,000
----------------------------------------------------------------------------------------------------------------

AIR FORCE: EXTENSION OF 1994 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Alaska.................................. Eielson Air Force Base.... Upgrade Water Treatment
Plant.................... $3,750,000
Elmendorf Air Force Base.. Corrosion Control Facility $5,975,000
California.............................. Beale Air Force Base...... Educational Center........ $3,150,000
Florida................................. Tyndall Air Force Base.... Base Supply Logistics
Center................... $2,600,000
Mississippi............................. Keesler Air Force Base.... Upgrade Student Dormitory. $4,500,000
North Carolina.......................... Pope Air Force Base....... Add To and Alter
Dormitories.............. $4,300,000
Virginia................................ Langley Air Force Base.... Fire Station.............. $3,850,000
----------------------------------------------------------------------------------------------------------------

ARMY NATIONAL GUARD: EXTENSION OF 1994 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Alabama................................. Birmingham................ Aviation Support Facility. $4,907,000
Arizona................................. Marana.................... Organizational Maintenance
Shop..................... $553,000
Marana.................... Dormitory/Dining Facility. $2,919,000
California.............................. Fresno.................... Organizational Maintenance
Shop Modification........ $905,000
Van Nuys.................. Armory Addition........... $6,518,000
New Mexico.............................. White Sands Missile Range. Organizational Maintenance
Shop..................... $2,940,000
Tactical Site............. $1,995,000
MATES..................... $3,570,000
Pennsylvania............................ Indiantown Gap............ State Military Building... $9,200,000
Johnstown................. Armory Addition/Flight
Facility................. $5,004,000
Johnstown................. Armory.................... $3,000,000
South Carolina.......................... Summerville............... Organizational Maintenance
Shop..................... $834,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1993
PROJECTS.

(a) Extensions.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1993
(division B of Public Law 102-484; 106 Stat. 2602),
authorizations for the projects set forth in the tables in
subsection (b), as provided in section 2101, 2301, or 1601 of
that Act and extended by section 2702 of the Military
Construction Authorization Act for Fiscal Year 1996 (division B
of Public Law 104-106; 110 Stat. 541), shall remain in effect
until October 1, 1997, or the date of the enactment of an Act
authorizing funds for military construction for fiscal year
1998, whichever is later.
(b) Tables.--The tables referred to in subsection (a) are
as follows:

ARMY: EXTENSION OF 1993 PROJECT AUTHORIZATION
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Arkansas................................ Pine Bluff Arsenal........ Ammunition
Demilitarization Support
Facility................. $15,000,000
----------------------------------------------------------------------------------------------------------------

AIR FORCE: EXTENSION OF 1993 PROJECT AUTHORIZATION
----------------------------------------------------------------------------------------------------------------
Country Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Portugal................................ Lajes Field............... Water Wells............... $865,000
----------------------------------------------------------------------------------------------------------------

ARMY NATIONAL GUARD: EXTENSION OF 1993 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State Installation or Location Project Amount
----------------------------------------------------------------------------------------------------------------
Alabama................................. Tuscaloosa................ Armory.................... $2,273,000
Union Springs............. Armory.................... $813,000
New Mexico.............................. Clayton................... Armory.................... $1,400,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1992
PROJECTS.

(a) Extensions.--Notwithstanding section 2701 of the
Military Construction Authorization Act for Fiscal Year 1992
(division B of Public Law 102-190; 105 Stat. 1535),
authorizations for the projects set forth in the table in
subsection (b), as provided in section 2201 of that Act and
extended by section 2702(a) of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of Public
Law 103-337; 108 Stat. 3047) and section 2703(a) of the
Military Construction Authorization Act for Fiscal Year 1996
(division B of Public Law 104-106; 110 Stat. 543), shall remain
in effect until October 1, 1997, or the date of the enactment
of an Act authorizing funds for military construction for
fiscal year 1998, whichever is later.
(b) Table.--The table referred to in subsection (a) is as
follows:

ARMY: EXTENSION OF 1992 PROJECT AUTHORIZATIONS
----------------------------------------------------------------------------------------------------------------
State Installation or location Project Amount
----------------------------------------------------------------------------------------------------------------
Oregon.................................. Umatilla Army Depot....... Ammunition
Demilitarization Support
Facility................. $3,600,000
Umatilla Army Depot....... Ammunition
Demilitarization
Utilities................ $7,500,000
----------------------------------------------------------------------------------------------------------------

SEC. 2705. EFFECTIVE DATE.

Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take
effect on the later of--
(1) October 1, 1996; or
(2) the date of the enactment of this Act.

TITLE XXVIII--GENERAL PROVISIONS

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

Subtitle B--Defense Base Closure and Realignment

Subtitle C--Land Conveyances

Part I--Army Conveyances

Part II--Navy Conveyances

Part III--Air Force Conveyances

Part IV--Other Conveyances

Subtitle D--Other Matters

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

SEC. 2801. INCREASE IN CERTAIN THRESHOLDS FOR UNSPECIFIED MINOR
CONSTRUCTION PROJECTS.

(a) O&M Funding for Projects.--Section 2805(c)(1)(B) of
title 10, United States Code, is amended by striking out
``$300,000'' and inserting in lieu thereof ``$500,000''.
(b) O&M Funding for Reserve Component Facilities.--
Subsection (b) of section 18233a of such title is amended by
striking out ``$300,000'' and inserting in lieu thereof
``$500,000''.
(c) Notification for Expenditures and Contributions for
Reserve Component Facilities.--Subsection (a)(1) of such
section 18233a is amended by striking out ``$400,000'' and
inserting in lieu thereof ``$1,500,000''.

SEC. 2802. REDESIGNATION OF NORTH ATLANTIC TREATY ORGANIZATION
INFRASTRUCTURE PROGRAM.

(a) Redesignation.--Subsection (b) of section 2806 of title
10, United States Code, is amended by striking out ``North
Atlantic Treaty Organization Infrastructure program'' and
inserting in lieu thereof ``North Atlantic Treaty Organization
Security Investment program''.
(b) References.--Any reference to the North Atlantic Treaty
Organization Infrastructure program in any Federal law,
Executive order, regulation, delegation of authority, or
document of or pertaining to the Department of Defense shall be
deemed to refer to the North Atlantic Treaty Organization
Security Investment program.
(c) Clerical Amendments.--(1) The section heading of such
section is amended to read as follows:

``Sec. 2806. Contributions for North Atlantic Treaty Organizations
Security Investment''.

(2) The table of sections at the beginning of subchapter I
of chapter 169 of title 10, United States Code, is amended by
striking out the item relating to section 2806 and inserting in
lieu thereof the following new item:

``2806. Contributions for North Atlantic Treaty Organizations Security
Investment.''.

(d) Conforming Amendments.--(1) Section 2861(b)(3) of title
10, United States Code, is amended by striking out ``North
Atlantic Treaty Organization Infrastructure program'' and
inserting in lieu thereof ``North Atlantic Treaty Organization
Security Investment program''.
(2) Section 21(h)(1)(B) of the Arms Export Control Act (22
U.S.C. 2761(h)(1)(B)) is amended by striking out ``North
Atlantic Treaty Organization Infrastructure Program'' and
inserting in lieu thereof ``North Atlantic Treaty Organization
Security Investment program''.

SEC. 2803. IMPROVEMENTS TO FAMILY HOUSING UNITS.

(a) Authorized Improvements.--Subsection (a)(2) of section
2825 of title 10, United States Code, is amended--
(1) by inserting ``major'' before ``maintenance'';
and
(2) by adding at the end the following: ``Such term
does not include day-to-day maintenance and repair
work.''.
(b) Limitation.--Subsection (b) of such section is amended
by striking out paragraph (2) and inserting in lieu thereof the
following new paragraph:
``(2) In determining the applicability of the limitation
contained in paragraph (1), the Secretary concerned shall
include as part of the cost of the improvement of the unit or
units concerned the following:
``(A) The cost of major maintenance or repair work
undertaken in connection with the improvement.
``(B) Any cost, other than the cost of activities
undertaken beyond a distance of five feet from the unit
or units concerned, in connection with--
``(i) the furnishing of electricity, gas,
water, and sewage disposal;
``(ii) the construction or repair of roads,
drives, and walks; and
``(iii) grading and drainage work.''.

SEC. 2804. AVAILABILITY OF FUNDS FOR PLANNING, EXECUTION, AND
ADMINISTRATION OF CONTRACTS FOR FAMILY HOUSING AND
UNACCOMPANIED HOUSING.

(a) Contracts for Family Housing.--Paragraph (1) of section
2883(d) of title 10, United States Code, is amended by adding
at the end the following: ``The Secretary may also use for
expenses of activities required in connection with the
planning, execution, and administration of such contracts funds
that are otherwise available to the Department of Defense for
such types of expenses.''.
(b) Contracts for Unaccompanied Housing.--Paragraph (2) of
such section is amended by adding at the end the following:
``The Secretary may also use for expenses of activities
required in connection with the planning, execution, and
administration of such contracts funds that are otherwise
available to the Department of Defense for such types of
expenses.''.

Subtitle B--Defense Base Closure and Realignment

SEC. 2811. RESTORATION OF AUTHORITY FOR CERTAIN INTRAGOVERNMENT
TRANSFERS UNDER 1988 BASE CLOSURE LAW.

Section 204(b)(2) of the Defense Authorization Amendments
and Base Closure and Realignment Act (Public Law 100-526; 10
U.S.C. 2687 note), is amended--
(1) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(2) by inserting after subparagraph (C) the
following new subparagraph (D):
``(D) The Secretary of Defense may transfer real property
or facilities located at a military installation to be closed
or realigned under this title, with or without reimbursement,
to a military department or other entity (including a
nonappropriated fund instrumentality) within the Department of
Defense or the Coast Guard.''.

SEC. 2812. CONTRACTING FOR CERTAIN SERVICES AT FACILITIES REMAINING ON
CLOSED INSTALLATIONS.

(a) 1988 Law.--Section 204(b)(8)(A) of the Defense
Authorization Amendments and Base Closure and Realignment Act
(Public Law 100-526; 10 U.S.C. 2687 note) is amended by
inserting ``, or at facilities not yet transferred or otherwise
disposed of in the case of installations closed under this
title,'' after ``under this title''.
(b) 1990 Law.--Section 2905(b)(8)(A) of the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) is amended by
inserting ``, or at facilities not yet transferred or otherwise
disposed of in the case of installations closed under this
part,'' after ``under this part''.

SEC. 2813. AUTHORITY TO COMPENSATE OWNERS OF MANUFACTURED HOUSING.

(a) 1988 Law.--Section 204 of the Defense Authorization
Amendments and Base Closure and Realignment Act (Public Law
100-526; 10 U.S.C. 2687 note), is amended by adding at the end
the following new subsection:
``(f) Acquisition of Manufactured Housing.--(1) In closing
or realigning any military installation under this title, the
Secretary may purchase any or all right, title, and interest of
a member of the Armed Forces and any spouse of the member in
manufactured housing located at a manufactured housing park
established at an installation closed or realigned under this
title, or make a payment to the member to relocate the
manufactured housing to a suitable new site, if the Secretary
determines that--
``(A) it is in the best interests of the Federal
Government to eliminate or relocate the manufactured
housing park; and
``(B) the elimination or relocation of the
manufactured housing park would result in an
unreasonable financial hardship to the owners of the
manufactured housing.
``(2) Any payment made under this subsection shall not
exceed 90 percent of the purchase price of the manufactured
housing, as paid by the member or any spouse of the member,
plus the cost of any permanent improvements subsequently made
to the manufactured housing by the member or spouse of the
member.
``(3) The Secretary shall dispose of manufactured housing
acquired under this subsection through resale, donation, trade
or otherwise within one year of acquisition.''.
(b) 1990 Law.--Section 2905 of the Defense Base Closure and
Realignment Act of 1990 (part A of title XXIX of Public Law
101-510; 10 U.S.C. 2687 note), is amended by adding at the end
the following new subsection:
``(g) Acquisition of Manufactured Housing.--(1) In closing
or realigning any military installation under this part, the
Secretary may purchase any or all right, title, and interest of
a member of the Armed Forces and any spouse of the member in
manufactured housing located at a manufactured housing park
established at an installation closed or realigned under this
part, or make a payment to the member to relocate the
manufactured housing to a suitable new site, if the Secretary
determines that--
``(A) it is in the best interests of the Federal
Government to eliminate or relocate the manufactured
housing park; and
``(B) the elimination or relocation of the
manufactured housing park would result in an
unreasonable financial hardship to the owners of the
manufactured housing.
``(2) Any payment made under this subsection shall not
exceed 90 percent of the purchase price of the manufactured
housing, as paid by the member or any spouse of the member,
plus the cost of any permanent improvements subsequently made
to the manufactured housing by the member or spouse of the
member.
``(3) The Secretary shall dispose of manufactured housing
acquired under this subsection through resale, donation, trade
or otherwise within one year of acquisition.''.

SEC. 2814. ADDITIONAL PURPOSE FOR WHICH ADJUSTMENT AND DIVERSIFICATION
ASSISTANCE IS AUTHORIZED.

Section 2391(b)(5) of title 10, United States Code, is
amended--
(1) by inserting ``(A)'' after ``(5)''; and
(2) by adding at the end the following new
subparagraph:
``(B) The Secretary of Defense may also make grants,
conclude cooperative agreements, and supplement other Federal
funds in order to assist a State in enhancing its capacities--
``(i) to assist communities, businesses, and
workers adversely affected by an action described in
paragraph (1);
``(ii) to support local adjustment and
diversification initiatives; and
``(iii) to stimulate cooperation between statewide
and local adjustment and diversification efforts.''.

SEC. 2815. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN
CONNECTION WITH LORING AIR FORCE BASE, MAINE.

From amounts in the Department of Defense Base Closure
Account 1990 established by section 2906(a)(1) of the Defense
Base Closure and Realignment Act of 1990 (part A of title XXIX
of Public Law 101-510; 10 U.S.C. 2687 note), the Secretary of
Defense may expend not more than $50,000 to pay stipulated
civil penalties assessed under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980 (42 U.S.C.
9601 et seq.) against Loring Air Force Base, Maine.

SEC. 2816. PLAN FOR UTILIZATION, REUTILIZATION, OR DISPOSAL OF
MISSISSIPPI ARMY AMMUNITION PLANT.

Not later than 180 days after the date of the enactment of
this Act, the Secretary of the Army shall submit to the
congressional defense committees a plan for the utilization,
reutilization, or disposal of the Mississippi Army Ammunition
Plant, Hancock County, Mississippi.

Subtitle C--Land Conveyances

PART I--ARMY CONVEYANCES

SEC. 2821. TRANSFER OF LANDS, ARLINGTON NATIONAL CEMETERY, ARLINGTON,
VIRGINIA.

(a) Requirement for Secretary of Interior To Transfer
Certain Section 29 Lands.--(1) Subject to paragraph (2), the
Secretary of the Interior shall transfer to the Secretary of
the Army administrative jurisdiction over the following lands
located in section 29 of the National Park System at Arlington
National Cemetery, Virginia:
(A) The lands known as the Arlington National
Cemetery Interment Zone.
(B) All lands in the Robert E. Lee Memorial
Preservation Zone, other than those lands in the
Preservation Zone that the Secretary of the Interior
determines must be retained because of the historical
significance of such lands or for the maintenance of
nearby lands or facilities.
(2)(A) The Secretary of the Interior may not make the
transfer referred to in paragraph (1)(B) until 60 days after
the date on which the Secretary submits to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives--
(i) a summary of the document entitled ``Cultural
Landscape and Archaeological Study, Section 29,
Arlington House, The Robert E. Lee Memorial'';
(ii) a summary of any environmental analysis
required with respect to the transfer under the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.);
(iii) an accounting of the effect of the transfer
that satisfies the requirements of section 106 of the
National Historic Preservation Act (16 U.S.C. 470f);
and
(iv) the proposal of the Secretary and the
Secretary of the Army setting forth the lands to be
transferred and the general manner in which the
Secretary of the Army will develop such lands after
transfer.
(B) The Secretary of the Interior shall submit the
information required under subparagraph (A) not later than
October 31, 1997.
(3) The transfer of lands under paragraph (1) shall be
carried out in accordance with the Interagency Agreement
Between the Department of the Interior, the National Park
Service, and the Department of the Army, dated February 22,
1995.
(4) The exact acreage and legal descriptions of the lands
to be transferred under paragraph (1) shall be determined by
surveys satisfactory to the Secretary of the Interior and the
Secretary of the Army.
(b) Requirement for Additional Transfers.--(1) The
Secretary of the Interior shall transfer to the Secretary of
the Army administrative jurisdiction over a parcel of land,
including any improvements thereon, consisting of approximately
2.43 acres, located in the Memorial Drive entrance area to
Arlington National Cemetery.
(2)(A) The Secretary of the Army shall transfer to the
Secretary of the Interior administrative jurisdiction over a
parcel of land, including any improvements thereon, consisting
of approximately 0.17 acres, located at Arlington National
Cemetery, and known as the Old Administrative Building site.
The site is part of the original reservation of Arlington
National Cemetery.
(B) In connection with the transfer under subparagraph (A),
the Secretary of the Army shall grant to the Secretary of the
Interior a perpetual right of ingress and egress to the parcel
transferred under that subparagraph.
(3) The exact acreage and legal descriptions of the lands
to be transferred pursuant to this subsection shall be
determined by surveys satisfactory to the Secretary of the
Interior and the Secretary of the Army. The costs of such
surveys shall be borne by the Secretary of the Army.

SEC. 2822. LAND TRANSFER, FORT SILL, OKLAHOMA.

(a) Transfer of Land for National Cemetery.--The Secretary
of the Army may transfer, without reimbursement, to the
administrative jurisdiction of the Secretary of Veterans
Affairs a parcel of real property, including any improvements
thereon, consisting of approximately 400 acres and comprising a
portion of Fort Sill, Oklahoma.
(b) Use of Property.--The Secretary of Veterans Affairs
shall use the real property transferred under subsection (a) as
a national cemetery under chapter 24 of title 38, United States
Code.
(c) Return of Unused Portion.--If the Secretary of Veterans
Affairs determines that any portion of the real property
transferred under subsection (a) is not needed for use as a
national cemetery, the Secretary shall return such portion to
the administrative jurisdiction of the Secretary of the Army.
(d) Legal Description.--The exact acreage and legal
description of the real property to be transferred under this
section shall be determined by a survey satisfactory to the
Secretary of the Army. The cost of the survey shall be borne by
the Secretary of Veterans Affairs.

SEC. 2823. LAND CONVEYANCE, ARMY RESERVE CENTER, RUSHVILLE, INDIANA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the City of Rushville,
Indiana (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to a
parcel of excess real property, including improvements thereon,
that is located in Rushville, Indiana, and contains the
Rushville Army Reserve Center.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that the
City retain the conveyed property for the use and benefit of
the Rushville Police Department.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
City.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2824. LAND CONVEYANCE, ARMY RESERVE CENTER, ANDERSON, SOUTH
CAROLINA.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the County of Anderson, South
Carolina (in this section referred to as the ``County''), all
right, title, and interest of the United States in and to a
parcel of real property, including improvements thereon, that
is located at 805 East Whitner Street in Anderson, South
Carolina, and contains an Army Reserve Center.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that the
County retain the conveyed property for the use and benefit of
the Anderson County Department of Education.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
County.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2825. LAND CONVEYANCE, ARMY RESERVE CENTER, MONTPELIER, VERMONT.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the City of Montpelier,
Vermont (in this section referred to as the ``City''), all
right, title, and interest of the United States in and to a
parcel of real property, including improvements thereon,
consisting of approximately 4.3 acres and located on Route 2 in
Montpelier, Vermont, the site of the Army Reserve Center,
Montpelier, Vermont.
(b) Condition.--The conveyance authorized under subsection
(a) shall be subject to the condition that the City agree to
lease to the Civil Air Patrol, at no rental charge to the Civil
Air Patrol, the portion of the real property and improvements
located on the parcel to be conveyed that the Civil Air Patrol
leases from the Secretary as of the date of the enactment of
this Act.
(c) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
City.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2826. LAND CONVEYANCE, CRAFTS BROTHERS RESERVE TRAINING CENTER,
MANCHESTER, NEW HAMPSHIRE.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to Saint Anselm College,
Manchester, New Hampshire, all right, title, and interest of
the United States in and to a parcel of real property,
including improvements thereon, consisting of approximately 3.5
acres and located on Rockland Avenue in Manchester, New
Hampshire, the site of the Crafts Brothers Reserve Training
Center.
(b) Requirement Relating to Conveyance.--The Secretary may
not make the conveyance authorized by subsection (a) until the
Army Reserve units currently housed at the Crafts Brothers
Reserve Training Center are relocated to the Joint Service
Reserve Center to be constructed at the Manchester Airport, New
Hampshire.
(c) Requirement for Federal Screening of Property.--The
Secretary may not carry out the conveyance of property
authorized by subsection (a) unless the Secretary determines
that no department or agency of the Federal Government will
accept the transfer of the property.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2827. LAND CONVEYANCE, PINE BLUFF ARSENAL, ARKANSAS.

(a) Conveyance Authorized.--The Secretary of the Army may
convey, without consideration, to the Economic Development
Alliance of Jefferson County, Arkansas (in this section
referred to as the ``Alliance''), all right, title, and
interest of the United States in and to a parcel of real
property, together with any improvements thereon, consisting of
approximately 1,500 acres and comprising a portion of the Pine
Bluff Arsenal, Arkansas.
(b) Requirements Relating to Conveyance.--The Secretary may
not carry out the conveyance of property authorized under
subsection (a) until--
(1) the completion by the Secretary of any
environmental restoration and remediation that is
required with the respect to the property under
applicable law;
(2) the Secretary secures all permits required
under law applicable regarding the conduct of the
proposed chemical demilitarization mission at the
arsenal; and
(3) the Secretary of Defense submits to the
Committee on Armed Services of the Senate and the
Committee on National Security of the House of
Representatives a certification that the conveyance
will not adversely affect the ability of the Department
of Defense to conduct that chemical demilitarization
mission.
(c) Conditions of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the following
conditions:
(1) That the Alliance agree not to carry out any
activities on the property to be conveyed that
interfere with the construction, operation, and
decommissioning of the chemical demilitarization
facility to be constructed at Pine Bluff Arsenal. If
the Alliance fails to comply with its agreement in
paragraph (1) the property conveyed under this section,
all rights, title, and interest in and to the property
shall revert to the United States, and the United
States shall have immediate rights of entry thereon.
(2) That the property be used during the 25-year
period beginning on the date of the conveyance only as
the site of the facility known as the ``Bioplex'', and
for activities related thereto.
(d) Costs of Conveyance.--The Alliance shall be responsible
for any costs of the Army associated with the conveyance of
property under this section, including administrative costs,
the costs of an environmental baseline survey with respect to
the property, and the cost of any protection services required
by the Secretary in order to secure operations of the chemical
demilitarization facility from activities on the property after
the conveyance.
(e) Reversionary Interests.--If the Secretary determines at
any time during the 25-year period referred to in subsection
(c)(2) that the property conveyed under this section is not
being used in accordance with that subsection, all right,
title, and interest in and to the property shall revert to the
United States, and the United States shall have immediate right
of entry thereon.
(f) Sale of Property by Alliance.--If at any time during
the 25-year period referred to in subsection (c)(2) the
Alliance sells all or a portion of the property conveyed under
this section, the Alliance shall pay the United States an
amount equal to the lesser of--
(1) the amount of the sale of the property sold; or
(2) the fair market value of the property sold at
the time of the sale, excluding the value of any
improvements to the property sold that have been made
by the Alliance.
(g) Description of Property.--The exact acreage and legal
description of the property conveyed under this section shall
be determined by a survey satisfactory to the Secretary. The
cost of the survey shall be borne by the Alliance.
(h) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2828. REAFFIRMATION OF LAND CONVEYANCES, FORT SHERIDAN, ILLINOIS.

As soon as practicable after the date of the enactment of
this Act, the Secretary of the Army shall complete the land
conveyances involving Fort Sheridan, Illinois, required or
authorized under section 125 of the Military Construction
Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 290).

PART II--NAVY CONVEYANCES

SEC. 2831. LAND TRANSFER, POTOMAC ANNEX, DISTRICT OF COLUMBIA.

(a) Transfer Authorized.--The Secretary of the Navy may
transfer, without consideration other than the reimbursement
provided for in subsection (d), to the United States Institute
of Peace (in this section referred to as the ``Institute'')
administrative jurisdiction over a parcel of real property,
including any improvements thereon, consisting of approximately
3 acres, at the northwest corner of Twenty-third Street and
Constitution Avenue, Northwest, District of Columbia, the site
of the Potomac Annex.
(b) Condition.--The Secretary may not make the transfer
specified in subsection (a) unless the Institute agrees to
provide the Navy a number of parking spaces at or in the
vicinity of the headquarters to be constructed on the parcel
transferred equal to the number of parking spaces available to
the Navy on the parcel as of the date of the transfer.
(c) Requirement Relating to Transfer.--The transfer
specified in subsection (a) may not occur until the Institute
obtains all permits, approvals, and site plan reviews required
by law with respect to the construction on the parcel of a
headquarters for operations of the Institute.
(d) Costs.--The Institute shall reimburse the Secretary for
the costs incurred by the Secretary in carrying out the
transfer specified in subsection (a).
(e) Description of Property.--The exact acreage and legal
description of the property to be transferred under subsection
(a) shall be determined by a survey that is satisfactory to the
Secretary. The cost of the survey shall be borne by the
Institute.

SEC. 2832. LAND EXCHANGE, ST. HELENA ANNEX, NORFOLK NAVAL SHIPYARD,
VIRGINIA.

(a) Conveyance Authorized.--(1) The Secretary of the Navy
may convey to such private person as the Secretary considers
appropriate (in this section referred to as the ``transferee'')
all right, title, and interest of the United States in and to a
parcel of real property that is located at the Norfolk Naval
Shipyard, Virginia, and, as of the date of the enactment of
this Act, is a portion of the property leased to the Norfolk
Shipbuilding and Drydock Company pursuant to the Department of
the Navy lease N00024-84-L-0004, effective October 1, 1984, as
extended.
(2) Pending completion of the conveyance authorized by
paragraph (1), the Secretary may lease the real property to the
transferee upon such terms as the Secretary considers
appropriate.
(b) Consideration.--As consideration for the conveyance
under subsection (a), including any interim lease authorized by
such subsection, the transferee shall--
(1) convey to the United States all right, title,
and interest to a parcel or parcels of real property,
together with any improvements thereon, located in the
area of Portsmouth, Virginia, which are determined to
be acceptable to the Secretary; and
(2) pay to the Secretary an amount equal to the
amount, if any, by which the fair market value of the
parcel conveyed by the Secretary under subsection (a)
exceeds the fair market value of the parcel conveyed to
the United States under paragraph (1).
(c) Use of Rental Amounts.--The Secretary may use the
amounts received as rent from any lease entered into under the
authority of subsection (a)(2) to fund environmental studies of
the parcels of real property to be conveyed under this section.
(d) In-Kind Consideration.--The Secretary and the
transferee may agree that, in lieu of all or any part of the
consideration required by subsection (b)(2), the transferee may
provide and the Secretary may accept the improvement,
maintenance, protection, repair, or restoration of real
property under the control of the Secretary in the area of
Hampton Roads, Virginia.
(e) Determination of Fair Market Value and Property
Description.--The Secretary shall determine the fair market
value of the parcels of real property to be conveyed under
subsections (a) and (b)(1). The exact acreage and legal
description of the parcels shall be determined by a survey
satisfactory to the Secretary. The cost of the survey shall be
borne by the transferee.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyances under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2833. LAND CONVEYANCE, CALVERTON PINE BARRENS, NAVAL WEAPONS
INDUSTRIAL RESERVE PLANT, CALVERTON, NEW YORK.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey, without consideration, to the Department of
Environmental Conservation of the State of New York (in this
section referred to as the ``Department''), all right, title,
and interest of the United States in and to the Calverton Pine
Barrens located at the Naval Weapons Industrial Reserve Plant,
Calverton, New York.
(b) Effect on Other Conveyance Authority.--The conveyance
authorized by this subsection shall not affect the transfer of
jurisdiction of a portion of the Calverton Pine Barrens
authorized by section 2865 of the Military Construction
Authorization Act for Fiscal Year 1996 (division B of Public
Law 104-106; 110 Stat. 576).
(c) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the
Department agree--
(1) to maintain the conveyed property as a nature
preserve, as required by section 2854 of the Military
Construction Authorization Act for Fiscal Year 1993
(division B of Public Law 102-484; 106 Stat. 2626), as
amended by section 2823 of the Military Construction
Authorization Act for Fiscal Year 1995 (division B of
Public Law 103-337; 108 Stat. 3058);
(2) to designate the conveyed property as the
``Otis G. Pike Preserve''; and
(3) to continue to allow the level of sporting
activities on the conveyed property as permitted at the
time of the conveyance.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Secretary. The cost of the survey shall be borne by the
Department.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.
(f) Calverton Pine Barrens Defined.--In this section, the
term ``Calverton Pine Barrens'' has the meaning given that term
in section 2854(d)(1) of the Military Construction
Authorization Act for Fiscal Year 1993 (division B of Public
Law 102-484; 106 Stat. 2626).

SEC. 2834. LAND CONVEYANCE, FORMER NAVAL RESERVE FACILITY, LEWES,
DELAWARE.

(a) Conveyance Authorized.--The Secretary of the Navy may
convey, without consideration, to the State of Delaware (in
this section referred to as the ``State''), all right, title,
and interest of the United States in and to a parcel of real
property, including any improvements thereon, consisting of
approximately 16.8 acres at the site of the former Naval
Reserve Facility, Lewes, Delaware.
(b) Condition of Conveyance.--The conveyance under
subsection (a) shall be subject to the condition that the State
use the real property conveyed under that subsection in
perpetuity solely for public park or recreational purposes.
(c) Reversion.--If the Secretary of the Navy determines at
any time that the real property conveyed pursuant to this
section is not being used for a purpose specified in subsection
(b), all right, title, and interest in and to such real
property, including any improvements thereon, shall revert to
the United States, and the United States shall have the right
of immediate entry thereon.
(d) Description of Property.--The exact acreage and legal
description of the real property to be conveyed pursuant to
this section shall be determined by a survey satisfactory to
the Secretary of the Navy. The cost of such survey shall be
borne by the State.
(e) Additional Terms and Conditions.--The Secretary of the
Navy may require such additional terms and conditions in
connection with the conveyance under this section as the
Secretary considers appropriate to protect the interests of the
United States.

SEC. 2835. MODIFICATION OF LAND CONVEYANCE AUTHORITY, NAVAL RESERVE
CENTER, SEATTLE, WASHINGTON.

Paragraph (2) of section 127(d) of the Military
Construction Appropriations Act, 1995 (Public Law 103-307; 108
Stat. 1666), is amended to read as follows:
``(2) Before commencing construction of a facility to be
the replacement facility for the Naval Reserve Center under
paragraph (1), the Secretary shall comply with the requirements
of the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.) with respect to such facility.''.

SEC. 2836. RELEASE OF CONDITION ON RECONVEYANCE OF TRANSFERRED LAND,
GUAM.

(a) In General.--Section 818(b)(2) of the Military
Construction Authorization Act, 1981 (Public Law 96-418; 94
Stat. 1782), relating to a condition on disposal by Guam of
lands conveyed to Guam by the United States, shall have no
force or effect and is repealed.
(b) Execution of Instruments.--The Secretary of the Navy
and the Administrator of General Services shall execute all
instruments necessary to implement this section.

SEC. 2837. LEASE TO FACILITATE CONSTRUCTION OF RESERVE CENTER, NAVAL
AIR STATION, MERIDIAN, MISSISSIPPI.

(a) Lease of Property for Construction of Reserve Center.--
(1) The Secretary of the Navy may lease, without reimbursement,
to the State of Mississippi (in this section referred to as the
``State''), approximately five acres of real property located
at Naval Air Station, Meridian, Mississippi. The State shall
use the property to construct a reserve center of approximately
22,000 square feet and ancillary supporting facilities.
(2) The term of the lease under this subsection shall
expire on the same date that the lease authorized by subsection
(b) expires.
(b) Leaseback of Reserve Center.--(1) The Secretary may
lease from the State the property and improvements constructed
pursuant to subsection (a) for a five-year period. The term of
the lease shall begin on the date on which the improvements are
available for occupancy, as determined by the Secretary.
(2) Rental payments under the lease under paragraph (1) may
not exceed $200,000 per year, and the total amount of the
rental payments for the entire period may not exceed 20 percent
of the total cost of constructing the reserve center and
ancillary supporting facilities.
(3) Subject to the availability of appropriations for this
purpose, the Secretary may use funds appropriated pursuant to
an authorization of appropriations for the operation and
maintenance of the Naval Reserve to make rental payments
required under this subsection.
(c) Effect of Termination of Leases.--At the end of the
lease term under subsection (b), the State shall convey,
without reimbursement, to the United States all right, title,
and interest of the State in the reserve center and ancillary
supporting facilities subject to the lease.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the leases under this section as the Secretary considers
appropriate to protect the interests of the United States.

PART III--AIR FORCE CONVEYANCES

SEC. 2841. LAND CONVEYANCE, RADAR BOMB SCORING SITE, BELLE FOURCHE,
SOUTH DAKOTA.

(a) Conveyance Authorized.--The Secretary of the Air Force
may convey, without consideration, to the Belle Fourche School
District, Belle Fourche, South Dakota (in this section referred
to as the ``District''), all right, title, and interest of the
United States in and to a parcel of real property, together
with any improvements thereon, consisting of approximately 37
acres located in Belle Fourche, South Dakota, which has served
as the location of a support complex and housing facilities for
Detachment 21 of the 554th Range Squadron, an Air Force Radar
Bomb Scoring Site located in Belle Fourche, South Dakota. The
conveyance may not include any portion of the radar bomb
scoring site located in the State of Wyoming.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that the
District--
(1) use the property and facilities conveyed under
such subsection for education, economic development,
and housing purposes; or
(2) enter into an agreement with an appropriate
public or private entity to sell or lease the property
and facilities to such entity for such purposes.
(c) Description of Property.--The exact acreage and legal
description of the property conveyed under this section shall
be determined by a survey satisfactory to the Secretary. The
cost of the survey shall be borne by the District.
(d) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2842. CONVEYANCE OF PRIMATE RESEARCH COMPLEX AND AIR FORCE-OWNED
CHIMPANZEES, HOLLOMAN AIR FORCE BASE, NEW MEXICO.

(a) Disposal Authorized.--Notwithstanding any provision of
the Federal Property and Administrative Services Act of 1949
(40 U.S.C. 471 et seq.), or any regulations prescribed
thereunder, the Secretary of the Air Force may dispose of all
right, title, and interest of the United States in and to the
primate research complex at Holloman Air Force Base, New
Mexico. The disposal may include the chimpanzees owned by the
Air Force that are housed at or managed from the primate
research complex. The disposal shall not include the underlying
real property on which the primate research complex is located.
The disposal of the primate research complex shall be at no
cost to the Air Force.
(b) Competitive, Negotiated Disposal Process Required.--The
Secretary shall select the persons or entities to which the
primate research complex and chimpanzees are to be disposed of
under subsection (a) using a competitive, negotiated process.
(c) Standards To Be Used in Solicitation of Bids.--The
Secretary shall develop standards for the care and use of the
primate research complex, and of the chimpanzees, to be used in
soliciting bids for the disposal authorized by subsection (a).
The Secretary shall develop such standards in consultation with
the Secretary of Agriculture and the Director of the National
Institutes of Health.
(d) Conditions of Disposal.--The disposal authorized by
subsection (a) shall be subject to the followings conditions:
(1) That a recipient of any chimpanzees--
(A) utilize such chimpanzees only for
scientific research or medical research
purposes; or
(B) retire and provide adequate care for
such chimpanzees.
(2) That any recipient of chimpanzees, or the
primate research complex, take such chimpanzees, or the
primate research complex, subject to any existing
leases or other encumbrances at the time of the
disposal.
(e) Description of Complex and Chimpanzees.--The exact
legal description of the primate research complex and
chimpanzees to be disposed of under subsection (a) shall be
determined by a survey or other means satisfactory to the
Secretary. The cost of any survey or other services performed
at the direction of the Secretary under the authority in the
preceding sentence shall be borne by the recipient of the
property concerned.
(f) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the disposal under subsection (a) as the Secretary considers
appropriate to protect the interests of the United States.

PART IV--OTHER CONVEYANCES

SEC. 2851. LAND CONVEYANCE, TATUM SALT DOME TEST SITE, MISSISSIPPI.

(a) Conveyance Authorized.--The Secretary of Energy may
convey, without compensation, to the State of Mississippi (in
this section referred to as the ``State'') the property known
as the Tatum Salt Dome Test Site, as generally depicted on the
map of the Department of Energy numbered 301913.104.02 and
dated June 25, 1993.
(b) Condition on Conveyance.--The conveyance under this
section shall be subject to the condition that the State use
the conveyed property as a wildlife refuge and working
demonstration forest.
(c) Designation.--The property to be conveyed is hereby
designated as the ``Jamie Whitten Forest Management Area''.
(d) Retained Rights.--The conveyance under this section
shall be subject to each of the following rights to be retained
by the United States:
(1) Retention by the United States of subsurface
estates below the property conveyed.
(2) Retention by the United States of rights of
access, by easement or otherwise, for such purposes as
the Secretary considers appropriate, including access
to monitoring wells for sampling.
(3) Retention by the United States of the right to
install wells additional to those identified in the
remediation plan for the property to the extent such
additional wells are considered necessary by the
Secretary to monitor potential pathways of contaminant
migration. Such wells shall be in such locations as
specified by the Secretary.
(e) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in connection with
the conveyance under this section as the Secretary considers
appropriate to protect the interests of the United States.

SEC. 2852. LAND CONVEYANCE, WILLIAM LANGER JEWEL BEARING PLANT, ROLLA,
NORTH DAKOTA.

(a) Conveyance Authorized.--The Administrator of General
Services may convey, without consideration, to the Job
Development Authority of the City of Rolla, North Dakota (in
this section referred to as the ``Authority''), all right,
title, and interest of the United States in and to a parcel of
real property, with improvements thereon and all associated
personal property, consisting of approximately 9.77 acres and
comprising the William Langer Jewel Bearing Plant in Rolla,
North Dakota.
(b) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that the
Authority--
(1) use the real and personal property and
improvements conveyed under that subsection for
economic development relating to the jewel bearing
plant;
(2) enter into an agreement with an appropriate
public or private entity or person to lease such
property and improvements to that entity or person for
such economic development; or
(3) enter into an agreement with an appropriate
public or private entity or person to sell such
property and improvements to that entity or person for
such economic development.
(c) Preference for Domestic Disposal of Jewel Bearings.--
(1) In offering to enter into agreements pursuant to any
provision of law for the disposal of jewel bearings from the
National Defense Stockpile, the President shall give a right of
first refusal on all such offers to the Authority or to the
appropriate public or private entity or person with which the
Authority enters into an agreement under subsection (b).
(2) For the purposes of this section, the term ``National
Defense Stockpile'' means the stockpile provided for in section
4 of the Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98(c)).
(d) Availability of Funds for Maintenance and Conveyance of
Plant.--Notwithstanding any other provision of law, funds
available under the Department of Defense Appropriations Act,
1995 (Public Law 103-335), in fiscal year 1995 for the
maintenance of the William Langer Jewel Bearing Plant shall be
available for the maintenance of the plant pending the
conveyance of the plant and for the conveyance of the plant
under this section.
(e) Description of Property.--The exact acreage and legal
description of the property conveyed under this section shall
be determined by a survey satisfactory to the Administrator.
The cost of the survey shall be borne by the Administrator.
(f) Additional Terms and Conditions.--The Administrator may
require such additional terms and conditions in connection with
the conveyance under this section as the Administrator
determines appropriate to protect the interests of the United
States.

SEC. 2853. LAND CONVEYANCE, AIR FORCE PLANT NO. 85, COLUMBUS, OHIO.

(a) Conveyance Authorized.--Notwithstanding any other
provision of law, the Secretary of the Air Force may instruct
the Administrator of General Services to convey, without
consideration, to the Columbus Municipal Airport Authority (in
this section referred to as the ``Authority'') all right,
title, and interest of the United States in and to a parcel of
real property, together with improvements thereon, at Air Force
Plant No. 85, Columbus, Ohio, consisting of approximately 240
acres that--
(1) contains the land and buildings referred to as
the ``airport parcel'' in the correspondence from the
General Services Administration to the Authority dated
April 30, 1996; and
(2) is located adjacent to the Port Columbus
International Airport.
(b) Effect of Change in Administrative Jurisdiction.--If,
on the date of the enactment of this Act, the Secretary of the
Air Force does not have administrative jurisdiction over the
property to be conveyed, the conveyance shall be made by the
Federal official who has administrative jurisdiction over the
parcel as of that date.
(c) Requirement for Federal Screening.--The Federal
official responsible for making the conveyance authorized in
subsection (a) may not convey the property unless the Federal
official determines, in consultation with the Administrator of
General Services, that no department or agency of the Federal
Government will accept the transfer of the property.
(d) Condition of Conveyance.--The conveyance authorized
under subsection (a) shall be subject to the condition that the
Authority use the conveyed property for public airport
purposes.
(e) Reversion.--If the Federal official making the
conveyance under subsection (a) determines that any portion of
the conveyed property is not being utilized in accordance with
the condition in subsection (d), all right, title, and interest
in and to such portion shall revert to the United States, and
the United States shall have immediate right of entry thereon.
(f) Description of Property.--The exact acreage and legal
description of the real property to be conveyed under
subsection (a) shall be determined by a survey satisfactory to
the Federal official responsible for making the conveyance. The
cost of the survey shall be borne by the Authority.
(g) Additional Terms and Conditions.--The Federal official
responsible for making the conveyance of property under
subsection (a) may require such additional terms and conditions
in connection with the conveyance as such official considers
appropriate to protect the interests of the United States.

SEC. 2854. MODIFICATION OF BOUNDARIES OF WHITE SANDS NATIONAL MONUMENT
AND WHITE SANDS MISSILE RANGE.

(a) Transfer of Lands by Secretary of Army.--The Secretary
of the Army may transfer to the administrative jurisdiction of
the Secretary of the Interior the following lands as generally
depicted on the map entitled ``White Sands National Monument,
Boundary Proposal'', numbered 142/80,061, and dated January
1994:
(1) Lands consisting of approximately 2,524 acres
located within White Sands National Monument, New
Mexico.
(2) Lands consisting of approximately 5,758 acres
located within White Sands Missile Range, New Mexico,
and abutting White Sands National Monument.
(b) Transfer of Lands by Secretary of Interior.--The
Secretary of the Interior may transfer to the administrative
jurisdiction of the Secretary of the Army lands consisting of
approximately 4,277 acres located in White Sands National
Monument, which lands are generally depicted on the map
referred to in subsection (a).
(c) Boundary Modifications.--(1) The Secretary of the Army
and the Secretary of the Interior shall jointly modify the
boundary of White Sands National Monument so as to include
within the national monument the lands transferred under
subsection (a) and to exclude from the national monument the
lands transferred under subsection (b).
(2) The Secretary of the Army and the Secretary of the
Interior shall jointly modify the boundary of White Sands
Missile Range as to include within the missile range the lands
transferred under subsection (b) and exclude from the missile
range the lands transferred under subsection (a).
(d) Administration of Transferred Lands.--(1) The Secretary
of the Interior shall administer the lands transferred to that
Secretary under subsection (a) in accordance with the laws
applicable to the White Sands National Monument.
(2) The Secretary of the Army shall administer the lands
transferred to that Secretary under subsection (b) as part of
White Sands Missile Range.
(3) The Secretary of the Army shall maintain control of the
airspace above the lands transferred to that Secretary under
subsection (b) and administer that airspace in a manner
consistent with the use of such lands as part of White Sands
Missile Range.
(e) Public Availability of Map of Monument.--The Secretary
of the Interior and the Secretary of the Army shall jointly
prepare, and the Secretary of the Interior shall keep on file
for public inspection in the headquarters of White Sands
National Monument, a map showing the boundary of White Sands
National Monument as modified by this section.
(f) Waiver of Limitation Under Prior Law.--Notwithstanding
section 303(b)(1) of the National Parks and Recreation Act of
1978 (Public Law 95-625; 92 Stat. 3476), land or an interest in
land that was deleted from White Sands National Monument by
section 301(19) of the Act (92 Stat. 3475) may, at the election
of the Secretary of the Interior, be--
(1) exchanged for land owned by the State of New
Mexico within the boundaries of any unit of the
National Park System in the State of New Mexico;
(2) transferred to the jurisdiction of any other
Federal agency without monetary consideration; or
(3) administered as public land.

Subtitle D--Other Matters

SEC. 2861. AUTHORITY TO GRANT EASEMENTS FOR RIGHTS-OF-WAY.

(a) Easements for Electric Poles and Lines and for
Communications Lines and Facilities.--Section 2668(a) of title
10, United States Code, is amended--
(1) by striking out ``and'' at the end of paragraph
(9);
(2) by redesignating paragraph (10) as paragraph
(13); and
(3) by inserting after paragraph (9) the following
new paragraphs:
``(10) poles and lines for the transmission or
distribution of electric power;
``(11) poles and lines for the transmission or
distribution of communications signals (including
telephone and telegraph signals);
``(12) structures and facilities for the
transmission, reception, and relay of such signals;
and''.
(b) Conforming Amendments.--Such section is further
amended--
(1) in paragraph (3), by striking out ``, telephone
lines, and telegraph lines,''; and
(2) in paragraph (13), as redesignated by
subsection (a)(2), by striking out ``or by the Act of
March 4, 1911 (43 U.S.C. 961)''.

SEC. 2862. AUTHORITY TO ENTER INTO COOPERATIVE AGREEMENTS FOR THE
MANAGEMENT OF CULTURAL RESOURCES ON MILITARY
INSTALLATIONS.

(a) Agreements Authorized.--Chapter 159 of title 10, United
States Code, is amended by inserting after section 2683 the
following new section:

``Sec. 2684. Cooperative agreements for management of cultural
resources

``(a) Authority.--The Secretary of Defense or the Secretary
of a military department may enter into a cooperative agreement
with a State or local government or other entity for the
preservation, management, maintenance, and improvement of
cultural resources on military installations and for the
conduct of research regarding the cultural resources.
Activities under the cooperative agreement shall be subject to
the availability of funds to carry out the cooperative
agreement.
``(b) Application of Other Laws.--Section 1535 and chapter
63 of title 31 shall not apply to a cooperative agreement
entered into under this section.
``(c) Cultural Resource Defined.--In this section, the term
`cultural resource' means any of the following:
``(1) A building, structure, site, district, or
object eligible for or included in the National
Register of Historic Places maintained under section
101(a) of the National Historic Preservation Act (16
U.S.C. 470a(a)).
``(2) Cultural items, as that term is defined in
section 2(3) of the Native American Graves Protection
and Repatriation Act (25 U.S.C. 3001(3)).
``(3) An archaeological resource, as that term is
defined in section 3(1) of the Archaeological Resources
Protection Act of 1979 (16 U.S.C. 470bb(1)).
``(4) An archaeological artifact collection and
associated records covered by section 79 of title 36,
Code of Federal Regulations.''.
(b) Clerical Amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 2683 the following new item:

``2684. Cooperative agreements for management of cultural resources.''.

SEC. 2863. DEMONSTRATION PROJECT FOR INSTALLATION AND OPERATION OF
ELECTRIC POWER DISTRIBUTION SYSTEM AT YOUNGSTOWN
AIR RESERVE STATION, OHIO.

(a) Authority.--The Secretary of the Air Force may carry
out a demonstration project to assess the feasibility and
advisability of permitting private entities to install,
operate, and maintain electric power distribution systems at
military installations. The Secretary shall carry out the
demonstration project through an agreement under subsection
(b).
(b) Agreement.--(1) In order to carry out the demonstration
project, the Secretary shall enter into an agreement with an
electric utility or other company in the Youngstown, Ohio,
area, consistent with State law, under which the utility or
company installs, operates, and maintains (in a manner
satisfactory to the Secretary and the utility or company) an
electric power distribution system at Youngstown Air Reserve
Station, Ohio.
(2) The Secretary may not enter into an agreement under
this subsection until--
(A) the Secretary submits to Congress a report on
the agreement to be entered into, including the costs
to be incurred by the United States under the
agreement; and
(B) a period of 30 days has elapsed from the date
of the receipt of the report by the committees.
(c) Licenses and Easements.--In order to facilitate the
installation, operation, and maintenance of the electric power
distribution system under the agreement under subsection (b),
the Secretary may grant the utility or company with which the
Secretary enters into the agreement such licenses, easements,
and rights-of-way, consistent with State law, as the Secretary
and the utility or company jointly determine necessary for such
purposes.
(d) Ownership of System.--The agreement between the
Secretary and the utility or company under subsection (b) may
provide that the utility or company shall own the electric
power distribution system installed under the agreement.
(e) Rate.--The rate charged by the utility or company for
providing or distributing electric power at Youngstown Air
Reserve Station through the electric power distribution system
installed under the agreement under subsection (b) shall be the
rate established by the appropriate Federal or State regulatory
authority.
(f) Reports.--Not later than February 1, 1997, and February
1 of each year following a year in which the Secretary carries
out the demonstration project under this section, the Secretary
shall submit to Congress a report on the project. The report
shall include the Secretary's current assessment of the project
and the recommendations, if any, of the Secretary of extending
the authority with respect to the project to other facilities
and installations of the Department of Defense.
(g) Funding.--In order to pay the costs of the United
States under the agreement under subsection (b), the Secretary
may use funds authorized to be appropriated by section
2601(3)(B) of the Military Construction Authorization Act for
Fiscal Year 1996 (division B of Public Law 104-106; 110 Stat.
540) for the purpose of rebuilding the electric power
distribution system at the Youngstown Air Reserve Station that
were appropriated for that purpose by the Military Construction
Appropriations Act, 1996 (Public Law 104-32; 109 Stat. 283),
and that remain available for obligation for that purpose as of
the date of the enactment of this Act.
(h) Application of Other Law.--Nothing in this section
shall authorize actions which are inconsistent with Federal or
State law.
(i) Additional Terms and Conditions.--The Secretary may
require such additional terms and conditions in the agreement
under subsection (b) as the Secretary considers appropriate to
protect the interests of the United States.

SEC. 2864. RENOVATION OF THE PENTAGON RESERVATION.

The Secretary of Defense shall take such actions as are
necessary to ensure that the total cost of the renovation of
the Pentagon Reservation does not exceed $1,118,000,000.

SEC. 2865. PLAN FOR REPAIRS AND STABILIZATION OF THE HISTORIC DISTRICT
AT THE FOREST GLEN ANNEX OF WALTER REED MEDICAL
CENTER, MARYLAND.

Not later than 120 days after the date of the enactment of
this Act, the Secretary of the Army shall submit to the
congressional defense committees a comprehensive plan for basic
repairs and stabilization measures throughout the historic
district at the Forest Glen Annex of Walter Reed Army Medical
Center, Maryland, together with funding options for the
implementation of the plan.

SEC. 2866. NAMING OF RANGE AT CAMP SHELBY, MISSISSIPPI.

(a) Name.--The Multi Purpose Range Complex (Heavy) at Camp
Shelby, Mississippi, shall after the date of the enactment of
this Act be known and designated as the ``G.V. (Sonny)
Montgomery Range''. Any reference to such range in any law,
regulation, map, document, record, or other paper of the United
States shall be considered to be a reference to the G. V.
(Sonny) Montgomery Range.
(b) Effective Date.--Subsection (a) shall take effect at
noon on January 3, 1997, or the first day on which G. V.
(Sonny) Montgomery otherwise ceases to be a Member of the House
of Representatives.

SEC. 2867. DESIGNATION OF MICHAEL O'CALLAGHAN MILITARY HOSPITAL.

(a) Designation.--The Nellis Federal Hospital, a Federal
building located at 4700 North Las Vegas Boulevard, Las Vegas,
Nevada, shall be known and designated as the ``Michael
O'Callaghan Military Hospital''.
(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the
Federal building referred to in subsection (a) shall be deemed
to be a reference to the ``Michael O'Callaghan Military
Hospital''.

SEC. 2868. NAMING OF BUILDING AT THE UNIFORMED SERVICES UNIVERSITY OF
THE HEALTH SCIENCES.

It is the sense of Congress that the Secretary of Defense
should name Building A at the Uniformed Services University of
the Health Sciences as the ``David Packard Building''.

TITLE XXIX--MILITARY LAND WITHDRAWALS

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

Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

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

SEC. 2901. SHORT TITLE.

This subtitle may be cited as the ``Fort Carson-Pinon
Canyon Military Lands Withdrawal Act''.

SEC. 2902. WITHDRAWAL AND RESERVATION OF LANDS AT FORT CARSON MILITARY
RESERVATION.

(a) Withdrawal.--Subject to valid existing rights and
except as otherwise provided in this subtitle, the lands at the
Fort Carson Military Reservation, Colorado, that are described
in subsection (c) are hereby withdrawn from all forms of
appropriation under the public land laws, including the mining
laws, the mineral and geothermal leasing laws, and the mineral
materials disposal laws.
(b) Reservation.--The lands withdrawn under subsection (a)
are reserved for use by the Secretary of the Army--
(1) for military maneuvering, training and weapons
firing; and
(2) for other defense related purposes consistent
with the uses specified in paragraph (1).
(c) Land Description.--The lands referred to in subsection
(a) comprise 3,133.02 acres of public land and 11,415.16 acres
of federally-owned minerals in El Paso, Pueblo, and Fremont
Counties, Colorado, as generally depicted on the map entitled
``Fort Carson Proposed Withdrawal--Fort Carson Base'', dated
February 6, 1992, and published in accordance with section
2904.

SEC. 2903. WITHDRAWAL AND RESERVATION OF LANDS AT PINON CANYON MANEUVER
SITE.

(a) Withdrawal.--Subject to valid existing rights and
except as otherwise provided in this subtitle, the lands at the
Pinon Canyon Maneuver Site, Colorado, that are described in
subsection (c) are hereby withdrawn from all forms of
appropriation under the public land laws, including the mining
laws, the mineral and geothermal leasing laws, and the mineral
materials disposal laws.
(b) Reservation.--The lands withdrawn under subsection (a)
are reserved for use by the Secretary of the Army--
(1) for military maneuvering and training; and
(2) for other defense related purposes consistent
with the uses specified in paragraph (1).
(c) Land Description.--The lands referred to in subsection
(a) comprise 2,517.12 acres of public lands and 130,139 acres
of federally-owned minerals in Las Animas County, Colorado, as
generally depicted on the map entitled ``Fort Carson Proposed
Withdrawal--Fort Carson Maneuver Area--Pinon Canyon site'',
dated February 6, 1992, and published in accordance with
section 2904.

SEC. 2904. MAPS AND LEGAL DESCRIPTIONS.

(a) Preparation of Maps and Legal Description.--As soon as
practicable after the date of the enactment of this subtitle,
the Secretary of the Interior shall prepare maps depicting the
lands withdrawn and reserved by this subtitle and publish in
the Federal Register a notice containing the legal description
of such lands.
(b) Legal Effect.--Such maps and legal descriptions shall
have the same force and effect as if they were included in this
subtitle, except that the Secretary of the Interior may correct
clerical and typographical errors in such maps and legal
descriptions.
(c) Availability of Maps and Legal Description.--Copies of
such maps and legal descriptions shall be available for public
inspection in the offices of the Colorado State Director and
the Canon City District Manager of the Bureau of Land
Management and in the offices of the Commander of Fort Carson,
Colorado.
(d) Costs.--The Secretary of the Army shall reimburse the
Secretary of the Interior for the costs of implementing this
section.

SEC. 2905. MANAGEMENT OF WITHDRAWN LANDS.

(a) Management Guidelines.--
(1) Management by secretary of the army.--Except as
provided in section 2906, during the period of
withdrawal, the Secretary of the Army shall manage for
military purposes the lands covered by this subtitle
and may authorize use of the lands by the other
military departments and agencies of the Department of
Defense, and the National Guard, as appropriate.
(2) Access restrictions.--When military operations,
public safety, or national security, as determined by
the Secretary of the Army, require the closure of roads
and trails on the lands withdrawn by this subtitle
commonly in public use, the Secretary of the Army is
authorized to take such action, except that such
closures shall be limited to the minimum areas and
periods required for the purposes specified in this
subsection. Appropriate warning notices shall be kept
posted during closures.
(3) Suppression of fires.--The Secretary of the
Army shall take necessary precautions to prevent and
suppress brush and range fires occurring within and
outside the lands as a result of military activities
and may seek assistance from the Bureau of Land
Management in suppressing such fires. The memorandum of
understanding required by this section shall provide
for Bureau of Land Management assistance in the
suppression of such fires, and for a transfer of funds
from the Department of the Army to the Bureau of Land
Management as compensation for such assistance.
(b) Management Plan.--
(1) Development required.--The Secretary of the
Army, with the concurrence of the Secretary of the
Interior, shall develop a plan for the management of
acquired lands and lands withdrawn under sections 2902
and 2903 for the period of withdrawal. The plan shall--
(A) be consistent with applicable law;
(B) include such provisions as may be
necessary for proper resource management and
protection of the natural, cultural, and other
resources and values of such lands; and
(C) identify those withdrawn and acquired
lands, if any, which are to be open to mining
or mineral and geothermal leasing, including
mineral materials disposal.
(2) Time for development.--The management plan
required by this subsection shall be developed not
later than 5 years after the date of the enactment of
this subtitle.
(c) Implementation of Management Plan.--
(1) Memorandum of understanding required.--The
Secretary of the Army and the Secretary of the Interior
shall enter into a memorandum of understanding to
implement the management plan developed under
subsection (b).
(2) Duration.--The duration of any such memorandum
of understanding shall be the same as the period of
withdrawal specified in section 2908(a).
(3) Amendment.--The memorandum of understanding may
be amended by agreement of both Secretaries.
(d) Use of Certain Resources.--The Secretary of the Army is
authorized to utilize sand, gravel, or similar mineral or
mineral material resources from the lands withdrawn by this
subtitle when the use of such resources is required for
construction needs of the Fort Carson Reservation or Pinon
Canyon Maneuver Site.

SEC. 2906. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

Except as provided in section 2905(d), the Secretary of the
Interior shall manage all withdrawn and acquired mineral
resources within the boundaries of the Fort Carson Military
Reservation and Pinon Canyon Maneuver Site in the same manner
as provided in section 12 of the Military Lands Withdrawal Act
of 1986 (Public Law 99-606; 100 Stat. 3466) for mining and
mineral leasing on certain lands withdrawn by that Act from all
forms of appropriation under the public land laws.

SEC. 2907. HUNTING, FISHING, AND TRAPPING.

All hunting, fishing, and trapping on the lands withdrawn
and reserved by this subtitle shall be conducted in accordance
with section 2671 of title 10, United States Code.

SEC. 2908. TERMINATION OF WITHDRAWAL AND RESERVATION.

(a) Termination Date.--The withdrawal and reservation made
by this subtitle shall terminate 15 years after the date of the
enactment of this subtitle.
(b) Determination of Continuing Military Need.--
(1) Determination required.--At least three years
before the termination under subsection (a) of the
withdrawal and reservation established by this
subtitle, the Secretary of the Army shall advise the
Secretary of the Interior as to whether or not the
Department of the Army will have a continuing military
need for any of the lands after the termination date.
(2) Method of making determination.--If the
Secretary of the Army concludes under paragraph (1)
that there will be a continuing military need for any
of the lands after the termination date established by
subsection (a), the Secretary of the Army, in
accordance with applicable law, shall--
(A) evaluate the environmental effects of
renewal of such withdrawal and reservation;
(B) hold at least one public hearing in
Colorado concerning such evaluation; and
(C) file, after completing the requirements
of subparagraphs (A) and (B), an application
for extension of the withdrawal and reservation
of such lands in accordance with the
regulations and procedures of the Department of
the Interior applicable to the extension of
withdrawals for military uses.
(3) Notification.--The Secretary of the Interior
shall notify the Congress concerning a filing under
paragraph (3)(C).
(c) Early Relinquishment of Withdrawal.--If the Secretary
of the Army concludes under subsection (b) that before the
termination date established by subsection (a) there will be no
military need for all or any part of the lands withdrawn and
reserved by this subtitle, or if, during the period of
withdrawal, the Secretary of the Army otherwise decides to
relinquish any or all of the lands withdrawn and reserved under
this subtitle, the Secretary of the Army shall file with the
Secretary of the Interior a notice of intention to relinquish
such lands.
(d) Acceptance of Lands Proposed for Relinquishment.--
Notwithstanding any other provision of law, the Secretary of
the Interior, upon deciding that it is in the public interest
to accept jurisdiction over the lands proposed for
relinquishment, may revoke the withdrawal and reservation
established by this subtitle as it applies to the lands
proposed for relinquishment. Should the decision be made to
revoke the withdrawal and reservation, the Secretary of the
Interior shall publish in the Federal Register an appropriate
order which shall--
(1) terminate the withdrawal and reservation;
(2) constitute official acceptance of full
jurisdiction over the lands by the Secretary of the
Interior; and
(3) state the date upon which the lands will be
opened to the operation of the public land laws,
including the mining laws if appropriate.

SEC. 2909. DETERMINATION OF PRESENCE OF CONTAMINATION AND EFFECT OF
CONTAMINATION.

(a) Determination of Presence of Contamination.--
(1) Before relinquishment notice.--Before filing a
relinquishment notice under section 2908(c), the
Secretary of the Army shall prepare a written
determination as to whether and to what extent the
lands to be relinquished are contaminated with
explosive, toxic, or other hazardous materials. A copy
of the determination made by the Secretary of the Army
shall be supplied with the relinquishment notice.
Copies of both the relinquishment notice and the
determination under this subsection shall be published
in the Federal Register by the Secretary of the
Interior.
(2) Upon termination of withdrawal.--At the
expiration of the withdrawal period made by this Act,
the Secretary of the Interior shall determine whether
and to what extent the lands withdrawn by this subtitle
are contaminated to an extent which prevents opening
such contaminated lands to operation of the public land
laws.
(b) Program of Decontamination.--
(1) In general.--Throughout the duration of the
withdrawal and reservation made by this subtitle, the
Secretary of the Army, to the extent funds are made
available, shall maintain a program of decontamination
of the lands withdrawn by this subtitle at least at the
level of effort carried out during fiscal year 1992.
(2) Decontamination of lands to be relinquished.--
In the case of lands subject to a relinquishment notice
under section 2908(c) that are contaminated, the
Secretary of the Army shall decontaminate the land to
the extent that funds are appropriated for such purpose
if the Secretary of the Interior, in consultation with
the Secretary of the Army, determines that--
(A) decontamination of the lands is
practicable and economically feasible, taking
into consideration the potential future use and
value of the land; and
(B) upon decontamination, the land could be
opened to the operation of some or all of the
public land laws, including the mining laws.
(c) Authority of Secretary of the Interior To Refuse
Contaminated Lands.--The Secretary of the Interior shall not be
required to accept lands proposed for relinquishment if the
Secretary of the Army and the Secretary of the Interior
conclude that--
(1) decontamination of any or all of the lands
proposed for relinquishment is not practicable or
economically feasible;
(2) the lands cannot be decontaminated sufficiently
to allow them to be opened to the operation of the
public land laws; or
(3) insufficient funds are appropriated for the
purpose of decontaminating the lands.
(d) Effect of Continued Contamination.--If the Secretary of
the Interior declines under subsection (c) to accept
jurisdiction of lands proposed for relinquishment or if the
Secretary of the Interior determines under subsection (a)(2)
that some of the lands withdrawn by this subtitle are
contaminated to an extent that prevents opening the
contaminated lands to operation of the public land laws--
(1) the Secretary of the Army shall take
appropriate steps to warn the public of the
contaminated state of such lands and any risks
associated with entry onto such lands;
(2) after the expiration of the withdrawal, the
Secretary of the Army shall undertake no activities on
such lands except in connection with decontamination of
such lands; and
(3) the Secretary of the Army shall report to the
Secretary of the Interior and to the Congress
concerning the status of such lands and all actions
taken under paragraphs (1) and (2).
(e) Effect of Subsequent Decontamination.--If the lands
described in subsection (d) are subsequently decontaminated,
upon certification by the Secretary of the Army that the lands
are safe for all nonmilitary uses, the Secretary of the
Interior shall reconsider accepting jurisdiction over the
lands.
(f) Effect on Other Laws.--Nothing in this subtitle shall
affect, or be construed to affect, the obligations of the
Secretary of the Army, if any, to decontaminate lands withdrawn
by this subtitle pursuant to applicable law, including the
Comprehensive Environmental Response Compensation and Liability
Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid Waste
Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2910. DELEGATION.

The functions of the Secretary of the Army under this
subtitle may be delegated. The functions of the Secretary of
the Interior under this subtitle may be delegated, except that
the order referred to in section 2908(d) may be approved and
signed only by the Secretary of the Interior, the Deputy
Secretary of the Interior, or an Assistant Secretary of the
Department of the Interior.

SEC. 2911. HOLD HARMLESS.

Any party conducting any mining, mineral, or geothermal
leasing activity on lands comprising the Fort Carson
Reservation or Pinon Canyon Maneuver Site shall indemnify the
United States against any costs, fees, damages, or other
liabilities (including costs of litigation) incurred by the
United States and arising from or relating to such mining
activities, including costs of mineral materials disposal,
whether arising under the Comprehensive Environmental Response
Compensation and Liability Act of 1980, the Solid Waste
Disposal Act, or otherwise.

SEC. 2912. AMENDMENT TO MILITARY LANDS WITHDRAWAL ACT OF 1986.

(a) Use of Certain Resources.--Section 3(f) of the Military
Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat.
3461) is amended by adding at the end the following new
paragraph:
``(2) Subject to valid existing rights, the Secretary of
the military department concerned may utilize sand, gravel, or
similar mineral or material resources when the use of such
resources is required for construction needs on the respective
lands withdrawn by this Act.''.
(b) Technical Correction.--Section 9(b) of the Military
Lands Withdrawal Act of 1986 (Public Law 99-606; 100 Stat.
3466) is amended by striking ``section 7(f)'' and inserting in
lieu thereof ``section 8(f)''.

SEC. 2913. AUTHORIZATION OF APPROPRIATIONS.

There are hereby authorized to be appropriated such sums as
may be necessary to carry out the purposes of this subtitle.

Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

SEC. 2921. SHORT TITLE AND DEFINITIONS.

(a) Short Title.--This subtitle may be cited as the ``El
Centro Naval Air Facility Ranges Withdrawal Act''.
(b) Definitions.--In this subtitle:
(1) The term ``El Centro'' means the Naval Air
Facility, El Centro, California.
(2) The term ``cooperative agreement'' means the
cooperative agreement entered into between the Bureau
of Land Management, the Bureau of Reclamation, and the
Department of the Navy, dated June 29, 1987, with
regard to the defense-related uses of Federal lands to
further the mission of El Centro.
(3) The term ``relinquishment notice'' means a
notice of intention by the Secretary of the Navy under
section 2928(a) to relinquish, before the termination
date specified in section 2925, the withdrawal and
reservation of certain lands withdrawn under this
subtitle.

SEC. 2922. WITHDRAWAL AND RESERVATION OF LANDS FOR EL CENTRO.

(a) Withdrawals.--Subject to valid existing rights, and
except as otherwise provided in this subtitle, the Federal
lands utilized in the mission of the Naval Air Facility, El
Centro, California, that are described in subsection (c) are
hereby withdrawn from all forms of appropriation under the
public land laws, including the mining laws, but not the
mineral leasing or geothermal leasing laws or the mineral
materials sales laws.
(b) Reservation.--The lands withdrawn under subsection (a)
are reserved for the use by the Secretary of the Navy--
(1) for defense-related purposes in accordance with
the cooperative agreement; and
(2) subject to notice to the Secretary of the
Interior under section 2924(e), for other defense-
related purposes determined by the Secretary of the
Navy.
(c) Description of Withdrawn Lands.--The lands withdrawn
and reserved under subsection (a) are--
(1) the Federal lands comprising approximately
46,600 acres in Imperial County, California, as
generally depicted in part on a map entitled ``Exhibit
A, Naval Air Facility, El Centro, California, Land
Acquisition Map, Range 2510 (West Mesa)'' and dated
March 1993 and in part on a map entitled ``Exhibit B,
Naval Air Facility, El Centro, California, Land
Acquisition Map Range 2512 (East Mesa)'' and dated
March 1993; and
(2) and all other areas within the boundaries of
such lands as depicted on such maps that may become
subject to the operation of the public land laws.

SEC. 2923. MAPS AND LEGAL DESCRIPTIONS.

(a) Publication and Filing Requirements.--As soon as
practicable after the date of the enactment of this subtitle,
the Secretary of the Interior shall--
(1) publish in the Federal Register a notice
containing the legal description of the lands withdrawn
and reserved under this subtitle; and
(2) file maps and the legal description of the
lands withdrawn and reserved under this subtitle with
the Committee on Energy and Natural Resources of the
Senate and with the Committee on Resources of the House
of Representatives.
(b) Legal Effect.--The maps and legal description prepared
under subsection (a) shall have the same force and effect as if
they were included in this subtitle, except that the Secretary
of the Interior may correct clerical and typographical errors
in the maps and legal description.
(c) Availability for Public Inspection.--Copies of the maps
and legal description prepared under subsection (a) shall be
available for public inspection in--
(1) the Office of the State Director, California
State Office of the Bureau of Land Management,
Sacramento, California;
(2) the Office of the District Manager, California
Desert District of the Bureau of Land Management,
Riverside, California; and
(3) the Office of the Commanding Officer, Marine
Corps Air Station, Yuma, Arizona.
(d) Reimbursement.--The Secretary of Navy shall reimburse
the Secretary of the Interior for the cost of implementing this
section.

SEC. 2924. MANAGEMENT OF WITHDRAWN LANDS.

(a) Management Consistent With Cooperative Agreement.--The
lands and resources shall be managed in accordance with the
cooperative agreement, revised as necessary to conform to the
provisions of this subtitle. The parties to the cooperative
agreement shall review the cooperative agreement for
conformance with this subtitle and amend the cooperative
agreement, if appropriate, within 120 days after the date of
the enactment of this subtitle. The term of the cooperative
agreement shall be amended so that its duration is at least
equal to the duration of the withdrawal made by section 2925.
The cooperative agreement may be reviewed and amended by the
managing agencies as necessary.
(b) Management by Secretary of the Interior.--
(1) General management authority.--During the
period of withdrawal, the Secretary of the Interior
shall manage the lands withdrawn and reserved under
this subtitle pursuant to the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.) and
other applicable laws, including this subtitle.
(2) Specific authorities.--To the extent consistent
with applicable laws, Executive orders, and the
cooperative agreement, the lands withdrawn and reserved
under this subtitle may be managed in a manner
permitting--
(A) protection of wildlife and wildlife
habitat;
(B) control of predatory and other animals;
(C) the prevention and appropriate
suppression of brush and range fires resulting
from nonmilitary activities; and
(D) geothermal leasing and development and
related power production, mineral leasing and
development, and mineral material sales.
(3) Effect of withdrawal.--The Secretary of the
Interior shall manage the lands withdrawn and reserved
under this subtitle, in coordination with the Secretary
of the Navy, such that all nonmilitary use of such
lands, including the uses described in paragraph (2),
shall be subject to such conditions and restrictions as
may be necessary to permit the military use of such
lands for the purposes specified in the cooperative
agreement or authorized pursuant to this subtitle.
(c) Certain Activities Subject to Concurrence of Navy.--The
Secretary of the Interior may issue a lease, easement, right-
of-way, or other authorization with respect to the nonmilitary
use of the withdrawn lands only with the concurrence of the
Secretary of the Navy and under the terms of the cooperative
agreement.
(d) Access Restrictions.--If the Secretary of the Navy
determines that military operations, public safety, or national
security require the closure to public use of any road, trail,
or other portion of the lands withdrawn under this subtitle,
the Secretary may take such action as the Secretary determines
necessary or desirable to effect and maintain such closure. Any
such closure shall be limited to the minimum areas and periods
which the Secretary of the Navy determines are required to
carry out this subsection. Before and during any closure under
this subsection, the Secretary of the Navy shall keep
appropriate warning notices posted and take appropriate steps
to notify the public concerning such closures.
(e) Additional Military Uses.--Lands withdrawn under this
subtitle may be used for defense-related uses other than those
specified in the cooperative agreement. The Secretary of the
Navy shall promptly notify the Secretary of the Interior in the
event that the lands withdrawn under this subtitle will be used
for additional defense-related purposes. Such notification
shall indicate the additional use or uses involved, the
proposed duration of such uses, and the extent to which such
additional military uses of the withdrawn lands will require
that additional or more stringent conditions or restrictions be
imposed on otherwise-permitted nonmilitary uses of all or any
portion of the withdrawn lands.

SEC. 2925. DURATION OF WITHDRAWAL AND RESERVATION.

The withdrawal and reservation made under this subtitle
shall terminate 25 years after the date of the enactment of
this subtitle.

SEC. 2926. CONTINUATION OF ONGOING DECONTAMINATION ACTIVITIES.

Throughout the duration of the withdrawal and reservation
made under this subtitle, and subject to the availability of
funds, the Secretary of the Navy shall maintain a program of
decontamination of the lands withdrawn under this subtitle at
least at the level of decontamination activities performed on
such lands in fiscal year 1995. Such activities shall be
subject to applicable laws, such as the amendments made by the
Federal Facility Compliance Act of 1992 (Public Law 102-386;
106 Stat. 1505) and the Defense Environmental Restoration
Program established under section 2701 of title 10, United
States Code.

SEC. 2927. REQUIREMENTS FOR EXTENSION.

(a) Notice of Continued Military Need.--Not later than five
years before the termination date specified in section 2925,
the Secretary of the Navy shall advise the Secretary of the
Interior as to whether or not the Navy will have a continuing
military need for any or all of the lands withdrawn and
reserved under this subtitle after the termination date.
(b) Application for Extension.--If the Secretary of the
Navy determines that there will be a continuing military need
for any or all of the withdrawn lands after the termination
date specified in section 2925, the Secretary of the Navy shall
file an application for extension of the withdrawal and
reservation of the lands in accordance with the then existing
regulations and procedures of the Department of the Interior
applicable to extension of withdrawal of lands for military
purposes and that are consistent with this subtitle. Such
application shall be filed with the Department of the Interior
not later than four years before the termination date.
(c) Extension Process.--The withdrawal and reservation
established by this subtitle may not be extended except by an
Act or Joint Resolution of Congress.

SEC. 2928. EARLY RELINQUISHMENT OF WITHDRAWAL.

(a) Filing of Relinquishment Notice.--If, during the period
of withdrawal and reservation specified in section 2925, the
Secretary of the Navy decides to relinquish all or any portion
of the lands withdrawn and reserved under this subtitle, the
Secretary of the Navy shall file a notice of intention to
relinquish with the Secretary of the Interior.
(b) Determination of Presence of Contamination.--Before
transmitting a relinquishment notice under subsection (a), the
Secretary of the Navy, in consultation with the Secretary of
the Interior, shall prepare a written determination concerning
whether and to what extent the lands to be relinquished are
contaminated with explosive, toxic, or other hazardous wastes
and substances. A copy of such determination shall be
transmitted with the relinquishment notice.
(c) Decontamination and Remediation.--In the case of
contaminated lands which are the subject of a relinquishment
notice, the Secretary of the Navy shall decontaminate or
remediate the land to the extent that funds are appropriated
for such purpose if the Secretary of the Interior, in
consultation with the Secretary of the Navy, determines that--
(1) decontamination or remediation of the lands is
practicable and economically feasible, taking into
consideration the potential future use and value of the
land; and
(2) upon decontamination or remediation, the land
could be opened to the operation of some or all of the
public land laws, including the mining laws.
(d) Decontamination and Remediation Activities Subject to
Other Laws.--The activities of the Secretary of the Navy under
subsection (c) are subject to applicable laws and regulations,
including the Defense Environmental Restoration Program
established under section 2701 of title 10, United States Code,
the Comprehensive Environmental Response Compensation and
Liability Act of 1980 (42 U.S.C. 9601 et seq.), and the Solid
Waste Disposal Act (42 U.S.C. 6901 et seq.).
(e) Authority of Secretary of the Interior To Refuse
Contaminated Lands.--The Secretary of the Interior shall not be
required to accept lands specified in a relinquishment notice
if the Secretary of the Interior, after consultation with the
Secretary of the Navy, concludes that--
(1) decontamination or remediation of any land
subject to the relinquishment notice is not practicable
or economically feasible;
(2) the land cannot be decontaminated or remediated
sufficiently to be opened to operation of some or all
of the public land laws; or
(3) a sufficient amount of funds are not
appropriated for the decontamination of the land.
(f) Status of Contaminated Lands.--If, because of the
condition of the lands, the Secretary of the Interior declines
to accept jurisdiction of lands proposed for relinquishment or,
if at the expiration of the withdrawal made under this
subtitle, the Secretary of the Interior determines that some of
the lands withdrawn under this subtitle are contaminated to an
extent which prevents opening such contaminated lands to
operation of the public land laws--
(1) the Secretary of the Navy shall take
appropriate steps to warn the public of the
contaminated state of such lands and any risks
associated with entry onto such lands;
(2) after the expiration of the withdrawal, the
Secretary of the Navy shall retain jurisdiction over
the withdrawn lands, but shall undertake no activities
on such lands except in connection with the
decontamination or remediation of such lands; and
(3) the Secretary of the Navy shall report to the
Secretary of the Interior and to the Congress
concerning the status of such lands and all actions
taken under paragraphs (1) and (2).
(g) Subsequent Decontamination or Remediation.--If lands
covered by subsection (f) are subsequently decontaminated or
remediated and the Secretary of the Navy certifies that the
lands are safe for nonmilitary uses, the Secretary of the
Interior shall reconsider accepting jurisdiction over the
lands.
(h) Revocation Authority.--Notwithstanding any other
provision of law, upon deciding that it is in the public
interest to accept jurisdiction over lands specified in a
relinquishment notice, the Secretary of the Interior may revoke
the withdrawal and reservation made under this subtitle as it
applies to such lands. If the decision be made to accept the
relinquishment and to revoke the withdrawal and reservation,
the Secretary of the Interior shall publish in the Federal
Register an appropriate order which shall--
(1) terminate the withdrawal and reservation;
(2) constitute official acceptance of full
jurisdiction over the lands by the Secretary of the
Interior; and
(3) state the date upon which the lands will be
opened to the operation of the public land laws,
including the mining laws, if appropriate.

SEC. 2929. DELEGATION OF AUTHORITY.

(a) Department of the Navy.--The functions of the Secretary
of the Navy under this subtitle may be delegated.
(b) Department of Interior.--The functions of the Secretary
of the Interior under this subtitle may be delegated, except
that an order described in section 2928(h) may be approved and
signed only by the Secretary of the Interior, the Deputy
Secretary of the Interior, or an Assistant Secretary of the
Department of the Interior.

SEC. 2930. HUNTING, FISHING, AND TRAPPING.

All hunting, fishing, and trapping on the lands withdrawn
under this subtitle shall be conducted in accordance with
section 2671 of title 10, United States Code.

SEC. 2931. HOLD HARMLESS.

Any party conducting any mining, mineral, or geothermal
leasing activity on lands withdrawn and reserved under this
subtitle shall indemnify the United States against any costs,
fees, damages, or other liabilities (including costs of
litigation) incurred by the United States and arising from or
relating to such mining activities, including costs of mineral
materials disposal, whether arising under the Comprehensive
Environmental Response Compensation and Liability Act of 1980,
the Solid Waste Disposal Act, or otherwise.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL

SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs Authorizations

Subtitle B--Recurring General Provisions

Subtitle C--Program Authorizations, Restrictions, and Limitations

Subtitle D--Other Matters

Subtitle E--Defense Nuclear Environmental Cleanup and Management

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

Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

(a) Stockpile Stewardship.--Subject to subsection (d),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for stockpile
stewardship in carrying out weapons activities necessary for
national security programs in the amount of $1,661,767,000, to
be allocated as follows:
(1) For core stockpile stewardship, $1,235,907,000,
to be allocated as follows:
(A) For operation and maintenance,
$1,147,570,000.
(B) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification of
facilities, and the continuation of projects
authorized in prior years, and land acquisition
related thereto), $88,337,000, to be allocated
as follows:
Project 96-D-102, stockpile
stewardship facilities revitalization,
Phase VI, various locations,
$19,250,000.
Project 96-D-103, ATLAS, Los Alamos
National Laboratory, Los Alamos, New
Mexico, $15,100,000.
Project 96-D-104, processing and
environmental technology laboratory
(PETL), Sandia National Laboratories,
Albuquerque, New Mexico, $14,100,000.
Project 96-D-105, contained firing
facility addition, Lawrence Livermore
National Laboratory, Livermore,
California, $17,100,000.
Project 95-D-102, Chemical and
Metallurgy Research Building upgrades
project, Los Alamos National
Laboratory, Los Alamos, New Mexico,
$15,000,000.
Project 94-D-102, nuclear weapons
research, development, and testing
facilities revitalization, Phase V,
various locations, $7,787,000.
(2) For inertial fusion, $366,460,000, to be
allocated as follows:
(A) For operation and maintenance,
$234,560,000.
(B) For the following plant project
(including maintenance, restoration, planning,
construction, acquisition, and modification of
facilities, and land acquisition related
thereto), $131,900,000 to be allocated as
follows:
Project 96-D-111, national ignition
facility, location to be determined,
$131,900,000.
(3) For technology transfer and education,
$59,400,000.
(b) Stockpile Management.--Subject to subsection (d), funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for stockpile management in
carrying out weapons activities necessary for national security
programs in the amount of $1,962,831,000, to be allocated as
follows:
(1) For operation and maintenance, $1,868,470,000.
(2) For plant projects (including maintenance,
restoration, planning, construction, acquisition,
modification of facilities, and the continuation of
projects authorized in prior years, and land
acquisition related thereto), $94,361,000, to be
allocated as follows:
Project 97-D-121, consolidated pit
packaging system, Pantex Plant, Amarillo,
Texas, $870,000.
Project 97-D-122, nuclear materials storage
facility renovation, Los Alamos National
Laboratory, Los Alamos, New Mexico, $4,000,000.
Project 97-D-123, structural upgrades,
Kansas City Plant, Kansas City, Missouri,
$1,400,000.
Project 97-D-124, steam plant wastewater
treatment facility upgrade, Y-12 Plant, Oak
Ridge, Tennessee, $600,000.
Project 96-D-122, sewage treatment quality
upgrade (STQU), Pantex Plant, Amarillo, Texas,
$100,000.
Project 96-D-123, retrofit heating,
ventilation, and air conditioning and chillers
for ozone protection, Y-12 Plant, Oak Ridge,
Tennessee, $7,000,000.
Project 96-D-125, Washington measurements
operations facility, Andrews Air Force Base,
Camp Springs, Maryland, $3,825,000.
Project 95-D-122, sanitary sewer upgrade,
Y-12 Plant, Oak Ridge, Tennessee, $10,900,000.
Project 94-D-124, hydrogen fluoride supply
system, Y-12 Plant, Oak Ridge, Tennessee,
$4,900,000.
Project 94-D-125, upgrade life safety,
Kansas City Plant, Kansas City, Missouri,
$5,200,000.
Project 94-D-127, emergency notification
system, Pantex Plant, Amarillo, Texas,
$2,200,000.
Project 93-D-122, life safety upgrades, Y-
12 Plant, Oak Ridge, Tennessee, $7,200,000.
Project 93-D-123, complex-21, various
locations, $14,487,000.
Project 88-D-122, facilities capability
assurance program, various locations,
$21,940,000.
Project 88-D-123, security enhancement,
Pantex Plant, Amarillo, Texas, $9,739,000.
(c) Program Direction.--Subject to subsection (d), funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for program direction in carrying
out weapons activities necessary for national security programs
in the amount of $313,404,000.
(d) Adjustment.--The total amount authorized to be
appropriated pursuant to this section is the sum of the amounts
authorized to be appropriated in subsections (a) through (c)
reduced by $20,000,000 for use of prior year balances.

SEC. 3102. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

(a) Environmental Restoration.--Subject to subsection (j),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for environmental
restoration in carrying out environmental restoration and waste
management activities necessary for national security programs
in the amount of $1,762,194,000, of which $376,648,000 shall be
allocated to the uranium enrichment decontamination and
decommissioning fund.
(b) Waste Management.--Subject to subsection (j), funds are
hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for waste management in carrying
out environmental restoration and waste management activities
necessary for national security programs in the amount of
$1,578,653,000, to be allocated as follows:
(1) For operation and maintenance, $1,490,326,000.
(2) For plant projects (including maintenance,
restoration, planning, construction, acquisition,
modification of facilities, and the continuation of
projects authorized in prior years, and land
acquisition related thereto), $88,327,000, to be
allocated as follows:
Project 97-D-402, tank farm restoration and
safe operations, Richland, Washington,
$7,584,000.
Project 96-D-408, waste management
upgrades, various locations, $11,246,000.
Project 95-D-402, install permanent
electrical service, Waste Isolation Pilot
Plant, Carlsbad, New Mexico, $752,000.
Project 95-D-405, industrial landfill V and
construction/demolition landfill VII, Y-12
Plant, Oak Ridge, Tennessee, $200,000.
Project 94-D-404, Melton Valley storage
tank capacity increase, Oak Ridge National
Laboratory, Oak Ridge, Tennessee, $6,345,000.
Project 94-D-407, initial tank retrieval
systems, Richland, Washington, $12,600,000.
Project 93-D-182, replacement of cross-site
transfer system, Richland, Washington,
$8,100,000.
Project 93-D-187, high-level waste removal
from filled waste tanks, Savannah River Site,
Aiken, South Carolina, $20,000,000.
Project 89-D-174, replacement high-level
waste evaporator, Savannah River Site, Aiken,
South Carolina, $11,500,000.
Project 86-D-103, decontamination and waste
treatment facility, Lawrence Livermore National
Laboratory, Livermore, California, $10,000,000.
(c) Nuclear Materials and Facilities Stabilization.--
Subject to subsection (j), funds are hereby authorized to be
appropriated to the Department of Energy for fiscal year 1997
for nuclear materials and facilities stabilization in carrying
out environmental restoration and waste management activities
necessary for national security programs in the amount of
$1,291,290,000 to be allocated as follows:
(1) For operation and maintenance, $1,173,718,000.
(2) For plant projects (including maintenance,
restoration, planning, construction, acquisition,
modification of facilities, and the continuation of
projects authorized in prior years, and land
acquisition related thereto), $117,572,000, to be
allocated as follows:
Project 97-D-450, Actinide packaging and
storage facility, Savannah River Site, Aiken,
South Carolina, $7,900,000.
Project 97-D-451, B-Plant safety class
ventilation upgrades, Richland, Washington,
$1,500,000.
Project 97-D-470, environmental monitoring
laboratory, Savannah River Site, Aiken, South
Carolina, $2,500,000.
Project 97-D-473, health physics site
support facility, Savannah River Site, Aiken,
South Carolina, $2,000,000.
Project 96-D-406, spent nuclear fuels
canister storage and stabilization facility,
Richland, Washington, $60,672,000.
Project 96-D-461, electrical distribution
upgrade, Idaho National Engineering Laboratory,
Idaho, $6,790,000.
Project 96-D-464, electrical and utility
systems upgrade, Idaho Chemical Processing
Plant, Idaho National Engineering Laboratory,
Idaho, $10,440,000.
Project 96-D-471, chlorofluorocarbon
heating, ventilation, and air conditioning and
chiller retrofit, Savannah River Site, Aiken,
South Carolina, $8,541,000.
Project 95-E-600, hazardous materials
management and emergency response training
center, Richland, Washington, $7,900,000.
Project 95-D-155, upgrade site road
infrastructure, Savannah River Site, South
Carolina, $4,137,000.
Project 95-D-456, security facilities
consolidation, Idaho Chemical Processing Plant,
Idaho National Engineering Laboratory, Idaho,
$4,645,000.
Project 94-D-401, emergency response
facility, Idaho National Engineering
Laboratory, Idaho, $547,000.
(d) Program Direction.--Subject to subsection (j), funds
are hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for program direction in carrying
out environmental restoration and waste management activities
necessary for national security programs in the amount of
$411,511,000.
(e) Technology Development.--Subject to subsection (j),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for technology
development in carrying out environmental restoration and waste
management activities necessary for national security programs
in the amount of $303,771,000.
(f) Policy and Management.--Subject to subsection (j),
funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for policy and
management in carrying out environmental restoration and waste
management activities necessary for national security programs
in the amount of $23,155,000.
(g) Environmental Science Program.--Subject to subsection
(j), funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for the environmental
science program in carrying out environmental restoration and
waste management activities necessary for national security
programs in the amount of $62,136,000.
(h) Environmental Management Privatization.--Subject to
subsection (j), funds are hereby authorized to be appropriated
to the Department of Energy for fiscal year 1997 for
environmental management privatization in carrying out
environmental restoration and waste management activities
necessary for national security programs in the amount of
$185,000,000.
(i) Closure Projects.--Subject to subsection (j), funds are
hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for closure projects selected under
section 3143 in the amount of $50,000,000.
(j) Adjustments.--The total amount authorized to be
appropriated pursuant to this section is the sum of the amounts
authorized to be appropriated in subsections (a) through (i)
reduced by the sum of--
(1) $150,400,000, for use of prior year balances;
and
(2) $8,000,000, for Savannah River Pension Refund.

SEC. 3103. DEFENSE FIXED ASSET ACQUISITION/PRIVATIZATION.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for the defense fixed
asset acquisition/privatization program in the amount of
$182,000,000.

SEC. 3104. OTHER DEFENSE ACTIVITIES.

(a) In General.--Subject to subsection (b), funds are
hereby authorized to be appropriated to the Department of
Energy for fiscal year 1997 for other defense activities in
carrying out programs necessary for national security in the
amount of $1,590,231,000, to be allocated as follows:
(1) For verification and control technology,
$456,348,000, to be allocated as follows:
(A) For nonproliferation and verification
research and development, $204,919,000.
(B) For arms control, $216,244,000.
(C) For intelligence, $35,185,000.
(2) For nuclear safeguards and security,
$47,208,000.
(3) For security investigations, $22,000,000.
(4) For emergency management, $16,794,000.
(5) For program direction, $88,122,000.
(6) For international nuclear safety, $15,200,000.
(7) For environment, safety, and health, defense,
$63,800,000.
(8) For worker and community transition assistance,
$67,000,000.
(9) For fissile materials disposition, $93,796,000,
to be allocated as follows:
(A) For operation and maintenance,
$76,796,000.
(B) For the following plant project
(including maintenance, restoration, planning,
construction, acquisition, and modification of
facilities, and land acquisition related
thereto):
Project 97-D-140, consolidated
special nuclear materials storage
facility, site to be determined,
$17,000,000.
(10) For nuclear security/Russian production
reactor shutdown, $6,000,000.
(11) For naval reactors development, $681,932,000,
to be allocated as follows:
(A) For operation and infrastructure,
$649,330,000.
(B) For program direction, $18,902,000.
(C) For plant projects (including
maintenance, restoration, planning,
construction, acquisition, modification of
facilities, and the continuation of projects
authorized in prior years, and land acquisition
related thereto), $13,700,000, to be allocated
as follows:
Project 97-D-201, advanced test
reactor secondary coolant
refurbishment, Idaho National
Engineering Laboratory, Idaho,
$400,000.
Project 95-D-200, laboratory
systems and hot cell upgrades, various
locations, $4,800,000.
Project 95-D-201, advanced test
reactor radioactive waste system
upgrades, Idaho National Engineering
Laboratory, Idaho, $500,000.
Project 90-N-102, expended core
facility dry cell project, Naval
Reactors Facility, Idaho, $8,000,000.
(b) Adjustment.--The total amount authorized to be
appropriated pursuant to this section is the sum of the amounts
authorized to be appropriated in paragraphs (1) through (10) of
subsection (a) reduced by $25,500,000 for use of prior year
balances.

SEC. 3105. DEFENSE NUCLEAR WASTE DISPOSAL.

Funds are hereby authorized to be appropriated to the
Department of Energy for fiscal year 1997 for payment to the
Nuclear Waste Fund established in section 302(c) of the Nuclear
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of
$200,000,000.

Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

(a) In General.--Until the Secretary of Energy submits to
the congressional defense committees the report referred to in
subsection (b) and a period of 30 days has elapsed after the
date on which such committees receive the report, the Secretary
may not use amounts appropriated pursuant to this title for any
program--
(1) in amounts that exceed, in a fiscal year--
(A) 110 percent of the amount authorized
for that program by this title; or
(B) $1,000,000 more than the amount
authorized for that program by this title; or
(2) which has not been presented to, or requested
of, Congress.
(b) Report.--(1) The report referred to in subsection (a)
is a report containing a full and complete statement of the
action proposed to be taken and the facts and circumstances
relied upon in support of such proposed action.
(2) In the computation of the 30-day period under
subsection (a), there shall be excluded any day on which either
House of Congress is not in session because of an adjournment
of more than 3 days to a day certain.
(c) Limitations.--(1) In no event may the total amount of
funds obligated pursuant to this title exceed the total amount
authorized to be appropriated by this title.
(2) Funds appropriated pursuant to this title may not be
used for an item for which Congress has specifically denied
funds.

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

(a) In General.--The Secretary of Energy may carry out any
construction project under the general plant projects
authorized by this title if the total estimated cost of the
construction project does not exceed $2,000,000.
(b) Report to Congress.--If, at any time during the
construction of any general plant project authorized by this
title, the estimated cost of the project is revised because of
unforeseen cost variations and the revised cost of the project
exceeds $2,000,000, the Secretary shall immediately furnish a
complete report to the congressional defense committees
explaining the reasons for the cost variation.
(c) Report on Permanent Authorization of Appropriations for
General Plant Projects.--(1) Not later than February 1, 1997,
the Secretary of Energy shall submit to the congressional
defense committees a report on the desirability of a permanent
authorization of appropriations for the defense general plant
projects and civilian general plant projects of the Department
of Energy.
(2) If the Secretary determines for purposes of the report
under paragraph (1) that a permanent authorization of
appropriations is desirable, the report shall include--
(A) recommendations for legislation to provide for
a permanent authorization of appropriations, including
a formula for adjusting for inflation the amount
authorized to be appropriated for the projects to be
covered by such authorization of appropriations; and
(B) a description of the actions to be undertaken
by the Secretary to control costs with respect to such
projects, including any actions that may depend on the
size, nature, or scope of the project concerned.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

(a) In General.--(1) Except as provided in paragraph (2),
construction on a construction project may not be started or
additional obligations incurred in connection with the project
above the total estimated cost, whenever the current estimated
cost of the construction project, which is authorized by
section 3101, 3102, or 3103, or which is in support of national
security programs of the Department of Energy and was
authorized by any previous Act, exceeds by more than 25 percent
the higher of--
(A) the amount authorized for the project; or
(B) the amount of the total estimated cost for the
project as shown in the most recent budget
justification data submitted to Congress.
(2) An action described in paragraph (1) may be taken if--
(A) the Secretary of Energy has submitted to the
congressional defense committees a report on the
actions and the circumstances making such action
necessary; and
(B) a period of 30 days has elapsed after the date
on which the report is received by the committees.
(3) In the computation of the 30-day period under paragraph
(2), there shall be excluded any day on which either House of
Congress is not in session because of an adjournment of more
than 3 days to a day certain.
(b) Exception.--Subsection (a) shall not apply to any
construction project which has a current estimated cost of less
than $5,000,000.

SEC. 3124. FUND TRANSFER AUTHORITY.

(a) Transfer to Other Federal Agencies.--The Secretary of
Energy may transfer funds authorized to be appropriated to the
Department of Energy pursuant to this title to other Federal
agencies for the performance of work for which the funds were
authorized. Funds so transferred may be merged with and be
available for the same purposes and for the same period as the
authorizations of the Federal agency to which the amounts are
transferred.
(b) Transfer Within Department of Energy; Limitations.--(1)
Subject to paragraph (2), the Secretary of Energy may transfer
funds authorized to be appropriated to the Department of Energy
pursuant to this title between any such authorizations. Amounts
of authorizations so transferred may be merged with and be
available for the same purposes and for the same period as the
authorization to which the amounts are transferred.
(2) Not more than five percent of any such authorization
may be transferred between authorizations under paragraph (1).
No such authorization may be increased or decreased by more
than five percent by a transfer under such paragraph.
(3) The authority provided by this section to transfer
authorizations--
(A) may only be used to provide funds for items
relating to weapons activities necessary for national
security programs that have a higher priority than the
items from which the funds are transferred; and
(B) may not be used to provide authority for an
item that has been denied funds by Congress.
(c) Notice to Congress.--The Secretary of Energy shall
promptly notify the Committee on Armed Services of the Senate
and the Committee on National Security of the House of
Representatives of any transfer of funds to or from
authorizations under this title.

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

(a) Requirement for Conceptual Design.--(1) Subject to
paragraph (2) and except as provided in paragraph (3), before
submitting to Congress a request for funds for a construction
project that is in support of a national security program of
the Department of Energy, the Secretary of Energy shall
complete a conceptual design for that project. The Secretary
shall submit to Congress a report on each conceptual design
completed under this paragraph.
(2) If the estimated cost of completing a conceptual design
for a construction project exceeds $3,000,000, the Secretary
shall submit to Congress a request for funds for the conceptual
design before submitting a request for funds for the
construction project.
(3) The requirement in paragraph (1) does not apply to a
request for funds--
(A) for a construction project the total estimated
cost of which is less than $2,000,000; or
(B) for emergency planning, design, and
construction activities under section 3126.
(b) Authority for Construction Design.--(1) Within the
amounts authorized by this title, the Secretary of Energy may
carry out construction design (including architectural and
engineering services) in connection with any proposed
construction project if the total estimated cost for such
design does not exceed $600,000.
(2) If the total estimated cost for construction design in
connection with any construction project exceeds $600,000,
funds for such design must be specifically authorized by law.

SEC. 3126. AUTHORITY FOR EMERGENCY PLANNING, DESIGN, AND CONSTRUCTION
ACTIVITIES.

(a) Authority.--The Secretary of Energy may use any funds
available to the Department of Energy pursuant to an
authorization in this title, including those funds authorized
to be appropriated for advance planning and construction design
under sections 3101, 3102, and 3103, to perform planning,
design, and construction activities for any Department of
Energy national security program construction project that, as
determined by the Secretary, must proceed expeditiously in
order to protect public health and safety, to meet the needs of
national defense, or to protect property.
(b) Limitation.--The Secretary may not exercise the
authority under subsection (a) in the case of any construction
project until the Secretary has submitted to the congressional
defense committees a report on the activities that the
Secretary intends to carry out under this section and the
circumstances making such activities necessary.
(c) Specific Authority.--The requirement of section
3125(b)(2) does not apply to emergency planning, design, and
construction activities conducted under this section.

SEC. 3127. FUNDS AVAILABLE FOR ALL NATIONAL SECURITY PROGRAMS OF THE
DEPARTMENT OF ENERGY.

Subject to the provisions of appropriations Acts and
section 3121, amounts appropriated pursuant to this title for
management and support activities and for general plant
projects are available for use, when necessary, in connection
with all national security programs of the Department of
Energy.

SEC. 3128. AVAILABILITY OF FUNDS.

When so specified in an appropriations Act, amounts
appropriated for operation and maintenance or for plant
projects may remain available until expended.

Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. STOCKPILE STEWARDSHIP PROGRAM.

(a) Purpose.--The purpose of this section is to provide for
the enhanced implementation of the Department of Energy
stockpile stewardship and management program, in order to
provide greater confidence in the safety and continuing
reliability of the nuclear weapons stockpile.
(b) Funding.--Of the funds authorized to be appropriated to
the Department of Energy pursuant to section 3101, $85,000,000
shall be available to enhance the Department's stockpile
stewardship and management program for activities determined
appropriate by the Secretary of Energy, including the
following:
(1) Enhanced surveillance of the nuclear weapons
stockpile.
(2) Dual revalidation of the warheads in the
nuclear weapons stockpile.
(3) Stockpile life extension programs.
(4) Production capability assurance programs for
critical non-nuclear components.
(5) Accelerating capability to produce prototype
war reserve-quality plutonium pits.
(6) Conducting subcritical tests.
(c) Report.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of Energy shall submit to
the congressional defense committees a report on the
obligations the Secretary has incurred, and plans to incur,
during fiscal year 1997 for the funds made available by
subsection (b).

SEC. 3132. MANUFACTURING INFRASTRUCTURE FOR NUCLEAR WEAPONS STOCKPILE.

(a) General Program Requirements.--Subsection (a) of
section 3137 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 620; 42 U.S.C.
2121 note) is amended--
(1) by inserting ``(1)'' before ``The Secretary of
Energy'';
(2) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E), respectively; and
(3) by adding at the end the following:
``(2) The purpose of the program carried out under
paragraph (1) shall also be to develop manufacturing
capabilities and capacities necessary to meet the requirements
specified in the annual Nuclear Weapons Stockpile Review.''.
(b) Required Capabilities.--Subsection (b)(3) of such
section is amended to read as follows:
``(3) The capabilities of the Savannah River Site
relating to tritium recycling and fissile materials
components processing and fabrication.''.
(c) Plan and Report.--Not later than March 1, 1997, the
Secretary of Energy shall submit to Congress a report
containing a plan for carrying out the program established
under section 3137(a) of the National Defense Authorization Act
for Fiscal Year 1996, as amended by this section. The report
shall set forth the obligations that the Secretary has
incurred, and proposes to incur, during fiscal year 1997 in
carrying out the program.
(d) Funding.--Of the funds authorized to be appropriated
pursuant to section 3101, $90,000,000 shall be available for
carrying out the program established under section 3137(a) of
the National Defense Authorization Act for Fiscal Year 1996, as
so amended.

SEC. 3133. TRITIUM PRODUCTION.

(a) Acceleration of Tritium Production.--(1) The Secretary
of Energy shall, during fiscal year 1997, make a final decision
on the technologies to be utilized, and the accelerated
schedule to be adopted, for tritium production in order to meet
the requirements of the Nuclear Weapons Stockpile Memorandum
relating to tritium production, including the new tritium
production date of 2005 specified in the Nuclear Weapons
Stockpile Memorandum.
(2) In making the final decision, the Secretary shall take
into account the following:
(A) The requirements for tritium production
specified in the Nuclear Weapons Stockpile Memorandum,
including, in particular, the requirements for the
``upload hedge'' component of the nuclear weapons
stockpile.
(B) The ongoing activities of the Department of
Energy relating to the evaluation and demonstration of
technologies under the accelerator reactor program and
the commercial light water reactor program.
(b) Report.--(1) Not later than April 15, 1997, the
Secretary shall submit to Congress a report that sets forth the
final decision of the Secretary under subsection (a)(1). The
report shall set forth in detail--
(A) the technologies decided on under that
subsection; and
(B) the accelerated schedule for the production of
tritium decided on under that subsection.
(2) If the Secretary determines that it is not possible to
make the final decision by the date specified in paragraph (1),
the Secretary shall submit to Congress on that date a report
that explains in detail why the final decision cannot be made
by that date.
(c) New Tritium Production Facility.--The Secretary shall
commence planning and design activities and infrastructure
development for a new tritium production facility.
(d) In-Reactor Tests.--The Secretary may perform in-reactor
tests of tritium target rods as part of the activities carried
out under the commercial light water reactor program.
(e) Funding.--Of the funds authorized to be appropriated to
the Department of Energy pursuant to section 3101(b)(1),
$160,000,000 shall be available for activities related to
tritium production.

SEC. 3134. MODERNIZATION AND CONSOLIDATION OF TRITIUM RECYCLING
FACILITIES.

(a) In General.--The Secretary of Energy shall carry out
activities at the Savannah River Site, South Carolina, to--
(1) modernize and consolidate the facilities for
recycling tritium for weapons; and
(2) provide a modern tritium extraction facility so
as to ensure that such facilities have a capacity to
recycle tritium from weapons that is adequate to meet
the requirements for tritium for weapons specified in
the Nuclear Weapons Stockpile Memorandum.
(b) Funding.--Of the funds authorized to be appropriated to
the Department of Energy pursuant to section 3101, not more
than $9,000,000 shall be available for activities under
subsection (a).

SEC. 3135. PRODUCTION OF HIGH EXPLOSIVES.

No funds appropriated or otherwise made available to the
Department of Energy for fiscal year 1997 or any prior fiscal
year may be used to move, or prepare to move, the manufacture
and fabrication of high explosives and energetic materials for
use as components in nuclear weapons systems from the Pantex
Plant, Amarillo, Texas, to any other site or facility.

SEC. 3136. LIMITATION ON USE OF FUNDS FOR CERTAIN RESEARCH AND
DEVELOPMENT PURPOSES.

(a) Limitation.--No funds authorized to be appropriated or
otherwise made available to the Department of Energy for fiscal
year 1997 under section 3101 may be obligated or expended for
activities under the Department of Energy Laboratory Directed
Research and Development Program, or under any Department of
Energy technology transfer program or cooperative research and
development agreement, unless such activities support the
national security mission of the Department of Energy.
(b) Annual Report.--(1) The Secretary of Energy shall
annually submit to the congressional defense committees a
report on the funds expended during the preceding fiscal year
on activities under the Department of Energy Laboratory
Directed Research and Development Program. The purpose of the
report is to permit an assessment of the extent to which such
activities support the national security mission of the
Department of Energy.
(2) Each report shall be prepared by the officials
responsible for Federal oversight of the funds expended on
activities under the program.
(3) Each report shall set forth the criteria utilized by
the officials preparing the report in determining whether or
not the activities reviewed by such officials support the
national security mission of the Department.

SEC. 3137. PROHIBITION ON FUNDING NUCLEAR WEAPONS ACTIVITIES WITH
PEOPLE'S REPUBLIC OF CHINA.

(a) Funding Prohibition.--No funds authorized to be
appropriated or otherwise available to the Department of Energy
for fiscal year 1997 may be obligated or expended for any
activity associated with the conduct of cooperative programs
relating to nuclear weapons or nuclear weapons technology,
including stockpile stewardship, safety, and use control, with
the People's Republic of China.
(b) Report.--(1) The Secretary of Energy shall prepare, in
consultation with the Secretary of Defense, a report containing
a description of all discussions and activities between the
United States and the People's Republic of China regarding
nuclear weapons matters that have occurred before the date of
the enactment of this Act and that are planned to occur after
such date. For each such discussion or activity, the report
shall include--
(A) the authority under which the discussion or
activity took or will take place;
(B) the subject of the discussion or activity;
(C) participants or likely participants;
(D) the source and amount of funds used or to be
used to pay for the discussion or activity; and
(E) a description of the actions taken or to be
taken to ensure that no classified information or
unclassified controlled information was or will be
revealed, and a determination of whether classified
information or unclassified controlled information was
revealed in previous discussions.
(2) The report shall be submitted to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives not later than January 15,
1997.

SEC. 3138. INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP PROGRAMS.

(a) Funding Prohibition.--No funds authorized to be
appropriated or otherwise available to the Department of Energy
for fiscal year 1997 may be obligated or expended to conduct
any activities associated with international cooperative
stockpile stewardship.
(b) Exception.--Subsection (a) does not apply--
(1) with respect to such activities conducted
between the United States and the United Kingdom and
between the United States and France; and
(2) to activities carried out under title XV of
this Act (relating to cooperative threat reduction with
states of the former Soviet Union).

SEC. 3139. TEMPORARY AUTHORITY RELATING TO TRANSFERS OF DEFENSE
ENVIRONMENTAL MANAGEMENT FUNDS.

(a) Transfer Authority for Defense Environmental Management
Funds.--The Secretary of Energy shall provide the manager of
each field office of the Department of Energy with the
authority to transfer defense environmental management funds
from a program or project under the jurisdiction of the office
to another such program or project. Any such transfer may be
made only once in a fiscal year to or from a program or
project, and the amount transferred to or from a program or
project may not exceed $5,000,000 in a fiscal year.
(b) Determination.--A transfer may not be carried out by a
manager of a field office pursuant to the authority provided
under subsection (a) unless the manager determines that such
transfer is necessary to address a risk to health, safety, or
the environment or to assure the most efficient use of defense
environmental management funds at that field office.
(c) Exemption From Reprogramming Requirements.--The
requirements of section 3121 shall not apply to transfers of
funds pursuant to subsection (a).
(d) Notification.--The Secretary of Energy, acting through
the Assistant Secretary of Energy for Environmental Management,
shall notify Congress of any transfer of funds pursuant to
subsection (a) not later than 30 days after such a transfer
occurs.
(e) Limitation.--Funds transferred pursuant to subsection
(a) may not be used for an item for which Congress has
specifically denied funds or for a new program or project that
has not been authorized by Congress.
(f) Definitions.--In this section:
(1) The term ``program or project'' means, with
respect to a field office of the Department of Energy,
any of the following:
(A) A project listed in subsection (b) or
(c) of section 3102 being carried out by the
office.
(B) A program referred to in subsection
(a), (b), (c), (e), (g), or (h) of section 3102
being carried out by the office.
(C) A project or program not described in
subparagraph (A) or (B) that is for
environmental restoration or waste management
activities necessary for national security
programs of the Department of Energy, that is
being carried out by the office, and for which
defense environmental management funds have
been authorized and appropriated before the
date of the enactment of this Act.
(2) The term ``defense environmental management
funds'' means funds appropriated to the Department of
Energy pursuant to an authorization for carrying out
environmental restoration and waste management
activities necessary for national security programs.
(g) Duration of Authority.--The authority provided under
subsection (a) to a manager of a field office shall be in
effect from the date of the enactment of this Act to September
30, 1997.
(h) Report.--Not later than September 1, 1997, the
Secretary of Energy shall submit to the congressional defense
committees a report on the effectiveness of the authority
provided under subsection (a) in meeting an objective specified
in subsection (b). The report shall include recommendations on
whether the duration of the authority, as provided in
subsection (g), should be extended.

SEC. 3140. MANAGEMENT STRUCTURE FOR NUCLEAR WEAPONS PRODUCTION
FACILITIES AND NUCLEAR WEAPONS LABORATORIES.

(a) Limitation on Delegation of Authority.--(1) The
Secretary of Energy, in carrying out national security
programs, may delegate specific management and planning
authority over matters relating to site operation of the
facilities and laboratories covered by this section only to the
Assistant Secretary of Energy for Defense Programs. Such
Assistant Secretary may redelegate such authority only to
managers of area offices of the Department of Energy located at
such facilities and laboratories.
(2) Nothing in this section may be construed as affecting
the delegation by the Secretary of Energy of authority relating
to reporting, management, and oversight of matters relating to
the Department of Energy generally, or safety, environment, and
health at such facilities and laboratories.
(b) Requirement to Consult with Area Offices.--The
Assistant Secretary of Energy for Defense Programs, in
exercising any delegated authority to oversee management of
matters relating to site operation of a facility or laboratory,
shall exercise such authority only after direct consultation
with the manager of the area office of the Department of Energy
located at the facility or laboratory.
(c) Requirement for Direct Communication from Area
Offices.--The Secretary of Energy, acting through the Assistant
Secretary of Energy for Defense Programs, shall require the
head of each area office of the Department of Energy located at
each facility and laboratory covered by this section to report
on matters relating to site operation other than those matters
set forth in subsection (a)(2) directly to the Assistant
Secretary of Energy for Defense Programs, without obtaining the
approval or concurrence of any other official within the
Department of Energy.
(d) Defense Programs Reorganization Plan and Report.--(1)
The Secretary of Energy shall develop a plan to reorganize the
field activities and management of the national security
functions of the Department of Energy.
(2) Not later than 120 days after the date of the enactment
of this Act, the Secretary shall submit to Congress a report on
the plan developed under paragraph (1). The report shall
specifically identify all significant functions performed by
the operations offices relating to any of the facilities and
laboratories covered by this section and which of those
functions could be performed--
(A) by the area offices of the Department of Energy
located at the facilities and laboratories covered by
this section; or
(B) by the Assistant Secretary of Energy for
Defense Programs.
(3) The report also shall address and make recommendations
with respect to other internal streamlining and reorganization
initiatives that the Department could pursue with respect to
military or national security programs.
(e) Defense Programs Management Council.--The Secretary of
Energy shall establish a council to be known as the ``Defense
Programs Management Council''. The Council shall advise the
Secretary on policy matters, operational concerns, strategic
planning, and development of priorities relating to the
national security functions of the Department of Energy. The
Council shall be composed of the directors of the facilities
and laboratories covered by this section and shall report
directly to the Assistant Secretary of Energy for Defense
Programs.
(f) Covered Site Operations.--For purposes of this section,
matters relating to site operation of a facility or laboratory
include matters relating to personnel, budget, and procurement
in national security programs.
(g) Covered Facilities and Laboratories.--This section
applies to the following facilities and laboratories of the
Department of Energy:
(1) The Kansas City Plant, Kansas City, Missouri.
(2) The Pantex Plant, Amarillo, Texas.
(3) The Y-12 Plant, Oak Ridge, Tennessee.
(4) The Savannah River Site, Aiken, South Carolina.
(5) Los Alamos National Laboratory, Los Alamos, New
Mexico.
(6) Sandia National Laboratories, Albuquerque, New
Mexico.
(7) Lawrence Livermore National Laboratory,
Livermore, California.
(8) The Nevada Test Site, Nevada.

SEC. 3141. ACCELERATED SCHEDULE FOR ISOLATING HIGH-LEVEL NUCLEAR WASTE
AT THE DEFENSE WASTE PROCESSING FACILITY, SAVANNAH
RIVER SITE.

The Secretary of Energy shall accelerate the schedule for
the isolation of high-level nuclear waste in glass canisters at
the Defense Waste Processing Facility at the Savannah River
Site, South Carolina, if the Secretary determines that the
acceleration of such schedule--
(1) will achieve long-term cost savings to the
Federal Government; and
(2) could accelerate the removal and isolation of
high-level nuclear waste from long-term storage tanks
at the site.

SEC. 3142. PROCESSING AND TREATMENT OF HIGH-LEVEL NUCLEAR WASTE AND
SPENT NUCLEAR FUEL RODS.

(a) In General.--(1) In order to provide for an effective
response to requirements for managing the spent nuclear fuel
described in paragraph (2), there shall be available to the
Secretary of Energy, from amounts authorized to be appropriated
pursuant to section 3102(c), the following amounts for the
purposes stated:
(A) Not more than $43,000,000 for the development
and implementation of a program to accelerate the
receipt, processing (including the H-canyon restart
operations), reprocessing, separation, reduction,
deactivation, stabilization, isolation, and interim
storage of high-level nuclear waste associated with
Department of Energy aluminum clad spent fuel rods,
foreign spent fuel rods, and other nuclear materials.
(B) Not more than $15,000,000 for the development
and implementation of a program for the receipt,
treatment, preparation, conditioning, interim storage,
and final disposition of high-level nuclear waste and
spent nuclear fuel (including naval spent nuclear
fuel), non-aluminum clad fuel rods, and foreign fuel
rods.
(2) The spent nuclear fuel referred to in paragraph (1) is
the following:
(A) Spent nuclear fuel that is sent to Department
of Energy consolidation sites pursuant to the
Department of Energy Programmatic Spent Nuclear Fuel
Management and Idaho National Engineering Laboratory
Environmental Restoration and Waste Management Programs
Final Environmental Impact Statement, dated April 1995.
(B) Spent nuclear fuel described in the Interim
Management of Nuclear Materials Environmental Impact
Statement, dated October 1995.
(C) Other spent nuclear fuel located at the
Savannah River Site as of the date of the enactment of
this Act.
(3) The amounts made available under paragraph (1) are in
addition to other amounts authorized to be appropriated by
section 3102(c) for the purposes stated in subparagraphs (A)
and (B) of that paragraph.
(b) Use of Funds for Settlement Agreement.--Funds made
available pursuant to subsection (a)(1)(B) for the Idaho
National Engineering Laboratory shall be considered to be funds
made available in partial fulfillment of the terms and
obligations set forth in the settlement agreement entered into
by the United States with the State of Idaho in the actions
captioned Public Service Co. of Colorado v. Batt, Civil No. 91-
0035-S-EJL, and United States v. Batt, Civil No. 91-0054-S-EJL,
in the United States District Court for the District of Idaho
and the consent order of the United States District Court for
the District of Idaho, dated October 17, 1995, that effectuates
the settlement agreement.
(c) Amendments to Implementation Plan for Managing Spent
Nuclear Fuel at Certain Sites.--Section 3142(b) of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106; 110 Stat. 622) is amended--
(1) by striking out ``April 30, 1996'' and
inserting in lieu thereof ``September 30, 1996'';
(2) by striking out ``and'' at the end of paragraph
(3);
(3) by striking out the period at the end of
paragraph (4) and inserting in lieu thereof ``; and'';
and
(4) by adding at the end the following new
paragraph:
``(5) an assessment of the progress made in
implementing the programs.''.
(d) Near-Term Plan for Processing Spent Fuel Rods at
Savannah River Site.--(1) Not later than March 15, 1997, the
Secretary of Energy shall submit to Congress a plan for a near-
term program to process, treat, package, and dispose of spent
nuclear fuel rods described in paragraph (2) at the Savannah
River Site. The plan shall include cost projections and
resource requirements for the program and identify program
milestones for the program.
(2) The spent nuclear fuel rods to be included in the
program referred to in paragraph (1) are the following:
(A) Spent nuclear fuel rods produced at the
Savannah River Site.
(B) Spent nuclear fuel rods being sent to the site
from other Department of Energy facilities for
processing, interim storage, and other treatment.
(C) Foreign spent nuclear fuel rods being sent to
the site for processing, interim storage, and other
treatment.
(e) Multi-Year Plan for Clean-Up at Savannah River Site.--
The Secretary shall develop and implement a multi-year plan for
the clean-up of nuclear waste at the Savannah River Site that
results, or has resulted, from the following:
(1) Nuclear weapons activities carried out at the
site.
(2) The processing, treating, packaging, and
disposal of Department of Energy domestic and foreign
spent nuclear fuel rods at the site.
(f) Requirement for Continuing Operations at Savannah River
Site.--The Secretary shall continue operations and maintain a
high state of readiness at the H-canyon facility and the F-
canyon facility at the Savannah River Site, and shall provide
technical staff necessary to operate and so maintain such
facilities, pending the development and implementation of the
plan referred to in subsection (e).

SEC. 3143. PROJECTS TO ACCELERATE CLOSURE ACTIVITIES AT DEFENSE NUCLEAR
FACILITIES.

(a) In General.--The Secretary of Energy shall select and
carry out closure-acceleration projects in accordance with this
section.
(b) Purpose.--The purpose of a closure-acceleration project
shall be, within a fixed period of time, to clean up or
decommission a Department of Energy defense nuclear facility or
portion thereof and to make the facility safe by stabilizing,
consolidating, treating, or removing nuclear materials from the
facility in order to reduce significantly or eliminate future
costs at the facility.
(c) Eligible Projects.--(1) The Secretary of Energy may
establish a closure-acceleration project as eligible for
selection under subsection (e) by--
(A) developing a plan for the project that meets
the criteria under paragraph (2); and
(B) determining that the project will achieve
significant long-term cost savings to the Federal
Government from the baseline cost estimate made by the
Department of Energy for the project.
(2) A plan for a closure-acceleration project under this
section shall--
(A) define a clear, delineated scope of work for
completion of the project;
(B) demonstrate that, with respect to the site of
the proposed project, there is a regulatory agreement
between the Department of Energy and other appropriate
authorities for the implementation of environmental
remediation requirements that would allow for
successful completion of the project;
(C) demonstrate, to the maximum extent possible,
the support of State and local elected officials and
the public for the project;
(D) contain performance-based provisions to be
included in the contract for the project, including--
(i) clearly stated and results-oriented
performance criteria and measures;
(ii) appropriate incentives for the
contractor to meet and exceed the performance
criteria effectively and efficiently;
(iii) appropriate criteria and incentives
for the contractor to seek and engage
subcontractors who may more effectively and
efficiently perform either unique and
technologically challenging tasks or routine
and interchangeable services;
(iv) specific incentives for cost savings;
(v) financial accountability; and
(vi) when appropriate, reduction of fee for
failure to meet minimum performance criteria
and standards;
(E) demonstrate that the project will use new and
innovative cleanup and waste management technology with
potential for application to other locations and
facilities without requiring the development of new
technologies; and
(F) demonstrate that the project can be completed
within 10 years from the date of its selection.
(d) Program Administration.--The Secretary of Energy,
acting through the Assistant Secretary for Environmental
Management, shall implement a program to carry out the
provisions of this section.
(e) Selection of Projects.--(1) The Secretary of Energy
shall select closure-acceleration projects to be carried out
under this section from among those projects established as
eligible under subsection (c) that will result in the most
significant long-term costs savings to the Government and the
most significant reduction of imminent risk.
(2) For each project selected, the Secretary shall submit
to Congress a report setting forth the reasons why the project
was selected, based on the criteria under subsection (c)(2) and
paragraph (1) of this subsection.
(f) Multiyear Contracts.--Notwithstanding section 304B(d)
of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 254c(d)), the Secretary of Energy may enter into
multiyear contracts to carry out projects selected under this
section for up to 10 program years.
(g) Funding.--(1) In the budget submitted to Congress under
section 1105(a) of title 31, United States Code, each year, the
President shall set forth funds for carrying out closure-
acceleration projects under this section as a separate item in
the environmental restoration and waste management account of
the Department of Energy budget.
(2) Funds appropriated for purposes of carrying out
projects under this section shall remain available until
expended.
(3) If a closure-acceleration project is being carried out
at a defense nuclear facility with funds appropriated for such
projects, the Secretary of Energy may not reduce the funds
otherwise allocated to that defense nuclear facility for
environmental restoration and waste management by reason of the
funds being used for the project at that facility.
(4) Funds appropriated for purposes of carrying out
projects under this section may not be used for an item for
which Congress has specifically denied funds or for a new
program or project that has not been authorized by Congress.
(h) Annual Report.--The Secretary of Energy shall submit
each year to Congress a report on the status of each closure-
acceleration project being carried out under this section. The
report shall include, for each such project, the following:
(1) A description of the funding already provided
for the project.
(2) A description of the extent of the cleanup,
decommissioning, stabilization, consolidation,
treatment, or removal activities completed.
(3) A comparison of the actual results of the
project to the original proposal and the actual cost of
the project to the originally proposed cost.
(4) A description of the funding needed in future
fiscal years for completion of the project.
(i) Duration of Program.--No closure-acceleration project
selected under this section may be carried out after the
expiration of the 15-year period beginning on the date of the
enactment of this Act.
(j) Savings Provision.--Nothing in this section may be
construed to affect statutory requirements for an environmental
restoration or waste management activity or project or to
modify or otherwise affect applicable statutory or regulatory
environmental restoration and waste management requirements,
including substantive standards intended to protect public
health and the environment, nor shall anything in this section
be construed to preempt or impair any local land use planning
or zoning authority or State authority.

SEC. 3144. PAYMENT OF COSTS OF OPERATION AND MAINTENANCE OF
INFRASTRUCTURE AT NEVADA TEST SITE.

Notwithstanding any other provision of law and effective as
of September 30, 1996, the costs associated with operating and
maintaining the infrastructure at the Nevada Test Site, Nevada,
with respect to any activities initiated at the site after that
date by the Department of Defense pursuant to a work-for-others
agreement may be paid for from funds authorized to be
appropriated to the Department of Energy for activities at the
Nevada Test Site.

Subtitle D--Other Matters

SEC. 3151. REPORT ON PLUTONIUM PIT PRODUCTION AND REMANUFACTURING
PLANS.

(a) Report Requirement.--The Secretary of Energy shall
submit to the congressional defense committees a report on
plans for achieving the capability to produce and remanufacture
plutonium pits. The report shall include a description of the
baseline plan of the Department of Energy for achieving such
capability, including the following:
(1) The funding necessary, by fiscal year, to
achieve the capability.
(2) The schedule necessary to achieve the
capability, including important technical and
programmatic milestones.
(3) Siting, capacity for expansion, and other
issues included in the baseline plan.
(b) Deadline.--The report required by subsection (a) shall
be submitted not later than 60 days after the date of the
enactment of this Act.

SEC. 3152. AMENDMENTS RELATING TO BASELINE ENVIRONMENTAL MANAGEMENT
REPORTS.

Section 3153 of the National Defense Authorization Act for
Fiscal Year 1994 (42 U.S.C. 7274k) is amended--
(1) in subsection (b)--
(A) by striking out the first word in the
heading and inserting in lieu thereof
``Biennial''; and
(B) in paragraph (2)(B), by inserting
before ``year after 1995'' the following:
``odd-numbered''; and
(2) in subsection (d)--
(A) by striking out the first word in the
heading and inserting in lieu thereof
``Biennial'';
(B) in paragraph (1)(B), by striking out
``in each year thereafter'' and inserting in
lieu thereof ``in each odd-numbered year
thereafter''; and
(C) in paragraph (2)(A)--
(i) in the matter preceding clause
(i), by striking out ``fiscal year
immediately'' and inserting in lieu
thereof ``two fiscal years
immediately''; and
(ii) in clause (ii), by striking
out ``prior fiscal year'' and inserting
in lieu thereof ``prior fiscal years''.

SEC. 3153. REQUIREMENT TO DEVELOP FUTURE USE PLANS FOR ENVIRONMENTAL
MANAGEMENT PROGRAM.

(a) Authority To Develop Future Use Plans.--The Secretary
of Energy may develop future use plans for any defense nuclear
facility at which environmental restoration and waste
management activities are occurring.
(b) Requirement To Develop Future Use Plans.--The Secretary
shall develop a future use plan for each of the following
defense nuclear facilities:
(1) Hanford Site, Richland, Washington.
(2) Rocky Flats Plant, Golden, Colorado.
(3) Savannah River Site, Aiken, South Carolina.
(4) Idaho National Engineering Laboratory, Idaho.
(c) Citizen Advisory Board.--(1) At each defense nuclear
facility for which the Secretary of Energy intends or is
required to develop a future use plan under this section and
for which no citizen advisory board has been established, the
Secretary shall establish a citizen advisory board.
(2) The Secretary may authorize the manager of a defense
nuclear facility for which a future use plan is developed under
this section (or, if there is no such manager, an appropriate
official of the Department of Energy designated by the
Secretary) to pay routine administrative expenses of a citizen
advisory board established for that facility. Such payments
shall be made from funds available to the Secretary for program
direction in carrying out environmental restoration and waste
management activities necessary for national security programs.
(d) Requirement To Consult With Citizen Advisory Board.--In
developing a future use plan under this section with respect to
a defense nuclear facility, the Secretary of Energy shall
consult with a citizen advisory board established pursuant to
subsection (c) or a similar advisory board already in existence
as of the date of the enactment of this Act for such facility,
affected local governments (including any local future use
redevelopment authorities), and other appropriate State
agencies.
(e) 50-Year Planning Period.--A future use plan developed
under this section shall cover a period of at least 50 years.
(f) Deadlines.--For each facility listed in subsection (b),
the Secretary of Energy shall develop a draft future use plan
by October 1, 1997, and a final future use plan by March 15,
1998.
(g) Report.--Not later than 60 days after completing
development of a final plan for a site listed in subsection
(b), the Secretary of Energy shall submit to Congress a report
on the plan. The report shall describe the plan and contain
such findings and recommendations with respect to the site as
the Secretary considers appropriate.
(h) Savings Provisions.--(1) Nothing in this section, or
in a future use plan developed under this section with respect
to a defense nuclear facility, shall be construed as requiring
any modification to a future use plan with respect to a defense
nuclear facility that was developed before the date of the
enactment of this Act.
(2) Nothing in this section may be construed to affect
statutory requirements for an environmental restoration or
waste management activity or project or to modify or otherwise
affect applicable statutory or regulatory environmental
restoration and waste management requirements, including
substantive standards intended to protect public health and the
environment, nor shall anything in this section be construed to
preempt or impair any local land use planning or zoning
authority or State authority.

SEC. 3154. REPORT ON DEPARTMENT OF ENERGY LIABILITY AT DEPARTMENT
SUPERFUND SITES.

(a) Study.--The Secretary of Energy shall, using funds
authorized to be appropriated to the Department of Energy by
section 3102, carry out a study to determine the extent and
valuation of the injury to, destruction of, or loss of natural
resources under section 107(a)(4)(C) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980
(42 U.S.C. 9607(a)(4)(C)) at each site controlled or operated
by the Department that is or is anticipated to become subject
to the provisions of that Act.
(b) Conduct of Study.--(1) The Secretary shall carry out
the study using personnel of the Department or by contract with
an appropriate private entity.
(2) In determining the extent and valuation of the injury
to, destruction of, or loss of natural resources for purposes
of the study, the Secretary shall--
(A) treat the Department as a private person liable
for response, removal, and remediation costs and
damages under section 107(a)(4) of that Act (42 U.S.C.
9607(a)(4)) and subject to an action for damages by
public trustees of natural resources under section
107(f) of that Act (42 U.S.C. 9607(f)) or by any other
person pursuant to section 107(e) or 113(f) of that Act
(42 U.S.C. 9607(e) and 9613(f)); and
(B) determine the value of natural resource damages
associated with each site in accordance with all
regulations promulgated under section 301(c) of that
Act (42 U.S.C. 9651(c)).
(c) Report.--Not later than 90 days after the date of the
enactment of this Act, the Secretary shall submit a report on
the study carried out under subsection (a) to the following
committees:
(1) The Committees on Environment and Public Works,
Armed Services, and Energy and Natural Resources of the
Senate.
(2) The Committees on Commerce, National Security,
Transportation and Infrastructure, and Resources of the
House of Representatives.

SEC. 3155. REQUIREMENT FOR ANNUAL FIVE-YEAR BUDGET FOR THE NATIONAL
SECURITY PROGRAMS OF THE DEPARTMENT OF ENERGY.

(a) Requirement.--The Secretary of Energy shall prepare
each year a budget for the national security programs of the
Department of Energy for the five-year period beginning in the
year the budget is prepared. Each budget shall contain the
estimated expenditures and proposed appropriations necessary to
support the programs, projects, and activities of the national
security programs during the five-year period covered by the
budget and shall be at a level of detail comparable to that
contained in the budget submitted by the President to Congress
under section 1105 of title 31, United States Code.
(b) Submittal.--The Secretary shall submit each year to the
congressional defense committees the budget required under
subsection (a) in that year at the same time as the President
submits to Congress the budget for the coming fiscal year
pursuant to such section 1105.

SEC. 3156. REQUIREMENTS FOR DEPARTMENT OF ENERGY WEAPONS ACTIVITIES
BUDGETS FOR FISCAL YEARS AFTER FISCAL YEAR 1997.

(a) In General.--The weapons activities budget of the
Department of Energy for any fiscal year after fiscal year 1997
shall--
(1) set forth with respect to each of the
activities under the budget (including stockpile
stewardship, stockpile management, and program
direction) the funding requested to carry out each
project or activity that is necessary to meet the
requirements of the Nuclear Weapons Stockpile
Memorandum; and
(2) identify specific infrastructure requirements
arising from the Nuclear Posture Review, the Nuclear
Weapons Stockpile Memorandum, and the programmatic and
technical requirements associated with the review and
memorandum.
(b) Required Detail.--The Secretary of Energy shall include
in the materials that the Secretary submits to Congress in
support of the budget for any fiscal year after fiscal year
1997 that is submitted by the President pursuant to section
1105 of title 31, United States Code, the following:
(1) A long-term program plan, and a near-term
program plan, for the certification and stewardship of
the nuclear weapons stockpile.
(2) An assessment of the effects of the plans
referred to in paragraph (1) on each nuclear weapons
laboratory and each nuclear weapons production plant.
(c) Definitions.--In this section:
(1) The term ``Nuclear Posture Review'' means the
Department of Defense Nuclear Posture Review as
contained in the report of the Secretary of Defense to
the President and Congress dated February 19, 1995, or
in subsequent such reports.
(2) The term ``nuclear weapons laboratory'' means
the following:
(A) Lawrence Livermore National Laboratory,
California.
(B) Los Alamos National Laboratory, New
Mexico.
(C) Sandia National Laboratories.
(3) The term ``nuclear weapons production plant''
means the following:
(A) The Pantex Plant, Texas.
(B) The Savannah River Site, South
Carolina.
(C) The Kansas City Plant, Missouri.
(D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 3157. REPEAL OF REQUIREMENT RELATING TO ACCOUNTING PROCEDURES FOR
DEPARTMENT OF ENERGY FUNDS.

Section 3151 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3089) is
repealed.

SEC. 3158. UPDATE OF REPORT ON NUCLEAR TEST READINESS POSTURES.

Not later than June 1, 1997, the Secretary of Energy shall
submit to Congress a report which updates the report submitted
by the Secretary under section 3152 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110
Stat. 623). The updated report shall include the matters
specified under such section, current as of the date of the
updated report.

SEC. 3159. REPORTS ON CRITICAL DIFFICULTIES AT NUCLEAR WEAPONS
LABORATORIES AND NUCLEAR WEAPONS PRODUCTION PLANTS.

(a) Reports by Heads of Laboratories and Plants.--In the
event of a difficulty at a nuclear weapons laboratory or a
nuclear weapons production plant that has a significant bearing
on confidence in the safety or reliability of a nuclear weapon
or nuclear weapon type, the head of the laboratory or plant, as
the case may be, shall submit to the Assistant Secretary of
Energy for Defense Programs a report on the difficulty. The
head of the laboratory or plant shall submit the report as soon
as practicable after discovery of the difficulty.
(b) Transmittal by Assistant Secretary.--As soon as
practicable after receipt of a report under subsection (a), the
Assistant Secretary shall transmit the report (together with
the comments of the Assistant Secretary) to the congressional
defense committees and to the Secretary of Energy and the
Secretary of Defense.
(c) Reports by Nuclear Weapons Council.--Section 179 of
title 10, United States Code, is amended--
(1) by redesignating subsection (e) as subsection
(f); and
(2) by inserting after subsection (d) the following
new subsection (e):
``(e) In addition to the responsibilities set forth in
subsection (d), the Council shall also submit to Congress a
report on any analysis conducted by the Council with respect to
difficulties at nuclear weapons laboratories or nuclear weapons
production plants that have significant bearing on confidence
in the safety or reliability of nuclear weapons or nuclear
weapon types.''.
(d) Definitions.--In this section:
(1) The term ``nuclear weapons laboratory'' means
the following:
(A) Lawrence Livermore National Laboratory,
California.
(B) Los Alamos National Laboratory, New
Mexico.
(C) Sandia National Laboratories.
(2) The term ``nuclear weapons production plant''
means the following:
(A) The Pantex Plant, Texas.
(B) The Savannah River Site, South
Carolina.
(C) The Kansas City Plant, Missouri.
(D) The Y-12 Plant, Oak Ridge, Tennessee.

SEC. 3160. EXTENSION OF APPLICABILITY OF NOTICE-AND-WAIT REQUIREMENT
REGARDING PROPOSED COOPERATION AGREEMENTS.

Section 3155(b) of the National Defense Authorization Act
for Fiscal Year 1995 (42 U.S.C. 2153 note) is amended by
striking out ``October 1, 1996'' and inserting in lieu thereof
``October 1, 1997''.

SEC. 3161. SENSE OF SENATE RELATING TO REDESIGNATION OF DEFENSE
ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT
PROGRAM.

(a) Sense of Senate.--It is the sense of the Senate that
the program of the Department of Energy known as the Defense
Environmental Restoration and Waste Management Program, and
also known as the Environmental Management Program, be
redesignated as the Defense Nuclear Waste Management Program of
the Department of Energy.
(b) Report on Redesignation.--Not later than January 31,
1997, the Secretary of Energy shall submit to the congressional
defense committees a report on the costs and other
difficulties, if any, associated with the following:
(1) The redesignation of the program known as the
Defense Environmental Restoration and Waste Management
Program, and also known as the Environmental Management
Program, as the Defense Nuclear Waste Management
Program of the Department of Energy.
(2) The redesignation of the Defense Environmental
Restoration and Waste Management Account as the Defense
Nuclear Waste Management Account.

SEC. 3162. COMMISSION ON MAINTAINING UNITED STATES NUCLEAR WEAPONS
EXPERTISE.

(a) Establishment.--There is hereby established a
commission to be known as the ``Commission on Maintaining
United States Nuclear Weapons Expertise'' (in this section
referred to as the ``Commission'').
(b) Organizational Matters.--(1)(A) The Commission shall be
composed of eight members appointed from among individuals in
the public and private sectors who have significant experience
in matters relating to nuclear weapons, as follows:
(i) Two shall be appointed by the majority leader
of the Senate (in consultation with the minority leader
of the Senate).
(ii) One shall be appointed by the minority leader
of the Senate (in consultation with the majority leader
of the Senate).
(iii) Two shall be appointed by the Speaker of the
House of Representatives (in consultation with the
minority leader of the House of Representatives).
(iv) One shall be appointed by the minority leader
of the House of Representatives (in consultation with
the Speaker of the House of Representatives).
(v) Two shall be appointed by the Secretary of
Energy.
(B) Members shall be appointed for the life of the
Commission. Any vacancy in the Commission shall not affect its
powers, but shall be filled in the same manner as the original
appointment.
(C) The chairman of the Commission shall be designated from
among the members of the Commission appointed under
subparagraph (A) by the majority leader of the Senate, in
consultation with the Speaker of the House of Representatives,
the minority leader of the Senate, and the minority leader of
the House of Representatives.
(D) Members shall be appointed not later than 60 days after
the date of the enactment of this Act.
(2) The members of the Commission shall establish
procedures for the activities of the Commission, including
procedures for calling meetings, requirements for quorums, and
the manner of taking votes.
(c) Duties.--(1) The Commission shall develop a plan for
recruiting and retaining within the Department of Energy
nuclear weapons complex such scientific, engineering, and
technical personnel as the Commission determines appropriate in
order to permit the Department to maintain over the long term a
safe and reliable nuclear weapons stockpile without engaging in
underground testing.
(2) In developing the plan, the Commission shall--
(A) identify actions that the Secretary may
undertake to attract qualified scientific, engineering,
and technical personnel to the nuclear weapons complex
of the Department; and
(B) review and recommend improvements to the on-
going efforts of the Department to attract such
personnel to the nuclear weapons complex.
(d) Report.--Not later than March 15, 1998, the Commission
shall submit to the Secretary and to Congress a report
containing the plan developed under subsection (c). The report
may include recommendations for legislation and administrative
action.
(e) Commission Personnel Matters.--(1) Each member of the
Commission who is not an officer or employee of the Federal
Government shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
IV of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties
of the Commission. All members of the Commission who are
officers or employees of the United States shall serve without
compensation in addition to that received for their services as
officers or employees of the United States.
(2) The members of the Commission shall be allowed travel
expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance of
services for the Commission.
(3) The Commission may, without regard to the civil service
laws and regulations, appoint and terminate such personnel as
may be necessary to enable the Commission to perform its
duties. The Commission may fix the compensation of the
personnel of the Commission without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5, United
States Code, relating to classification of positions and
General Schedule pay rates.
(4) Any Federal Government employee may be detailed to the
Commission without reimbursement, and such detail shall be
without interruption or loss of civil service status or
privilege.
(f) Termination.--The Commission shall terminate 30 days
after the date on which the Commission submits its report under
subsection (d).
(g) Applicability of FACA.--The provisions of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the
activities of the Commission.
(h) Funding.--Of the amounts authorized to be appropriated
pursuant to section 3101, not more than $1,000,000 shall be
available for the activities of the Commission under this
section. Funds made available to the Commission under this
section shall remain available until expended.

SEC. 3163. SENSE OF CONGRESS REGARDING RELIABILITY AND SAFETY OF
REMAINING NUCLEAR FORCES.

(a) Findings.--Congress makes the following findings:
(1) The United States is committed to proceeding
with a robust, science-based stockpile stewardship
program with respect to production of nuclear weapons,
and to maintaining nuclear weapons production
capabilities and capacities, that are adequate--
(A) to ensure the safety, reliability, and
performance of the United States nuclear
arsenal; and
(B) to meet such changing national security
requirements as may result from international
developments or technical problems with nuclear
warheads.
(2) The United States is committed to
reestablishing and maintaining production facilities
for nuclear weapons components at levels that are
sufficient--
(A) to satisfy requirements for the safety,
reliability, and performance of United States
nuclear weapons; and
(B) to demonstrate and sustain production
capabilities and capacities.
(3) The United States is committed to maintaining
the nuclear weapons laboratories and protecting core
nuclear weapons competencies.
(4) The United States is committed to ensuring
rapid access to a new production source of tritium
within the next decade, as it currently has no
meaningful capability to produce tritium, a component
that is essential to the performance of modern nuclear
weapons.
(5) The United States reserves the right,
consistent with United States law, to resume
underground nuclear testing to maintain confidence in
the United States stockpile of nuclear weapons if
warhead design flaws or aging of nuclear weapons result
in problems that a robust stockpile stewardship program
cannot solve.
(6) The United States is committed to funding the
Nevada Test Site at a level that maintains the ability
of the United States to resume underground nuclear
testing within one year after a national decision to do
so is made.
(7) The United States reserves the right to invoke
the supreme national interest of the United States and
withdraw from any future arms control agreement to
limit underground nuclear testing.
(b) Sense of Congress Regarding Presidential Consultation
With Congress.--It is the sense of Congress that the President
should consult closely with Congress regarding United States
policy and practices to ensure confidence in the safety,
reliability, and performance of the nuclear stockpile of the
United States.
(c) Sense of Congress Regarding Notification and
Consultation.--It is the sense of Congress that, upon a
determination by the President that a problem with the safety,
reliability, or performance of the nuclear stockpile has
occurred and that the problem cannot be corrected within the
stockpile stewardship program, the President shall--
(1) immediately notify Congress of the problem; and
(2) submit to Congress in a timely manner a plan
for corrective action with respect to the problem,
including--
(A) a technical description of the
activities required under the plan; and
(B) if underground testing of nuclear
weapons would assist in such corrective action,
an assessment of the advisability of
withdrawing from any treaty that prohibits
underground testing of nuclear weapons.

SEC. 3164. STUDY ON WORKER PROTECTION AT THE MOUND FACILITY.

(a) Report.--Not later than March 15, 1997, the Secretary
of Energy shall submit to the congressional defense committees
a report regarding the status of projects and programs to
improve worker safety and health at the Mound Facility in
Miamisburg, Ohio.
(b) Matters Covered.--The report shall include the
following:
(1) The status of actions completed in fiscal year
1996.
(2) The status of actions completed or proposed to
be completed in fiscal years 1997 and 1998.
(3) A description of the fiscal year 1998 budget
request for worker safety and health at the Mound
Facility.
(4) An accounting of expenditures for worker safety
and health at the Mound Facility by fiscal year from
fiscal year 1994 through and including fiscal year
1996.

SEC. 3165. FISCAL YEAR 1998 FUNDING FOR GREENVILLE ROAD IMPROVEMENT
PROJECT, LIVERMORE, CALIFORNIA.

(a) Funding.--The Secretary of Energy shall include in the
budget for fiscal year 1998 submitted by the Secretary of
Energy to the Office of Management and Budget a request for
sufficient funds to pay the United States portion of the cost
of transportation improvements under the Greenville Road
Improvement Project, Livermore, California.
(b) Cooperation with Livermore, California.--The Secretary
shall work with the city of Livermore, California, to determine
the cost of the transportation improvements referred to in
subsection (a).

SEC. 3166. FELLOWSHIP PROGRAM FOR DEVELOPMENT OF SKILLS CRITICAL TO
DEPARTMENT OF ENERGY NUCLEAR WEAPONS COMPLEX.

(a) Funding.--Subject to subsection (b), of the funds
authorized to be appropriated pursuant to section 3101(b),
$5,000,000 may be used for conducting the fellowship program
for the development of skills critical to the ongoing mission
of the Department of Energy nuclear weapons complex required by
section 3140 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 621; 42 U.S.C.
2121 note).
(b) Notice and Wait.--The Secretary of Energy may not
obligate or expend funds under subsection (a) for the
fellowship program referred to in that subsection until--
(1) the Secretary submits to Congress a report
setting forth--
(A) the actions the Department has taken to
implement the fellowship program;
(B) the amount the Secretary proposes to
obligate;
(C) the purposes for which such amount will
be obligated; and
(2) a period of 21 days elapses from the date of
the receipt of the report by Congress.

Subtitle E--Defense Nuclear Environmental Cleanup and Management

SEC. 3171. PURPOSE.

The purpose of this subtitle is to provide for the
expedited environmental restoration and waste management of
defense nuclear facilities through the use of cost-effective
management mechanisms and innovative technologies.

SEC. 3172. APPLICABILITY.

(a) In General.--The provisions of this subtitle shall
apply to the following defense nuclear facilities:
(1) Any defense nuclear facility for which the
fiscal year 1996 environmental management budget was
$350,000,000 or more.
(2) Any other defense nuclear facility if--
(A) the chief executive officer of the
State in which the facility is located submits
to the Secretary a request that the facility be
covered by the provisions of this subtitle; and
(B) the Secretary approves the request.
(b) Limitation.--The Secretary may not approve a request
under subsection (a)(2) until 60 days after the date on which
the Secretary notifies Congress of the Secretary's receipt of
the request.

SEC. 3173. SITE MANAGER.

(a) Appointment.--(1) Subject to paragraph (2), the
Secretary shall expeditiously appoint a Site Manager for each
defense nuclear facility (in this subtitle referred to as the
``Site Manager'').
(2) In the case of a defense nuclear facility at which
another program, in addition to environmental management
operations, is carried out, and such other program is subject
to management by a site manager, field office manager, or
operations office manager, the Secretary shall appoint such
manager to be the Site Manager for such facility for purposes
of this subtitle.
(b) Authority.--(1) In addition to other authorities
provided for in this Act, the Secretary may delegate to the
Site Manager of a defense nuclear facility authority to oversee
and direct environmental management operations at the facility,
including the authority to--
(A) enter into and modify contractual agreements to
enhance environmental restoration and waste management
at the facility;
(B) request that the Department headquarters submit
to Congress a reprogramming package shifting funds
among accounts in order to facilitate the most
efficient and timely environmental restoration and
waste management of the facility, and, in the event
that the Department headquarters does not act upon the
request within 60 days, submit such request to the
appropriate congressional committees for review;
(C) subject to paragraph (2), negotiate amendments
to environmental agreements for the Department;
(D) manage Department personnel at the facility;
(E) consider the costs, risk reduction benefits,
and other benefits for the purposes of ensuring
protection of human health and the environment or
safety, with respect to any environmental remediation
activity the cost of which exceeds $25,000,000; and
(F) have assessments prepared for environmental
restoration activities (in several documents or a
single document, as determined by the Site Manager).
(2) In using the authority described in paragraph (1)(C), a
Site Manager may not negotiate an amendment that is expected to
result in additional life cycle costs to the Department without
the approval of the Secretary.
(3) In using any authority described in paragraph (1), a
Site Manager of a facility shall consult with the State where
the facility is located and the advisory board for the
facility.
(4) The delegation of any authority pursuant to this
subsection shall not be construed as restricting the
Secretary's authority to delegate other authorities as
necessary.
(c) Information to Secretary.--The Site Manager of a
defense nuclear facility shall regularly inform the Secretary,
Congress, and the advisory board for the facility of the
progress made by the Site Manager to achieve the expedited
environmental restoration and waste management of the facility.

SEC. 3174. DEPARTMENT OF ENERGY ORDERS.

An order imposed after the date of the enactment of this
Act relating to the execution of environmental restoration,
waste management, or technology development activities at a
defense nuclear facility under the Atomic Energy Act of 1954
(42 U.S.C. 2011 et seq.) may be imposed by the Secretary at the
defense nuclear facility only if the Secretary finds that the
order is necessary for the protection of human health and the
environment or safety, the fulfillment of current legal
requirements, or the conduct of critical administrative
functions.

SEC. 3175. DEPLOYMENT OF TECHNOLOGY FOR REMEDIATION OF DEFENSE NUCLEAR
WASTE.

(a) In General.--The Site Manager of each defense nuclear
facility shall promote the deployment of innovative
environmental technologies for remediation of defense nuclear
waste at the facility.
(b) Criteria.--To carry out subsection (a), the Site
Manager of a defense nuclear facility shall establish a program
at the facility for the testing and deployment of innovative
environmental technologies for the remediation of defense
nuclear waste at the facility. In establishing such a program,
the Site Manager may--
(1) establish a simplified, standardized, and
timely process for the testing, verification,
certification, and deployment of environmental
technologies;
(2) solicit applications to test and deploy
environmental technologies suitable for environmental
restoration and waste management activities at the
facility, including prevention, control,
characterization, treatment, and remediation of
contamination;
(3) consult and cooperate with the heads of
existing programs at the facility for the verification
and certification of environmental technologies at the
facility;
(4) pay the costs of the demonstration of such
technologies;
(5) enter into contracts and other agreements with
other public and private entities to deploy
environmental technologies at the facility; and
(6) include incentives, such as product performance
specifications, in contracts to encourage the
implementation of innovative environmental
technologies.
(c) Follow-on Contracts.--(1) If the Secretary and a person
demonstrating a technology under the program enter into a
contract for remediation of nuclear waste at a defense nuclear
facility covered by this subtitle, or at any other Department
facility, as a follow-on to the demonstration of the
technology, the Secretary shall ensure that the contract
provides for the Secretary to recoup from the contractor the
costs incurred by the Secretary pursuant to subsection (b)(6)
for the demonstration.
(2) No contract between the Department and a contractor for
the demonstration of technology under subsection (b) may
provide for reimbursement of the costs of the contractor on a
cost plus fee basis.
(d) Safe Harbors.--In the case of an environmental
technology tested, verified, certified, and deployed at a
defense nuclear facility under a program established under
subsection (b), the site manager of another defense nuclear
facility may request the Secretary to waive or limit
contractual or Department regulatory requirements that would
otherwise apply in implementing the same environmental
technology at such other facility.

SEC. 3176. PERFORMANCE-BASED CONTRACTING.

(a) Program.--The Secretary shall develop and implement a
program for performance-based contracting for contracts entered
into for environmental remediation at defense nuclear
facilities. The program shall ensure that, to the maximum
extent practicable and appropriate, such contracts include the
following:
(1) Clearly stated and results oriented performance
criteria and measures.
(2) Appropriate incentives for contractors to meet
or exceed the performance criteria effectively and
efficiently.
(3) Appropriate criteria and incentives for
contractors to seek and engage subcontractors who may
more effectively and efficiently perform either unique
and technologically challenging tasks or routine and
interchangeable services.
(4) Specific incentives for cost savings.
(5) Financial accountability.
(6) When appropriate, reduction of fee for failure
to meet minimum performance criteria and standards.
(b) Criteria and Measures.--Performance criteria and
measures should take into consideration, at a minimum, the
following: managerial control; elimination or reduction of risk
to public health and the environment; workplace safety;
financial control; goal-oriented work scope; use of innovative
and alternative technologies and techniques that result in
cleanups being performed less expensively, more quickly, and
within quality parameters; and performing within benchmark cost
estimates.
(c) Consultation.--In implementing this section, the
Secretary shall consult with interested parties.
(d) Deadline.--The Secretary shall implement this section
not later than October 1, 1997, unless the Secretary submits to
Congress before that date a report with a schedule for
completion of action under this section.

SEC. 3177. DESIGNATION OF COVERED FACILITIES AS ENVIRONMENTAL CLEANUP
DEMONSTRATION AREAS.

(a) Designation.--Each defense nuclear facility is hereby
designated as an environmental cleanup demonstration area to
carry out the purposes of this subtitle, including the
utilization and evaluation of new technologies to be used in
environmental restoration and remediation at other defense
nuclear facilities.
(b) Sense of Congress.--It is the sense of Congress that
Federal and State regulatory agencies, members of the
communities surrounding any defense nuclear facility, and other
affected parties with respect to the facility should continue
to--
(1) develop expedited and streamlined processes and
systems for cleaning up such facility;
(2) eliminate unnecessary administrative complexity
and unnecessary duplication of regulation with respect
to the clean up of such facility;
(3) proceed expeditiously and cost-effectively with
environmental restoration and remediation activities at
such facility;
(4) consider future land use in selecting
environmental clean up remedies at such facility; and
(5) identify and recommend to Congress changes in
law needed to expedite the clean up of such facility.

SEC. 3178. DEFINITIONS.

In this subtitle:
(1) The term ``Secretary'' means the Secretary of
Energy.
(2) The term ``Department'' means the Department of
Energy.
(3) The term ``defense nuclear facility'' has the
meaning given the term ``Department of Energy defense
nuclear facility'' in section 318 of the Atomic Energy
Act of 1954 (42 U.S.C. 2286g).

SEC. 3179. TERMINATION.

This subtitle is repealed effective September 30, 2001.

SEC. 3180. REPORT.

Not later than September 30, 2000, the Secretary shall
submit to Congress a report on the effectiveness of this
subtitle in expediting environmental restoration and waste
management of defense nuclear facilities. The report shall
include recommendations on whether this subtitle should remain
in effect beyond September 30, 2001.

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

SEC. 3181. SHORT TITLE.

This subtitle may be cited as the ``Waste Isolation Pilot
Plant Land Withdrawal Amendment Act''.

SEC. 3182. DEFINITIONS.

Section 2 of the Waste Isolation Pilot Plant Land
Withdrawal Act (Public Law 102-579; 106 Stat. 4777) is
amended--
(1) by striking paragraphs (18) and (19); and
(2) by redesignating paragraphs (20), (21), and
(22), as paragraphs (18), (19), and (20), respectively.

SEC. 3183. MANAGEMENT PLAN.

Section 4(b)(5)(B) of the Waste Isolation Pilot Plant Land
Withdrawal Act (106 Stat. 4781) is amended by striking ``or
with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.)''.

SEC. 3184. REPEAL OF TEST PHASE AND RETRIEVAL PLANS.

(a) Repeal.--Section 5 of the Waste Isolation Pilot Plant
Land Withdrawal Act (106 Stat. 4782) is repealed.
(b) Clerical Amendment.--The table of contents in section
1(b) of such Act (106 Stat. 4777) is amended by striking out
the item relating to section 5.

SEC. 3185. TEST PHASE ACTIVITIES.

Section 6 of the Waste Isolation Pilot Plant Land
Withdrawal Act (106 Stat. 4783) is amended--
(1) by repealing subsections (a) and (b);
(2) by repealing paragraph (1) of subsection (c);
(3) by redesignating subsection (c) as subsection
(a) and in that subsection--
(A) by repealing subparagraph (A) of
paragraph (2);
(B) by striking the subsection heading and
the matter immediately following the subsection
heading and inserting ``Study.--The following
study shall be conducted:'';
(C) by striking ``(2) Remote-handled
waste.--'';
(D) by striking ``(B) Study.--'';
(E) by redesignating clauses (i), (ii), and
(iii) as paragraphs (1), (2), and (3),
respectively; and
(F) by realigning the margins of such
clauses to be margins of paragraphs;
(4) in subsection (d), by striking ``, during the
test phase, a biennial'' and inserting ``a'' and by
striking ``, consisting of a documented analysis of ''
and inserting ``as necessary to demonstrate''; and
(5) by redesignating subsection (d) as subsection
(b).

SEC. 3186. DISPOSAL OPERATIONS.

Subsection (b) of section 7 of the Waste Isolation Pilot
Plant Land Withdrawal Act (106 Stat. 4785) is amended to read
as follows:
``(b) Requirements for Commencement of Disposal
Operations.--The Secretary may commence emplacement of
transuranic waste underground for disposal at WIPP only upon
completion of--
``(1) the Administrator's certification under
section 8(d)(1) that the WIPP facility will comply with
the final disposal regulations;
``(2) the acquisition by the Secretary (whether by
purchase, condemnation, or otherwise) of Federal Oil
and Gas Leases No. NMNM 02953 and No. NMNM 02953C,
unless the Administrator determines under section
4(b)(5) that such acquisition is not required; and
``(3) the 30-day period beginning on the date on
which the Secretary notifies Congress that the
requirements of section 9(a)(1) have been met.''.

SEC. 3187. ENVIRONMENTAL PROTECTION AGENCY DISPOSAL REGULATIONS.

(a) Section 8(d)(1).--Section 8(d)(1) of the Waste
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4786) is
amended--
(1) by amending subparagraph (A) to read as
follows:
``(A) Application for compliance.--Within
30 days after the date of the enactment of the
Waste Isolation Pilot Plant Land Withdrawal
Amendment Act, the Secretary shall provide to
Congress a schedule for the incremental
submission of chapters of the application to
the Administrator beginning no later than 30
days after the date of the submittal of the
schedule. The Administrator shall review the
submitted chapters and provide requests for
additional information from the Secretary as
needed for completeness within 45 days of the
receipt of each chapter. The Administrator
shall notify Congress of such requests. The
schedule shall call for the Secretary to submit
all chapters to the Administrator no later than
October 31, 1996. The Administrator may at any
time request additional information from the
Secretary as needed to certify, pursuant to
subparagraph (B), whether the WIPP facility
will comply with the final disposal
regulations.''; and
(2) in subparagraph (D), by striking ``after the
application is'' and inserting ``after the full
application has been''.
(b) Section 8(d) (2) and (3).--Section 8(d) of such Act is
amended by striking paragraphs (2) and (3), by striking ``(1)
Compliance with disposal regulations.--'' and by redesignating
subparagraphs (A), (B), (C), and (D) of paragraph (1) as
paragraph (1), (2), (3), and (4), respectively.
(c) Section 8(g).--Section 8(g) of such Act is amended to
read as follows:
``(g) Engineered and Natural Barriers, Etc.--The Secretary
shall use both engineered and natural barriers and any other
measures (including waste form modifications) to the extent
necessary at WIPP to comply with the final disposal
regulations.''.

SEC. 3188. COMPLIANCE WITH ENVIRONMENTAL LAWS AND REGULATIONS.

(a) Section 9(a)(1).--Section 9(a)(1) of the Waste
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4788) is
amended by adding after and below subparagraph (H) the
following: ``With respect to transuranic mixed waste designated
by the Secretary for disposal at WIPP, such waste is exempt
from treatment standards promulgated pursuant to section
3004(m) of the Solid Waste Disposal Act (42 U.S.C. 6924(m)) and
shall not be subject to the land disposal prohibitions in
section 3004 (d), (e), (f), and (g) of the Solid Waste Disposal
Act.''.
(b) Section 9(b).--Subsection (b) of section 9 of such Act
is repealed.
(c) Section 9(c)(2).--Subsection (c)(2) of section 9 of
such Act is repealed.
(d) Section 14.--Section 14 of such Act (106 Stat. 4791) is
amended--
(1) in subsection (a), by striking ``No provision''
and inserting ``Except for the exemption from the land
disposal restrictions described in section 9(a)(1), no
provision''; and
(2) in subsection (b)(2), by striking ``including
all terms and conditions of the No-Migration
Determination'' and inserting ``except that the
transuranic mixed waste designated by the Secretary for
disposal at WIPP is exempt from the land disposal
restrictions described in section 9(a)(1)''.

SEC. 3189. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF
TRANSURANIC WASTE.

(a) In General.--Section 10 of the Waste Isolation Pilot
Plant Land Withdrawal Act (106 Stat. 4789) is amended to read
as follows:

``SEC. 10. SENSE OF CONGRESS ON COMMENCEMENT OF EMPLACEMENT OF
TRANSURANIC WASTE.

``It is the sense of Congress that the Secretary should
complete all actions required under section 7(b) to commence
emplacement of transuranic waste underground for disposal at
WIPP not later than November 30, 1997, provided that before
that date all applicable health and safety standards have been
met and all applicable laws have been complied with.''.
(b) Clerical Amendment.--The item relating to section 10 in
the table of contents in section 1 is amended to read as
follows:

``Sec. 10. Sense of Congress on commencement of emplacement of
transuranic waste.''.

SEC. 3190. DECOMMISSIONING OF WIPP.

Section 13 of the Waste Isolation Pilot Plant Land
Withdrawal Act (106 Stat. 4791) is amended--
(1) by striking subsection (a); and
(2) by striking ``(b) Management Plan for the
Withdrawal After Decommissioning.--Within 5 years after
the date of the enactment of this Act, the'' and
inserting ``The''.

SEC. 3191. AUTHORIZATIONS FOR ECONOMIC ASSISTANCE AND MISCELLANEOUS
PAYMENTS.

(a) Authorization Amendment.--Section 15(a) of the Waste
Isolation Pilot Plant Land Withdrawal Act (106 Stat. 4791) is
amended--
(1) in the subsection caption, by striking ``15-
Year'' and inserting ``14-Year''; and
(2) by striking ``15 fiscal years beginning with
the fiscal year in which the transport of transuranic
waste to WIPP is initiated'' and inserting ``14 fiscal
years beginning with fiscal year 1998''.
(b) Requirement for Separate Authorizations.--Such section
15(a) is further amended by adding at the end the following:
``The authorization of appropriations for funds for payments to
the State under the preceding sentence shall be separate from
any authorization of appropriations of funds for WIPP.''.
(c) Fiscal Year 1997 Funding.--Of the amount authorized to
be appropriated for the Department of Energy by section
3102(b), $20,000,000 shall be available for the purpose of a
payment by the Secretary of Energy to the State of New Mexico
for road improvements in connection with the Waste Isolation
Pilot Plant.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

There are authorized to be appropriated for fiscal year
1997, $17,000,000 for the operation of the Defense Nuclear
Facilities Safety Board under chapter 21 of the Atomic Energy
Act of 1954 (42 U.S.C. 2286 et seq.).

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Subtitle A--Authorization of Disposals and Use of Funds

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

Subtitle B--Programmatic Change

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

Subtitle A--Authorization of Disposals and Use of Funds

SEC. 3301. DEFINITIONS.

In this title:
(1) The term ``National Defense Stockpile'' means
the stockpile provided for in section 4 of the
Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98c).
(2) The term ``National Defense Stockpile
Transaction Fund'' means the fund in the Treasury of
the United States established under section 9(a) of the
Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98h(a)).

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

(a) Obligation of Stockpile Funds.--During fiscal year
1997, the National Defense Stockpile Manager may obligate up to
$60,000,000 of the funds in the National Defense Stockpile
Transaction Fund for the authorized uses of such funds under
section 9(b)(2) of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h(b)(2)).
(b) Additional Obligations.--The National Defense Stockpile
Manager may obligate amounts in excess of the amount specified
in subsection (a) if the National Defense Stockpile Manager
notifies Congress that extraordinary or emergency conditions
necessitate the additional obligations. The National Defense
Stockpile Manager may make the additional obligations described
in the notification after the end of the 45-day period
beginning on the date Congress receives the notification.
(c) Limitations.--The authorities provided by this section
shall be subject to such limitations as may be provided in
appropriations Acts.

SEC. 3303. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL DEFENSE STOCKPILE.

(a) Disposal Required.--Subject to subsection (c), the
President shall dispose of materials contained in the National
Defense Stockpile and specified in the table in subsection (b)
so as to result in receipts to the United States in amounts
equal to--
(1) $81,000,000 during fiscal year 1997; and
(2) $612,000,000 during the ten-fiscal year period
ending September 30, 2006.
(b) Limitation on Disposal Quantity.--The total quantities
of materials authorized for disposal by the President under
subsection (a) may not exceed the amounts set forth in the
following table:

Authorized Stockpile Disposals
------------------------------------------------------------------------
Material for disposal Quantity
------------------------------------------------------------------------
Aluminum.................................. 62,881 short tons
Cobalt.................................... 26,000,000 pounds contained
Columbium Ferro........................... 930,911 pounds contained
Germanium Metal........................... 40,000 kilograms
Indium.................................... 35,000 troy ounces
Palladium................................. 15,000 troy ounces
Platinum.................................. 10,000 troy ounces
Rubber, Natural........................... 125,138 long tons
Tantalum, Carbide Powder.................. 6,000 pounds contained
Tantalum, Minerals........................ 750,000 pounds contained
Tantalum, Oxide........................... 40,000 pounds contained
------------------------------------------------------------------------

(c) Minimization of Disruption and Loss.--The President may
not dispose of materials under subsection (a) to the extent
that the disposal will result in--
(1) undue disruption of the usual markets of
producers, processors, and consumers of the materials
proposed for disposal; or
(2) avoidable loss to the United States.
(d) Treatment of Receipts.--Notwithstanding section 9 of
the Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98h), funds received as a result of the disposal of
materials under subsection (a) shall be--
(1) deposited into the general fund of the
Treasury; and
(2) to the extent necessary, used to offset the
revenues that will be lost as a result of execution of
the amendments made by section 4303(a) of the National
Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106; 110 Stat. 658).
(e) Qualifying Offsetting Legislation.--This section is
specifically enacted as qualifying offsetting legislation for
the purpose of offsetting fully the estimated revenues lost as
a result of the amendments made by subsection (a) of section
4303 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106; 110 Stat. 658), and as such is deemed
to satisfy the conditions in subsection (b) of such section.
(f) Relationship to Other Disposal Authority.--The disposal
authority provided in subsection (a) is new disposal authority
and is in addition to, and shall not affect, any other disposal
authority provided by law regarding the materials specified in
such subsection.

Subtitle B--Programmatic Change

SEC. 3311. BIENNIAL REPORT ON STOCKPILE REQUIREMENTS.

(a) National Emergency Planning Assumptions.--Section 14 of
the Strategic and Critical Materials Stock Piling Act (50
U.S.C. 98h-5) is amended--
(1) by redesignating subsection (c) as subsection
(e); and
(2) by striking out subsection (b) and inserting in
lieu thereof the following new subsection:
``(b) Each report under this section shall set forth the
national emergency planning assumptions used by the Secretary
in making the Secretary's recommendations under subsection
(a)(1) with respect to stockpile requirements. The Secretary
shall base the national emergency planning assumptions on a
military conflict scenario consistent with the scenario used by
the Secretary in budgeting and defense planning purposes. The
assumptions to be set forth include assumptions relating to
each of the following:
``(1) The length and intensity of the assumed
military conflict.
``(2) The military force structure to be mobilized.
``(3) The losses anticipated from enemy action.
``(4) The military, industrial, and essential
civilian requirements to support the national
emergency.
``(5) The availability of supplies of strategic and
critical materials from foreign sources during the
mobilization period, the military conflict, and the
subsequent period of replenishment, taking into
consideration possible shipping losses.
``(6) The domestic production of strategic and
critical materials during the mobilization period, the
military conflict, and the subsequent period of
replenishment, taking into consideration possible
shipping losses.
``(7) Civilian austerity measures required during
the mobilization period and military conflict.
``(c) The stockpile requirements shall be based on those
strategic and critical materials necessary for the United
States to replenish or replace, within three years of the end
of the military conflict scenario required under subsection
(b), all munitions, combat support items, and weapons systems
that would be required after such a military conflict.
``(d) The Secretary shall also include in each report under
this section an examination of the effect that alternative
mobilization periods under the military conflict scenario
required under subsection (b), as well as a range of other
military conflict scenarios addressing potentially more serious
threats to national security, would have on the Secretary's
recommendations under subsection (a)(1) with respect to
stockpile requirements.''.
(b) Conforming Amendment.--Section 2 of such Act (50 U.S.C.
98a) is amended by striking out subsection (c) and inserting in
lieu thereof the following new subsection:
``(c) The purpose of the National Defense Stockpile is to
serve the interest of national defense only. The National
Defense Stockpile is not to be used for economic or budgetary
purposes.''.
(c) Effective Date.--The amendments made by this section
shall take effect on October 1, 1996.

SEC. 3312. NOTIFICATION REQUIREMENTS.

(a) Proposed Changes in Stockpile Quantities.--Section
3(c)(2) of the Strategic and Critical Materials Stock Piling
Act (50 U.S.C. 98b(c)(2)) is amended--
(1) by striking out ``effective on or after the
30th legislative day following'' and inserting in lieu
thereof ``after the end of the 45-day period beginning
on''; and
(2) by striking out the last sentence.
(b) Waiver of Acquisition and Disposal Requirements.--
Section 6(d)(1) of such Act (50 U.S.C. 98e(d)(1)) is amended by
striking out ``thirty days'' and inserting in lieu thereof ``45
days''.
(c) Time To Begin Disposal.--Section 6(d)(2) of such Act
(50 U.S.C. 98e(d)(2)) is amended by striking out ``thirty
days'' and inserting in lieu thereof ``45 days''.

SEC. 3313. IMPORTATION OF STRATEGIC AND CRITICAL MATERIALS.

Section 13 of the Strategic and Critical Materials Stock
Piling Act (50 U.S.C. 98h-4) is amended--
(1) by striking out ``as a Communist-dominated
country or area''; and
(2) by striking out ``such Communist-dominated
countries or areas'' and inserting in lieu thereof ``a
country or area listed in such general note''.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

There is hereby authorized to be appropriated to the
Secretary of Energy $149,500,000 for fiscal year 1997 for the
purpose of carrying out activities under chapter 641 of title
10, United States Code, relating to the naval petroleum
reserves (as defined in section 7420(2) of such title). Funds
appropriated pursuant to such authorization shall remain
available until expended.

SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PETROLEUM DURING FISCAL
YEAR 1997.

Notwithstanding section 7430(b)(2) of title 10, United
States Code, during fiscal year 1997, any sale of any part of
the United States share of petroleum produced from Naval
Petroleum Reserves Numbered 1, 2, and 3 shall be made at a
price not less than 90 percent of the current sales price, as
estimated by the Secretary of Energy, of comparable petroleum
in the same area.

TITLE XXXV--PANAMA CANAL COMMISSION

Subtitle A--Authorization of Appropriations

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

Subtitle B--Amendments to Panama Canal Act of 1979

Subtitle A--Authorization of Appropriations

SEC. 3501. SHORT TITLE.

This subtitle may be cited as the ``Panama Canal Commission
Authorization Act for Fiscal Year 1997''.

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

(a) In General.--Subject to subsection (b), the Panama
Canal Commission is authorized to use amounts in the Panama
Canal Revolving Fund to make such expenditures within the
limits of funds and borrowing authority available to it in
accordance with law, and to make such contracts and
commitments, as may be necessary under the Panama Canal Act of
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance,
improvement, and administration of the Panama Canal for fiscal
year 1997.
(b) Limitations.--For fiscal year 1997, the Panama Canal
Commission may expend from funds in the Panama Canal Revolving
Fund not more than $73,000 for reception and representation
expenses, of which--
(1) not more than $18,000 may be used for official
reception and representation expenses of the
Supervisory Board of the Commission;
(2) not more than $10,000 may be used for official
reception and representation expenses of the Secretary
of the Commission; and
(3) not more than $45,000 may be used for official
reception and representation expenses of the
Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

Notwithstanding any other provisions of law, the funds
available to the Commission shall be available for the purchase
and transportation to the Republic of Panama of passenger motor
vehicles, including large, heavy-duty vehicles.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

Expenditures authorized under this subtitle may be made
only in accordance with the Panama Canal Treaties of 1977 and
any law of the United States implementing those treaties.

Subtitle B--Amendments to Panama Canal Act of 1979

SEC. 3521. SHORT TITLE; REFERENCES.

(a) Short Title.--This subtitle may be cited as the
``Panama Canal Act Amendments of 1996''.
(b) References.--Except as otherwise expressly provided,
whenever in this subtitle an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a
section or other provision of the Panama Canal Act of 1979 (22
U.S.C. 3601 et seq.).

SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

Section 3 (22 U.S.C. 3602) is amended--
(1) in subsection (b), by inserting ``and'' after
the semicolon at the end of paragraph (4), by striking
the semicolon at the end of paragraph (5) and inserting
a period, and striking paragraphs (6) and (7); and
(2) by striking subsection (d).

SEC. 3523. ADMINISTRATOR.

(a) In General.--Section 1103 (22 U.S.C. 3613) is amended
to read as follows:

``administrator

``Sec. 1103. (a) There shall be an Administrator of the
Commission who shall be appointed by the President, by and with
the advice and consent of the Senate, and shall hold office at
the pleasure of the President.
``(b) The Administrator shall be paid compensation in an
amount, established by the Board, not to exceed level III of
the Executive Schedule.''.
(b) Savings Provisions.--Nothing in this section (or
section 3549(3)) shall be considered to affect--
(1) the tenure of the individual serving as
Administrator of the Commission on the day before
subsection (a) takes effect; or
(2) until modified under section 1103(b) of the
Panama Canal Act of 1979, as amended by subsection (a),
the compensation of the individual so serving.

SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.

(a) In General.--Section 1104 (22 U.S.C. 3614) is amended
to read as follows:

``deputy administrator

``Sec. 1104. (a) There shall be a Deputy Administrator of
the Commission who shall be appointed by the President. The
Deputy Administrator shall perform such duties as may be
prescribed by the Board.
``(b) The Deputy Administrator shall be paid compensation
at a rate of pay, established by the Board, which does not
exceed the rate of basic pay in effect for level IV of the
Executive Schedule, and, if eligible, shall be paid the
overseas recruitment and retention differential provided for in
section 1217 of this Act.''.
(b) Savings Provisions.--Nothing in this section shall be
considered to affect--
(1) the tenure of the individual serving as Deputy
Administrator of the Commission on the day before
subsection (a) takes effect; or
(2) until modified under section 1104(b) of the
Panama Canal Act of 1979, as amended by subsection (a),
the compensation of the individual so serving.

SEC. 3525. OFFICE OF OMBUDSMAN.

Section 1113 (22 U.S.C. 3623) is amended by striking
subsection (d) and redesignating subsection (e) as subsection
(d).

SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.

Section 1202 (22 U.S.C. 3642) is amended to read as
follows:

``appointment and compensation; duties

``Sec. 1202. (a) In accordance with this chapter, the
Commission may appoint, fix the compensation of, and define the
authority and duties of officers and employees (other than the
Administrator and Deputy Administrator) necessary for the
management, operation, and maintenance of the Panama Canal and
its complementary works, installations, and equipment.
``(b) Individuals serving in any Executive agency (other
than the Commission) or the Smithsonian Institution, including
individuals in the uniformed services, may, if appointed under
this section or section 1104 of this Act, serve as officers or
employees of the Commission.''.

SEC. 3527. APPLICABILITY OF CERTAIN BENEFITS.

Section 1209 (22 U.S.C. 3649) is amended to read as
follows:

``applicability of certain benefits

``Sec. 1209. Chapter 81 of title 5, United States Code,
relating to compensation for work injuries, chapters 83 and 84
of such title 5, relating to retirement, chapter 87 of such
title 5, relating to life insurance, and chapter 89 of such
title 5, relating to health insurance, are applicable to
Commission employees, except any individual--
``(1) who is not a citizen of the United States;
``(2) whose initial appointment by the Commission
occurs after October 1, 1979; and
``(3) who is covered by the Social Security System
of the Republic of Panama pursuant to any provision of
the Panama Canal Treaty of 1977 and related
agreements.''.

SEC. 3528. TRAVEL AND TRANSPORTATION.

Section 1210 (22 U.S.C. 3650) is amended to read as
follows:

``travel and transportation

``Sec. 1210. (a) Subject to subsections (b) and (c), the
Commission may pay travel and transportation expenses for
employees in accordance with subchapter II of chapter 57 of
title 5, United States Code.
``(b) For an employee to whom section 1206 applies, the
Commission may pay travel and transportation expenses
associated with vacation leave for the employee and the
immediate family of the employee notwithstanding requirements
regarding periods of service established by subchapter II of
chapter 57 of title 5, United States Code, or the regulations
promulgated thereunder.
``(c) For an employee to whom section 1206 does not apply,
the Commission may pay travel and transportation expenses
associated with vacation leave for the employee and the
immediate family of the employee notwithstanding requirements
regarding a written agreement concerning the duration of a
continuing service obligation established by subchapter II of
chapter 57 of title 5, United States Code, or the regulations
promulgated thereunder.
``(d)(1) Notwithstanding any other provision of law (except
paragraph (2)), the Commission may contract with Panamanian
carriers registered under the laws of the Republic of Panama to
provide air transportation to officials and employees of the
Commission who are citizens of the Republic of Panama.
``(2) Notwithstanding paragraph (1), an official or
employee of the Commission referred to in paragraph (1) may
elect, for security or other reasons, to travel by an air
carrier holding a certificate under section 41102 of title 49,
United States Code.''.

SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.

Subparagraph (B) of section 1211(1) (22 U.S.C. 3651(1)(B))
is amended to read as follows:
``(B) any other Executive agency or the
Smithsonian Institution, to the extent of any
election in effect under section 1212(b) of
this Act;''.

SEC. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER EMPLOYMENT
REQUIREMENTS.

(a) In General.--Section 1212 (22 U.S.C. 3652) is amended
to read as follows:

``panama canal employment system; merit and other employment
requirements

``Sec. 1212. (a) The Commission shall establish a Panama
Canal Employment System and prescribe the regulations necessary
for its administration. The Panama Canal Employment System
shall--
``(1) be established in accordance with and be
subject to the provisions of the Panama Canal Treaty of
1977 and related agreements, the provisions of this
chapter, and any other applicable provision of law;
``(2) be based on the consideration of the merit of
each employee or candidate for employment and the
qualifications and fitness of the employee to hold the
position concerned;
``(3) conform, to the extent practicable and
consistent with the provisions of this Act, to the
policies, principles, and standards applicable to the
competitive service;
``(4) in the case of employees who are citizens of
the United States, provide for the appropriate
interchange of those employees between positions under
the Panama Canal Employment System and positions in the
competitive service; and
``(5) not be subject to the provisions of title 5,
United States Code, unless specifically made applicable
by this Act.
``(b)(1) The head of any Executive agency (other than the
Commission) and the Smithsonian Institution may elect to have
the Panama Canal Employment System made applicable in whole or
in part to personnel of that agency in the Republic of Panama.
``(2) Any Executive agency (other than the Commission) and
the Smithsonian Institution, to the extent of any election
under paragraph (1), shall conduct its employment and pay
practices relating to employees in accordance with the Panama
Canal Employment System.
``(3) Notwithstanding any other provision of this Act or
the Panama Canal Act Amendments of 1996, this subchapter, as
last in effect before the effective date of section 3530 of the
Panama Canal Act Amendments of 1996, shall continue to apply to
an Executive agency or the Smithsonian Institution to the
extent of an election under paragraph (1) by the head of agency
or the Institution, respectively.
``(c) The Commission may exclude any employee or position
from coverage under any provision of this subchapter, other
than the interchange rights extended under subsection
(a)(4).''.
(b) Savings Provisions.--The Panama Canal Employment System
and all elections, rules, regulations, and orders relating
thereto, as last in effect before the amendment made by
subsection (a) takes effect, shall continue in effect,
according to their terms, until modified, terminated, or
superseded under section 1212 of the Panama Canal Act of 1979,
as amended by subsection (a).

SEC. 3531. EMPLOYMENT STANDARDS.

Section 1213 (22 U.S.C. 3653) is amended in the first
sentence by striking ``The head of each agency'' and inserting
``The Commission''.

SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING INTERIM APPLICATION
OF CANAL ZONE MERIT SYSTEM.

Section 1214 (22 U.S.C. 3654) is repealed.

SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUITMENT AND RETENTION
REMUNERATION.

Section 1217(d) (22 U.S.C. 3657(d)) is repealed.

SEC. 3534. BENEFITS BASED ON BASIC PAY.

Section 1218(2) (22 U.S.C. 3658(2)) is amended to read as
follows:
``(2) benefits under subchapter III of chapter 83
or chapter 84 of title 5, United States Code, relating
to retirement;''.

SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AUTHORITY OF COMMISSION.

Section 1223 (22 U.S.C. 3663) is amended to read as
follows:

``central examining office

``Sec. 1223. The Commission shall establish a Central
Examining Office. The purpose of the office shall be to
implement the provisions of the Panama Canal Treaty of 1977 and
related agreements with respect to recruitment, examination,
determination of qualification standards, and similar matters
relating to employment of the Commission.''.

SEC. 3536. APPLICABILITY OF CERTAIN LAWS.

Section 1224 (22 U.S.C. 3664) is amended to read as
follows:

``applicability of title 5, united states code

``Sec. 1224. The following provisions of title 5, United
States Code, apply to the Panama Canal Commission:
``(1) Part I of title 5 (relating to agencies
generally).
``(2) Chapter 21 (relating to employee
definitions).
``(3) Section 2302(b)(8) (relating to whistleblower
protection) and all provisions of title 5 relating to
the administration or enforcement or any other aspect
thereof, as identified in regulations prescribed by the
Commission in consultation with the Office of Personnel
Management.
``(4) All provisions relating to preference
eligibles.
``(5) Section 5514 (relating to offset from
salary).
``(6) Section 5520a (relating to garnishments).
``(7) Sections 5531-5535 (relating to dual pay and
employment).
``(8) Subchapter VI of chapter 55 (relating to
accumulated and accrued leave).
``(9) Subchapter IX of chapter 55 (relating to
severance and back pay).
``(10) Chapter 57 (relating to travel,
transportation, and subsistence).
``(11) Chapter 59 (relating to allowances).
``(12) Chapter 63 (relating to leave for CONUS
employees).
``(13) Section 6323 (relating to military leave;
Reserves and National Guardsmen).
``(14) Chapter 71 (relating to labor relations).
``(15) Subchapters II and III of chapter 73
(relating to employment limitations and political
activities, respectively) and all provisions of title 5
relating to the administration or enforcement or any
other aspect thereof, as identified in regulations
prescribed by the Commission in consultation with the
Office of Personnel Management.
``(16) Chapter 81 (relating to compensation for
work injuries).
``(17) Chapters 83 and 84 (relating to retirement).
``(18) Chapter 85 (relating to unemployment
compensation).
``(19) Chapter 87 (relating to life insurance).
``(20) Chapter 89 (relating to health
insurance).''.

SEC. 3537. REPEAL OF PROVISION RELATING TO TRANSFERRED OR REEMPLOYED
EMPLOYEES.

Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.

SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

Section 1245 (22 U.S.C. 3682) is amended by striking so
much as precedes subsection (b) and inserting the following:

``administration of certain disability benefits

``Sec. 1245. (a)(1) The Commission, or any other United
States Government agency or private entity acting pursuant to
an agreement with the Commission, under the Act entitled `An
Act authorizing cash relief for certain employees of the Panama
Canal not coming within the provisions of the Canal Zone
Retirement Act', approved July 8, 1937 (50 Stat. 478; 68 Stat.
17), may continue the payments of cash relief to those
individual former employees of the Canal Zone Government or
Panama Canal Company or their predecessor agencies not coming
within the scope of the former Canal Zone Retirement Act whose
services were terminated prior to October 5, 1958, because of
unfitness for further useful service by reason of mental or
physical disability resulting from age or disease.
``(2) Subject to subsection (b), cash relief under this
subsection may not exceed $1.50 per month for each year of
service of the employees so furnished relief, with a maximum of
$45 per month, plus the amount of any cost-of-living increases
in such cash relief granted before October 1, 1979, pursuant to
section 181 of title 2 of the Canal Zone Code (as in effect on
September 30, 1979), nor be paid to any employee who, at the
time of termination for disability prior to October 5, 1958,
had less than 10 years' service with the Canal Zone Government,
the Panama Canal Company, or their predecessor agencies on the
Isthmus of Panama.''.

SEC. 3539. PANAMA CANAL REVOLVING FUND.

Section 1302 of the Panama Canal Act of 1979 (22 U.S.C.
3712) is amended to read as follows:

``panama canal revolving fund

``Sec. 1302. (a) There is established in the Treasury of
the United States a revolving fund to be known as `Panama Canal
Revolving Fund'. The Panama Canal Revolving Fund shall, subject
to subsection (b), be available to the Commission to carry out
the purposes, functions, and powers authorized by this Act,
including for--
``(1) the hire of passenger motor vehicles and
aircraft;
``(2) uniforms or allowances therefor;
``(3) official receptions and representation
expenses of the Board, the Secretary of the Commission,
and the Administrator;
``(4) the operation of guide services;
``(5) a residence for the Administrator;
``(6) disbursements by the Administrator for
employee and community projects;
``(7) the procurement of expert and consultant
services;
``(8) promotional activities, including the
preparation, distribution, or use of any kit, pamphlet,
booklet, publication, radio, television, film, or other
media presentation designed to promote the Panama Canal
as a resource of the world shipping industry; and
``(9) the purchase and transportation to the
Republic of Panama of passenger motor vehicles,
including large, heavy-duty vehicles.
``(b)(1) There shall be deposited in the Panama Canal
Revolving Fund, on a continuing basis, toll receipts (other
than amounts of toll receipts deposited into the Panama Canal
Commission Dissolution Fund under section 1305) and all other
receipts of the Commission. Except as provided in section 1303,
no funds may be obligated or expended by the Commission in any
fiscal year unless such obligation or expenditure has been
specifically authorized by law.
``(2) No funds may be authorized for the use of the
Commission, or obligated or expended by the Commission in any
fiscal year, in excess of--
``(A) the amount of revenues deposited in the
Panama Canal Revolving Fund and the Panama Canal
Commission Dissolution Fund during such fiscal year,
plus
``(B) the amount of revenues deposited in the
Panama Canal Revolving Fund before such fiscal year and
remaining unobligated at the beginning of such fiscal
year; plus
``(C) the $100,000,000 borrowing authority provided
for in section 1304 of this Act.
Not later than 30 days after the end of each fiscal year, the
Secretary of the Treasury shall report to the Congress the
amount of revenues deposited in the Panama Canal Revolving Fund
during such fiscal year.
``(c) With the approval of the Secretary of the Treasury,
the Commission may deposit amounts in the Panama Canal
Revolving Fund in any Federal Reserve bank, any depositary for
public funds, or such other place and in such manner as the
Commission and the Secretary may agree.
``(d)(1) It is the sense of the Congress that the
additional costs resulting from the implementation of the
Panama Canal Treaty of 1977 and related agreements should be
kept to the absolute minimum level. To this end, the Congress
declares appropriated costs of implementation to be borne by
the taxpayers over the life of such Treaty should be kept to a
level no greater than the March 1979 estimate of those costs
($870,700,000) presented to the Congress by the executive
branch during consideration of this Act by the Congress, less
personnel retirement costs of $205,000,000, which were
subtracted and charged to tolls, therefore resulting in net
taxpayer cost of approximately $665,700,000, plus appropriate
adjustments for inflation.
``(2) It is further the sense of the Congress that the
actual costs of implementation be consistent with the
obligations of the United States to operate the Panama Canal
safely and efficiently and keep it secure.''.

SEC. 3540. PRINTING.

Title I is amended in chapter 3 (22 U.S.C. 3711 et seq.) by
adding at the end of subchapter I the following new section:

``printing

``Sec. 1306. (a) Section 501 of title 44, United States
Code, shall not apply to direct purchase by the Commission for
its use of printing, binding, and blank-book work in the
Republic of Panama when the Commission determines that such
direct purchase is in the best interest of the Government.
``(b) This section shall not affect the Commission's
authority, under chapter 5 of title 44, United States Code, to
operate a field printing plant.''.

SEC. 3541. ACCOUNTING POLICIES.

(a) Section 1311.--Section 1311(a) (22 U.S.C. 3721(a)) is
amended by striking out ``the Accounting and Auditing Act of
1950 (31 U.S.C. 65 et seq.)'' in the first sentence and
inserting in lieu thereof ``chapter 91 of title 31, United
States Code,''.
(b) Section 1313.--Section 1313 (22 U.S.C. 3723) is amended
by striking out ``the Accounting and Auditing Act of 1950 (31
U.S.C. 65 et seq.)'' in subsections (a) and (c) and inserting
in lieu thereof ``chapter 91 of title 31, United States
Code,''.

SEC. 3542. INTERAGENCY SERVICES; REIMBURSEMENTS.

Section 1321(e) (22 U.S.C. 3731(e)) is amended by adding at
the end the following sentence:
``Notwithstanding the provisions relating to the availability
of adequate schools contained in section 5924(4)(A) of title 5,
United States Code, the Commission shall by regulation
determine the extent to which costs of educational services may
be defrayed under this subsection.''.

SEC. 3543. POSTAL SERVICE.

Section 1331 (22 U.S.C. 3741) is amended to read as
follows:

``postal service

``Sec. 1331. (a) The Commission shall take possession of
and administer the funds of the Canal Zone postal service and
shall assume its obligations.
``(b) Effective December 1, 1999, neither the Commission
nor the United States Government shall be responsible for the
distribution of any accumulated unpaid balances relating to
Canal Zone postal-savings deposits, postal-savings
certificates, and postal money orders.
``(c) Mail addressed to the Canal Zone from or through the
continental United States may be routed by the United States
Postal Service to the military post offices of the United
States Armed Forces in the Republic of Panama. Such military
post offices shall provide the required directory services and
shall accept such mail to the extent permitted under the Panama
Canal Treaty of 1977 and related agreements. The Commission
shall furnish personnel, records, and other services to such
military post offices to assure wherever appropriate the
distribution, rerouting, or return of such mail.''.

SEC. 3544. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE TO CLAIM.

Section 1417(1) (22 U.S.C. 3777(1)) is amended to read as
follows:
``(1) an investigation of the accident or injury
giving rise to the claim has been completed, which
shall include a hearing by the Board of Local
Inspectors of the Commission; and''.

SEC. 3545. OPERATIONS REGULATIONS.

Section 1801 (22 U.S.C. 3811) is amended by striking
``President'' and inserting ``Commission''.

SEC. 3546. MISCELLANEOUS REPEALS.

(a) Repeals.--The following provisions are repealed:
(1) Section 1605 (22 U.S.C. 3795), relating to
interim toll adjustment.
(2) Section 1701 (22 U.S.C. 3801), relating to the
authority of the President to prescribe certain
regulations.
(3) Section 1702 (22 U.S.C. 3802), relating to the
authority of the Panama Canal Commission to prescribe
certain regulations.
(4) Title II (22 U.S.C. 3841-3852), relating to the
Treaty transition period.
(5) Chapter 1 of title III (22 U.S.C. 3861),
relating to cemeteries.
(6) Section 1246, relating to appliances for
certain injured employees.
(7) Section 1251, relating to leave for jury or
witness service.
(8) Section 1301, relating to Canal Zone Government
funds.
(9) Section 1313(c), relating to audits.
(b) Conforming Amendments.--Section 1313 is further amended
by redesignating subsections (d) and (e) as subsections (c) and
(d), respectively.

SEC. 3547. EXEMPTION FROM METRIC CONVERSION ACT OF 1975.

Section 3302 is amended to read as follows:

``exemption from metric conversion act of 1975

``Sec. 3302. The Commission is exempt from the provisions
of the Metric Conversion Act of 1975 (15 U.S.C. 205a et
seq.).''.

SEC. 3548. CONFORMING AND CLERICAL AMENDMENTS.

(a) Title 5 Employment Law.--Title 5, United States Code,
is amended as follows:
(1) Section 3401(1) is amended--
(A) by striking out clause (v); and
(B) by redesignating clauses (vi), (vii),
and (viii) as clauses (v), (vi), and (vii),
respectively.
(2) Section 5102 is amended--
(A) in subsection (a)(1)--
(i) by striking out clause (vi);
and
(ii) by redesignating clauses
(vii), (viii), (ix), (x), and (xi) as
clauses (vi), (vii), (viii), (ix), and
(x), respectively; and
(B) in subsection (c), by striking out
paragraph (12).
(3) Subchapter IV of chapter 53 is amended--
(A) in section 5342(a)(1)--
(i) by striking out subparagraph
(G); and
(ii) by redesignating subparagraphs
(H), (I), (J), (K), and (L) as
subparagraphs (G), (H), (I), (J), and
(K), respectively;
(B) in section 5343(a)(5), by striking out
``the areas and installations in the Republic
of Panama'' and all that follows through
``Panama Canal Act of 1979),''; and
(C) in section 5348--
(i) by striking out subsection (b);
(ii) by redesignating subsection
(c) as subsection (b); and
(iii) in subsection (a), by
striking out ``subsections (b) and
(c)'' and inserting in lieu thereof
``subsection (b)''.
(4) Section 5373 is amended--
(A) by striking out paragraph (1); and
(B) by redesignating paragraphs (2), (3),
and (4) as paragraphs (1), (2), and (3),
respectively.
(5) Section 5537(c) is amended by striking out
``the United States District Court for the District of
the Canal Zone, the District Court of Guam, and the
District Court of the Virgin Islands.'' and inserting
in lieu thereof ``the District Court of Guam and the
District Court of the Virgin Islands.''.
(6) Section 5541(2)(xii) is amended--
(A) by inserting ``or'' after ``Services
Administration,''; and
(B) by striking out ``, or a vessel
employee of the Panama Canal Commission'';
(7) Section 5924(3) is amended by striking out the
last sentence.
(8) Section 6322(a) is amended--
(A) by striking out ``Puerto Rico,'' and
inserting in lieu thereof ``Puerto Rico or'';
and
(B) by striking out ``, or the Republic of
Panama''.
(9) Section 7901(f) is amended to read as follows:
``(f) The health programs conducted by the Tennessee Valley
Authority are not affected by this section.''.
(b) Cross References in Panama Canal Act.--
(1) Section 1211(1)(B) (22 U.S.C. 3651(1)(B)) is
amended by striking out ``section 1212(B)(2)'' and
inserting in lieu thereof ``section 1212(b)''.
(2) Section 1303 (22 U.S.C. 3713) is amended by
striking out ``section 1302(c)(1)'' both places it
appears and inserting in lieu thereof ``section
1302(b)(1)''.
(3) Section 1341(f) (22 U.S.C. 3751(f)) is amended
by striking out ``section 1302(c)'' and inserting in
lieu thereof ``section 1302(b)''.
(c) Section Headings.--
(1) The heading of section 3 (22 U.S.C. 3602) is
amended to read as follows:

``definitions''.

(2) The heading of section 1245 (22 U.S.C. 3682) is
amended to read as follows:

``administration of certain disability benefits''.

(d) Table of Contents.--The table of contents in section 1
is amended as follows:
(1) The items relating to sections 1101, 1102a,
1102b, and 1313 are amended by inserting ``Sec.''
before the section number.
(2) The item relating to section 3 is amended to
read as follows:

``Sec. 3. Definitions.''.

(3) The item relating to section 1104 is amended to
read as follows:

``Sec. 1104. Deputy Administrator.''.

(4) The items relating to sections 1209 and 1210
are amended to read as follows:

``Sec. 1209. Applicability of certain benefits.
``Sec. 1210. Travel and transportation.''.

(5) The items relating to sections 1223 and 1224
are amended to read as follows:

``Sec. 1223. Central Examining Office.
``Sec. 1224. Applicability of title 5, United States Code.''.

(6) The item relating to section 1245 is amended to
read as follows:

``Sec. 1245. Administration of certain disability benefits.''.

(7) The item relating to section 3302 is amended to
read as follows:

``Sec. 3302. Exemption from Metric Conversion Act of 1975.''.

(8) Such table of contents is further amended by
inserting after the item relating to section 1305 the
following new item:

``Sec. 1306. Printing.''.

(9) Such table of contents is further amended--
(A) by striking out the items relating to
sections 1214, 1246, 1251, 1301, 1605, 1701,
1702, 2101, 2201, 2202, 2203, 2204, 2205, 2206,
2301, 2401, 2402, and 3101; and
(B) by striking out the items relating to
the heading of title II, the headings of
chapters 1, 2, 3, and 4 of such title, and the
heading of chapter 1 of title III.

SEC. 3549. REPEAL OF PANAMA CANAL CODE.

The Panama Canal Code is repealed.

And the Senate agree to the same.
That the Senate recede from its amendment to the title of
the bill.

From the Committee on National Security, for
consideration of the House bill and the Senate
amendment, and modifications committed to
conference:
Floyd Spence,
Bob Stump,
Duncan Hunter,
John R. Kasich,
Herbert H. Bateman,
James V. Hansen,
Curt Weldon,
Joel Hefley,
Jim Saxton,
Randy ``Duke'' Cunningham,
Steve E. Buyer,
Peter G. Torkildsen,
Tillie K. Fowler,
John M. McHugh,
J.C. Watts, Jr.,
John N. Hostettler,
Saxby Chambliss,
Van Hilleary,
Doc Hastings,
G.V. Montgomery,
Ike Skelton,
John M. Spratt, Jr.,
Solomon P. Ortiz,
Owen Pickett,
Glen Browder,
Gene Taylor,
Frank Tejeda,
Paul McHale,
Patrick J. Kennedy,
Rosa L. DeLauro,
As additional conferees from the Permanent
Select Committee on Intelligence, for
consideration of matters within the
jurisdiction of that committee under clause 2
of rule XLVIII:
Larry Combest,
Jerry Lewis,
Norm Dicks,
As additional conferees from the Committee on
Banking and Financial Services, for
consideration of sections 1085 and 1089 of the
Senate amendment, and modifications committed
to conference:
Michael N. Castle,
Spencer Bachus,
Henry Gonzalez,
As additional conferees from the Committee on
Commerce, for consideration of sections 601,
741, 742, 2863, 3154, and 3402 of the House
bill, and sections 345-47, 561, 562, 601, 1080,
2827, 3174, 3175, and 3181-91 of the Senate
amendment, and modifications committed to
conference:
Thomas Bliley,
Michael Bilirakis,
Provided that Mr. Richardson is appointed in
lieu of Mr. Dingell and Mr. Schaefer is
appointed in lieu of Mr. Bilirakis for
consideration of sections 3181-91 of the Senate
amendment:
Dan Schaefer,
Provided that Mr. Oxley is appointed in lieu of
Mr. Bilirakis for the consideration of section
3154 of the House bill, and sections 345-47,
3174, and 3175 of the Senate amendment:
Michael G. Oxley,
Provided that Mr. Schaefer is appointed in lieu
of Mr. Bilirakis for the consideration of
sections 2863 and 3402 of the House bill, and
section 2827 of the Senate amendment:
Dan Schaefer,
As additional conferees from the Committee on
Government Reform and Oversight, for
consideration of sections 332-36, 362, 366,
807, 821-25, 1047, 3523-39, 3542, and 3548 of
the House bill, and sections 636, 809(b), 921,
924, 925, 1081, 1082, 1101, 1102, 1104, 1105,
1109-34, 1401-34, and 2826 of the Senate
amendment, and modifications committed to
conference:
W. F. Clinger,
Provided that Mr. Horn is appointed in lieu of
Mr. Mica for consideration of sections 362,
366, 807, and 821-25 of the House bill, and
sections 809(b), 1081, 1401-34, and 2826 of the
Senate amendment:
Stephen Horn,
Provided that Mr. Zeliff is appointed in lieu
of Mr. Mica for consideration of section 1082
of the Senate amendment:
Bill Zeliff,
As additional conferees from the Committee on
International Relations, for consideration of
sections 233-34, 237, 1041, 1043, 1052, 1101-
05, 1301, 1307, and 1501-53 of the House bill,
and sections 234, 1005, 1021, 1031, 1041-43,
1045, 1323, 1332-35, 1337, 1341-44, and 1352-54
of the Senate amendment, and modifications
committee to conference:
Benjamin A. Gilman,
Doug Bereuter,
As additional conferees from the Committee on
the Judiciary, for consideration of sections
537, 543, 1066, 1080, 1088, 1201-16, and 1313
of the Senate amendment, and modifications
committed to conference:
Henry Hyde,
Bill McCollum,
John Conyers, Jr.,
Provided that Mr. Moorhead is appointed in lieu
of Mr. McCollum for consideration of sections
537 and 1080 of the Senate amendment:
Carlos J. Moorhead,
Provided that Mr. Smith of Texas is appointed
in lieu of Mr. McCollum for consideration of
sections 1066 and 1201-16 of the Senate
amendment:
Lamar Smith,
As additional conferees from the Committee on
Resources, for consideration of sections 247,
601, 2821, 1401-14, 2901-13, and 2921-31 of the
House bill, and sections 251-52, 351, 601,
1074, 2821, 2836, and 2837 of the Senate
amendment, and modifications committed to
conference:
James V. Hansen,
Jim Saxton,
As additional conferees from the Committee on
Science, for consideration of sections 203,
211, 245, and 247 of the House bill, and
sections 211, 251-52, and 1044 of the Senate
amendment, and modifications committed to
conference:
Robert S. Walker,
James Sensenbrenner, Jr.,
Jane Harman,
As additional conferees from the Committee on
Transportation and Infrastructure, for
consideration of sections 324, 327, 501, and
601 of the House bill, and sections 345-48,
536, 601, 641, 1004, 1009, 1010, 1311, 1314,
and 3162 of the Senate amendment, and
modifications committed to conference:
Bud Shuster,
As additional conferees from the Committee on
Veterans' Affairs, for consideration of
sections 556, 638, and 2821 of the House bill,
and sections 538 and 2828 of the Senate
amendment, and modifications committed to
conference:
Bob Stump,
Christopher H. Smith,
G.V. Montgomery,
Managers on the Part of the House.

Strom Thurmond,
John Warner,
Bill Cohen,
John McCain,
Dan Coats
Bob Smith,
Dirk Kempthorne,
Jim Inhofe,
Rick Santorum,
Sheila Frahm,
Sam Nunn,
Carl Levin,
Ted Kennedy,
Jeff Bingaman,
Robert C. Byrd,
Chuck Robb,
J. Lieberman,
Richard H. Bryan,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

The managers on the part of the House and the Senate at
the conference on the disagreeing votes of the two Houses on
the amendment of the Senate to the bill (H.R. 3230) to
authorize appropriations for fiscal year 1997 for defense
activities of the Department of Defense, for military
construction, and for defense programs of the Department of
Energy, to prescribe personnel strengths for such fiscal year
for the Armed Forces, and for other purposes, submit the
following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the
managers and recommended in the accompanying conference report:
The Senate amendment struck out all of the House bill
after the enacting clause and inserted a substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment which is a substitute for the
House bill and the Senate amendment. The differences between
the House bill, the Senate amendment, and the substitute agreed
to in conference are noted below, except for clerical
corrections, conforming changes made necessary by agreements
reached by the conferees, and minor drafting and clarifying
changes.

Summary Statement of Conference Action

The conferees recommend authorizations for the Department
of Defense for procurement, research and development, test and
evaluation, operation and maintenance, working capital funds,
military construction and family housing, weapons programs of
the Department of Energy, and civil defense that have a budget
authority implication of $265.6 billion.

Summary Table of Authorizations

The defense authorization act provides authorizations for
appropriations but does not generally provide budget authority.
Budget authority is generally provided in appropriation acts.
In order to relate the conference recommendations to the
Budget Resolution, matters in addition to the dollar
authorizations contained in this bill must be taken into
account. A number of programs in the defense function are
authorized permanently or, in certain instances, authorized in
other annual legislation. In addition, this authorization bill
would establish personnel levels and include a number of
legislative provisions affecting military compensation.
The following table summarizes authorizations included in
the bill for fiscal year 1997 and, in addition, summarizes the
implication of the conference action for the budget totals for
national defense (budget function 050).

Congressional defense committees
The term ``congressional defense committees'' is often
used in this statement of the managers. It means the Defense
Authorization and Appropriations Committees of the Senate and
House of Representatives.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

Title I--Procurement

Overview
The budget request for fiscal year 1997 contained an
authorization of $39,208.4 million for procurement in the
Department of Defense. The House bill would authorize $47,164.9
million. The Senate amendment would authorize $46,900.6
million. The conferees recommended an authorization of
$45,272.1 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

Overview
The budget request for fiscal year 1997 contained an
authorization of $970.8 million for Aircraft Procurement, Army
in the Department of Defense. The House bill would authorize
$1,556.6 million. The Senate amendment would authorize $1,508.5
million. The conferees recommended an authorization of $1,314.0
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Airborne Reconnaissance Low (ARL)

The budget request included $24.7 million to procure the
final ARL-M aircraft and mission equipment.
The House bill would authorize an increase of $5.2
million to complete the moving target indicator (MTI) upgrade.
The Senate amendment would support the budget request.
The Senate recedes.
The conferees understand that the Army reprogrammed
fiscal year 1996 funds that were authorized and appropriated
for converting ARL-I and ARL-C aircraft to the ARL-M
configuration. These funds were applied to incorporate an MTI
radar into the ARL. Although the reprogramming action was
within the scope of the Department's authority, the conferees
are concerned with the Army's failure to notify the appropriate
committees of what it considers a major shift of the funds. The
conferees do, however, support the validated requirement for
MTI on ARL, and are aware that funds have not been budgeted to
complete the MTI purchase.
Therefore, the conferees agree to authorize $29.9 million
to provide the necessary funding to complete the ARL-I/-C
conversion to ARL-M and complete the MTI radar upgrade. The
conferees fully expect the Army to budget for completion of the
ARL-I/-C conversion in future budget requests.

C-XX medium range aircraft

The budget request did not contain any funds for UC-35A
(C-XX) aircraft.
The Army has identified the UC-35A as its highest
priority fixed-wing program due to the operational efficiencies
derived from its modern design. The conferees also note the
savings achieved through the competitive procurement of this
aircraft. However, the budget request included no funds to
procure additional aircraft.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $35.0
million for eight production UC-35A turbofan aircraft.
The conferees agree to authorize an increase of $22.0
million to procure five UC-35A aircraft.

CH-47 modifications

The budget request included $7.8 million to procure
safety and operational modifications for the CH-47 helicopter
fleet.
The conferees remain concerned about the heavy lift
capability for the Army and the ability of an aging fleet to
perform this critical mission. Over time, modifications to the
existing CH-47 airframe have added significant weight to the
aircraft, requiring an upgrade to the current engine
configuration. It is expected that the proposed T55-L-714
engine will increase payload capability by up to 3900 pounds
and greatly reduce operation and maintenance costs over the
life cycle of the new engine.
The House bill would add $52.0 million to accelerate
engine conversions for contingency corps aircraft. The Senate
amendment would add $52.3 million for the same purpose.
The conferees agree to authorize $59.8 million to begin
the upgrade process for the fleet.

Longbow

The budget request included $373.9 million to procure
Apache Longbow (AH-64) systems.
The House bill and the Senate amendment would authorize
an increase of $53.0 million to procure training devices for
these important aircraft.
The conferees note the outstanding requirement of
institutional training devices. These devices are an essential
element of aviation training activities and need to be fielded
as soon as practicable.
The conferees agree to authorize $426.9 million to
accelerate the delivery of these devices in accordance with the
updated AH-64D fielding review.

OH-58D Kiowa Warrior

The budget request included $9.1 million to complete
fielding of previously procured Kiowa Warrior systems.
The House bill would authorize an increase of $190.0
million to convert 24 aircraft.
The Senate amendment would authorize an increase of
$158.4 million to complete outstanding retrofit requirements
and convert 15 aircraft.
The Senate recedes.
The conferees agree to authorize a total of $199.1
million.

Aircraft survivability equipment modifications

The budget request included $4.8 million for aircraft
survivability equipment.
The House bill would add $20.0 million to procure
additional aviation survivability equipment.
The Senate amendment would add $34.0 million.
The conferees agree to authorize $25.8 million to support
vital aircraft survivability modifications as follows:
(1) $11.0 million for AN/AVR-2A(V) laser detection sets;
(2) $5.0 million for radar deception and jamming device
integration; and
(3) $5.0 million to accelerate procurement of
installation kits for advanced threat infrared countermeasure
devices.

Overview

The budget request for fiscal year 1997 contained an
authorization of $766.3 million for Missile Procurement, Army
in the Department of Defense. The House bill would authorize
$1,027.8 million. The Senate amendment would authorize $1,160.8
million. The conferees recommended an authorization of $1,031.8
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Avenger

The budget request included no funding for Avenger fire
units for the National Guard.
The House bill would authorize an increase of $59.4
million to procure 93 Avenger fire units. The House bill
included a provision (sec. 112) that would grant an extension
to the Avenger multiyear procurement authorization.
The Senate amendment would support the budget request.
The Senate recedes.
The conferees agree to recommend $59.4 million to
complete contract buyout of Avenger fire units. The conferees
agree to a legislative provision that would extend the Avenger
multiyear procurement authority to accommodate the contract
buyout.

Javelin medium anti-tank weapon

The budget request included $162.1 million to procure
1,020 Javelin missiles.
The House bill would authorize an increase of $33.9
million to procure an additional 300 missiles and to accelerate
production and fielding of command launch units (CLUs).
The Senate amendment would: authorize the Army to enter
into a multiyear contract for Javelin missiles; authorize an
increase of $5.7 million for accelerated production and
fielding of CLUs; and authorize an additional $34.0 million for
economic order quantity procurement of material.
The conferees agree to authorize $196.0 million for the
Javelin system for economic order quantity procurement of
material.

Multiple Launch Rocket System (MLRS) rocket

The budget request included $24.4 million to procure 852
extended range rockets.
The House bill and the Senate amendment would authorize
an additional $17.0 million in order to maintain a stable
production rate and procure additional rockets.
The conferees agree to a total of $41.4 million for MLRS
rocket production.

Multiple Launch Rocket System (MLRS) launcher

The budget request included $38.0 million for program
support to fielded launchers.
The House bill would authorize an increase of $66.2
million to support Army National Guard (ARNG) efforts to
convert artillery battalions to MLRS configuration. Of this
amount, $36.3 million would be available to rebuild 36 MLRS
launchers and $29.9 million for training equipment and spare
parts.
The Senate amendment would add $147.0 million, including
$110.0 million to procure four of six batteries to restructure
fire support for heavy divisions, and $37.0 million to
refurbish four batteries to support ARNG modernization.
The Senate recedes.
The conferees agree to a total of $104.2 million for MLRS
launchers.

Stinger missile modifications

The budget request included $16.9 million for missile
hardware and software modifications.
The House bill would add $15.0 million to retrofit an
additional 1,000 missiles to the Block I configuration and $5.0
million to modify both ground and air platforms to employ the
missiles.
The Senate amendment would authorize an increase of $7.0
million to raise the retrofit production rate to an economic
level and $15.8 million to support production and installation
of new modules in Force Package 1 and 2 platforms.
The Senate recedes.
The conferees agree to authorize $36.9 million for
Stinger modifications. Of this amount, the conferees recommend
that $470,000 be used for the qualification and limited
production proofing of asbestos-free Stinger rocket motors to
support a future production capability.

Dragon missile

The budget request included $3.2 million for Dragon
missile modifications.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $25.0
million to support lethality enhancements to fielded missiles.
The Senate recedes.
The conferees agree to an increase of $25.0 million in
the Army National Guard modernization authorization for Dragon
missile lethality enhancements.

Overview

The budget request for fiscal year 1997 contained an
authorization of $1,102.0 million for Weapons and Tracked
Combat Vehicles Procurement, Army in the Department of Defense.
The House bill would authorize $1,334.8 million. The Senate
amendment would authorize $1,460.1 million. The conferees
recommended an authorization of $1,409.5 million. Unless noted
explicitly in the statement of managers, all changes are made
without prejudice.

Bradley Fighting Vehicle (BFV)

The budget request included $134.4 million for the
Bradley base sustainment program.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $57.2
million to procure Bradley vehicles.
The House recedes.
The conferees note the budget request supports the
procurement of the first low-rate initial production models of
the A3 version of the BFV. Recognizing the enhanced
capabilities of the A3 model, as well as the benefit of
achieving the low rate initial production requirement faster,
the conferees agree to an increase of $57.2 million to procure
an additional 18 vehicles.
The conferees agree to authorize $191.6 million for the
BFV.

Carrier modifications (M113)

The budget request included $23.0 million to continue
modernization of the M113 armored personnel carrier family of
vehicles.
The House bill would provide an increase of $29.0
million.
The Senate amendment would provide an increase of $20.0
million.
The House recedes.
The conferees agree to authorize $43.0 million for M113
upgrades.

Bradley modifications

The budget request included $83.7 million for Bradley
system modifications.
The House bill and the Senate amendment would authorize
an increase of $35.5 million to buy out the requirement for
reactive armor tiles and establish a domestic production
capability.
The conferees agree to authorize an additional $35.5
million for this purpose.

Paladin/Field Artillery Ammunition Support Vehicle (FAASV)

The budget request did not include any funds to procure
Paladins/FAASVs for the Army National Guard.
The House bill would add $61.0 million to procure one
battalion set of Paladins/FAASVs.
The Senate amendment would add $112.0 million to procure
two battalion sets of Paladins/FAASVs.
The Senate recedes.
The conferees agree to authorize $61.0 million for the
procurement of one battalion set of Paladins/FAASVs (24 of
each) and direct that these systems be exclusively for the Army
National Guard.

Improved Recovery Vehicle

The budget request included $28.6 million to procure 12
M88A1E1 Hercules Improved Recovery Vehicles.
The House bill would authorize an increase of $27.1
million for these vehicles.
The Senate amendment would authorize an increase of $51.1
million.
The Senate recedes.
The conferees agree to authorize $55.7 million to procure
Hercules vehicles. The conferees understand the importance of
procuring these vehicles as soon as possible because the older
M88A1 lacks the necessary horsepower and braking ability to
support recovery of the Abrams main battle tank safely.

M1 Abrams tank (modifications)

The budget request included $50.2 million to procure
modification kits for the M1 Abrams tank to improve lethality,
survivability, and safety.
The House bill would authorize $40.2 million in
procurement and move $10.0 million to research and development
to fund development of under-armor auxiliary power units
(APUs).
The Senate amendment would authorize an increase of $15.0
million to procure external APUs and additional pulse-jet air
systems (PJAS).
The conferees are concerned about operation and
maintenance costs for the Abrams fleet and have noted the
successful application of external APUs in reducing the
requirement for main engine idling during defensive operations.
Demand for the external APU by soldiers in Bosnia is a
significant endorsement for this modification.
Additionally, the conferees note progress toward
correcting an established Operation Desert Storm deficiency
with the air filtration system on the Abrams. Recognizing the
enhancement to the combat capability of a unit made by
installing the PJAS, the conferees support an acceleration of
procurement for these devices.
The conferees agree to authorize $55.2 million, which
reflects a $10.0 million transfer to PE 23735A to develop an
under-armor APU system and a increase of $15.0 million to
procure external APU and PJAS systems. The conferees encourage
the Army to ensure future year funding is provided to complete
the modification required for the Abrams fleet.

Armored combat earthmover (ACE)

The budget request included no funding for the ACE.
The House bill would authorize an increase of $50.7
million to procure 54 vehicles.
The Senate amendment contained no additional funding.
The Senate recedes.
The conferees agree to authorize $50.7 million to procure
54 vehicles.

Small arms programs

The budget request included: $5.6 million for the M4
carbine; 5.6 million for the M16 rifle; $11.1 million for the
M249 squad automatic weapon; $5.2 million for the MK19
automatic grenade launcher; and no funds for procurement of
M240 medium machine guns.
The conferees are concerned about the production
capability of the small arms industrial base and agree to
authorize an increase of $51.0 million to the budget request as
indicated below:

------------------------------------------------------------------------
Dollars (M)
Dollars (M) (Total
(Increase) auth)
------------------------------------------------------------------------
M240 Machine gun.............................. 20.0 20.0
M4 Carbine.................................... 1.0 6.6
M16 Rifle..................................... 1.0 6.6
M249 Squad automatic weapon................... 1.0 12.1
MK19 Automatic grenade launcher............... 28.0 33.2
------------------------------------------------------------------------

Overview

The budget request for fiscal year 1997 contained an
authorization of $853.4 million for Ammunition Procurement,
Army in the Department of Defense. The House bill would
authorize $1,160.7 million. The Senate amendment would
authorize $1,156.7 million. The conferees recommended an
authorization of $1,003.0 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Overview

The budget request for fiscal year 1997 contained an
authorization of $2,627.4 million for Other Procurement, Army
in the Department of Defense. The House bill would authorize
$2,802.2 million. The Senate amendment would authorize $3.298.9
million. The conferees recommended an authorization of $2,990.2
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

High Mobility Multipurpose Wheeled Vehicle (HMMWV)

The budget request included $96.8 million to procure
1,126 HMMWVs.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $41.0
million to support the production base, for a total of 2,350
vehicles, and an additional $25.0 million to procure an
additional 233 up-armored HMMWVs (UAHMMWVs), for a total
procurement of 360 in fiscal year 1997.
The House recedes.
The number of vehicles supported in the budget request
reflects a significant reduction from previous years, despite
the fact that there remains a valid requirement for these
vehicles. The conferees understand that the minimum sustaining
rate to maintain a viable supply of required vehicles is not
achieved by the current budget request.
Additionally, the conferees are concerned about the
number of UAHMMWVs being produced. In light of lessons learned
in Bosnia and recognizing the importance of force protection,
the conferees agree that more UAHMMWVs should be procured in
order to meet the needs of the military services and maintain
industrial production capacity at a minimum level.
The conferees agree to authorize $162.8 million for HMMWV
vehicles.

Family of Heavy Tactical Vehicles (FHTV)

The budget request included $163.3 million to procure
vehicles necessary to support modern and highly mobile combat
units.
The House bill would authorize an increase of $33.0
million for the FHTV program.
The Senate amendment would authorize an increase of
$123.0 million for the FHTV program.
The conferees agree to authorize an increase of $83.0
million to the budget request to procure the heavy tactical
vehicles, as indicated below:

------------------------------------------------------------------------
Dollars (M) Dollars (M)
Increase Authorized
------------------------------------------------------------------------
Heavy Expanded Mobility Tactical Transporter
(HEMTT)...................................... 33.0 33.0
Palletized Loading System (PLS)............... 50.0 127.4
------------------------------------------------------------------------

Enhanced Position Location Reporting System (EPLRS)

The budget request included $48.0 million to procure this
critical battlefield system. The EPLRS provides real-time data
distribution and serves to enhance situational awareness.
The House bill would authorize $25.0 million to procure
additional EPLRS units with installation kits.
The Senate amendment would authorize $20.0 million to
procure 485 additional EPLRS units with installation kits.
The conferees agree to authorize $68.0 million for a
total procurement in fiscal year 1997 of 1285 systems.

SINCGARS family

The budget request included $297.5 million to procure
25,616 ground radios, 593 airborne radios, and 13,405 data
transfer devices.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $43.3
million for SINCGARS radios and installation kits.
The conferees understand that some prior year funding has
been withdrawn by the Department of Defense due to internal
budget decisions. These reductions have had an adverse impact
on the fielding schedule. The conferees believe the original
schedule should be maintained and are encouraged to note that
an investment of an additional $30.0 million would procure
approximately 4,500 radios and save $10.0 million.
The conferees agree to a total of $327.5 million for
SINCGARS in fiscal year 1997.

Army communications

The budget request included $4.1 million to support
echelon above corps (EAC) communications activities.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $40.0
million.
The House recedes.
The Army continues to modernize the Area Common User
System and to transition to the Warfighter Information Network
to capitalize on advances made in information technology. The
conferees understand that a shortfall exists to continue this
work in fiscal year 1997 and therefore agree to authorize $44.1
million for this purpose.

Forward Area Air Defense (FAAD) Ground-Based Sensor

The budget request included $51.2 million to procure 16
key radar-based sensors for forward deployed Army units.
The House bill would authorize an increase of $17.6
million for FAAD Ground-Based Sensors.
The Senate amendment would authorize an increase of $29.2
million.
The Senate recedes.
The FAAD sensor serves to acquire targets and alert
forces of the proximity of fixed wing aircraft, rotary wing
aircraft, unmanned aerial vehicles and cruise missiles. The
conferees are aware that the current production rate is
uneconomical and prevents this key force protection device from
reaching the field as soon as required.
The conference agree to authorize $68.8 million for FAAD
sensors.

Night vision devices

The budget request included $111.9 million to continue
fielding critical night vision devices that will allow the Army
to ``own the night.''
The House bill would support the budget request.
The Senate amendment would authorize an increase of
$134.1 million for night vision devices.
The conferees agree to authorize the following increases:
$24.5 million to fill the requirement for approximately 1,000
thermal weapon sights (TWS) for Special Operations Forces
(SOF); $24.5 million to procure approximately 7,500 night
vision goggles (NVG) for critical combat units in the SOF and
other light units; $9.1 million for aiming lights, including
$4.1 million to procure 19,260 AN/PAQ-4B&4C aiming lights to
fill the modified infantry basis of issue plan and upgrade
existing lights and $5.0 million to procure 5,100 AN/PEQ-2
illuminator/aiming lights for the Army and 2,500 devices for
the Marine Corps; and $8.9 million for initial spares and
facilitization of total package fielding for these devices.
The conferees agree to authorize $178.9 million for the
procurement of night vision equipment.

Standardized Integrated Command Post System (SICPS)

The budget request included $26.3 million to procure
tents, shelters and kits for SICPS.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $12.7
million for the SICPS.
The conferees agree to authorize an increase of $10.3
million to buy the shelters required through fiscal year 1997
and to ensure that this fielding occurs on schedule.
The conferees agree to authorize $36.6 million for new
shelters.

Total Distribution System (TDS)

The budget request included $4.4 million for Army
logistics requirements to distribute, track, and account for
supplies and equipment in peacetime and in war.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $6.0
million.
The conferees agree to authorize an increase of $3.0
million.
The conferees support the timely fielding of logistics
support equipment and note the corresponding increase in
efficiency and cost savings in managing inventory. The TDS will
enhance logistics operations and should be fielded throughout
the Army as soon as practicable.
The conferees agree to authorize $7.4 million to support
logistical enhancements.

STAMIS Tactical Computers (STACOMP)

The budget request included $27.2 million for computer
equipment.
The House bill would authorize an increase of $42.0
million.
The Senate amendment would authorize an increase of $30.5
million.
The conferees agree to authorize an increase of $25.0
million for computer hardware and software enhancements
necessary to meet Army efforts to keep pace with rapidly
changing technology.

Force Provider

The budget request included $11.7 million for the Force
Provider program.
The House bill would authorize an increase of $12.8
million for the program.
The Senate amendment would support the budget request.
The conferees agree to authorize $18.1 million for Force
Provider.

Generators and associated equipment

The budget request included $13.2 million for generators
and associated equipment.
The House bill would authorize an increase of $58.0
million to procure generators.
The Senate amendment would support the budget request.
The House recedes.

Tranining devices, non-system

The budget request included $82.7 million for training
devices.
The House bill would authorize an increase of $1.5
million to procure electronically scored targeting systems for
the U.S. Army marksmanship training unit.
The Senate amendment would support the budget request.
The Senate recedes.
The conferees agree to authorize $84.2 million for
training devices.

Overview

The budget request for fiscal year 1997 contained an
authorization of $5,882.0 million for Aircraft Procurement,
Navy in the Department of Defense. The House bill would
authorize $6,669.0 million. The Senate amendment would
authorize $6,911.4 million. The conferees recommended an
authorization of $7,034.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

AV-8B remanufacture

The budget request included $282.0 million to procure 10
remanufactured AV-8B aircraft and $22.9 million for advance
procurement of 12 aircraft in fiscal year 1998. The planned
procurement of 12 remanufactured Harrier aircraft in fiscal
year 1997, which was reflected in last year's budget request,
was reduced to 10 because of resource constraints. The Harrier
II Plus configuration provides day/night/adverse weather
improvements to the AV-8B aircraft.
The House bill would authorize an additional $112.0
million to procure four more AV-8B remanufactured aircraft in
order to accelerate the fielding of this much-needed and
safety-related improvement.
The Senate amendment would authorize an increase of $68.0
million to procure an additional two aircraft and the necessary
of integrated logistics support for the AV-8B program that the
future years defense program currently would defer until fiscal
years 1999 and 2000.
The House recedes.

Flight simulators

The budget request included no funding for flight
simulators for various Marine Corps aircraft.
The Senate amendment would support the use of flight
simulators for Marine Corps training by authorizing an increase
of $60.0 million to procure or upgrade simulators for the V-22,
AV-8B, and CH-53D.
The House bill would authorize the requested amount.
The Senate recedes.

F-14 aircraft modifications

The budget request included $232.0 million for F-14
modifications, of which $13.9 million was for continued
operation and maintenance of the F-14 tactical air
reconnaissance pod system (TARPS).
The House bill would authorize an increase of $2.6
million to fund continued TARPS reliability/supportability
upgrades.
The Senate amendment would authorize the request.
The Senate recedes.
The conferees are aware of the continued reliance on
TARPS by the Navy and accordingly agree to authorize the
addition of $2.6 million for TARPS upgrades.

E-2C airborne early warning aircraft

The budget request included $169.2 million for
procurement of two E-2C early warning aircraft.
The House bill would increase the requested amount by
$74.0 million to purchase one additional aircraft.
The Senate amendment would increase the requested amount
by $139.0 million for two additional aircraft.
The Navy resumed production in fiscal year 1995 of the E-
2C, with the intent of purchasing four aircraft per year for a
total of 36 aircraft. That planned acquisition rate has been
reduced from four aircraft to two in the budget request for
fiscal year 1997. The conferees understand that procuring two
more E-2C aircraft would lead to a savings of $13.2 million per
aircraft. Accordingly, the conferees recommend an increase of
$139.0 million to acquire a total of four E-2C aircraft in
fiscal year 1997.

Helicopter crash attenuating seats

The budget request included no funding for the
procurement of crash attenuating seats for the H-53 helicopter.
Section 136 of the National Defense Authorization Act for
Fiscal Year 1996 directed the initiation of a program to
provide crash attenuating troop seats for H-53 helicopters,
using commercially developed, energy absorbing seats. As a
result of this provision, the Department of Defense initiated
efforts to define the requirements for a competition for
procuring such seats as non-developmental items (NDI). The
necessary program definition has been completed and the program
is nearing release of the standards needed to begin a full and
open competition to procure such seats.
The House bill would authorize an increase of $10.0
million for the competitive procurement of NDI crash
attenuating seats for the H-53 helicopter.
The Senate amendment would authorize an increase of $14.0
million for the competitive procurement of NDI crash
attenuating seats for the H-53 helicopter.
The House recedes.

EP-3 modifications

The budget request included $35.4 million for EP-3
modifications.
The House bill would authorize an increase of $10.0
million to reinstate a level-of-effort upgrade program for
those aspects of overall system capabilities not uniquely
addressed by centrally-directed, joint development programs.
The House bill would also include a new procurement funding
line for procurement of the lightweight environmentally sealed
parachute assembly (LESPA) and authorize an increase of $3.8
million for LESPA. A portion of this increase would be for
support of the EP-3 aircraft.
The Senate amendment would authorize the requested
amount.
The conferees agree to an increase of $1.0 million for
procurement of LESPA.

P-3 intelligence support

The budget request included $17.6 million within the P-3
aircraft modifications line to procure non-developmental,
commercial off-the-shelf (COTS), roll-on/roll-off signals
intelligence (SIGINT) sensors for use aboard P-3C aircraft.
The House bill and Senate amendment would not authorize
the $17.6 million included in the budget request for the
procurement of COTS SIGINT sensors in fiscal year 1997.
The conferees are concerned that the Navy has not
developed a sound operational concept for employing the SIGINT
capability that it proposes to add to the P-3C aircraft. Nor is
it clear that the Navy's proposal relates well to the
capability already provided by its existing fleet of EP-3
aircraft. Important questions that should be answered to
address the conferees' concerns include:
(1) To what degree would P-3C aircraft equipped
with such a COTS SIGINT package be interoperable with
other SIGINT platforms? and
(2) Are sufficient specially trained personnel
available to support both existing SIGINT systems and
this one as well?

P-3C modifications

The budget request included $34.7 million for the P-3C
anti-surface warfare improvement program (AIP). This amount
would procure one P-3C AIP kit and additional training
equipment, support equipment, and logistics support for the P-
3C AIP program.
The Senate amendment would authorize an increase of $87.0
million for the procurement of 11 additional P-3C AIP kits and
associated equipment and support in order to maintain the
acquisition schedule requested by the operational commanders in
chief (CINCs) and to procure the kits at a more cost effective
rate.
The House bill would authorize the requested amount for
P-3 modifications but would include a new procurement funding
line for procurement of the lightweight environmentally sealed
parachute assembly (LESPA) and authorize an increase of $3.8
million for LESPA. A portion of this increase would be for
support of the P-3C aircraft.
The conferees agree to authorize an increase of $61.0
million for the procurement of seven additional P-3C AIP kits
and associated equipment and support. Reporting requirements
for the P-3C AIP program associated with submission of the
fiscal year 1998 budget request are contained in the Senate
report (S. Rept. 104-267). The conferees also agree to
authorize an increase of $2.8 million for LESPA procurement.

Lightweight environmentally sealed parachute assembly

The budget request included no funding for procurement of
(LESPA) units.
The House bill would establish a new funding line for
LESPA and authorize an increase of $3.8 million for procurement
of LESPA units.
The Senate amendment would authorize the requested
amount.
The conferees agree to authorize an increase of $3.8
million for LESPA but distribute this increase to existing
programs as discussed elsewhere in this statement of managers.

Airborne self protection jammer (ASPJ)

The Budget request did not include funds for acquisition
of the ASPJ.
The House bill would add $50.0 million to Aircraft
Procurement Navy (APN) line 45, electronics counter-measures
(ECM) equipment.
The Senate amendment would add $50 million for 36 sets of
ASPJ to APN 5 line 24, F-18 series modifications.
The conferees agree to provide an additional 36 sets of
ASPJ as a one-time acquisition for contingency deployments,
realizing that the ASPJ system is available now and that the
integrated defensive electronic countermeasures (IDECM) system
is under development and will not be available until fiscal
year 2002. The conferees recommend an increase of $47.9 million
in line 45 to buy 36 ASPJ systems, including aircraft interface
units (racks), spares and additional integrated logistic
support for three deployed F/A-18C/D squadrons.
The conferees recognize that the Navy is developing IDECM
to serve as the long-term ECM system for the F/A-18E/F, and
expect the Navy to upgrade the 36 sets into an IDECM
configuration as soon as technically feasible. The conferees
encourage the Navy to explore long-term solutions for the F/A-
18C/D.
The conferees continue to support the IDECM program. The
procurement of 36 ASPJ systems is intended to provide a
contingency response capability, and does not reflect the
conferees commitment to additional procurement of ASPJ systems
or to restarting series production for U.S. government
customers at this time.

Overview

The budget request for fiscal year 1997 contained an
authorization of $1,400.4 million for Weapons Procurement, Navy
in the Department of Defense. The House bill would authorize
$1,305.2 million. The Senate amendment would authorize $1,513.3
million. The conferees recommended an authorization of $1,345.4
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Tomahawk land attack missile

The budget request included $88.5 million for the
procurement of 120 Tomahawk missiles and no funding for the
remanufacture of Block IIC Tomahawk missiles to the Block IIIC
configuration. The budget request also contained $15.8 million
for recertification of the Tomahawk Block IIC missiles with
maintenance due dates in fiscal years 1996 and 1997.
The Senate report (S. Rept. 104-267) noted that tactical
use of the Tomahawk missile has increased at a time when budget
reductions have reduced procurement below previously planned
levels and resulted in inadequate funding for a required five-
year recertification of existing Block IIC missiles. As a
consequence, the Navy has been forced to rely on the practice
of transferring missiles from redeploying ships to those that
are preparing to deploy. Funding at the budget request level
would be inadequate to permit the Navy to satisfy its
deployment loadout requirements after fiscal year 1996. The
Senate report also noted that funding for development of the
Tomahawk Block IV missile has been reduced substantially from
the planned level reported in the fiscal year 1996 budget
request, thereby delaying this important program.
The Senate amendment would authorize an increase of $32.0
million above the budget request for the procurement of new
Block IIIC missiles, $14.4 million for remanufacture of Block
IIC missiles to the Block IIIC configuration, $40.6 million for
the recertification of existing Block IIC missiles, and $29.0
million in PE 24229N for continued development of the Tomahawk
Block IV missile.
The House bill would authorize the requested amount.
The conferees agree to authorize an increase of $14.4
million for remanufacture of Block IIC missiles to the Block
IIIC configuration and $40.6 million for the recertification of
existing Block IIC missiles.

Standard missile procurement

The budget request included $197.5 million for the
procurement of Standard missiles for the Navy.
The Senate amendment would authorize an increase of $40.0
million above the budget request for the procurement of
additional SM2 Block IV missiles to help stabilize the
production base for the Block IV variant and to support
ballistic missile defense development options.
The House bill would authorize the requested amount.
The House recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $4,911.9 million for Shipbuilding and
Conversion Procurement, Navy in the Department of Defense. The
House bill would authorize $5,479.9 million. The Senate
amendment would authorize $6,567.3 million. The conferees
recommended an authorizaiton of $6,193.3 million. Unless noted
explicitly in the statement of managers, all changes are made
without prejudice.

Oceanographic survey ship

The National Defense Authorization Act for Fiscal Year
1996 authorized $15.6 million of advance procurement for an
oceanographic survey ship, TAGS-64. The budget request did not
contain the additional increment needed to fully fund this
ship. The future years defense program would not procure this
ship until fiscal year 1999. Procurement of this ship through
an existing contract option, to satisfy a well documented
requirement, would result in substantial cost savings.
The House bill would authorize an increase of $54.0
million to the budget request to complete procurement of TAGS-
64.
The Senate amendment would authorize an increase of $54.4
million to the budget request to complete procurement of TAGS-
64.
The House recedes.

SWATH oceanographic research ship

The budget request included no funding for the
procurement of oceanographic research ships.
The Senate amendment would authorize an increase to the
budget request of $45.0 million to provide the additional
funding needed to build a small water plane area, twin-hulled
(SWATH) oceanographic research vessel based on the TAGOS-23
class of surveillance ships. In order to resolve a documented
backlog of additional oceanographic survey work the Senate
report (S. Rept. 104-267) would direct the Navy to negotiate a
time sharing agreement with the university or institute that
will operate the new SWATH oceanographic vessel, whereby a
certain portion of the ship's annual operating time would be
dedicated to meeting the Navy's oceanographic survey needs.
The House bill would authorize the requested amount.
The House recedes.

Fast patrol craft

The budget request included no funds for a fast patrol
craft.
The House bill would authorize an increase of $20.0
million to acquire an advanced fast patrol craft for operations
in littoral waters. The report accompanying the House bill (H.
Rept. 104-563) noted the need for such craft to avoid the
current Navy practice of placing cruisers and destroyers in
areas where they are vulnerable to shore-based cruise missiles,
mines, and quiet diesel submarines. Such a fast patrol craft
could provide a highly capable, multi-mission adjunct to the
Navy's current fleet.
The Senate amendment would authorize the requested
amount.
The House recedes.

Outfitting

The budget request included $92.0 million for outfitting
of new construction Navy ships and conversions.
The House bill and Senate amendment would authorize the
requested amount.
The conferees agree to a decrease of $44.0 million from
the budget request for outfitting of new construction Navy
ships and conversions.

Post delivery

The budget request included $141.9 million for post
delivery of new construction ships and conversions.
The House bill would reduce the budget request amount by
$10.0 million.
The Senate amendment would authorize the requested
amount.
The House recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $0 million for Ammunition Procurement, Navy
and Marine Corps in the Department of Defense. The House bill
would authorize $599.2 million. The Senate amendment would
authorize $0 million. The conferees recommended an
authorization of $293.2 million. Unless noted explicitly in the
statement of managers, all changes are made without prejudice.

Overview

The budget request for fiscal year 1997 contained an
authorization of $2,714.2 million for Other Procurement, Navy
in the Department of Defense. The House bill would authorize
$2,871.5 million. The Senate amendment would authorize $3,005.0
million. The conferees recommended an authorization of $2,893.8
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

Reactor power units

The budget request included $223.4 million for the
procurement of reactors and associated equipment for nuclear
powered Navy ships.
The House bill would reduce the budget request amount by
$10.0 million.
The Senate amendment would authorize the requested
amount.
The conferees agree to reduce the budget request amount
by $30.0 million. Additional funds authorized for advance
procurement of components for nuclear powered submarines will
compensate for this reduction.

Reactor components

The budget request included $185.6 million for reactor
components.
The House bill would reduce the budget request by $2.5
million.
The Senate amendment would authorize the requested
amount.
The Senate recedes.

AN/BPS-16 submarine navigation radar

The budget request included no funding for the
procurement of AN/BPS-16 submarine radar navigation sets or
mast assemblies.
The Navy has been procuring a commercial off-the-shelf
(COTS) variant of the AN/BPS-16 radar navigation set and its
associated mast assembly for installation on new construction
submarines and for backfit on SSN-688 class submarines that
will remain in service in the fleet. Procurement of the COTS
variant has resulted in a 40 percent savings over a comparable
system built to military specifications. For SSN-688 class
submarines, the AN/BPS-16 replaces an existing radar system
that has proven unreliable in service and is labor intensive to
maintain. Installation of the AN/BPS-16 will improve the
operational safety of the SSN-688 fleet by providing a state-
of-the-art, all-weather radar for navigating into and out of
ports and for performing tactical operations at sea in adverse
weather conditions. Procurement of additional AN/BPS-16 radar
sets in fiscal year 1997 will also avoid a production break and
associated start-up costs for the procurement of additional
radar sets currently included in the future years defense
program.
The House bill would authorize an increase of $16.0
million for the procurement of additional AN/BPS-16 radar sets
to complete the backfit of the AN/BPS-16 commercial off-the-
shelf radar into the SSN-688 class submarine fleet.
The Senate amendment would authorize an increase of $16.9
million for the procurement of additional AN/BPS-16 radar sets
to complete the backfit of the AN/BPS-16 commercial off-the-
shelf radar into the SSN-688 class submarine fleet.
The House recedes.

Mine warfare

The budget request included $22.9 million for the
minesweeping replacement program.
The Senate amendment would authorize an increase of $64.0
million to accelerate several of the Navy's highest priority
mine countermeasures (MCM) programs and sustain the
improvements that have occurred since Desert Storm. A
discussion of the rationale for this increase is contained in
the Senate report (S. Rept. 104-267).
The House bill would authorize the requested amount.
The conferees agree to authorize an increase of $25.8
million to accelerate the following MCM programs:

Item:
Funding ($ millions)
SQQ-32/SLQ-48/SSQ-94/SYQ-13 Spares........................ 6.3
Integrated Combat Weapons System (ICWS)................... 17.8
MCM Battle Space Profiler (BSP)........................... 1.7

Inertial navigation, information, and ship control system

The House bill would authorize an increase of $32.0
million for procurement and installation of four identical
integrated navigation, information, and ship control systems on
CG-47 class cruisers.
The Senate amendment would authorize the requested
amount.
The conferees agree to an increase of $32.0 million for
procurement and installation of integrated navigation,
condition assessment, and damage control systems on CG-47 class
cruisers. Procurement of standard monitoring and control
systems is also authorized, subject to a successful operational
evaluation as part of the Navy's Smart Ship initiative, which
is discussed elsewhere in this statement of managers.
The conferees are aware that the Navy has an urgent
requirement to modernize, automate, and fully integrate bridge
and machinery monitoring and control systems on its cruisers
and other surface ships, employing commercial off-the-shelf,
military qualified systems. Procurement and installation of
systems such as an integrated bridge system, an integrated
condition assessment system, and a damage control system for
surface ships could provide major improvements in performance,
lead to reductions in crew size, and reduce the cost of
operations. Additional crew reduction may also be achieved
through the acquisition of an improved machinery monitoring and
control system.

Joint tactical terminal

The budget request included $2.4 million for procurement
of the joint tactical terminal (JTT).
The House bill would authorize an additional $11.0
million for the immediate procurement of JTT terminals for
AEGIS, amphibious, and flagship surface vessels. The report to
accompany the House bill to authorize intelligence programs for
fiscal year 1977 (H. Rept. 104-578, Part 1) expressed the view
that there is an urgent need to expeditiously procure the
functional intelligence support capability provided by the JTT
for these ships as soon as possible in order to ensure
interoperability between various intelligence producers and
users.
The Senate amendment would authorize the requested
amount.
The Senate recedes.

Shipboard integrated communications system

The budget request included no funding for procurement of
an integrated communications system for installation aboard
aircraft carriers.
The Senate amendment would authorize an increase of $4.5
million above the budget request specifically for the
competitive procurement of an existing integrated
communications system that can be installed aboard aircraft
carriers and other fleet units without delay.
The Senate report (S. Rept. 104-267) expressed concern at
the Navy's lack of progress, despite congressional prodding for
over two years, on procurement of a commercial off-the-shelf
non-developmental integrated communications system to replace
obsolete systems now installed on Navy ships. While the Navy
has made great strides in increasing the capability and
flexibility of communications systems that deliver information
to fleet units, a similar emphasis on the internal management
of that information aboard ship has been lacking. In a report
submitted to Congress on February 12, 1996, the Navy
acknowledged that, while current aircraft carrier interior
integrated communications systems are outdated and there is
little integration between systems within the ship, the Navy is
still in the process of defining a baseline system architecture
that can meet current demands.
The House bill would authorize the requested amount.
The House recedes.

Challenge Athena

The budget request included no funding for the Chief of
Naval Operation's special project Challenge Athena. This budget
decision was made despite a series of favorable reports by the
Navy's operational commanders on the significant contributions
that Challenge Athena has made to the success of their
operational deployments.
The Senate amendment would authorize an increase of $41.7
million above the budget request for Challenge Athena, $14.7
million for procurement and $27.0 million for operation of the
system.
The House bill would authorize the requested amount.
The conferees agree to authorize a total increase of
$28.7 million above the budget request for Challenge Athena,
$14.7 million for procurement of Challenge Athena equipment,
and $14.0 million for system operation.

Global broadcast service

The budget request included $113.2 million for launch
services for UHF follow-on (UFO) satellites 8, 9, and 10. These
satellites will support UHF, EHF, and global broadcast service
(GBS) communications. However, the budget request did not
contain funding for the ground and sea-based equipment needed
to implement the GBS capability.
To ensure that the diverse requirements of the Navy's GBS
are met in a complementary manner, the Senate amendment would
authorize an increase of $50.0 million above the budget request
as follows:
(1) $39.0 million for the procurement and
installation of shipboard GBS satellite terminals;
(2) $7.0 million for the procurement and
installation of shore GBS satellite terminals; and
(3) $4.5 million to provide for launch services for
UFO satellites 8, 9, and 10.
The House bill would authorize the requested amount.
The conferees agree to authorize an increase of $10.3
million for the procurement and installation of shipboard GBS
satellite terminals.

Sonobuoys

The budget request included $22.7 million for the
procurement of AN/SSQ-62 sonobuoys and no funding for the
procurement of AN/SSQ-53E sonobuoys. It also contained $5.2
million in PE 63254N for development and demonstration of
advanced anti-submarine warfare sensors and processors,
including $2.5 million for the advanced deployable low
frequency projector (ADLFP). The ADLFP is a candidate for the
active project source of the advanced explosive echo ranging
sonobuoy.
The House bill would authorize an increase of $17.0
million for the procurement of additional AN/SSQ-62 sonobuoys.
It would also authorize an increase of $2.5 million in PE
63254N for the development and demonstration of risk reduction
technologies for the ADLFP to insure that shallow water
performance requirements are met and system cost is minimized.
The Senate amendment would authorize an increase of $12.2
million for the procurement of additional AN/SSQ-62 sonobuoys
and $31.8 million for the procurement of AN/SSQ-53E sonobuoys.
It would also authorize $2.5 million in PE 63254N and $2.5
million in PE 64261N for development of the ADLFP and advanced
multi-static processing (AMSP).
The conferees agree to authorize an increase of $12.2
million for procurement of AN/SSQ-62 sonobuoys, $18.0 million
for procurement of AN/SSQ-53E sonobuoys, and $2.5 million in PE
63254N for development of the ADLFP.

Airborne laser mine detection systems

The budget request included no funding for the
procurement of airborne laser mine detection systems.
The House bill would authorize an increase of $25.0
million for the procurement of three Magic Lantern systems and
associated spares.
The Senate amendment would authorize an increase of $25.0
million for the procurement of the winner of a competition
between two airborne laser mine detection systems, ATD-111 and
Magic Lantern.
The conferees agree to authorize the requested amount.

Rolling air frame missile launcher for LSF-52

In fiscal year 1996, Congress authorized and appropriated
$20.0 million to install the ship self-defense system (SSDS) MK
1 and the rolling airframe missile (RAM) system in LSD-52, an
amphibious ship that is now under construction. This amount was
insufficient to fully cover both the hardware procurement and
ship installation costs. Consequently, the Navy was unable to
purchase one of the two RAM launchers needed for a complete
equipment suite. The budget request did not contain funding for
this launcher.
The Senate amendment would authorize an increase of $5.0
million above the budget request for the procurement of one RAM
launcher for LSD-52.
The House bill would authorize the requested amount.
The Senate recedes.

AEGIS support equipment

The budget request included $30.4 million for AEGIS
support equipment.
The House bill would authorize an additional $3.0 million
to procure flexible wearable computers for deployment on AEGIS
ships as well as other ships that have interactive electronic
technical manuals (IETM) available.
The report to accompany the House bill (H. Rept. 104-563)
noted that the Committee on National Security of the House of
Representatives is aware that the Navy is investigating the
possibility of hosting the IETMs on flexible wearable
computers. Such a system would allow repair technicians to
perform their tasks with hands-free access to the IETM
maintenance information, while affording them maximum mobility
to operate in confined spaces. The additional funds proposed by
the House would permit the Navy to gain at-sea experience with
the combined IETM/flexible wearable computer system.
The Senate amendment would authorize the requested
amount.
The Senate recedes.

Afloat planning system

The budget request included $1.1 million for the Tomahawk
afloat planning system (APS). This amount would be for the
installation of systems purchased in prior years.
The APS successfully underwent extensive operational test
and evaluation in 1994, and production system installations
have been completed on the USS Carl Vinson (CVN-70) and the USS
George Washington (CVN-73). The system is being procured for
installation in the Navy's aircraft carriers and for rapid
deployment, when required, to meet the strike planning needs of
a joint task force commander. It compliments the planning of
Tomahawk land attack missile (TLAM) missions by shore-based
cruise missile support activities by giving an afloat or
deployed commander the ability to modify existing, pre-planned
missions or plan new ones. It also provides the centerpiece of
the joint service imagery processing system-Navy (JSIPS-N), a
system that provides deployed planners real-time capability to
receive, process, analyze and exploit tactical sensor imagery.
A diversion of funds from this program in fiscal year 1996 and
limiting funding in fiscal year 1997 threaten to severely
disrupt the production line, thereby increasing unit costs
dramatically and delaying the introduction of a capability that
the Navy states will significantly improve its warfighting
capability.
Noting that the APS program's development and production
efforts have remained on schedule and within cost, and have met
or exceeded all specifications, the House bill would authorize
an additional $10.0 million to support continued fielding of
the APS.
The Senate amendment would authorize an increase of $23.0
million above the budget request for the procurement and
installation of additional APS suites in order that the Navy
could satisfy its full requirement for them in a cost effective
manner.
The Senate recedes.

NULKA decoy development

The budget request included $4.4 million for continued
development of the NULKA active countermeasures decoy. It also
contained $12.0 million to procure NULKA decoys, launch
subsystems, and training systems.
The Senate amendment would authorize an increase of $9.0
million for procurement of additional NULKA rounds and launch
subsystems and for production improvements. The Senate
amendment would also authorize an increase of $4.0 million in
PE 64755N to improve the performance of the NULKA decoy in the
presence of friendly emitters and to counter modern threat
missiles.
The House bill would authorize the requested amount.
The House recedes.

Elevated causeway (modular)

The budget request included no funding for expanding an
existing elevated causeway (modular) (ELCAS(M)) prototype from
a length of 2,000 feet to the 3,000 feet needed to satisfy
logistics-over-the-shore (LOTS) operational requirements.
Expeditionary logistics support of the Marine Corps or of
a joint force could require assault follow-on echelon or other
LOTS off-load in a variety of unimproved, adverse beach
environments or degraded ports. The ELCAS(M), which the Navy
could rapidly install, provides an elevated pier that overcomes
high surf conditions, shallow beach gradients, and other
hydrographic conditions that inhibit direct shoreside cargo
discharge. The Navy has included funding for completion of two
ELCAS(M) systems in the future years defense program. However,
the Navy would not complete the current ELCAS(M) system until
fiscal year 1999 because of budget constraints.
The Senate amendment would authorize an increase of $6.7
million above the budget request to expand the existing
prototype system to a full 3,000 foot operational length, and
also to acquire the ancillary support and installation
equipment, such as lighting, piling, and safety lines,
necessary to make it fully operational.
The House bill would authorize the requested amount.
The House recedes.
The Navy budget request also included funding for a
program to develop and field a system to meet the amphibious
cargo beaching lighter requirement. Procurement for the system
would not begin until fiscal year 2001. The Navy has an
operational requirement for an amphibious cargo beaching
lighter (or barge) that can operate in sea state 3 (SS3). To
meet this requirement, the Navy must be able to assemble
floating pontoons into larger sections in sea states reaching
and exceeding SS3. The Navy designed the ELCAS(M) system to be
able to operate sections of the system as a lighter in sea
states up to SS3. However, the current design for the ELCAS(M)
connector system does not allow the Navy to join the sections
into larger units in sea states this high.
The conferees have been informed that the contractor
building the ELCAS(M) system has also developed a connector
system that could be operated under SS3 conditions. The
conferees direct the Navy to prepare a report, and submit it to
the congressional defense committees with its fiscal year 1998
budget request, that provides the Navy's analysis of the
potential of using this new connector system in conjunction
with the current ELCAS(M) sections to meet the amphibious cargo
beaching lighter requirement.

Oceanographic equipment

The budget request included no procurement funding for
perishable equipment such as fathometers, global positioning
satellite receivers, recording equipment, and side-scan sonars
to conduct ocean surveys.
The House bill would authorize the requested amount.
The Senate amendment would authorize an increase of $6.0
million above the budget request to provide additional funding
for procurement of oceanographic survey equipment.
The Senate recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $555.5 million for Marine Corps Procurement,
Navy in the Department of Defense. The House bill would
authorize $546.7 million. The Senate amendment would authorize
$816.1 million. The conferees recommended an authorization of
$560.1 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

Intelligence upgrades

The budget request included $26.4 million for procurement
of intelligence support equipment for the Marine Corps.
The House bill would authorize an increase of $5.8
million for the procurement of additional intelligence support
equipment.
The Senate amendment would authorize an increase of $14.6
million for the procurement of additional intelligence support
equipment.
The Senate recedes.

Joint task force deployable communications support

The budget request included no funding to provide a
deployable satellite communications system for use by a
deployed Marine Corps joint task force headquarters.
Senate amendment would authorize an increase of $1.7
million to procure such a system for the Marine Corps.
The House bill would authorize the requested amount.
The Senate recedes.

Tactical electronic reconnaissance processing and evaluation system

The budget request included $1.0 million for procurement
of support for the Marine Corps tactical electronic
reconnaissance processing and evaluation system (TERPES), a
system that is currently supporting joint operations in Bosnia.
The House bill would authorize an increase of $1.1
million to improve the interoperability of TERPES with the
global command and control system (GCCS) and tactical air
mission planning system (TAMPS).
The Senate amendment would authorize the requested
amount.
The Senate recedes.

Marine Corps combat operations centers

The budget request did not include funding to upgrade the
capability of the Marine Corps' seven deployable combat
operations centers (COC) and six fixed command centers (CC) to
improve their data capacity and make them fully interoperable
with the other services.
The Senate amendment would authorize an increase of $7.4
million above the budget request to upgrade the capability of
these Marine Corps' COCs and CCs.
The House bill would authorize the requested amount.
The Senate recedes.

Telecommunications infrastructure

The budget request included no funding to upgrade the
communications network at the Marine Corps base at Camp
Pendleton.
The Marine Corps has been involved in an ongoing effort
to upgrade existing telecommunications infrastructure at Marine
Corps installations. While the budget request contained funding
to support such infrastructure upgrades, it fell short of
providing the resources necessary to upgrade Camp Pendleton.
Establishing a high speed fiber optic backbone and switching
system at Camp Pendleton would meet existing base requirements
and facilitate future expansion to meet new requirements.
The House bill and Senate amendment would authorize $18.8
million to upgrade the telecommunications infrastructure at
Camp Pendleton.
The conferees agree to authorize an increase of $18.8
million to provide a more efficient, state-of-the-art
telecommunications infrastructure at Camp Pendleton.

Marine Corps common end user computer equipment

The budget request included no funding for Marine Corps
common end user computer equipment (CEUCE).
The Senate amendment would authorize an increase of $9.8
million above the budget for the procurement of additional
Marine Corps CEUCE.
The House bill would authorize the requested amount.
The Senate recedes.

Marine Corps mobility enhancements

The budget request included $1.3 million to procure 20
M870A2 lowbed trailers and an additional $1.5 million to
procure 261 International Standard Organization (ISO) beds for
transporting fuel and water for the Marine Corps.
The House bill would authorize the budget request.
The Senate amendment would authorize an increase of $28.3
million for procurement of additional M870A2 lowbed trailers
and ISO beds for the Marine Corps.
The Senate recedes.

Marine Corps multiple integrated laser engagement system

The budget request included no funding for procurement of
the multiple integrated laser engagement system (MILES) for the
Marine Corps.
The House bill would authorize an increase of $10.6
million to accelerate fielding of the first two battalion sets.
The Senate amendment would authorize an increase of $49.0
million to complete the Marine Corps procurement of MILES.
The conferees agree to authorize an increase of $24.0
million of MILES procurement.

Combat vehicle appended trainer (CVAT)

The budget request included no funding for the
development of new, state-of-the-art, full crew mission
simulators for Marine Corps armored vehicle systems.
The Senate amendment would authorize an increase of $9.2
million to take advantage of the increased utility and reduced
training costs offered by such simulators.
The House bill would authorize the requested amount.
The Senate recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $5,779.2 million for Aircraft Procurement, Air
Force in the Department of Defense. The House bill would
authorize $7,271.9 million. The Senate amendment would
authorize $7,023.5 million. The conferees recommended an
authorization of $6,764.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

C-130J

The budget request included $62.9 million for one C-130J
replacement aircraft for the Air Force.
The House bill would authorize $429.0 million for eight
Air Force C-130Js, an increase of four WC-130Js and three
airborne battlefield command and control center aircraft, in
addition to the one C-130J requested. Additional recommended
increases to the administration request included $209.2 million
for four KC-130J tanker aircraft for the Marine Corps and
$105.0 million for two Air National Guard C-130Js.
The Senate amendment would authorize a total of $267.4
million for four Air Force WC-130Js and $284.4 million for six
C-130Js for the Air National Guard.
The conferees acknowledge the continued need to modernize
tactical airlift and express concern over the Department's
meager request of only one C-130 replacement aircraft.
Consequently, the conferees authorize a total of $660.3 million
for 13 C-130J aircraft as follows:
(1) $52.3 million for the one requested Air Force
C-130J;
(2) $209.2 million for four WC-130J's;
(3) $209.2 for four KC-130J's for the Marine Corps;
and
(4) $189.6 million for four C-130Js for the Air
National Guard.

Joint Surveillance Target Attack Radar System (JSTARS)

The budget request included $417.8 million for two E-8C
aircraft, $111.1 million for advanced procurement for two E-8Cs
in fiscal year 1998, and $30.2 million for initial spares.
Trainers and support equipment were included in the
procurement. Funding in the amount of $207.3 million for follow
on development and testing was also requested in PE 64770F.
The House bill would increase the requested amount by
$225.0 million for one additional aircraft.
The Senate amendment would increase the requested amount
by $210.0 million for procurement and an additional $30.0
million for initial spares.
The conferees agree to increase the requested amount by
$210.0 million for the acquisition of one additional JSTARS
aircraft.
The conferees note that the JSTARS platform and
associated ground stations are currently contained in the Air
Force and Army tactical intelligence and related activities
(TIARA) budget aggregations. While the conferees realize there
are direct intelligence applications of the JSTARS associated
Ground Support Modules (GSM) and the follow on Common Ground
Stations (CGS), they note that the JSTARS aircraft is a direct
battle management and targeting system, not an intelligence
system. The JSTARS moving target indicator (MTI) radar system
provides critical data to the operational and intelligence
communities, and so could be considered within the TIARA budget
aggregation. Accordingly, the conferees agree the associated
ground stations are direct multi-source intelligence support
applications and may be appropriately considered part of the
entire intelligence support architecture and continue to be
funded within TIARA aggregation.

B-1B Conventional mission upgrade program

The budget request for B-1B modifications was $84.4
million, and $220.9 million for research and development in
PE64226F.
The House bill would authorize an increase of $15.0
million to the budget request for B-1B bomber modifications to
accelerate competitive procurement of precision guided
munitions (PGM) for the B-1B fleet, and $57.0 million to
procure conventional bomb modules. The House bill would also
increase the budget request by $8.3 million for research and
development for defensive system upgrades.
The Senate amendment would authorize an increase of $56.5
million in procurement for conventional bomb modules and an
increase of $48.0 million in research and development as
follows:
(1) $25.0 million for the bomber virtual umbilical
device (BVUD);
(2) $10.0 million for defensive systems upgrades;
and
(3) $13.0 million for data links.
The conferees are discouraged by the slow pace of
conventional PGM integration for the B-1B. Although additional
funding was provided in fiscal year 1996 to accelerate arming
of the B-1B bomber force with Joint Direct Attack Munitions and
other PGM capability, the conferees are not aware of any
significant progress toward this objective. Consequently, the
conferees authorize an increase of $82.0 million to the
procurement request for B-1B modifications as follows:
(1) $25.0 million to accelerate competitive
procurement of PGM; and
(2) $57.0 million to procure conventional bomb
modules.
The conferees also agree to an increase to the budget
request of $8.3 million for defensive systems upgrade program
in PE64226F.

E-3 Airborne Warning and Control Systems (AWACS)

The budget request did not include funds for the re-
engining of E-3 AWACS.
The House bill would authorize an additional $64.2
million in PE 27417F for reliability, maintainability and re-
engining initiatives approved by the Secretary of Defense that
could begin in fiscal year 1997.
The Senate amendment would increase the request by $109.0
million in Aircraft Procurement, Air Force to begin the re-
engining of the AWACS aircraft.
The conferees agree to authorize an additional $34.9
million in research and development funding, for a total of
$92.5 million, to initiate re-engining of AWACS.

Satellite communications terminals

The budget request contained $14.8 million for
modification of in service aircraft.
The House bill would authorize the budget request.
The Senate amendment would increase the requested amount
by $21.2 million for procurement of demand assigned multiple
access (DAMA) ultra-high frequency (UHF) satellite
communications airborne terminals.
The conferees agree to authorize an additional $20.3
million in aircraft procurement funding to begin procuring UHF
airborne DAMA terminals. The conferees understand that
additional funds will be required in the out years to complete
this effort and expect the Air Force to program sufficient
funding in future budget requests.

Defense Airborne Reconnaissance Program Procurement

Procurement for the Defense Airborne Reconnaissance
Program (DARP) is contained in a number of procurement lines,
distributed among the individual services and the defense-wide
procurement account.
The budget request included:
(1) $66.2 million in Aircraft Procurement, Air
Force (APAF) line 59;
(2) $150.7 million in APAF, line 70; and
(3) $168.9 million in Procurement, Defense-wide
(PDW), line 7.
The House bill would provide an additional $210.3 million
in APAF line 59, a reduction of $50.0 million in APAF line 70,
and an addition of $80.0 million in PDW line 7.
The Senate amendment would provide an addition of $182.2
million to APAF line 59, authorize the budget request for APAF
line 70, and provide an additional $8.0 million for PDW line 7.
The budget request, details of the adjustments in the
House bill and the Senate amendment, and the final conference
agreement, are summarized in the table below:

DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS
[Dollars in thousands]
------------------------------------------------------------------------
Proposed change
Program Budget -------------------- Conference
request House Senate agreement
------------------------------------------------------------------------
Additional Rivet Joint
aircraft..................... -- 39,300 -- 39,300
Rivet Joint mods.............. 65,186 20,000 -- 85,186
Rivet Joint technology
transfer..................... -- -- 20,000 --
Combat Sent mods.............. 1,000 6,000 -- 7,000
RC-135 data links............. ........ -- 8,000 --
RC-135 re-engining............ ........ 145,000 145,200 145,000
SR-71 mods.................... -- -- 9,000 9,000
Subtotal--APAF 59............. 66,186 210,300 182,200 285,486
Restore damaged U-2 aircraft.. -- 5,000 -- --
Undistributed reduction....... -- (50,000) -- (50,000)
Other......................... 150,742 -- -- 150,742
Subtotal--APAF 70............. 150,742 (45,000) -- 100,742
Predator UAV.................. 57,791 50,000 -- 107,791
Pioneer UAV................... 10,567 30,000 -- 40,567
Common automatic recovery
system....................... -- -- 8,000 8,000
U-2 satellite communications.. 2,023 -- -- 2,023
Common imagery ground/surface
system (CIGSS)............... 98,486 -- -- 98,486
-----------------------------------------
Subtotal--PDW 7......... 168,867 80,000 8,000 256,867
------------------------------------------------------------------------

The conferees view with concern the lack of clarity in
the display of DARP spending and have included provisions
elsewhere in this bill requiring the Defense Airborne
Reconnaissance Office (DARO) to provide improved budget
presentations in future years.

aircraft procurement, air force, line 59

The conferees agree to an increase of $219.3 million
above the budget request for the following purposes:
(1) $39.3 million for an additional Rivet Joint
(RJ) aircraft;
(2) $20.0 million for RJ modifications;
(3) $6.0 million for Combat Sent modifications;
(4) $145.0 million re-engining RC-135 aircraft; and
(5) $9.0 million for SR-71 modifications.

Rivet Joint fleet modifications

The conferees acknowledge the need for consistent level-
of-effort funding to improve these intelligence support
aircraft in response to the rapid, and often unpredictable,
improvements in threat technologies. Accordingly, the conferees
expect the Department to provide funds for level-of-effort
upgrades in future budget requests. While the conferees support
upgrades based on platform-specific missions, they are
skeptical of multi-functional type developmental upgrades and
will closely monitor the Department's effort to coordinate
service efforts and ensure compliance of such upgrades with the
overall architecture.

Rivet Joint technology transfer

The conferees encourage the Air Force to move forward
with a near-term, cost effective program to transfer the
mature, medium wave infrared sensor technology from the Cobra
Ball aircraft to the Rivet Joint fleet. Such a program would
offer the option of early deployment in support of theater
missile defense improvements. This transfer could provide
significant improvement to the Department's capabilities for
long range surveillance, warning, rapid cueing for attack
operations and predicting impact points.

aircraft procurement, air force, line 70

The conferees agree to a general reduction of $50.0
million to the budget request.

procurement, defense-wide, line 7

Pioneer unmanned aerial vehicle (UAV)

The budget request included $10.6 million attrition
spares and unit support kits for the Pioneer UAV.
The House bill would authorize an increase of $30.0
million over the request to purchase attrition air vehicles and
to replace aging and vanishing vendor items.
The Senate amendment would authorize the request.
The Department's decision to terminate the procurement of
the Hunter UAV system has resulted in the Pioneer becoming the
only UAV currently capable of meeting Navy and Marine Corps
short range requirements. Consequently, the conferees agree to
provide an increase of $30.0 million to fund initiatives
necessary to ensure the continued effectiveness of the Pioneer
UAV system.

Predator unmanned aerial vehicle (UAV)

The budget request included $57.8 for Predator hardware
and production support.
The House bill would authorize an increase of $50.0
million to procure an additional two Predator systems.
The Senate amendment would authorize the budget request,
and would separately provide a provision restricting the
obligation of fiscal year 1997 funds.
The Senate recedes.
The conferees agree to recommend an additional $50.0
million for the Predator UAV system. The conferees recognize
the Predator UAV's importance as well as the need to field
capable effective UAV systems in the near-term.

Common automatic recovery system (CARS)

The conferees expect that this low cost system will help
reduce mishaps and improve UAV operational effectiveness.
Accordingly, the conferees agree to provide an additional $8.0
million for integrating CARS into the tactical UAV (TUAV) and
the Predator UAV systems as soon as practicable.

KC-135 simulators

The budget request included $176.4 million for common
aerospace ground equipment (AGE), which included funds for a
three phase program to upgrade C-5, KC-10, and KC-135
simulators.
The House bill would authorize the budget request.
The Senate amendment would authorize an increase of $63.0
million to acquire the last nine simulator systems in fiscal
year 1997.
Since the House bill and the Senate amendment were
passed, the conferees have learned of possible reductions in
the AGE line because of postponed acquisition of self-
generating nitrogen systems. Accordingly, the conferees agree
to reduce the budget request by $16.2 million.

F-16 post production support

The budget request included $81.6 million for post
production support of F-16 aircraft.
The House bill would authorize the budget request.
The Senate amendment would authorize the budget request.
Since the House bill and the Senate amendment were
passed, the conferees have learned of possible reductions in F-
16 post production support requirements, because of double
budgeting of sustainment costs, and unneeded production
termination funds. Accordingly, the conferees agree to reduce
the budget request by $10.7 million.

Miscellaneous production charges

The budget request included $210.7 million for
miscellaneous production charges.
The House bill would authorize a reduction of $28.0
million.
The Senate amendment would authorize the budget request.
The conferees have learned of possible reductions in
requirements for miscellaneous production charges, because
funds in the program are excess to firm program requirements.
Accordingly, the conferees agree to reduce the budget request
by $24.7 million.

Overview

The budget request for fiscal year 1997 contained an
authorization of $2,733.9 million for Missile Procurement, Air
Force in the Department of Defense. The House bill would
authorize $4,341.2 million. The Senate amendment would
authorize $2,847.2 million. The conferees recommended an
authorization of $2,525.9 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Peacekeeper sustainment

The budget request included $8.3 million for procurement
of missile replacement equipment, $72.8 million for procurement
of Minuteman III modifications, and $44.6 million for
procurement of spares and repair parts.
The House bill recommended a net increase of $32.0
million for Peacekeeper sustainment activities. This included
an additional $3.4 million for missile replacement equipment,
$5.3 million for Minuteman modifications, and $300,000 for
replacement spares and repairs. In addition, the House bill
recommends that, of the amounts authorized to be appropriated
pursuant to Title III for Air Force operation and maintenance,
$23.0 million be used for sustained Peacekeeper operations.
The Senate amendment approved the budget request for
Peacekeeper.
The conferees agree to authorize the following for
peacekeeper sustainment: (1) an additional $3.4 million for
missile replacement equipment, a net increase of $500,000 in
this program element; (2) an additional $5.3 million in
Procurement Air Force (Minuteman modifications); (3) an
additional $300,000 in Air Force Procurement for replacement
spares and repairs; and (4) of the amounts authorized to be
appropriated pursuant to Title III for Air Force operation and
maintenance, $23.0 million for Peacekeeper operations.

Overview

The budget request for fiscal year 1996 contained an
authorization of $0 million for Ammunition Procurement, Air
Force in the Department of Defense. The House bill would
authorize $303.9 million. The Senate amendment would authorize
$0 million. The conferees recommended an authorization of
$278.3 million. Unless noted explicitly in the statement of
managers, all changes are made without prejudice.

Overview

The budget request for fiscal year 1997 contained an
authorization of $5,998.8 million for Other Procurement, Air
Force in the Department of Defense. The House bill would
authorize $6,117.4 million. The Senate amendment would
authorize $5,889.5 million. The conferees recommended an
authorization of $5,814.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

60K Loader

The budget request contained $40.3 million for 37 60K
loaders.
The House bill would authorize the budget request.
The Senate amendment would increase the authorization by
$23.1 million to accelerate the acquisition of 60K loaders by
adding 20 additional loaders in fiscal year 1997.
The House recedes.
The conferees understand that accelerated acquisition of
60K loaders through an additional 20 loaders in fiscal year
1997 could reduce Future Years Defense Program (FYDP) costs of
these loaders by $27.4 million.
Accordingly, the conferees recommend an increase of $23.1
million to acquire a total of 57 of the new 60K loaders, with
the understanding that the Department of Defense has programmed
sufficient funds in the out years to complete the planned
acquisition of 60K loaders.

Theater battle management command and control system procurement
(TBMCS)

The budget request included $48.0 million for procurement
of the theater battle management command and control system.
The House bill would authorize the budget request.
The Senate amendment would add $2.2 million to the
program as part of a data link initiative to incorporate data
links in various Air Force aircraft. The additional $2.2
million would complete installation of data link related
equipment in modular air operation centers.
The Senate recedes.
The conferees agree to authorize $48.0 million for the
system.

Base information infrastructure

The budget request included $125.7 million Air Force base
information infrastructure.
The House bill would reduce the authorization by $10.0
million.
The Senate amendment would authorize the budget request.
The Senate recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $1,841.2 million for Defense-wide Procurement
in the Department of Defense. The House bill would authorize
$1,890.2 million. The Senate amendment would authorize $1,908.0
million. The conferees recommended an authorization of $2,008.3
million. Unless noted explicitly in the statement of managers,
all changes are made without prejudice.

C-130 aircraft modifications

The budget request included $86.7 million for
modifications to U.S. Special Operations Command (USSOCOM) C-
130 aircraft.
The Senate amendment would authorize an increase of $23.8
million for survivability and sustainment improvements to
USSOCOM's fleet of AC-130U gunships and the MC-130H Combat
Talon II aircraft.
The House bill would authorize the requested amount.
The conferees agree to authorize an increase of $17.9
million for modifications to USSOCOM C-130 aircraft.

Advanced SEAL delivery system

The budget request included no procurement funding for
the advanced SEAL delivery system (ASDS) for the U.S. Special
Operations Command.
A changed interpretation of administrative procedures
between preparation of the fiscal year 1996 and fiscal year
1997 budget requests caused $4.4 million of advance procurement
funding for the ASDS to be deleted from the fiscal year 1997
budget request. The consequence of this reduction in funding
would be a one year delay in fielding the ASDS system.
To restore the ASDS program to its original schedule, the
Senate amendment would authorize an increase of $4.4 million
over the budget request for the procurement of long-lead steel
and integrated control and display consoles needed for
fabrication of the first production ASDS.
The House bill would authorize the requested amount.
The House recedes.

SCAMPI communications system

The budget request contained no funding for procurement
of the SCAMPI communications system for the U.S. Special
Operations Command (USSOCOM).
The Senate amendment would authorize an increase of $3.7
million to complete hub relocation for USSOCOM's SCAMPI
communications system.
The House bill would authorize the requested amount.
The Senate recedes.

Special mission radio system

The budget request contained $26.6 million for
procurement of communications and electronic equipment for the
U.S. Special Operations Command.
The Senate amendment would authorize an additional $9.4
million for procurement of the special mission radio system
(SMRS) to satisfy long-range communications requirements of the
special forces.
The House bill would authorize the requested amount.
The House recedes.

Briefcase multi-mission advanced tactical terminal

The budget request included $19.8 million for
intelligence systems for the U.S. Special Operations Command
(USSOCOM).
The Senate amendment authorized an addition of $4.5
million to accelerate the procurement of the briefcase multi-
mission advanced tactical terminal (BMATT).
The House bill would authorize the requested amount.
The Senate recedes.

Overview

The budget request for fiscal year 1997 contained no
authorization for National Guard and Reserve Procurement in the
Department of Defense. The House bill would authorize $805.0
million. The Senate amendment would authorize $759.0 million.
The conferees recommended an authorization of $780.0 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

National Guard and Reserve Package

In millions
Army Reserve:
2.5T Truck SLEP........................................... 25.0
5T Truck SLEP............................................. 25.0
New Procurement 2.5/5T Trucks............................. 15.0
Palletized Load System.................................... 4.0
Coolant Purification Units................................ 2.0
Small Arms Simulators..................................... 1.0
MK-19..................................................... 3.0
Automatic Building Machines............................... 5.0
HMMWV Maintenance Trucks.................................. 5.0
Miscellaneous............................................. 13.0
Navy Reserve:
Magic Lantern Spares...................................... 5.0
F18 Upgrades.............................................. 16.0
MIUW Van System Upgrades.................................. 10.0
Night Vision Goggles...................................... 5.0
C-9 Replacement........................................... 40.0
Miscellaneous............................................. 40.0
USMC Reserve:
CH-53..................................................... 50.0
Miscellaneous............................................. 17.0
Air Force Reserve:
KC-135 Reengining......................................... 26.0
Avionics Upgrades......................................... 14.0
Night Vision Devices...................................... 5.0
C-20G..................................................... 30.0
Miscellaneous............................................. 19.0
Army National Guard:
Tactical Trucks & Trailers................................ 20.0
2.5T Truck SLEP........................................... 15.0
5T Truck SLEP............................................. 4.0
Communications Equipment.................................. 18.0
Avenger I-Coft Simulator.................................. 4.0
C-23 Enhancement Program.................................. 18.0
Small Arms Simulators..................................... 5.0
FADEC..................................................... 10.0
Coolent Purification System............................... 3.0
Crashworthy Fuel Cells.................................... 5.0
Vibration Diagnostic Equipment............................ 3.0
Reconfigurable Aviation Sim............................... 5.0
AH-1 C-Nite............................................... 2.0
Dragon Upgrade............................................ 25.0
Night Vision.............................................. 5.0
Aircraft Equipment........................................ 17.0
Miscellaneous............................................. 12.0
Air National Guard:
SEAD Mission Upgrade...................................... 11.4
Theater Deployable Comms.................................. 17.0
AN/TLQ Radar Decoys....................................... 3.0
F-16 AIS.................................................. 10.0
C130J..................................................... 189.6
Miscellaneous............................................. 3.0
-----------------------------------------------------------------
________________________________________________
Total NGRE package...................................... 780.0

Overview

The budget request for fiscal year 1997 contained an
authorization of $799.9 million for Chemical Agent and
Munitions Destruction, Army in the Department of Defense. The
House bill would authorize $799.9 million. The Senate amendment
would authorize $802.9 million. The conferees recommended an
authorization of $759.9 million. Unless noted explicitly in the
statement of managers, all changes are made without prejudice.

items of special interest

Air Force precision guided munitions

Last year, the statement of managers accompanying the
conference report on S. 1124 (H. Rept. 104-450) noted the need
for DOD to develop a long-term cohesive, joint PGM program.
Section 261 of the National Defense Authorization Act for
Fiscal Year 1996 directed DOD to develop such a plan. The
Department has informed the congressional defense committees
that the analysis necessary to develop this plan will not be
complete until later this year. The conferees believe that DOD
should not wait for another whole year to begin providing
additional PGM capability beyond that supported in the budget
request.
Accordingly, while awaiting this analysis and the
Department's recommendations based on this analysis, the
conferees recommend an increase of $118.2 million in missile
procurement Air Force as detailed below:

PRECISION GUIDED MUNITIONS
[Dollars in millions]
----------------------------------------------------------------------------------------------------------------
Request SASC HNSC Conference
------------------------------------------------ total
Procurement ---------------- Ref
($) Qty ($) Qty ($) Qty ($) (Qty)
----------------------------------------------------------------------------------------------------------------
AGM-142....................... -- -- 39.0 54 39.0 50 39.0 54 MPAF line 2
Joint Direct Attack Munition.. 23.0 937 -- -- 50.0 3000 23.0 937 MPAF line 5
AMRAAM (AF)................... 116.3 133 139.8 200 ...... ...... 116.9 163 MPAF line 7
AGM-130....................... -- -- 40.0 100 95.0 250 40.0 100 MPAF line 8
AGM 165, Maverick............. -- -- -- -- 34.0 425 -- -- MPAF line 8a
CALCM......................... -- -- 15.0 100 15.0 100 15.0 100 MPAF line 12
SFW........................... 131.1 400 152.7 500 152.7 500 152.7 500 PAAF line 16
Hard Target Smart Fuze........ -- -- 2.0 -- -- -- 2.0 -- PAAF line 30
----------------------------------------------------------------------------------------------------------------

Automated document conversion system (ADCS)

The conferees are aware that the Department has made some
progress in following its direction to begin the purchase of
the software necessary to convert the Department's more complex
engineering documents from raster files to an intelligent
format. In addition, the conferees are encouraged by the
initial results of ADCS testing. The conferees are aware that
significant cost savings can be achieved through the use of an
ADCS; thus, the conferees are disappointed that no funds were
requested for this purpose.
Accordingly, the conferees recommend $38.8 million for
the competitive procurement of an ACDS capability.

Prototype instrumentation range facility

There has been significant progress in advancing the
state-of-the-art in training and simulation devices. With the
advent of improved technologies, such as instrumented ranges,
the Army can now train units in the complexities of modern
combat more efficiently. However, this technology has not been
transferred to the Army National Guard, where it could have
significant impact on unit training and readiness. The
conferees understand that the Army National Guard is prepared
to allocate up to $7.0 million from the miscellaneous equipment
section of the National Guard and Reserve Equipment Account to
set up a prototype instrumented range facility to begin
training Army National Guard units using advanced training and
simulation devices.
The conferees strongly support such an initiative and
urge the Director of the Army National Guard to proceed with an
initiative to establish such a facility. The conferees direct
the Director of the Army National Guard to provide a report to
the Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives not later
than 12 months after enactment of this Act on the progress
toward establishing the instrumented range.

legislative provisions

Subtitle A--Authorization of Appropriations

legislative provisions adopted

Defense Inspector General (sec. 106)

The House bill contained a provision that would authorize
$2.0 million for the Defense Inspector General. The Senate
amendment contained an identical provision. The conference
agreement includes this provision.

Chemical agents and munitions destruction program (secs. 107 and 142)

The budget request included $799.8 million for the
defense chemical agents and munitions destruction program,
including $477.9 million for operation and maintenance, $273.6
million for procurement, and $48.3 million for research and
development. Additionally, the budget request included $131.6
million for military construction.
The House bill contained a provision (sec. 107) that
would authorize $804.8 million for the chemical agents and
munitions destruction program, including $21.0 million for the
alternative technology and approaches project, an increase of
$5.0 million to the budget request.
The Senate amendment contained a provision (sec. 107)
that would authorize $802.8 million for the chemical agents and
munitions destruction program, including an increase of $3.0
million for research and development to expedite and accelerate
the development and fielding of critical advanced sensors that
are part of the Army's mobile munitions assessment system. A
second provision (sec. 113) would require the Secretary of
Defense to conduct a study on the cost of the baseline
incineration of the chemical munitions stockpile versus the
disposal of neutralized chemical munitions at a centrally
located incinerator. A third provision (sec. 117) would provide
$60.0 million for a pilot program to identify and demonstrate
feasible alternatives to incineration for the demilitarization
of assembled chemical munitions, establish an executive agent
for the pilot program separate from the existing chemical
weapon stockpile demilitarization program, require the
Secretary of Defense to evaluate and report the results of the
completed pilot program by December 31, 2000, and place limits
on long lead contracting for the construction of chemical agent
baseline program incinerators at any site in Kentucky or
Colorado.
The Senate recedes with an amendment.
The conferees agree to a provision (sec. 107) that would
authorize $759.8 million for the defense chemical agents and
munitions destruction program, to include: $233.6 million for
procurement; $477.9 million for operation and maintenance; and
$48.3 million for research and development. Of the amount
authorized $21.1 million shall be available for the alternative
technologies and approaches project and $3.0 million shall be
available to expedite and accelerate the development and
fielding of critical advanced sensors that are part of the
Army's mobile munitions assessment system.
Further, the conferees agree to a provision (sec. 142)
that would direct the Secretary of Defense to assess the
current baseline incineration program for destruction of
assembled chemical munitions and of alternative
demilitarization technologies and processes other than
incineration that could be used for the destruction of lethal
chemical agents and munitions. Should the Secretary decide to
conduct a pilot program for development and demonstration of an
alternative technology or process other than incineration for
the destruction of the lethal chemical agents that are
associated with assembled munitions, the provision would
authorize $25.0 million from funds authorized in fiscal year
1997 for use by the Secretary for this purpose, and would
require the Secretary to notify the Congress 30 days in
advance, of his intention to use funds to initiate a pilot
program. The provision would also require that the pilot
program be conducted at the selected chemical agent and
munitions stockpile storage site for which the alternative
technology or process is recommended.

Progress in the chemical agents and munitions destruction program

The conferees reiterate the concerns expressed in the
statement of managers accompanying the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106),
that continued delays in the chemical agents and munitions
destruction program would lead to increases in overall program
cost and in risk to the public and the environment. The
conferees believe that the program should proceed
expeditiously, using those technologies that minimize risk to
the public and the environment. The conferees support the
recommendations of the National Research Council (NRC), that
the Army continue its current baseline incineration program
until such time as the evaluation of alternative technologies
for demilitarization and destruction of the stockpile is
concluded. The conferees note the progress that has been made
in the program. More than 50 percent (2 million pounds of
chemical agents) of the chemical agent and munitions stockpile
on Johnston Atoll has been destroyed and full-scale
demilitarization operations continue at that site. On June 26,
1996, the State of Utah granted approval for the Army to begin
chemical munitions destruction operations using the baseline
incineration process at the Tooele Chemical Agent Disposal
Facility in Tooele, Utah.
The conferees have reviewed the ``Department of Defense's
Interim Status Assessment for the Chemical Demilitarization
Program,'' dated April 15, 1996, that was submitted to the
Congress in response to section 152(c) of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
Measures for potential reductions in the total cost of the
chemical stockpile destruction program are under review within
the Department of Defense. Although there is no evidence of
immediate danger from stockpile, risk assessments from the
programmatic environmental impact statement and the ongoing
site-specific risk analysis updates continue to indicate that
storage risk is much greater than the risks associated with
executing the current chemical stockpile disposal program and
that delay in the disposal effort will result in increased
public risk. The Secretary of Defense is directed to submit to
the Congress, with the Defense budget request for fiscal year
1998, a final report on the assessment and recommendations for
revision to the current baseline incineration program,
including the use of alternative technologies, which could
reduce program costs and increase public safety.

Alternative technologies

The assessment discusses progress in the alternative
technologies research and development program. Under this
program, the Army, in coordination with the NRC, is evaluating
five technologies for potential use at the bulk-only stockpile
sites (Aberdeen Proving Ground, Maryland, and Newport Army
Ammunition Depot, Indiana). The Army's evaluation and the NRC's
recommendations will provide the basis for an October 1996
decision by the Department of Defense on the continued
development of an alternative chemical agent destruction
process for the bulk-only storage sites. Should the Secretary
of Defense decide to continue the development at an alternative
technology for demilitarization of the chemical agents at the
bulk-only chemical stockpile storage sites, the conferees agree
that the Secretary should utilize current authority to
reprogram funds to initiate a pilot program for this purpose.
The conferees note that the Army's alternative
technologies research and development program has been limited
to consideration of alternative technologies for potential use
at the bulk-only storage sites. The conferees believe that
consideration should be given also to variants of the baseline
program in which alternative technologies and processes are
used for destruction of the chemical agent associated with
assembled chemical munitions. The conferees have included a
provision that would direct the Secretary of Defense, in
coordination with the NRC, to conduct an assessment of such
alternative technologies and processes and to report the
results of the assessment to the Congress not later than
December 31, 1997, together with any recommendations for
revisions to the baseline program for destruction of assembled
chemical munitions. Should the Secretary of Defense recommend
the continued development of an alternative technology or
process for destruction of the chemical agents associated with
assembled chemical munitions, as mentioned earlier in this
report, the conferees have included a provision which would
make $25.0 million available from funds authorized in this Act
to initiate a pilot program for this purpose. In order to
minimize environmental permitting delays for a full-scale
program which might use the alternative technology or process,
the provision provides that the pilot program for development
of the technology or process shall be conducted at the specific
chemical agent and munitions stockpile storage for which the
alternative technology or process is recommended.

Management of Chemical Agents and Munitions Destruction Program

The conferees agree that the Department of Defense must
provide for unified and integrated overall management of the
chemical agents and munitions destruction program and the non-
stockpile agents and munitions destruction program. The
conferees are concerned that a divided program under separate
managers, would result in duplication of effort, increased
costs, and reduced safety. Accordingly, the conferees continue
to support the current management structure within the
Department of Defense, with the Army as executive agent for the
chemical agents and munitions destruction program, which
includes the baseline incineration program, alternative
technologies for the bulk-only stockpile sites, alternative
technologies for the destruction of assembled chemical
munitions, and the non-stockpile chemical agents and weapons
destruction program. Additionally, the conferees appreciate the
support and efforts of the National Research Council in
conducting oversight of the chemical agents and munitions
destruction program, and believe that it should continue to
perform this function for the Department.

Subtitle B--Army Programs

legislative provisions adopted

Repeal of limitation on procurement of Armed Kiowa Warrior helicopters
(sec. 111)

The House bill contained a provision (sec. 111) that
would repeal the limitation on procurement of certain aircraft
as it pertained to the OH-58D Armed Kiowa Warrior helicopter.
The Senate amendment contained no similar provision.
The Senate recedes.

Multiyear procurement authority for Army programs (sec. 112)

The House bill included a provision (sec. 112) that would
authorize the Secretary of the Army to extend the multiyear
contract in effect for the Avenger missile system during fiscal
year 1996 through fiscal year 1997. Additionally, the provision
would authorize the Secretary of the Army to enter into a
multiyear procurement contract, beginning with fiscal year
1997, for the procurement of the Army Tactical Missile System.
The Senate amendment contained a provision (sec. 111)
that would authorize the Secretary of the Army to enter into a
multiyear procurement contract, beginning with fiscal year
1997, for the procurement of the Javelin missile system.
The Senate recedes with an amendment that would authorize
a multiyear procurement contract for the Javelin missile
system.

Bradley TOW 2 test program sets (sec. 113)

The Senate amendment contained a provision (sec. 116)
that would authorize the Secretary of the Army to make
available $6.0 million from funds authorized to be appropriated
under section 101(3) of the National Defense Authorization Act
for Fiscal Year 1996 (110 Stat. 204), for Bradley TOW 2 test
program sets.
The House bill contained no similar provision.
The House recedes.

Subtitle C--Navy Programs

LEGISLATIVE PROVISIONS ADOPTED

Nuclear attack submarine programs (sec. 121)

The budget request included $296.2 million of advance
construction and procurement funding for a fiscal year 1998
nuclear attack submarine and $699.1 million for procurement of
the third Seawolf class submarine, SSN-23. Research and
development funding in the budget request for the fiscal year
1998 submarine was initially reported as $489.4 million but was
subsequently corrected to $487.6 million. The budget request
included no advance construction and procurement funding for
the procurement of a second nuclear attack submarine in fiscal
year 1999, as called for in the National Defense Authorization
Act for Fiscal Year 1996 and the Navy's six-year shipbuilding
plan that was submitted in conjunction with the budget request.
The House bill contained a provision (sec. 121) that
would authorize $699.1 million for procurement of SSN-23,
$296.2 million of advance construction and procurement funding
for a fiscal year 1998 nuclear attack submarine that would be
built at Electric Boat, and $504.0 million for advance
construction and procurement for a fiscal year 1999 nuclear
attack submarine that would be built at Newport News
Shipbuilding.
Section 121 of the House bill would also authorize an
increase of $188.0 million to pursue core, Category I, and
Category II advance submarine technology initiatives that were
identified in Report on Nuclear Attack Submarine Procurement
and Submarine Technology, submitted to Congress by the
Secretary of Defense on March 26, 1996, in compliance with the
National Defense Authorization Act for Fiscal Year 1996. The
added funds would also be used for design initiatives intended
to ensure that new technology is incorporated into the design
of four developmental submarines that would begin construction
at the rate of one per year during the period fiscal year 1998
to fiscal year 2001 and on serial production submarines that
would not be authorized until fiscal year 2003. Section 121
would also revise the basis of the competition for serial
production so that it would be based on best value vice price.
The House provision would also place limitations on the
expenditure of fiscal year 1997 procurement and development
funds until the Secretary of Defense, the Under Secretary of
Defense for Acquisition and Technology, and the Under Secretary
of Defense (Comptroller) take certain steps to comply with
sections 131 and 132 of the National Defense Authorization Act
for Fiscal Year 1996. Additionally, the House provision would
direct the Department of Defense to implement specified
acquisition simplification strategies in order to expedite the
fielding of more capable, less expensive nuclear attack
submarines.
The Senate amendment contained a provision (sec. 123)
that would authorize $804.1 million for procurement of SSN-23,
$296.2 million of advance construction and procurement funding
for a fiscal year 1998 nuclear attack submarine that would be
built at Electric Boat, and $701.0 million for advance
construction and procurement for a fiscal year 1999 nuclear
attack submarine that would be built at Newport News
Shipbuilding. This authorization would satisfy all procurement
funding requirements for SSN-23 and all advance construction
and procurement funding requirements for the fiscal year 1998
and fiscal year 1999 submarines.
Although it would authorize the amount in a different
provision discussed elsewhere in this statement of managers,
the Senate amendment would increase funding for advance
submarine technology by $100.0 million to pursue core, Category
I, and Category II advance submarine technology initiatives
that were identified in the Secretary of Defense's Report on
Nuclear Attack Submarine Procurement and Submarine Technology.
The Senate amendment would also place limitations, similar in
intent if not in detail, on the expenditure of fiscal year 1997
procurement funds until the Secretary of Defense and the Under
Secretary of Defense for Acquisition and Technology take
certain steps to comply with section 131 of the National
Defense Authorization Act for Fiscal Year 1996.
The Senate recedes with an amendment.
The conferees agree to authorize $699.1 million for
procurement of SSN-23, $296.2 million of advance construction
and procurement funding for a fiscal year 1998 nuclear attack
submarine that will be built at Electric Boat, and $701.0
million for advance construction and procurement for a fiscal
year 1999 nuclear attack submarine that will be built at
Newport News Shipbuilding.
For research and development the conference agreement:
(1) authorizes $60.0 million to mature and
transition the core technologies identified in the
Secretary of Defense's Report on Nuclear Attack
Submarine Procurement and Submarine Technology with
emphasis on hydrodynamics, alternative sail designs,
advanced arrays, electric drive, external weapons, and
active controls and mounts;
(2) directs that of this $60.0 million, $20.0
million is to be equally divided between Electric Boat
and Newport News to ensure the two shipbuilders are
principal participants in the process of including new
technologies in the design of future attack submarines.
The conferees intend that the shipbuilders be allowed
access to naval intelligence data and that there be
continuing interaction among the shipyards, the Navy
laboratories, and the Defense Advanced Research
Projects Agency;
(3) authorizes $38.0 million to fund development
and testing of Category I and II technologies, as
described in the Secretary of Defense's report;
(4) directs that the Navy will implement
acquisition reform initiatives similar in form and
intent to the Air Force's ``Lightning Bolt''
initiatives begun in May 1995;
(5) places limitations on the expenditure of fiscal
year 1997 procurement and development funds until the
Secretary of Defense, the Under Secretary of Defense
for Acquisition and Technology, and the Under Secretary
of Defense (Comptroller) take certain steps to comply
with section 131 of the National Defense Authorization
Act for Fiscal Year 1996 and other limitations included
in the amended provision;
(6) repeals section 132 of the National Defense
Authorization Act for Fiscal Year 1996 and directs that
the funds covered by that provision shall be available
to the Secretary of the Navy only for advanced
submarine technology involving the construction of
large scale vehicles for purposes of hydrodynamic and
hydroacoustic research; and
(7) affirms that the serial production of future
nuclear attack submarines to follow the four
developmental submarines will occur not earlier than
fiscal year 2002 and only after a competition based on
price.

Arleigh Burke class destroyer program (sec. 122)

The budget request included $3.4 billion for the
procurement of four Arleigh Burke class destroyers and advance
procurement of future destroyers of this class.
The Senate amendment contained a provision (sec. 124)
that would authorize:
(1) the requested amount for Arleigh Burke class
destroyers;
(2) $750.0 million above the budget request for
advance procurement for Arleigh Burke class destroyers;
and
(3) the Secretary of the Navy to enter into
multiyear contracts for the procurement of a total of
12 Arleigh Burke class destroyers at a procurement rate
of three destroyers per year during the four-year
period from fiscal year 1998 to fiscal year 2001;
The Senate report (S. Rept. 104-267) noted that testimony
by Navy witnesses indicated that the stable procurement program
that would result from such authorization would permit the Navy
to acquire these 12 ships at a substantial cost savings.
The House bill would authorize the requested amount.
The conferees agree to adopt a provision that authorizes
an increase of $525.0 million above the budget request and
provides a multiyear contracting authority for the procurement
of a total of 12 Arleigh Burke class destroyers at a
procurement rate of three destroyers per year during the four-
year period from fiscal year 1998 to fiscal year 2001.

AIRBORNE ELECTRONIC WARFARE FUNDING
[Dollars in millions]
----------------------------------------------------------------------------------------------------------------
House Senate Conference
Procurement change change change Reference
----------------------------------------------------------------------------------------------------------------
Band 9/10....................................... $40.0 $40.0 $40.0 APN line 19, OSIP 19-79.
Overhead connectivity........................... ...... 22.0 .......... APN line 19, OSIP 32-85.
USQ-113......................................... ...... 11.0 11.0 APN line 19, OSIP 32-85.
Wing center sections............................ 55.0 ...... 50.0 ..................................
---------------------------------------------------------------
Total..................................... 95.0 73.0 101.0 ..................................
Research & Development.......................... ...... ...... .......... ..................................
Reactive jamming initiative..................... ...... 55.0 32.0 RDT&E, Navy, PE 60427N.
Universal exciter upgrade....................... ...... 10.0 .......... RDT&E, Navy, PE 60427N
---------------------------------------------------------------
Total..................................... ...... 65.0 32.0 ..................................
----------------------------------------------------------------------------------------------------------------

procurement

Attack aviation continues to require a robust electronic
warfare capability. The decision to retire the Air Force's EF-
111s and rely on the EA-6B for the Department's tactical
jamming mission makes it imperative that the EA-6B fleet be
structurally sound and modernized to meet current requirements.
The conferees note that the current jamming transmitters
on the EA-6B have not changed substantially since originally
designed in the 1960s, although there have been several
generations of improved surface-to-air and air-to-air missiles
since then, and many of these new systems operate in the high
radio frequency range. Also, the great majority of current
anti-ship missiles employ seekers in the band 9/10 frequency
range. Consequently, the conferees agree to authorize an
increase of $40.0 million to the budget request to procure 60
shipsets of these transmitters.
The conferees agree to authorize an addition of $11.0
million to the budget request to acquire an additional 24 units
of the USQ-113 communications jammer.
The EA-6B's aluminum wing center sections have been found
to be subject to embrittlement, which has led to stress cracks
and resulted in the removal of a number of aircraft from active
service. Consequently, the conferees agree to increase the
budget request by $50.0 million to purchase ten of the twenty
new wing center sections in order to avoid a production break
in the manufacture of this component.

research and development

Although funds were authorized and appropriated for
fiscal year 1996 to initiate a reactive jammer program for the
EA-6B, the Department of Defense chose not to initiate such a
program, and elected instead to program funds for such an
effort from fiscal year 1999 to fiscal year 2001.
The conferees find these actions of ignoring
congressional direction and refusing to start a modest reactive
jamming program unacceptable. The EA-6B is currently using
obsolete receivers with technology from the 1960s. The EA-6B is
scheduled to be the only airborne standoff jamming capability
within DOD. The conferees expect the Department to begin at
once a program to develop and field a reactive jamming
capability in the EA-6B, and have authorized an additional
$32.0 million for this purpose.

legislative provision

The Senate amendment contained a provision (sec. 121)
that would require the Secretary of Defense to:
(1) certify obligation of funds for a reactive
jamming program; and
(2) submit a plan for a complete program to the
congressional defense committees before obligation of
any funds for other recommended increases in the EA-6B
program.
The provision would also provide that all EA-6B
modification funding be transferred to the Air Force for
upgrading and operating EF-111 aircraft, if such certification
is not made by June 1, 1997.
The House bill did not contain a similar provision.
The House recedes.
The conferees note with concern the Navy's slow response
to Congressional direction and the need for modern, robust
electronic warfare capabilities now.

T-39N trainer aircraft for the Navy (sec. 124)

The House bill contained a provision (sec. 125) that
would direct the Secretary of the Navy to enter into a contract
for T-39N aircraft not later than 15 days from the date of
enactment of the Defense Authorization Act for Fiscal Year
1997.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would allow the
Navy to acquire 17 T-39N aircraft once the Under Secretary of
Defense for Acquisition and Technology makes certain
certifications contained in the National Defense Authorization
Act for Fiscal Year 1996, section 137.

Penguin missile program (sec. 125)

The Senate amendment contained a provision (sec. 122)
that would permit the Navy to enter into a contract for multi-
year procurement of not more than 106 Penguin missiles in
accordance with section 2306b of title 10, United States Code.
The total amount that could be expended would be limited to
$84.8 million.
The House bill contained no similar provision.
The House recedes.

Subtitle D--Air Force Programs

legislative provisions adopted

Repeal on limitation on procurement of F-15E aircraft (sec. 131)

The House bill contained a provision (sec. 141) that
would repeal the limitation contained in the National Defense
Act for Fiscal Years 1990 and 1991 (Public Law 101-189).
The Senate amendment contained no similar provision.
The Senate recedes.

Modification to multiyear procurement authority for the C-17 aircraft
program (sec. 132)

The budget request included $2,142.8 million for
procurement of eight C-17 aircraft and their associated support
in fiscal year 1997 and for advance procurement of additional
C-17 aircraft in fiscal year 1998.
The House bill contained a provision (sec. 142) that
would authorize the Secretary of the Air Force to enter into a
multiyear contract for a period of six program years for the
procurement of a total of not more than 80 C-17 aircraft,
beginning with fiscal year 1997. The House bill would also
authorize an increase of $380.0 million for the procurement of
two additional C-17 aircraft in fiscal year 1997 and for
advance procurement of additional C-17 aircraft.
The Senate amendment contained a provision (sec. 131)
that would:
(1) authorize the Secretary of the Air Force to
enter into one or more multiyear contracts for a period
that may exceed five years, but may not exceed seven
years for the procurement of not more than 80 C-17
aircraft; and
(2) direct that any such multiyear contracts shall
include a termination clause that provides the
Secretary of the Air Force with the option to convert
to annual procurement.
The Senate amendment would also authorize an increase of
$194.0 million for one additional C-17 aircraft in fiscal year
1997, $49.0 million for advance procurement for an additional
two C-17 aircraft in fiscal 1998, and $6.0 million for initial
spares.
The conferees agree to authorize an additional $234.0
million for accelerating the multiyear program. The conferees
support an accelerated multiyear procurement (MYP) for the
remaining 80 C-17 aircraft, and note that the Air Force entered
a seven-year MYP contract on May 31, 1996. The conferees are
concerned that although the Under Secretary of Defense for
Acquisition testified before congressional defense committees
of the House and Senate that over $300 million additional
savings could be realized over those currently projected by
converting the current seven-year contract to a six-year MYP,
the Air Force has no plans to do so. The conferees include a
legislative provision that directs the Secretary of the Air
Force to negotiate an option to convert the current seven-year
contract to a six-year MYP contract, and authorizes the Air
Force to exercise this option in order to accelerate
procurement of C-17's and take advantage of significant
additional savings to the government.

Subtitle E--Other Matters

legislative provisions adopted

Assessment of modernization priorities of reserve components (sec. 141)

The Senate amendment contained a provision (sec. 141)
that would require the chiefs of each of the reserve components
to conduct an assessment of modernization priorities and report
to the congressional defense committees by December 1, 1996.
The House bill contained no similar provision.
The House recedes.

Extension of authority to carry out Armament Retooling and
Manufacturing Support Initiative (sec. 143)

The Senate amendment contained a provision (sec. 114)
that would extend the authority of the Department of Defense to
carry out the Armament Retooling and Manufacturing Support
Initiative through fiscal year 1998.
The House bill contained no similar provision.
The House recedes.

legislative provisions not adopted

Seawolf submarine cost cap

The House bill contained a provision (sec. 122) that
would split the procurement cost cap established by section 133
of the National Defense Authorization Act for Fiscal Year 1996
for the Seawolf class submarines SSN-21, SSN-22, and SSN-23
into two separate caps, one for SSN-21 and SSN-22 and a second
cap associated solely with SSN-23. The House bill would also
repeal section 133.
The Senate amendment contained a provision (sec. 126)
that would stipulate that there is a total of $745.7 million
that was appropriated in fiscal years 1990, 1991 and 1992 for
procurement of now-canceled Seawolf submarines that is not
included in the existing procurement cost cap for SSN-21, SSN-
22 and SSN-23.
The conferees agree that neither of these provisions will
be included in the conference agreement.

Pulse Doppler radar modification

The House bill contained a provision (sec. 123) that,
subject to funds being made available in a subsequent
appropriations act, would direct the Secretary of the Navy to
spend $29.0 million from unobligated prior-year balances for
development and procurement of a pulse Doppler upgrade
modification to the AN/SPS-48E radar system.
The Senate amendment contained a provision (sec. 127)
that would prohibit the use of funds appropriated for fiscal
years prior to fiscal year 1997 for development of a pulse
Doppler upgrade to the AN/SPS-48E radar system.
The conferees agree to not include either of these
provisions in the conference report.

Maritime pre-positioning ship program enhancement

The House bill contained a provision (sec. 124) that
would repeal the statutory authority that allows the Marine
Corps to purchase and convert two additional foreign-built
hulls for use by its maritime prepositioning force.
The Senate amendment contained a provision (sec. 125)
that would reaffirm the authorization, initially provided by
the National Defense Authorization Act for Fiscal Year 1995,
that section 2218(f) of title 10, United States Code, shall not
apply to the purchase of three ships for the purpose of
enhancing Marine Corps prepositioning ship squadrons.
The conferees agree that neither of these provisions will
be included in the conference report.

Type classification of electro optic augmentation (EOA) system

The Senate amendment contained a provision (sec. 115)
that would require the Secretary of the Army to type classify
the EOA system.
The House bill contained no similar provision.
The Senate recedes.

Title II--Research, Development, Test, and Evaluation

Overview

The budget request for fiscal year 1997 contained an
authorization of $34,745.7 million for Research and Development
in the Department of Defense. The House bill would authorize
$35,537.4 million. The Senate amendment would authorize
$38,315.7 million. The conferees recommended an authorization
of $37,296.6 million. Unless noted explicitly in the statement
of managers, all changes are made without prejudice.

Overview

The budget request for fiscal year 1997 contained an
authorization of $4,320.6 million for Army, Research and
Development in the Department of Defense. The House bill would
authorize $4,680.0 million. The Senate amendment would
authorize $4,958.2 million. The conferees recommended an
authorization of $4,780.6 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Hardened materials

The budget request included $9.9 million for materials
technology (PE 62015A).
The conferees agree to an increase of $4.0 million in PE
62105A for the continued development of hardened materials as
discussed in the House report (H. Rept. 104-563) and the Senate
report (S. Rept. 104-267).

Projectile detection and cueing (PDCue) acoustic fire finder system

The budget request included $23.6 million for sensors and
electronics survivability technology (PE 62120A).
The House bill would authorize an increase of $1.0
million in PE 62120A for the PDCue to detect and localize
sniper gunfire.
The Senate amendment authorized the request.
The Senate recedes.

Solid state dye lasers

The budget request included $20.3 million for electronics
and electronic devices (PE 62705A).
The House bill would authorize an increase of $5.0
million in PE 62303A for continued development of the solid
state dye laser.
The Senate amendment would authorize the budget request.
The Senate recedes.

Liquid propellant

The budget request did not include funding for liquid
propellant technologies.
The House bill would authorize an additional $5.0 million
in PE 62618A for liquid propellant technologies.
The Senate amendment would authorize an additional $15.0
million in PE 62624A for liquid propellant technologies.
The conferees agree to increase of $7.5 million in PE
62624A for a program to address material compatibility,
ignition and ballistic control issues, and to provide
operational models validated by actual testing of the liquid
propellant gun.

Countermine technology development and demonstration program

The budget request included: $4.7 million in PE 62712A
for exploratory development of countermine technology; $15.2
million in PE 63606A for advanced development of countermine
technologies; $16.4 million in PE 63619A for development,
prototyping, and demonstration of advanced countermine systems;
and $7.7 million in PE 63120D for the development and
demonstration of technologies for use in humanitarian demining.
The fiscal year 1997 budget request separated funding for the
humanitarian demining program from the Army's countermine
advanced technology development program where countermine
developments for military operations other than war were
previously managed.
The House bill would authorize increases of $10.0 million
in PE 62712A, $15.0 million in PE 63606A, and $25.0 million in
PE 63619A for the development, demonstration, and validation of
near-term and far-term improvements in the countermine
capabilities of U.S. forces for tactical countermine and
demining operations. The House report (H. Rept. 104-563) would
direct the reassignment of humanitarian demining development
into a consolidated demining program. The report would direct
the Department of Defense to put increased emphasis on
developing technologies applicable to both military wide-area
clearance requirements and demining needs and to ensure that
technologies are developed and shared that meet the
countermine, wide-area clearance, and demining needs of the
combatant commanders-in-chief and the interagency working group
for humanitarian demining. Finally, the House report would
direct the Secretary of Defense to develop plans for a
countermine program that addresses these issues and to report
the plan to the Congressional defense committees by March 1,
1997.
The Senate amendment would add $12.1 million in PE 63696A
to accelerate the demonstration and deployment of a prototype
vehicular mounted mine detection system (VMMD) and an
additional $4.0 million to continue development of navigation
aids and improvements to permit detection systems to operate at
convoy speeds and display data in real time.
The conferees agree to an increase of $3.0 million in PE
62712A for exploratory development of countermine technology,
an increase of $11.0 million in PE 63606A for advanced
development of prototype VMMD, an additional $5.1 million for
advanced development of ground penetrating radar technology,
and an increase of $10.3 million in PE 63120D for the
development and demonstration of technologies for use in
humanitarian demining.
The conferees note the summary of the January 1996
Committee on National Security of the House of Representatives
hearing on the landmine threat facing U.S. forces deploying to
Bosnia and the capability of U.S. forces to meet the threat
that was contained in the House report (H. Rept. 104-563). The
conferees believe increased emphasis needs to be placed on the
Department's countermine program. The program must address the
development of feasible near-term improvements in contermine
capabilities and the longer term advanced technologies which
would promise more comprehensive solutions to the countermine
problem. Specific emphasis needs to be placed on: the
development of countermine technologies that can be applied to
both military wide-area mine clearance requirements and
humanitarian demining needs and will require the best efforts
of the military services; the Department's countermine,
unexploded ordnance clearance and explosive ordnance disposal
research and development activities; industry; and academia.
The conferees encourage the Department to use the resources of
the National Research Council of the National Academy of
Sciences in attacking this difficult problem.
The conferees reiterate the view expressed in the
statement of managers (H. Rept. 103-701) which accompanied the
conference report on S. 1124 (Public Law 103-337) that the
Department of Defense should develop a coordinated program for
countermine warfare. The conferees believe that the actions
taken by the Department with regard to integration and
coordination of the chemical-biological defense program may
provide an example of how the countermine efforts of the
Department could be better coordinated.
The conferees note that, as reflected in the statement of
managers relating to funds for research, development, test, and
evaluation of humanitarian demining technologies, the Assistant
Secretary of Defense for Special Operations and Low Intensity
Conflict shall continue to administer that program. The
conferees direct the maximum degree of coordination among all
demining programs.
The conferees direct the Secretary of Defense to develop
an integrated plan for a countermine program which addresses
the issues raised above and to report the plan to Congress by
March 1, 1997.

Unexploded ordnance remediation

The budget request included $19.5 million for
environmental quality technology (PE 62720A).
The House bill would authorize an increase of $5.0
million in PE 62720A for continued research, testing and
analysis work at the Army Environmental Center.
The Senate amendment would authorize the budget request.
The Senate recedes.

Military engineering technology

The budget request included $37.9 million in PE 62784A
for military engineering technology.
The Senate amendment would authorize an additional $1.0
million to accelerate activities in applied research for cold
regions research in the Army's military engineering technology
program (PE 62784A).
The House bill would authorize the budget request.
The House recedes. The conferees agree to authorize an
additional $1.0 million for project AT42 in PE 62784A
recognizing the current needs of the Army for research into
construction and civil engineering to support recent and
unplanned operations in cold climates and winter conditions in
Bosnia and elsewhere.

Trichloriomelamine (TCM)

The budget request included $11.6 million for medical
advanced technology (PE 63002A).
The House bill would authorize an increase of $500,000 in
PE 63002A to conduct toxicity studies of TCM disinfectant that
includes a 90-day feeding in a non-rodent species to provide
Environmental Protection Agency registration for Army future
procurement from TCM suppliers.
The Senate amendment would authorize the budget request.
The Senate recedes.

Diesel/gas engine project

The House bill would provide an additional $3.5 million
in PE 63005A for continued development and Army testing of the
combined diesel/gas turbine engine program.
The Senate amendment contained no similar recommendation.
The Senate recedes.

Wave net technology

The budget request included $23.1 million for command,
control, and communications advanced technology (PE 63006A).
The Senate amendment would authorize an additional $4.0
million in PE 63006A for continued development and testing of
wave net technology for possible application to the Army's
digitization initiatives.
The House bill would authorize the budget request.
The House recedes.

Starstreak

The budget request contained no funding for continued
evaluation of the Starstreak missile.
The House bill would authorize an increase of $3.0
million in PE 63003A to conduct phase two testing of the
starstreak missile.
The Senate amendment would authorize an increase of $15.0
million for the same purpose.
The conferees agree to an increase of $14.0 million in PE
63003A to support Army efforts to evaluate the Starstreak
missile as a potential candidate for the air-to-air missile
system required for the Apache attack helicopter. The conferees
also direct that prior year funds associated with the program
be released immediately for obligation for this purpose.

Missile and rocket advanced technology

The budget request included $90.0 million to develop
missile technologies.
The House bill would authorize an additional $12.0
million in PE 63313A to support completion of a thorough risk
reduction program for guidance package integration of the
extended range Multiple Launch Rocket System (MLRS-ER).
The Senate amendment would authorize an additional $10.0
million for the same purpose.
The House recedes.
The conferees agree to authorize $100.0 million for
missile/rocket technologies.

Objective Individual Combat Weapon (OICW)

The budget request included $5.2 million to develop small
arms for the armed services.
The House bill would authorize an increase of $5.0
million to develop the OICW.
The Senate amendment would support the budget request.
The Senate recedes.
The conferees agree to authorize $10.2 million in PE
63607A to develop competing technologies, through phase III,
and allow the Army to downselect to a single contract for the
OICW at the conclusion of the review process.

Battle integration center

The budget request included $2.9 million in PE 63308A for
Army missile defense systems integration.
The Senate amendment recommended an increase of $27.0
million in PE 63308A for the Army's Battle Integration Center
(BIC).
The House bill did not include additional funds for BIC.
The House recedes.

X-ROD

The budget request included $48.2 million for armament
enhancement initiatives.
The House bill would authorize an increase of $16.5
million for continued development of the X-ROD kinetic energy
tank round.
The Senate amendment would support the budget request.
The Senate recedes.
The conferees agree to authorize $64.7 million for PE
63639A.

``Next tank'' research and development

The budget request did not include any funding for ``next
tank'' research and development.
The House bill did not address this topic.
The Senate amendment addressed the need for the Army to
begin to assess future concepts and requirements for a
modernized force on a future battlefield.
The House recedes.
The conferees agree to authorize a total of $12.0 million
to establish a new program element to accomplish several tasks:
conduct a requirements analysis to establish a basis for
deciding what system or mix of systems supports the best
operational concept for defeating the evolving threat; develop
conceptual approaches for integrating emerging technologies
into a set of improvements that could be fielded in a new tank
or in an upgraded main battle tank program; develop a set of
requirements for the concepts selected by this analysis; and
begin virtual prototyping activities that could lead to
fielding a revolutionary main battle tank system within 20
years.

Tactical electronic support systems

The budget request included $2.0 million for tactical
electronic support systems.
The House bill and the Senate amendment contained an
increase of $2.0 million to fund integration of the work
completed by the Defense Advanced Research Projects Agency that
developed the first operational prototype of an intelligence
fusion system known as the Integrated Battlespace Intelligence
Server, or IBIS.
The conferees agree to authorize $4.0 million for PE
63745A to support technological transfer requirements.

Intelligence data support systems

The budget request included the following amounts for
intelligence support systems:

[Dollars in millions]
------------------------------------------------------------------------
Program Program element Funding
------------------------------------------------------------------------
All Source Analysis System (ASAS).... PE 63745A.............. 2.0
Joint Maritime Combat Information PE 64231N.............. 11.3
System (JMCIS).
Intelligence Analysis System (IAS)... PE 26313M.............. 1.2
Combat Information System (CIS)...... PE 27431F.............. 7.7
------------------------------------------------------------------------

The House bill would authorize an additional $2.0 million
for ASAS and an additional $1.0 million each for the IAS,
JMCIS, and CIS in their appropriate program elements. The House
bill would also authorize an increase of $1.0 million in PE
1160405BB for the U.S. Special Operation Command's research,
analysis and threat evaluation system (SOCRATES). These funds
would be used for improvements in interoperability, improved
data fusion, reduced operator work load, and reduced
development costs.
The Senate amendment would authorize the budget request
for these programs.
The conferees agree to authorize an increase of $2.0
million in PE 63745A, $1.0 million in PE 64231N, $1.0 million
in PE 26313M, and $1.0 million in PE 1160405BB as recommended
in the report accompanying the House bill (H. Rept. 104-563).

Comanche helicopter

The budget request included $288.6 million for continued
research and development work associated with the RAH-66
Comanche helicopter.
The House bill would authorize an increase of $50.0
million in PE 64223A to support critical development work for
this aircraft.
The Senate amendment would authorize an increase of
$100.0 million.
The Senate recedes.
The conferees agree to authorize $338.6 million in PE
64223A for the Comanche program.

Javelin medium anti-tank weapon

The budget request included $1.6 million to continue
development work for the Javelin missile system.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $4.5
million in PE 64611A to further the development of the
alternate main charge warhead, start baseline integration
tests, and evaluate the missile design to optimize warhead
performance.
The House recedes.
The conferees agree to authorize $6.1 million in PE
64611A for warhead integration activities.

Heavy assault bridge

The budget request included $35.4 million to conduct
development work necessary to support engineer requirements for
the heavy assault bridge.
The House bill and the Senate amendment would authorize
an increase of $12.3 million in PE 64649A to design heavy
assault bridge-unique line replaceable units and develop
software integration requirements.
The conferees agree to authorize $47.7 million in PE
64649A for development work associated with engineer mobility
equipment.

Night vision systems-engineering development

The budget request included $33.6 million to support
night vision system development work.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $15.0
million in PE 64710A for research in this critical area.
The conferees agree to authorize an increase of $2.0
million, the higher level of increased appropriation.
The conferees agree to authorize $35.6 million in PE
64710A for the engineering development of night vision systems.

Brilliant Anti-armor Technology (BAT) submunition

The budget request included $180.4 million to continue
equipment materiel development of the BAT system.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $9.8
million in PE 64768A to complete scheduled engineering and
manufacturing development activities on time.
The House recedes.
The conferees agree to authorize $189.7 million in PE
64768A for BAT development activities, an increase of $9.3
million.

Weapons and munitions

The budget request included $20.5 million to conduct
engineering development of weapons and munitions.
The House bill would authorize an increase of $1.6
million to develop a change barrel to adapt a .50 caliber
machine gun, and to develop an adaptor for a MK-19 installation
in an Up-Armored High Mobility Multi-purpose Wheeled Vehicle.
The Senate amendment would support the budget request.
The conferees agree to authorize an additional $1.6
million in PE 64802A to develop fire control improvements and
the change barrel and adaptor as described above.

Longbow development/night vision systems

The budget request included $5.9 million for development
work for the Longbow system.
The House bill would support the budget request.
The Senate amendment would authorize an increase of $12.0
million for development of night vision systems.
The conferees agree to authorize $10.9 million, an
increase of $5.0 million in PE 64816A, to be distributed as
follows: $3.0 million for night vision system advance
development; $1.0 million for Apache A Kit engineering
manufacture and development (EMD); $1.0 million for Apache B
Kit EMD.

High Energy Laser Systems Test Facility

The budget request included $3.0 million in PE 65605A for
the High Energy Laser Systems Test Facility (HELSTF).
The Senate amendment would authorize an additional $21.7
million in PE 65605A for the continued operation and upgrade of
the facility.
The House bill would authorize the budget request.
The House recedes.

Combat vehicle improvement program

The budget request included $197.8 million to support
development efforts for a wide variety of combat vehicle
systems.
The House bill would authorize an increase of $17.9
million for this effort. Of this amount, $4.9 million would be
for the remanufacture of combat vehicle laser warning equipment
and $3.0 million for the M1A2 compact autoloader.
The Senate amendment would authorize an increase of $10.0
million for high performance flat panel displays and would
direct that these funds assist in Horizontal Technology
Integration (HTI) of this technology into the M1 Abrams tank
and other combat platforms.
The conferees agree to authorize an increase of $27.9
million. Of this amount, $4.9 million would be for the combat
vehicle laser warning system; $10.0 million for the flat panel
display technology; and $3.0 million for the M1A2 compact
autoloader.
The conferees agree to a total authorization of $225.7
million in PE 23735A.

Under armor auxiliary power unit

The conferees understand that the Army faces higher than
expected costs to integrate an under armor auxiliary power unit
(APU) for the M1 tank.
The House bill would shift $10.0 million from the M1 tank
modification line to PE 23735A to meet this shortfall.
The Senate amendment did not address this issue.
This Senate recedes.
The conferees agree to authorize $10.0 million in PE
23735A to fund fully the under armor APU integration effort.

Improved Cargo Helicopter (ICH)

The budget request included $0.2 million for research and
development of aircraft improvements.
The House bill and the Senate amendment would authorize
an increase of $22.7 million for technology demonstrations and
risk reduction efforts for the programmatic development of the
ICH program.
The conferees agree to authorize $22.9 million in PE
23744A for work in improving heavy lift helicopter capabilities
that includes system health monitoring and vibration reduction
technologies.

Force XXI digitization

The budget request included $110.2 million for ongoing
efforts to digitize the 21st century Army.
The House bill would support the budget request.
The Senate amendment would provide an increase of $24.0
million to ensure a successful evaluation of Force XXI
technologies.
The conferees agree to authorize $122.2 million in PE
23758A, an increase of $12.0 million for this effort.

Missile/air defense product improvement program

The budget request included $31.0 million for missile and
air defense improvements.
The House bill would authorize an increase of $20.0
million to the budget request.
The Senate amendment would authorize an increase of $55.0
million in PE 23801A. Of this amount, $40.0 million would be to
complete analysis on cruise missile enhancements to the Patriot
PAC-1 missile and an additional $15.0 million for evaluation of
the Starstreak missile.
The conferees agree to authorize $71.0 million in PE
23801A to complete the Patriot cruise missile seeker
assessment. The Starstreak missile program is addressed
elsewhere in this report.

High modulus polyacrylonitrile carbon fiber

The budget request included $27.9 million for Industrial
Preparedness Activities (PE 78045A).
The conferees agree to an increase of $8.0 million in PE
78045A to complete the multi-year program to develop at least
two domestic sources for high modulus polyacrylonitrile (PAN)
carbon fiber as discussed in the House report (H. Rept. 104-
563) and the Senate report (S. Rept. 104-267). The conferees
direct that all applicable competitive procedures be used in
the award of any contracts or other agreements under this
program, and that cost sharing requirements for non-federal
participants be utilized where appropriate.

Instrumented factory for gears (INFAC)

The budget request included $16.8 million for Industrial
Preparedness (PE 78045A).
The House bill would authorize an increase of $3.0 in PE
78045A for INFAC.
The Senate amendment authorized the budget request.
The Senate recedes.

Force XXI initiatives

The budget request did not include any funding for this
program.
The House bill contained $100.0 million for a new program
element, to be established by the Army, to support the Force
XXI Initiatives process that will allow the Army to conduct a
timely evaluation of new equipment and technology.
The Senate amendment would add $100.0 million for this
purpose.
The conferees agree to authorize $75.0 million for Force
XXI development activities. The Army is expected to subject
programs with promising preliminary results to normal reviews
and evaluations required by law, prior to transitioning into
production any program tested with these funds. The conferees
expect the Army to budget for necessary resources in future
year activities.

Overview

The budget request for fiscal year 1997 contained an
authorization of $7,334.7 million for Navy, Research and
Development in the Department of Defense. The House bill would
authorize $8,190.0 million. The Senate amendment would
authorize $8,891.5 million. The conferees recommended an
authorization of $8,068.3 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Continuous wave superconducting radio frequency free electron laser

The budget request included $26.3 million for surface/
aerospace surveillance and weapons technology (PE 62111N).
The House bill and Senate amendment would authorize an
increase of $9.0 million in PE 62111N for the continuous wave
superconducting radio frequency free electron laser (FEL)
program.
The conferees agree to an increase of $9.0 million in PE
62111N for the continuation of the FEL program as discussed in
the House report (H. Rept. 104-563) and the Senate report (S.
Rept. 104-267). The conferees understand that there will be
significant cost sharing between the Commonwealth of Virginia
and the private sector in this effort. The conferees encourage
the Department of Energy to build on this Navy project to meet
the needs of materials scientists in universities and industry.

Advanced gun systems technology program

The budget request included $4.8 million in PE 62111N for
applied research in advanced gun and projectile technologies in
support of the naval surface fire support (NSFS) program.
The House bill would authorize an increase of $2.8
million to accelerate development of advanced miniaturized,
gun-hardened global positioning system/inertial navigation
(GPS/INS) guidance and control technology and development of
advanced technologies for next-generation gun systems.
The Senate amendment would authorize the budget request.
The Senate recedes.

Rocket propulsion programs

The House bill authorized an increase of $19.0 million
for rocket propulsion technology programs in PE 62111N, PE
63217N, PE 62601F, and PE 63302F.
The Senate amendment contained no similar provision.
The conferees agree to provide an increase of $19.0
million as specified in the House report (H. Rept. 104-563).

Power electronic building blocks

The budget request included $35.6 million for surface
ship technology programs (PE 62121N).
The House bill and the Senate amendment would authorize
an increase of $6.0 million in PE 62121N for power electronic
building blocks (PEBB) systems.
The conferees agree to an increase of $6.0 million in PE
62121N for the continued development of PEBB technology for the
rapid switching and control of high power electrical systems as
discussed in the House report (H. Rept. 104-563) and the Senate
report (S. Rept. 104-267). The conferees urge that the increase
be used for the development of virtual prototyping tools that
can be used to visualize and evaluate the performance of new
reconfigurable ship electronic power systems that can survive
battle damage and component failures.

Communications technology

The budget request included $56.2 million in PE 62232N to
continue development of key communications technologies for
air, ship and submarine platforms.
The House bill would authorize an increase of $2.0
million to the budget request for support of wireless and
satellite communications research in the areas of integrated
antenna systems, communications hardware design, communications
algorithm development and high-frequency device modeling and
measurements.
The Senate amendment would authorize the budget request.
The Senate recedes.

Materials, electronics and computer technology

The budget request included $75.9 million in PE 62234N
for materials, electronics and computer technology.
The House bill would authorize an increase of $1.0
million in PE 62234N for composite engineered materials to
address the future needs of naval shore facility maintenance
and repair.
The Senate amendment would authorize an increase of $5.0
million in PE 62234N to address new materials processes such as
resin transfer molding and the establishment of second sources
for carbon fibers and prepreg systems.
The conferees agree to authorize an increase of $6.0
million for new materials processes as discussed in the House
report (H. Rept. 104-563) and the Senate report (S. Rept. 104-
267).

Undersea weapons

The budget request included $33.9 for undersea warfare
weapon technology (PE 62633N).
The House bill and the Senate amendment would authorize
an increase of $6.0 million in PE 62633N for development of
undersea weapons.
The conferees agree to an increase of $6.0 million in PE
62633N for the Navy's Undersea Weapons Technology program to
accelerate the development and demonstration of technologies
applicable to a quick reaction anti-submarine/anti-torpedo
weapon for close-range engagements and for the protection of
surface ships and submarines from torpedo attack as discussed
in the House report (H. Rept. 104-563) and the Senate report
(S. Rept. 104-267).

Maritime avionics subsystems and technology program

The budget request included $29.3 million for advanced
development of air systems and weapons advanced technology (PE
63217N).
The House bill would authorize an increase of $10.0
million in PE 63217N for the maritime avionics subsystems and
technology (MAST) program.
The Senate amendment would authorize the budget request.
The Senate recedes.
In the statement of managers accompanying the conference
report on S. 1124 (H. Rept. 104-450), the conferees authorized
$10.0 million to continue the MAST program in fiscal year 1996
and recommended that the Secretary of the Navy consider
requirements for continuation of the program in future budget
requests. The conferees believe that the Navy science and
technology program must continue to place emphasis on the
development of advanced avionics architectures and systems.
Because of the congressional interest in this program and the
importance of advanced avionics architectures to future
aircraft systems, the conferees expect the Secretary of the
Navy to include funding for the MAST program in the fiscal year
1998 budget request.

Mobile off-shore base

The budget request included $9.2 million in PE 63238N to
continue concept development of the mobile off-shore base
(MOBS).
The House bill would authorize reduction of $9.2 million
in the budget request.
The Senate amendment would approve the budget request.
The House recedes.
The conferees note that the Secretary of Defense has not
reported to the congressional defense committees the plan and
schedule for incorporating MOBS in the Defense Acquisition
Board process and accomplishing a Milestone 0 review, as
directed in the statement of managers accompanying the
conference report on S. 1124 (H. Rept. 104-450).

Project M

The budget request included no funding for Project M. a
technology program for the active control of machinery
platforms.
In fiscal year 1996, Congress authorized and appropriated
$7.0 million in PE 63569E to continue the transfer of Project M
technology from the Defense Advanced Research Projects Agency
(DARPA) to the Navy. The program has been focused on the
demonstration of active control of machinery raft structural
dynamics and magnetic levitation using rafts that represent
future submarine engine room structures. The research has been
significant because it has demonstrated that large scale
implementation of active control for complex structures is
possible. Additional funding in fiscal year 1997 would permit
realistic testing of high fidelity quarter scale physical
models that will provide quantitative performance data and
other critical information that can be used to define the scope
of applications for this technology in future submarine or
surface ship designs. There is also potential for the expanded
use of this technology in a broad spectrum of other military,
space, and commercial applications where quieting of systems
and subsystems is important.
The House bill would authorize an increase of $8.0
million in PE 63508N to complete transition of Project M from
DARPA to the Navy.
The Senate amendment would authorize an increase of $8.0
million above the budget request in PE 63508N for the continued
development of Project M.
The conferees agree to an increase of $8.0 million above
the budget request in PE 63508N for the continued development
of Project M and to complete its transition from DARPA to the
Navy. The conferees also direct that the Secretary of the Navy
submit a report, no later than March 1, 1997, that provides a
detailed assessment of:
(1) the current status of the Project M program;
(2) the Secretary's plans for continued development
of the project M technology;
(3) future milestones for the maturing of the
technology;
(4) the Navy's plan for incorporating Project M
technology into the design of its next generation of
nuclear attack submarine; and
(5) funding included in the future years defense
program to satisfy this plan.

Commandant's warfighting laboratory

The budget request included $24.4 million in PE 63640M,
including $3.5 million for the Commandant of the Marine Corps
warfighting laboratory, ``Sea Dragon''.
The House bill would authorize an increase of $5.0
million for this initiative.
The Senate amendment would authorize an increase of $40.0
in PE 65873M, Marine Corps Program-wide Support, for technology
supporting experiments in ``Hunter Warrior'', the first
advanced warfighting experiment being conducted by the
Commandant's warfighting laboratory, and to support technology
enhancements for follow-on limited objective experiments in
fiscal year 1997.
The conferees agree to authorize an increase of $40.0
million in PE 63640M for support of the Commandant's
warfighting laboratory. The conferees agree that the Marine
Corps should budget for continuation of this initiative in
future budget requests. The conferees also agree with the view
expressed in the Senate report (S. Rept. 104-267) that
continued support for the Marine Corps ``Sea Dragon'' process
will be based on the demonstrated ability of the Marine Corps
to budget adequately for the rapid fielding of new technologies
supported by the results of the Sea Dragon experiments.

Tactical fiber optic communications

The House bill would authorize an increase of $1.75
million in PE 63640M for the Navy and the Marine Corps to
exploit commercial advances in lightweight fiber optics for
communications purposes and to demonstrate the use of
lightweight tactical fiber optics for communications in a
littoral scenario.
The Senate amendment would authorize the requested
amount.
The House recedes.

Medical mobile monitor

The budget request included $37.3 million for medical
development programs (PE 63706N).
The House bill would authorize an increase of $4.0
million in PE 63706N for the development of a medical mobile
monitor to assist physicians and other medical personnel in the
diagnosis and treatment of injuries and illness, and has the
capability to interface with portable personal computers.
The Senate amendment would authorize the budget request.
The Senate recedes.

Smart base

The budget request included $20.0 million for the Navy's
Environmental Quality and Logistics program (PE 63712N).
The Senate amendment would authorize an increase of $25.0
million in PE63712N for the Smart Base technology
demonstration.
The House bill would authorize the budget request.
The House recedes. The conferees agree to an increase of
$25.0 million in PE 63712N for the Smart Base technology
demonstration. In executing the program, the conferees instruct
the Department of the Navy to minimize costs by seeking cost
sharing partnerships with other Federal agencies, and state and
local governments, as well as commercial activities.

Littoral warfare advanced technology demonstration

The budget request included $43.6 million in PE 63747N
for undersea warfare advanced technology development.
The House bill would authorize an increase of $10.0
million to the budget request for at-sea demonstration and
evaluation of broad band, low low frequency active (LLFA)
acoustic technology for the detection of quiet, slow moving
submarines in the widely variable environment of the world's
littoral regions.
The Senate bill would authorize the requested amount.
The House recedes. The conferees direct the Secretary of
the Navy to report to the Congress on the Navy's intentions
with regard to further development and exploitation of LLFA
acoustic technology with the submission of the Navy's fiscal
year 1998 budget request.

Undersea weapons advanced technology demonstration

The budget request included $2.8 million for project
R2267 in PE 63747N. This project develops and demonstrates
advanced undersea weapons component prototypes for insertion
into current undersea weapons to upgrade their capabilities.
The House bill and the Senate amendment would authorize
an increase of $5.0 million in PE 63747N for development and
demonstration of advanced technology prototype improvements to
current undersea weapons systems, including environmental
emissions compliant alternative torpedo fuels and advanced
broadband homing system technologies and software algorithms to
improve the countermeasure resistance of U.S. undersea weapons.
The conferees agree to an increase of $5.0 million in PE
63747N.

Shallow water mine countermeasures

The budget request included $42.8 million in PE 63782N
for development and demonstration of mine countermeasures
advanced technology, including $6.4 million for continued
development of the advanced lightweight influence sweep system
(ALISS).
The House bill would authorize an increase of $5.0
million in PE 63782N to complete development, fabrication and
testing of the full-scale superconducting magnet that is one of
the two major subsystems of the ALISS.
The Senate amendment would authorize an increase of $3.0
million in PE 63782N for completion of the science and
technology demonstration program for the beach zone array
subsystem of the explosive neutralization program.
The conferees agree to authorize the requested amount.
The conferees recommend that the Navy include funding in
future budget requests to complete advanced technology
development and demonstration of the ALISS, as recommended in
the House report (H. Rept. 104-563), and to complete the
science and technology demonstration program for the beach zone
array subsystem of the explosive neutralization program, as
recommended in the Senate report (S. Rept. 104-267).

Advanced technology transition

The budget request included $104.4 million in PE 63792N
for the Navy's Advanced Technology Transition program to
demonstrate high-risk/high payoff technologies that could
significantly improve the warfighting capabilities of the fleet
and joint forces.
The House bill would authorize a decrease of $20.0
million from the budget request in PE 63792N. The House report
(H. Rept. 104-563) commended the leadership of the Navy's
science and technology community for the advanced technology
transition initiative and the potential that it presents for
accelerating the application of technology base solutions to
fleet and joint warfighting requirements. However, the House
report also included reservations about the growth in funding
for the program and the increase in the number of projects
encompassed by it that have occurred since fiscal year 1995.
The House report expressed the view that the program needs to
be highly selective and sharply focused on a relatively limited
number of projects that are aimed at solutions to some of the
Navy's most critical problems.
The Senate amendment would authorize the requested
amount.
The Senate recedes.

Research for advanced submarine technology

The budget request included $19.1 million in PE 63504N
for advanced submarine combat systems development and $26.4
million in PE 63561N for advanced submarine system development,
but no funding in PE 63508N for advanced submarine technology.
Both the House bill and the Senate amendment were
influenced by a report, Report on Nuclear Attack Submarine
Procurement and Submarine Technology, submitted to Congress by
the Secretary of Defense on March 26, 1996 in compliance with
section 131 of the National Defense Authorization Act for
Fiscal Year 1996. This report reflected recommendations of a
submarine technology assessment panel, also known as the
Baciocco Panel, that was commissioned by the Secretary of the
Navy to provide an independent evaluation of available and
future submarine technologies and an assessment of their
feasibility, cost, and potential benefits or drawbacks with
respect to their incorporation into a new submarine platform.
The House bill would authorize an increase of $208.0
million for advanced submarine technologies. The House report
(H. Rept. 104-563) provides detailed direction on how this
authorization would be distributed.
The House bill would authorize an increase of $18.0
million in PE 63508N for applied research and exploratory
development in advanced submarine concepts, including Baciocco
Panel recommendations, and for transition of advanced ship and
submarine technologies developed under the Defense Advanced
Research Projects Agency (DARPA). Of the additional amount
provided in PE 63508N, $8.0 million would be to complete the
transfer to the Navy of the technology for actively controlled
machinery platforms demonstrated in DARPA Project ``M''.
The House bill would authorize an increase of $60.0
million to the budget request for demonstration and validation
of core technologies identified in the Secretary of Defense's
report, including improved acoustic sensors and processing,
hydrodynamics, structural acoustics (including active controls
and mounts), and propulsors (including integrated stern and
electric drive), which would be distributed as follows:
In millions
PE 63504N, Advanced Submarine Combat Systems Development:
Advanced Acoustic Sensors..................................... $10.0
Advanced Acoustic Signal Processing........................... 10.0
PE 63561N, Advanced Submarine Systems Development:
Hydrodynamics................................................. 5.0
Structural Acoustics.......................................... 15.0
Propulsors.................................................... 20.0

The House bill would direct that, of the $60.0 million
increase, a total of $20.0 million would be equally divided
between the two submarine shipbuilders, Electric Boat Division
and Newport News Shipbuilding, for the purpose of ensuring that
these shipbuilders are principal participants in the process of
including new technologies into the design and construction of
the submarines built at their respective shipyards. The House
report (H. Rept. 104-563) would direct the Secretary of the
Navy to ensure that those shipbuilders have access for such
purposes to the Navy laboratories and the Office of Naval
Intelligence.
The House bill would authorize an increase of $38.0
million to the budget request for demonstration and validation
of the Category I and Category II technologies described in the
Secretary's report as follows:
(1) PE 63504N: $19.0 million for demonstration and
validation of passive ranging/target motion analysis,
large aperture processing, matched environmental
processing, total ship monitoring system improvements,
near-term multi-line towed array, high gain multi-line
towed array, lightweight wide aperture array fiber
optics, and high gain hull array; and
(2) PE 63561N: $19.0 million for demonstration and
validation of electro-mechanical/electro-hydraulic
actuators, advanced welding processes, power electronic
building blocks, advanced propulsor fabrication,
advanced hybrid propulsors, advanced coatings, rim
driven motors, and elastomeric ejection system.
The House bill would authorize an increase of $50.0
million in PE 63563N to initiate the design of new, next-
generation nuclear attack submarines. The $50.0 million would
be equally divided between the two shipbuilders for this
purpose. The design effort would proceed in parallel with the
construction of four developmental submarines so that these two
original designs would be ready to compete for serial
production in fiscal year 2003.
The House bill would authorize an increase of $40.0
million in PE 64558N to produce design improvements for four
developmental submarines that would be built at Electric Boat
Division and Newport News Shipbuilding as a consequence of
section 131 of the National Defense Authorization Act for
Fiscal Year 1996. The $40.0 million would be equally divided
between the two shipbuilders. Each shipbuilder would be allowed
to propose to the Secretary of the Navy any design improvement
that the shipbuilder considers appropriate for the submarines
being built by that shipbuilder.
The House bill would authorize an increase of $2.0
million in PE 14224N for further development and evaluation of
wake trail sensors.
The Senate amendment would authorize a total increase of
$100.0 million for advanced submarine technology initiatives
identified in the Secretary of Defense's report. This increase
would be distributed as follows:
(1) $60.0 million for development of core
technologies, including $20.0 million in PE 63504N and
$40.0 million in PE 63561N; and
(2) $40.0 million for development of the Category I
and Category II technologies identified in the
Secretary of Defense's report, including $20.0 million
in PE 63504N and $20.0 million in PE 63561N.
The Senate report (S. Rept. 104-267) would direct the
Navy to use these funds to carry out the high priority
development efforts identified in the Secretary of Defense's
report to Congress, emphasizing advanced hydrodynamic and
hydroacoustic research, using advanced modeling that is
validated, when appropriate, by the use of large scale models
before insertion into the final design. The Senate report would
also emphasize that the authorized increase would be for
developing new technologies, not for the purpose of resolving
funding shortfalls in existing programs or for improving combat
systems or sensors on older submarines.
The conferees agree to authorize an increase of $8.0
million in PE 63508N for Project ``M''. This authorization is
discussed in more detail elsewhere in this statement of
managers.
The conferees also agree to an increase of $60.0 million
for demonstration and validation of core technologies
identified in the Secretary of Defense's report, including
improved acoustic sensors and processing, hydrodynamics,
structural acoustics (including active controls and mount), and
propulsors (including integrated stern and electric drive).
This increase will be distributed as follows:

PE 63504N, Advanced Submarine Combat Systems Development:
Advanced Acoustic Sensors................................. 10.0
Advanced Acoustic Signal Processing....................... 10.0
PE 63561N, Advanced Submarine Systems Development:
Hydrodynamics............................................. 5.0
Structural Acoustics...................................... 15.0
Propulsors................................................ 20.0

The conferees direct that, of the $60.0 million increase,
a total of $20.0 million will be equally divided between the
two submarine shipbuilders, Electric Boat Division and Newport
News Shipbuilding, for the purpose of ensuring that these
shipbuilders are principal participants in the process of
including new technologies into the design and construction of
the submarines built at their respective shipyards. The
conferees further direct the Secretary of the Navy to ensure
that those shipbuilders have access for such purpose to the
Navy laboratories and the Office of Naval Intelligence.
The conferees also authorize a further increase of $38.0
million to the budget request for demonstration and validation
of the Category I and Category II technologies described in the
Secretary's report. The recommended increase will be
distributed as follows:
(1) PE 63504N: $19.0 million for demonstration and
validation of passive ranging/target motion analysis,
large aperture processing, matched environmental
processing, total ship monitoring system improvements,
near-term multi-line towed array, high gain multi-line
towed array, lightweight wide aperture array fiber
optics, and high gain hull array; and
(2) PE 63561N: $19.0 million for demonstration and
validation of electro-mechanical/electro-hydraulic
actuators, advanced welding processes, power electronic
building blocks, advanced propulsor fabrication,
advanced hybrid propulsors, advanced coatings, rim
driven motors, and elastomeric ejection system.

Submarine towed array processing software

The budget request included $19.1 million in PE 63504N
for advanced submarine combat systems development.
The Senate amendment would authorize an increase of $8.0
million in PE 63504N to improve the overall performance of both
sonar and combat control systems by the improvement of their
ASW acoustic processing.
The House bill would authorize the requested amount.
The Senate recedes.

Aircraft carrier research and development

The budget request included $12.7 million in PE 63512N
for carrier systems development, including $8.3 million for
development and demonstration of technologies that may be used
in the future aircraft carrier (CVX-78) now planned to begin
construction contract award in fiscal year 2006.
To accelerate development and demonstration of
technologies for the CVX-78 and to establish a more reasonable
ramp to ship design, component development, and the production
decision for the CVX-78, the House bill would authorize an
increase of $23.0 million to the budget request in PE 63512N.
The House report (H. Rept. 104-563) indicated these funds would
be used for development of technologies for advanced aircraft
launch systems, advanced armor concepts, integrated topside
design, initial computing plant systems architecture analysis,
and development of advanced modeling and simulation.
The Senate amendment would authorize an increase of $52.0
million above the budget request in PE 63512N for aircraft
carrier research and development.
The Senate recedes.

Navy surface combatant

The budget request included $12.9 million in PE 63564N
for ship preliminary design and feasibility studies.
The Senate amendment would authorize an increase of $25.0
milllion in PE 63564N to increase funding for development of
the Navy's next generation of surface combatant, the SC-21, to
provide a level of funding that could lead to an orderly
development and transition to procurement after the turn of the
century.
The House bill would authorize the requested amount.
The Senate recedes.

Advanced surface machinery program--intercooled recuperated engine

The budget request included $59.8 million in PE 63573N
for the advanced surface machinery program, including $34.1
million to continue advanced development of the intercooled
recuperated (ICR) gas turbine engine. The ICR will be the
propulsion engine for the SC-21 next generation surface
combatant. Current plans call for introduction of the ICR into
the fleet as the propulsion system for future DDG-51 class
ships. The ICR promises 30 percent propulsion fuel savings
compared to the current Navy gas turbine, increased range, and
environmental emissions compliance. The engine is also being
considered as the propulsion system for the multi-national
European ``Horizon'' frigate. The ``Horizon'' program is a
collaborative effort among U.S., British, and French navies.
The ICR has been in advanced development since December
1991, and is now undergoing development full scale system
testing at Pyestock, England. Tests to date confirm engine
design predictions and the 30 percent fuel savings benefits of
recuperation. During the engine tests in early 1995, the
recuperator developed air leaks which required its removal and
return to the manufacturer. Intensive investigation revealed
both design flaws and manufacturing process problems. A
recuperator recovery plan was instituted by the management team
and full scale engine tests resumed in January 1996, using a
redesigned recuperator. A second test site is to be established
at the Navy's Ship Systems Land Based Engineering Site (LBES)
to support ICR engine endurance and qualification testing,
integration of the ICR engine into the DDG-51, and integrated
power system development for the SC-21.
The House bill would authorize an increase of $12.5
million to the budget request to complete preparations for
supporting ICR engine endurance and qualification tests at the
LBES. The House report (H. Rept. 104-563) expressed concern
that the Navy's decision to proceed with the 500 hour endurance
test and the final 1000 hour qualification test at the LBES is
not supported by adequate funding, and directed the Secretary
of the Navy to ensure that these funds are included in the
fiscal year 1998 budget request. The House report would also
direct the Navy to obligate no more than 25 percent of the
fiscal year 1997 funds until the Secretary of the Navy reviews
the results of the developmental testing and progress in
resolving the recuperator problem and reports the results of
this review, not later than December 31, 1996, to the
congressional defense committees.
The Senate amendment would authorize an increase of $19.0
million to the budget request in PE 63573N for the ICR engine.
Of this amount:
(1) $12.5 million would be to establish an ICR test
facility at the Navy's existing land-based test site;
and
(2) $6.5 million would be for at-sea testing of the
ICR engine.
The Senate recedes.

Insensitive munitions

The budget request included $7.3 million in PE 63609N for
insensitive munitions advanced development.
The House bill would authorize an additional $3.0 million
to ensure adequate funding is available for the program.
The Senate amendment would authorize the budget request.
The conferees agree to increase the budget request by
$3.0 million for insensitive munitions advanced development.

Lightweight 155MM howitzer program

The budget request included $44.9 million in PE 63635M
for Marine Corps ground combat and support systems.
The House bill would authorize the requested amount.
The Senate amendment would authorize an increase of $4.0
million in PE 63635M to incorporate new technologies into the
Marine Corps lightweight 155mm howitzer and its associated
training devices.
The Senate recedes.

Cooperative engagement capability

The budget request included $164.5 million in PE 63755N
and $9.9 million in PE 24152N for continued development of the
Navy's cooperative engagement capability (CEC). Funding
provided by the budget request would focus on the development
of shipboard and airborne cooperative engagement systems (CES),
initial operational test and evaluation of shipboard CES, and
development of organic integrated logistic support for the CES.
CEC is designed to enhance the warfighting capabilities
of ships and aircraft by combining the data derived from
various sensors into a single common representation that is
available with the same positional accuracy to all
participating ships. The Navy reports that a challenging cruise
missile defense exercise, Mountain Top, which relied heavily on
CEC position information, was held earlier this year in Hawaii.
The exercise involved over-the-horizon detection, tracking, and
engagement of a variety of difficult targets. The Navy
currently projects that initial operational capability of the
system will be achieved by September 1996. During testimony at
this year's defense posture hearing, the Secretary of Defense
singled out CEC as a program of high priority that he chose to
accelerate because of its great potential for linking units
from more than one service together and greatly increasing
their warfighting ability.
Despite relatively robust funding for CEC in this year's
budget request, it contains no funding to pursue joint service
integration efforts that were begun last year. Successful
consummation of these efforts, in consonance with the Navy's
baseline program, could greatly leverage the capability of the
services to conduct joint operations and provide ballistic
missile defense. Another area not addressed by the budget
request, an issue raised in committee hearings this year, is
reported interference between CEC and other data links
currently in use in the fleet.
The House bill would authorize an increase of $27.0
million in PE 63755N for the CEC program and urge the continued
acceleration and expansion of joint service integration
efforts, including application to the Airborne Warning and
Control Systems (AWACS) aircraft, Patriot and Theater High
Altitude Area Defense (THAAD) missile systems, Marine Corps
TPS-59 radar and the HAWK missile system.
The Senate amendment would authorize an increase of $63.0
million above the budget request for CEC in PE 63755N to permit
continued pursuit of a number of promising efforts, including
CEC integration with AWACS and national sensors, to accelerate
development of an airborne capability for the system, and to
address the issue of CEC interference with other fleet data
links, particularly the link installed on the SH-60B.
The conferees agree to an increase of $35.0 million in PE
53755N for the CEC program and urge the continued acceleration
and expansion of joint service integration efforts, including
application to AWACS aircraft, Patriot and THAAD missile
systems, Marine Corps TPS-59 radar and the HAWK missile system.
The conferees also direct the Secretary of the Navy to prepare
a detailed report, for submission no later than March 15, 1997,
on:
(1) progress made in resolving the issue of
spectrum interference as a result of the reallocation
under title VI of the Omnibus Reconciliation Act of
1993 of the spectrum in which CEC operates; and
(2) steps that the Secretary has taken to address
and resolve harmful interference between CEC and other
fleet weapons systems and data links.

Strike missile evaluation

The budget request did not include funding for evaluation
of a variant of the Navy's Standard missile for use by Navy
ships to conduct long-range strike.
The Senate amendment would authorize an increase of $24.0
million above the budget request in PE 63795N to evaluate the
potential of the Standard missile to satisfy long-range strike
and supersonic sea-skimming target requirements.
The House bill would not authorize an increase for this
purpose in PE 63795N.
The Senate recedes.

Naval surface fire support program

The budget request included $42.2 million in PE 63795N
for gun weapons system technology. Of this amount, $20.2
million is for the continued development of a 5-inch extended
range guided munition (ERGM) round. The Navy is developing this
round to address a gap in its ability to provide accurate naval
surface fire support (NSFS) during an amphibious assault at the
ranges dictated by current requirements. Of the $20.2 million,
no funds have been budgeted for risk mitigation in the
development of a GPS/INS guidance unit for the projectile, the
component judged to have the greatest technical risk.
The House bill would not authorize an increase of $5.0
million to the budget request to build on the Navy's guidance
risk reduction program; accelerate development and
qualification of micro-electro-mechanical systems (MEMS) -
based, low cost global positioning system/inertial navigation
system (GPS/INS) guidance and control technology; and ensure
the availability of that technology for the Navy's 5-inch ERGM
production program and for other guided munitions, rocket, and
missile programs.
The Senate amendment would authorize an increase of $3.0
million to the budget request in PE 63795N for risk mitigation
in development of the 5-inch ERGM.
The Senate recedes.
The conferees agree to an increase of $5.0 million in PE
63795N for risk mitigation in development of the Navy's 5-inch
ERGM and acceleration of the development of MEMS-based GPS/INS
guidance and control technology for the ERGM projectile.
Consistent with direction provided in the National Defense
Authorization Act for Fiscal Year 1996, the conferees also
agree to authorize an increase of $0.4 million above the budget
request to support the retention of two Iowa class battleships
on the naval register in an inactive status until the Navy is
able to replace their potential NSFS capability.

Light airborne multi-purpose system helicopter program

The budget request included $40.1 million in PE 64212N
for helicopter development.
Among the programs funded by PE 64212N is the Navy
program to convert its existing fleet of light airborne multi-
purpose system (LAMPS) helicopters from the SH-60B
configuration to the SH-60R configuration. It is planned that
other Navy H-60 series helicopters, such as the HH-60, a search
and rescue variant, and the SH-60F, an ASW variant with a
dipping sonar, will also eventually be converted to the SH-60R
configuration. However, the Navy's helicopter master plan,
under which these conversions are included, has been in a
constant state of flux for at least the past two years and, in
the conferees' opinion, has lacked the focus needed to properly
compete for resources as the defense budget, particularly the
acquisition portion, has declined in recent years.
The conferees are aware that the LAMPS SH-60B to SH-60R
development program is short of resources. Since fiscal year
1995, it has gone through requirements restructuring,
contractual rebaselining, efforts at cost reduction through
acquisition reform initiatives, contractor investment, and an
increasing contractor inventory of accrued cost that has not
been paid. While the Navy and contractor teams have maintained
technical progress towards the planned fiscal year 2001 initial
operational capability (IOC) date, the funding level contained
in the fiscal year 1997 budget request would be insufficient to
sustain this effort. Because the program was originally
structured to permit conversion to the SH-60R configuration to
occur during scheduled depot maintenance or service life
extension overhauls, the delay in program development that
would result from the fiscal year 1997 budget request would
likely also cause a substantial increase in conversion costs
and might render the program unaffordable.
The Senate amendment would authorize an increase of $6.8
million in PE 64212N to restore funds that were removed from
the SH-60R development program during preparation of the fiscal
year 1997 budget request. This additional funding would permit
a critical design review to occur in fiscal year 1997 and
maintain the program's progress toward a fiscal year 2001 IOC.
The Senate amendment would also authorize an increase of $10.0
million for the procurement of additional SH-60B upgrade kits
to replace funds that were removed from the program during
fiscal year 1996 to pay for F-14 digital flight control
improvements.
The House bill would authorize the request amount.
The conferees agree to authorize an increase of $6.8
million in PE 64212N for the SH-60R development program. An
increase of $10.0 million for the procurement of additional SH-
60B upgrade kits is not authorized.

Vertical replenishment helicopter replacement program

The budget request included no funding to initiate
procurement of a helicopter to replace the Navy's increasingly
costly and aging CH-46 vertical replenishment (VERTREP)
helicopter.
To address this problem, the Senate amendment would
authorize an increase of $10.0 million above the budget request
to take advantage of excess components available from the Army
and initiate a VERTREP helicopter replacement program in fiscal
year 1997.
The House bill would authorize the requested amount.
The conferees agree that development of a replacement
VERTREP helicopter would be better pursued as a research and
development program and authorize an increase of $10.0 million
in PE 64212N for this purpose.

Helicopter ground proximity warning systems

The budget request included $24.7 million in PE 64215N
for engineering and manufacturing systems development of joint
service and Navy standard avionics components and subsystems.
Recognizing that the Navy and the Marine Corps have a
requirement for a ground proximity warning system, the House
bill would authorize an increase of $2.4 million in PE 64215N
to continue development of the helicopter ground proximity
warning system (GPWS) in anticipation of its fielding on Navy
and Marine heavy and medium lift helicopters.
The Senate amendment would authorize the requested
amount.
The Senate recedes.

Joint Maritime Combat Information System (JMCIS)

The budget request included $11.3 million in PE 64231N
for the Navy tactical command system afloat (NTCS-A) component
of the joint maritime command information system (JMCIS).
The House bill would authorize an increase to the budget
request of $14.5 million as follows:
(1) an additional $1.0 million in PE 64231N to
explore and initiate efforts to improve
interoperability between JMCIS and the other service
intelligence support terminals;
(2) an additional $2.0 million in PE 64231N for
proliferating the RADIANT MERCURY automated multi-level
security sanitizer;
(3) an increase of $1.5 million in PE 64231N for
development of an integrated two-way Link 16 processing
capability for the JMCIS software; and
(4) an additional $10.0 million in a new program
element, PE 64770N, for integrating a capability for
the U.S. Navy to receive, process, and utilize the
joint surveillance target attack radar system (JSTARS)
moving target indicator (MTI) synthetic aperture radar
(SAR) system data.
The Senate amendment would authorize an additional $23.0
million above the budget request to:
(1) develop an integrated two-way Link 16
processing capability in JMCIS software;
(2) incorporate the Air Force's contingency theater
automated planning system (CTAPS) into JMCIS;
(3) develop an upgrade to permit data exchange
between JSTARS and the Navy's afloat planning system
(APS);
(4) field the RADIANT MERCURY automated multi-level
security sanitizer; and
(5) develop the tools and architecture that will
allow users to selectively request, filter, and process
supporting databases.
Of the $23.0 million, $19.5 million would be for research and
development in PE 64231N and $3.5 million would be for
procurement.
The conferees agree to authorize an additional $13.0
million above the budget request in PE 64231N as follows:
(1) $1.0 million for coordinating JMCIS functional
capabilities with the other service intelligence
terminals;
(2) $2.0 million for fielding RADIANT MERCURY;
(3) $1.5 million for two-way Link 16; and
(4) $8.5 million for receiving and exploiting the
JSTARS MTI capabilities.
The conferees also agree to authorize an increase of $3.5
million of procurement funding to accomplish these objectives.

CV-22 special operations tiltrotor aircraft

The budget request included $576.8 million in PE 64262N
for development of the V-22 tiltrotor aircraft to meet the
medium lift amphibious/vertical lift needs of the Marine Corps
(MV-22) and the special operations needs (CV-22) of the Special
Operations Command (SOCOM). The Navy and the SOCOM acquisition
executives reached agreement on a program that will develop an
aircraft capable of meeting the SOCOM's needs for the CV-22.
This program provides for remanufacture of a MV-22 test
aircraft to CV-22 standards for test and evaluation, rather
than providing a new aircraft off the production line.
The House bill would authorize an additional $37.0
million to procure a new aircraft to support testing and
evaluation of the CV-22, notwithstanding the agreement between
the Department of the Navy and SOCOM acquisition executives.
The House report (H. Rept. 104-563) expressed the opinion that
the remanufacturing alternative would represent a significant
challenge for the program office to complete the CV-22 program
with the desired capabilities by the date of the required
special operations initial operational capability (IOC). The
report expressed the opinion that the agreed plan would pose an
unacceptable risk to CV-22 program. The report indicated that
the House expected the Secretary of the Navy to include the
total of $47.0 million required to complete the CV-22 test and
evaluation aircraft in the Navy's budget requests for fiscal
years 1998 and 1999.
The Senate amendment would authorize an additional $20.0
million for funding for risk mitigation during the first year
of low rate initial production. The Senate report (S. Rept.
104-267) noted that the program agreed upon by the Navy and
SOCOM acquisition executives would be predicated on
remanufacture of an MV-22 aircraft for CV-22 test and
evaluation, and would represent compliance with all key
performance parameters and most of the threshold requirements
defined in the joint operational requirements document (JORD).
The report noted that using a remanufactured MV-22 flight test
article would represent an innovative, cost-effective solution
to the problem of living within the program's resources. The
report also noted that the remanufacturing approach represents
a challenge for the program office to complete the CV-22
program with the agreed-on capabilities on or before the
required IOC in 2005. The report also noted that the Senate
expected the joint program office to release aircraft number
nine back to the contractor for remanufacture by August 1,
1999. Should additional testing for the MV-22 program be
necessary, the program manager would be required to develop and
implement the necessary options to complete MV-22 testing
without the use of aircraft number nine after August 1, 1999.
The conferees understand that, notwithstanding the
agreement that the SOCOM acquisition executive signed, the
SOCOM would prefer to have a new, rather than a remanufactured
aircraft to conduct CV-22 testing. The SOCOM has expressed
concern that meeting the established IOC of having 15 aircraft
available in fiscal year 2005 is at risk. The conferees also
understand that the SOCOM has reservations about accepting an
aircraft for the remanufacture program that could have upwards
of 200 hours of flight time, based on previous experience with
the MH-47 program.
The conferees observe that there are some similarities
and some differences between the schedules for the buying and
remanufacturing approaches;
(1) The schedule laid out by the Department indicates
that the program preferred by the SOCOM would involve building
an MV-22 aircraft that would later be converted to CV-22
configuration. Building a CV-22 aircraft, when the CV-22 is
itself in development, now would involve too much concurrency.
(2) This MV-22 aircraft would be inducted into a CV-22
conversion program at the same time that an existing test
aircraft would enter a remanufacturing program to turn it into
a CV-22 test aircraft. According to the current schedule, both
programs would deliver a CV-22 aircraft for testing in May,
2000.
(2) Buying a new dedicated test aircraft would reduce
schedule risk. Should something happen to one of the test
aircraft during MV-22 testing, the whole testing program and
making one of the test aircraft available for remanufacturing
could be delayed.
The conferees note that such schedule risk could be
mitigated by the fact that this bill would add two production
MV-22 aircraft that could be made available in lieu of
providing a test aircraft for remanufacture. However, having an
extra test aircraft available over the life of the MV/CV-22
program would ease the problems of testing schedules.
The conferees agree to provide an additional $37.0
million, with $27.0 million for the new MV-22 aircraft that
would be converted to CV-22 configuration later, and $10.0
million provided only for mitigating technical risk in the
overall V-22 program.
The conferees have agreed to support the extra dedicated
test aircraft because of SOCOM's view that this aircraft is the
Command's number one unfunded priority. The conferees are
willing to defer to the SOCOM in this case, with the
understanding that the SOCOM will budget for the additional
funds, beyond those now included in the program plan for
remanufacture of an MV-22 to the CV-22 configuration, for: (1)
the rest of the costs of the new aircraft; and (2) any CV-22-
unique risk mitigation effort that SOCOM views as important.
The conferees expect that these funds would be transferred from
SOCOM to the Navy acquisition executive during the years of
execution.

Precision targeting and location system

The budget request included $78.7 million in PE 64270N
for electronic warfare engineering and manufacturing
development.
The House bill would authorize an additional $3.5 million
for development and demonstration in a flyable prototype of
currently available technology capable of rapid, precision
location of sources of global positioning system collateral
interference and intentional jamming in order to assess the
technical feasibility and utility of such a targeting system on
operational aircraft and unmanned aerial vehicles.
The Senate amendment did not include a specific
authorization for such a precision targeting and location
system development and demonstration program.
The Senate recedes.

Smart Ship initiative

The budget request included no funding for the Navy's
Smart Ship initiative. This initiative, developed too late for
inclusion in the budget request, will be managed at fleet level
and is designed to demonstrate that crew workload for a surface
combatant ship can be reduced via technology and changes to
existing policies and procedures. The lessons derived from it
are expected to have a direct, cost saving impact on the
designs for future ships, such as the arsenal ship and the
Navy's next generation of surface combatant, the SC-21. It may
also produce modification proposals that could be cost
effectively incorporated into existing fleet units to lower
operating and support costs.
The Senate amendment would authorize an increase of $31.3
million above the budget request to accelerate the Smart Ship
initiative. Of this amount, $21.9 million would be for PE
64307N. The balance of $9.4 million would be added to the
Navy's operating account.
The House bill would authorize the requested amount.
The conferees agree to authorize $23.4 million above the
budget request to accelerate the Smart Ship initiative. Of this
amount, $14.0 million would be for PE 64307N. The balance of
$9.4 million would be added to the Navy's operating account.

Arsenal ship

The budget request included $25.0 million in PE 64310N
for Department of the Navy engineering and manufacturing
development to initiate a ``new start'' development for the
arsenal ship. The budget request for the Defense Advanced
Research Projects Agency (DARPA) also included $16.4 million in
PE 63226E for development of technologies for application to
future surface warfare and fast sealift ships, including the
arsenal ship.
The House bill would authorize the budget request, but
would provide funding for the Navy for the arsenal ship program
in PE 63563N, Ship Concept Advanced Design, an advanced
development program element, rather than in PE 64310N. The
House report (H. Rept. 104-563) would direct the Secretary of
the Navy to submit the initial results of a review of DOD
Directive 5000.1 and DOD Regulation 5000.2 with respect to core
acquisition management issues relative to the arsenal ship with
the fiscal year 1998 budget request.
The Senate amendment would authorize an increase of
$147.0 million in PE 64310N to accelerate development of the
arsenal ship weapons system and to accelerate the process of
finding answers to questions that would allow the Navy to
develop the arsenal ship as a system, not just a ship. The
Senate report (S. Rept. 104-267) noted that the Senate expects
the Navy to be prepared to address this matter and its various
developmental and resource implications before the submission
of the fiscal year 1998 budget request.
The conferees agree to authorize $25.0 million for the
arsenal ship program in a new advanced development program
element, PE 63310N, and $16.4 million in 63226E as included in
the budget request.
The conferees commend the Navy's leadership and the Navy
development community and participating Defense agencies for
the innovative way in which the concept for the arsenal ship
has been developed. The conferees agree that the program is in
an early conceptual stage and that a number of questions
regarding the program, as expressed in the House and Senate
reports, need to be answered as the program proceeds. The
conferees also agree that the projected cost of the program
indicates that the arsenal ship will be a major defense
acquisition program.
The conferees support the concept of the Department of
Defense advanced concept technology demonstration and the
desirability of early user involvement in the development and
evaluation of emerging technologies. The conferees also support
the need to break out of bureaucratic practices, and make
maximum use of best commercial practices, streamlined
acquisition procedures, and modern design and analytical tools
to develop new defense acquisition paradigms. The conferees see
no conflict between these goals and the requirement for the
Department of Defense to answer necessary questions at the
beginning and at subsequent milestones in any development and
acquisition program. The challenge for the Department, as
expressed in the House report, is to create better analytical
tools that will provide answers to the continuing questions in
any development program, such as: (1) what is the operational
requirement?; and (2) what is the most cost and operationally
effective way of meeting that operational requirement?

Standard missile ``Terrier'' target

The budget request included $1.6 million in PE 64366N for
development of improvements to the Standard missile.
The House bill would authorize an additional $8.0 million
for a proof of concept demonstration and evaluation of the
potential effectiveness of the Terrier missile as a supersonic
sea-skimming target (SSST).
The Senate amendment would authorize this initiative in
PE 63795N.
The Senate recedes.
The conferees note that the Navy's inventory of SSSTs is
insufficient to meet both test and evaluation and fleet
training needs and believe that the Navy must seriously address
the development and procurement of a follow-on SSST to ensure
that production units are available when needed.

Airborne mine detection systems

The budget request included $14.5 million in PE 64373N
for airborne mine countermeasures systems.
The Senate amendment would authorize an increase of $10.0
million in PE 64373N to produce a competitive evaluation of two
airborne laser mine detection systems (ALMDS), ATD-111 and
Magic Lantern. Both systems are based on light detection and
ranging (LIDAR) technology. The funding increase would be used
to prepare the two systems for the competition, to conduct the
competitive assessment, and to prepare the required report as
follows:
(1) $3.0 million would be available to prepare ATD-
111 for the competition;
(2) $5.0 million would be available to prepare
Magic Lantern for the competition; and
(3) $2.0 million would be available to organize and
conduct the competition, analyze data, and prepare the
required report.
The Senate amendment would also require the Secretary of
the Navy, upon completion of the competitive assessment, to
develop a plan to procure a sufficient number of the winning
systems to provide the active Navy forces with a satisfactory
contingency ALMDS capability. To begin this procurement, the
Senate amendment would authorize an increase of $25.0 million
above the budget request.
The House bill would authorize an increase of $25.0
million above the budget request for the procurement of three
additional Magic Lantern systems.
The conferees agree to authorize an increase of $10.0
million in PE 64373N to conduct the competitive assessment
described in the report accompanying the Senate amendment (S.
Rept. 104-267).
The Senate report noted that, in testimony on its mine
warfare programs this year, the Navy, emphasized its long term
objective of providing an organic mine countermeasures (MCM)
capability to the active fleet that will permit fleet units to
respond immediately to mine threats while waiting for
specialized MCM units to arrive on the scene. However, progress
in fielding an organic capability for the Navy's aircraft
carrier battle groups (CVBGs) and amphibious ready groups
(ARGs) to conduct minehunting by use of an ALMDS has been
marginal.
The conferees are aware that there are two LIDAR systems
in development, Magic Lantern and ATD-111, that could be
candidates for a solution to the ALMDS requirement. They have
been in development for a number of years at very modest levels
of funding. However, it would appear that, while their
technology is sufficiently mature to proceed to the engineering
and manufacturing development stage, sufficient resources are
not available to transition both systems.
Accordingly, the conferees direct the Navy to conduct a
competitive evaluation field test, during fiscal year 1997, of
the two candidate technologies represented by Magic Lantern and
ATD-111, for the purpose of identifying a single system that
can be procured and integrated into active Navy fleet aircraft
to provide them with an organic MCM capability. This assessment
should include a quantitative determination of each system's
performance with respect to detection and classification of
moored and floating mines, area coverage, false alarm rates,
potential for multi-mission capability, system availabity, and
capability for integration and carriage abroad the SH-60 series
active fleet helicopters. The conferees further direct that
this competitive evaluation be conducted as soon as
practicable, but no later than July 1, 1997. The Secretary of
the Navy shall report result to the congressional defense
committees no later than August 1, 1997.
Upon completion of this assessment, the Navy shall
develop a plan that will lead to procurement of a sufficient
number of the winning systems to provide active Navy forces
with a satisfactory contingency ALMDS capability. The conferees
direct the Secretary of the Navy to submit this plan to the
congressional defense committees in conjunction with the fiscal
year 1999 budget request to continue execution of the plan.

Multi-purpose processor

The budget request included $61.4 million in PE 64503N,
including $33.6 million for development of submarine sonar
improvements. Included in this program element is a program for
the development and introduction of multipurpose processor
(MPP) technology into the U.S. submarine fleet.
The MPP was developed under the Small Business Innovative
Research Program. Using commercial off-the-shelf (COTS)
hardware and an open software architecture, the MMP has
capitalized on the exponential improvement in commercial
hardware and software to facilitate rapid improvements in
submarine acoustic data processing. Fundamental to the MPP is
the concept of protecting the Navy's investment in processor
software through software transportability, i.e., the ability
to transport new, advanced software to existing hardware
utilizing an open operating system. The MPP has been
incorporated into the design of the command, control,
communications, and intelligence system of the New Attack
Submarine Program. The Navy's Submarine Combat Systems Program
has also selected the MPP as a cornerstone for sonar upgrades
for the existing SSN-688, 688I, and SSBN-726 class submarines.
The House bill would authorize an increase of $11.0
million in PE 64503N for advanced development and rapid
introduction of MPP technology into the U.S. submarine fleet.
The Senate amendment would authorize an increase of $15.2
million in PE 64558N to mature MPP transportable software
technology for use in research and development programs, and to
improve the performance of Navy towed and hull mounted arrays.
The conferees agree to an increase of $15.2 million in PE
64503N to support advanced development of MPP transportable
software technology and rapid introduction of MPP technology
into the U.S. submarine fleet.

Seawolf shock test

The budget request included $91.9 million in PE 64561N
for Seawolf class research and development
The Senate amendment would authorize an increase of $26.0
million in PE 64561N to provide for shock testing of Seawolf
components not covered by the budget request.
The House bill would authorize the requested amount
The Senate recedes.

Tactical fiber optic communications

The budget request included $4.6 million in PE 32019K for
the joint/defense information systems engineering and
integration program.
The House bill would authorize an increase to the budget
request of $3.0 million to investigate military applications of
the planned world wide commercial fiber optic grid and support
a Defense Information Systems Agency proof of concept
demonstration of the ability to establish Department of Defense
``splices'' into the grid before it is fully deployed.
The Senate amendment would authorize the budget request.
The House recedes.

Doppler sonar velocity log

The budget request included $22.9 million in PE 64562N
for engineering and manufacturing systems development of
submarine tactical warfare systems.
The House bill would authorize an increase of $1.0
million to the budget request in PE 64562N for the evaluation
of a commercially available, non-developmental Doppler sonar
velocity log as a potential replacement for standard Navy
electromagnetic logs.
The Senate amendment would authorize the requested
amount.
The House recedes.

Explosive ordnance disposal

The budget request included $7.3 million in PE 64654N for
the joint service explosives ordnance disposal (EOD)
development program.
The House bill would authorize an increase of $1.1
million in PE 64654N to accelerate development of EOD
procedures for countering high threat unexploded ordnance found
in the field.
The Senate amendment would authorize the budget request.
The House recedes.

Battle group passive horizon extension system--surface terminal

The budget request included $1.9 million PE 64721N for
continued research and development of the battle group passive
horizon extension system--surface terminal (BGPHES-ST)
capabilities.
The House bill would authorize an increase of $1.0
million in PE 64721N for procurement by the Navy of existing
Air Force processing capabilities and algorithms for
exploitation of the class of threats known as ``PROFORMA'' and
integration of EPR-157 and EPR-208 capabilities in existing
BGPHES-ST hardware.
The Senate amendment would authorize the budget request.
The Senate recedes.

Quick reaction combat capability

The budget request included $29.5 million for continued
development of the quick reaction combat capability (QRCC) for
ship self-defense.
The Senate amendment would authorize an increase of $17.0
million above the budget request in PE 64755N to:
(1) accelerate engineering of the LHD amphibious
assault ship self-defense system;
(2) integrate the advanced combat direction system
(ACDS) with the cooperative engagement capability
(CEC); and
(3) improve tracking equipment at the Navy's
Wallops Island engineering test site and aboard its
self-defense test ship.
The House bill would authorize the requested amount.
The Senate recedes.

SPS-48E radar pulse Doppler upgrade

The conferees are aware of a recently completed Navy
study ``Land Clutter Effects of Shipboard Radars'', dated April
11, 1996. The study demonstrates that radar signal return
clutter over land can seriously degrade the ability of
shipboard air surveillance radars to detect low altitude
targets. Even close-in aircraft or cruise missiles may not be
detected, and sensitive, highly automated systems can become
overloaded with large numbers of clutter detections and false
tracks. As a case in point, the AN/SPS-48E radar, the principal
aerial surveillance and height-finding radar for aircraft
carriers and large deck amphibious ships, demonstrates degraded
near-shore and limited low altitude over-land detection
performance against small signature targets, such as cruise
missiles.
The conferees authorize an increase of $12.0 million in
PE 64755N to develop and demonstrate a pulse Doppler upgrade to
the AN/SPS-48E radar. Incorporating a pulse Doppler capability
into this radar would provide improved near-shore and low
altitude over-land clutter rejection and improved radar
performance.

Infrared search and track

The budget request included $3.9 million in PE 64755N for
the continued development of the infrared search and track
(IRST) weapons system.
To eliminate a substantial portion of the delays in the
IRST program that the budget request would produce, the Senate
amendment would authorize an increase of $8.0 million above the
budget request in PE 64755N.
House bill would authorize the requested amount.
The Senate recedes.

Evolved Sea Sparrow missile

The budget request included $39.5 million in PE 64755N
for continued development of the evolved Sea Sparrow missile
(ESSM).
The Senate amendment would authorize an increase of $8.0
million above the budget request in PE 64755N to:
(1) modify the safe and arming device of the RIM-7P
to ensure safe separation from the firing ship;
(2) additional simulation capability that will
better reflect the improved missile design and the
environmental conditions that the missile will
encounter within its flight envelop; and
(3) an S-band link to support the missile's
employment by AEGIS ships.
The House bill would authorize the requested amount.
The Senate recedes.

Fixed distributed system-1

The budget request included no funding for improving the
capabilities of the Navy's fixed distributed system-1 (FDS-1),
a modern surveillance system that can detect even the most
modern threat submarines. The committee has learned that
additional enhancements in this system could improve
significantly its surveillance coverage.
The House bill would authorize an increase of $35.0
million to the budget request in PE 64784N for a fixed
distributed system commercial-off-the-shelf/non-development
initiative fiber optics upgrade.
The Senate amendment would authorize an increase of $52.0
million above the budget request in PE 64784N to complete
enhancements to FDS-1.
The Senate recedes.

Safety and survivability

The House bill would authorize an increase of $2.0
million in PE 65864N to support ongoing non-developmental item
(NDI) operational assessments of commercial safety and
survivability technology and systems for potential use in Navy
operational units. In addition, the House bill would authorize
an increase of $4.0 million in PE 63226E for the Defense
Advanced Research Projects Agency (DARPA) to examine high
leverage technologies for firefighting and personnel
protection.
The Senate amendment did not contain similar provisions.
The conferees agree to authorize only the increase of
$2.0 million in PE 65864N, because no appropriation was
provided for the DARPA portion of the recommended program.

SSBN security and survivability program

The budget request included $21.3 million in PE 11224N
for the SSBN security and survivability program.
The House bill would authorize an additional $2.0 million
for further development and evaluation of wake trail sensors
and an additional $6.0 million to sustain the funding level
required to maintain a credible SSBN security and survivability
program.
The Senate amendment would authorize an increase of $5.5
million to explore several promising technologies, such as
forward scatter barrier, low frequency active sonar, radar
detection, and light detection and ranging (LIDAR) buoy
detection.
The House recedes.
The conferees agree with the views expressed in the House
report (H. Rept. 104-563) concerning the need to maintain a
credible and robust SSBN security program in view of the
critical role of strategic deterrence in U.S. national military
strategy that is provided by the U.S. SSBN force.

Joint target support system testbed

The budget request includes $136.4 million in PE 24229N,
including $130.5 million for operational systems development of
the Tomahawk Baseline Improvement Program (TBIP) and $5.9
million for the Tomahawk theater mission planning center.
The House bill would authorize an additional $8.0 million
in PE 24229N to continue development and demonstration of the
joint targeting support system testbed (JTSST).
The Senate amendment would authorize an increase to the
budget request of $29.0 million in PE 24229N for continued
development of the Tomahawk Block IV missile.
The Senate recedes.
In the statement of managers accompanying the conference
report on S. 1124 (H. Rept. 104-450), the conferees agreed to
initiate development of a JTSST for demonstration of potential
joint targeting operations with the expectation that the
results of the initial JTSST study and follow-on demonstrations
would contribute to the definition of long-term objectives,
guidelines, and schedule milestones for convergence of the
Navy/Marine Corps tactical aircraft mission planning systems
and the Air Force mission support system, and lead to the
development of a joint mission planning system architecture for
the military services.
The conferees voice their displeasure that the Secretary
of Defense has failed to comply with the previous guidance
provided by the Congress with regard to the JTSST
demonstration. The Secretary is directed to report to the
congressional defense committees, no later than December 31,
1996, the Department's plans for:
(1) development of a joint mission planning system
architecture for the military services;
(2) the convergence of Navy/Marine Corps and Air
Force tactical mission planning and mission support
systems; and
(3) the role a JTSST demonstration will play in
furthering these plans.

Integrated surveillance system improvements

The budget request included $14.0 million in PE 24311N
for research and development support of the Integrated Undersea
Surveillance System (IUSS) including $3.3 million for research
and development support of the Surveillance Towed Array Sensor
System (SURTASS) and $10.7 million for the IUSS detection/
classification system.
The House bill would authorize an increase of $22.1
million in PE 24311N to the budget request in PE 24311N to:
(1) continue development and integration of SURTASS
twin line arrays, reduce the size of transmit arrays,
continue fiber optic array development, expand
frequency processing capabilities, and conduct at-sea
testing of resulting developments;
(2) sustain the low frequency array program and
development of more reliable low frequency active
transmitters; and
(3) adapt SURTASS software algorithms for submarine
sonar systems.
The Senate amendment would authorize an increase of $8.0
million in PE 63504N for adaptation of SURTASS software
algorithms for use in submarine sonar systems.
The Senate recedes.

Consolidated training systems development

The budget request included $34.9 million in PE 24571N
for consolidated training systems development, including $3.4
million for continued development of the Navy's surface
tactical team trainer (STTT), $17.9 million for the joint
tactical combat training system (JTCTS), and $6.0 million for
training and training devices systems (TTDS).
The House bill would authorize an increase of $3.0
million in PE 24571N to continue integration and evaluation of
the cryptologic systems trainer in the battle force tactical
training (BFTT) system component of the STTT.
The Senate amendment would authorize an increase of $5.0
million in PE 64735F and $9.0 million in PE 24571N for the
JTCTS to correct an imbalance between the program's planned
development timeline and the schedule allowed by the funding
included in the budget request.
The Senate recedes.

Advanced anti-radiation guided missile

The budget request included no funds to continue
development of the advanced anti-radiation guided missile
(AARGM) technology.
The House bill would authorized an additional $50.0
million for AARGM in PE 25601N. The House report (H. Rept. 104-
563) would direct the Secretary of the Navy to proceed with the
development program and use the additional funds to continue
seeker development, analyses, demonstrations, and test support.
The House report would direct that the use of these funds be
limited to design reviews and support for test and evaluation.
The report further would encourage the Secretaries of the Navy
and the Air Force to fund the fiscal year 1998 requirements for
the program.
The Senate amendment would approve the budget request.
The Senate recedes.

High speed anti-radiation missile

The House bill would authorize an additional $5.0 million
in PE 25601N and an additional $3.5 million in PE 27162F for
the High Speed Anti-Radiation Missile (HARM).
The Senate amendment would authorize the requested
amount.
The conferees agree to authorize an additional $2.5
million in PE 25601N to accomplish risk reduction efforts for
the block IV program and block V software for HARM.

Tactical data links

The budget request included $37.3 million in PE 25604N
for development of improvements in tactical data links in
operational Navy systems.
The House bill would authorize an increase to the budget
request of $11.6 million for further development of Link 16 and
related tactical data link programs for surface ship
applications; $13.6 million in Other Procurement, Navy; and
$2.2 million in Operations and Maintenance, Navy (OMN 0205604N
4B7N) to accelerate the installation of Link 16 tactical data
links in AEGIS surface combatants.
The Senate amendment would authorize the requested
amount.
The House recedes.

Towed array receive system

The budget request included $4.9 million in PE 25620N for
surface anti-submarine warfare combat systems integration.
The House bill would authorize an increase to the budget
request of $4.0 million in PE 25620N for integration of the
Navy's towed array receive system (TARS) upgrade in the AN/SQQ-
89 surface ship sonar suite in order to address shortcomings in
the Navy's capability for detecting slow-moving diesel-electric
submarines in shallow water.
The Senate amendment would authorize the budget request.
The Senate recedes.

Commander in Chiefs' technology initiative

The budget request included $5.0 million in the Navy
Science Assistance program (PE 25658N).
The Senate amendment would authorize and increase of
$10.0 million in PE 25658N to support efforts by the services
and defense agencies to transition rapidly selected
technologies from the defense research and development
establishment to the services for use in military operations
through the Commander in Chiefs' technology initiative
established by Congress last year.
The House bill would authorize the budget request.
The House recedes. The conferees expect that funding in
future years for this initiative will be included in the Navy
budget request.

Tactical electronic reconnaissance processing and evaluation system

The budget request included $2.5 million in PE 26313M for
upgrade to, and communications integration testing within, the
tactical electronic reconnaissance processing and evaluation
system (TERPES).
The House bill would authorize an additional $855,000 to
provide communication software upgrades to improve TERPES
interoperability with the global command and control system
(GCCS) and the tactical air mission planning system (TAMPS).
The Senate amendment would authorize the budget request.
The Senate recedes.

Medium tactical vehicle remanufacturing

The budget request included $5.2 million in PE 26624M for
Marine Corps combat services support.
The House bill would authorize the requested amount.
The Senate amendment would authorize an additional $3.0
million in PE 26624M to retain a third contractor during the
engineering and manufacturing development phase of the medium
tactical vehicle remanufacturing program.
The Senate recedes.

GEOSAT Follow-On

The Senate amendment contained $20.0 million to begin
development of a second GEOSAT Follow-On (GFO-2) altimetry
satellite.
The House bill did not include funding for GFO-2.
Given the cost growth that has taken place in the GFO-1
program, the conferees agree to authorize $15.0 million in PE
35160N to commence work on GFO-2, subject to the following
restrictions: (1) Of the $15.0 million authorized for GFO-2,
the conferees agree to authorize the use of up to $10.0 million
to compensate for cost growth in the GFO-1 program and to ready
the satellite for launch; and (2) the conferees direct the
Secretary of the Navy not to obligate or expend any of the
funds on a GFO-2 program until the Secretary certifies to
Congress that technical and cost issues associated with GFO-1
have been satisfactorily resolved and the Secretary recommends
proceeding with GFO-2.

Manufacturing technology (MANTECH)

The budget request included $16.8 million for the Army
MANTECH program (PE 78045A), $35.5 million for the Navy MANTECH
program (PE 78011N) and $49.9 million for the Air Force MANTECH
program (PE 78011F).
The Senate amendment would fund the Army program at the
requested amount and authorize a general increase in the
services' manufacturing technology programs with an increase of
$30.0 million in PE 78011N and an increase of $20.0 in PE
78011F, as part of a broader thrust to address current and
future affordability concerns.
The House bill would authorize an increase of $11.0
million in the Army MANTECH program and authorize the requested
amount for the Navy and Air Force MANTECH programs.
The conferees agree to authorize the following amounts
for the MANTECH program:
PE 78045A--$27.9 million.
PE 78011N--$65.5 million.
PE 78011F--$69.9 million.
The conferees are aware of issues involved with the delay
of funding for MANTECH programs and direct the Department of
Defense to take the necessary actions to ensure expeditious and
timely obligation of fiscal year 1996 and 1997 funding for
these programs. The committee encourages the continuation of
programs currently funded in the MANTECH account designed to
demonstrate the effectiveness of comprehensive career analysis
and retraining models for military and civilian personnel who
have been or will be terminated as a consequence of base
closure decisions.
A provision (sec. 276) in the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106)
amended section 2525 of title 10, United States Code to require
the Secretary of Defense to seek the participation of
manufacturers of manufacturing equipment for the projects under
the programs. The conferees agree that this language is not
hortatory but intend it to provide specified direction and
focus to the program. The focus of the MANTECH program is the
development of manufacturing process technology, and the
manufacturing equipment segment of the industry should be
actively involved in the projects under these programs.

Acquisition center of excellence

The Senate amendment would authorize $8.0 million in a
new budget line for the establishment of an acquisition center
of excellence in the Navy.
The House bill did not contain a similar provision.
The House recedes. The conferees expect that the Navy
will provide follow-on funding for this effort in fiscal year
1998 and beyond as part of the budget requested for each fiscal
year. The conferees direct the Secretary of the Navy to submit
to the congressional defense committees, no later than June 15,
1997, a report on progress made toward establishing the center
as well as toward the development of performance measures for
judging the effectiveness of the center in acting as an agent
of reform for the acquisition process in the Navy and elsewhere
in the Department of Defense.

Overview

The budget request for fiscal year 1997 contained an
authorization of $14,417.5 million for Air Force, Research and
Development in the Department of Defense. The House bill would
authorize $13,271.1 million. The Senate amendment would
authorize $14,786.4 million. The conferees recommended an
authorization of $14,756.4 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Carbon/carbon nosetips

The Senate amendment recommended that $1.5 million of the
funds provided in PE 62102F be utilized for the development of
carbon/carbon thermal protection material for reentry vehicles
as well as for aircraft, spacecraft and missile applications.
The House bill had no similar provision.
The House recedes.

Thermally stable jet fuels

The budget request included $74.9 million for aerospace
propulsion technology (PE 62203F).
The Senate amendment would authorize an increase of $3.0
million in PE 62203F for thermally stable jet fuels.
The House bill would authorize the budget request.
The conferees agree to an authorization of $74.9 million
for PE 62203F of which $3.0 million is authorized for the
continuation of the thermally stable jet fuel program.

High frequency active auroral research program

The budget request included $121.1 million for Phillips
Laboratory exploratory development (PE 62601F) and $54.1
million for counterproliferation support (PE 63160D).
The Senate amendment authorized an increase of $15.0
million for the high frequency active auroral research program,
with $7.5 million in PE 62601F and $7.5 million in PE 63160D.
The House bill authorized the budget request.
The House recedes.

Metal fatigue monitoring

The budget request included $23.8 million for advanced
materials for weapon systems technology (PE 63112F).
The House bill would authorize an increase of $2.5
million in PE 63112F for the metal fatigue monitoring program.
The Senate amendment contained no similar provision.
The Senate recedes.

Aircraft ejection seats

The budget request included $18.0 million in PE 63231F
for crew systems and personnel protection technology, $11.1
million in PE 64264N for aircrew systems development, and $4.4
million for life support systems in PE 64706F.
The House bill and the Senate amendment would authorize
an additional $5.0 million in PE 63231F and PE 64264N each to
accelerate program phases for ejection seat upgrades. The House
bill would also provide an additional $3.5 million in PE 64706F
to evaluate the ACES II ejection seat with stabilization, limb
restraints, and expanded crew member accommodation and to
examine new technology for the integration of tactical aircrew
personal equipment.
The conferees agree to authorize an additional $11.5
million, $5.0 million to PE 63231F and $5.0 million to PE
64264N, for ejection seat development, and $1.5 million in PE
64706F to evaluate the ACES II ejection seat with
stabilization, limb restraints, and expanded crew member
accommodation.

Space architect

The budget request included $15.0 million in PE 63855F
for the Department of Defense Space Architect.
The House bill recommended a reduction of $4.0 million
from the request, to include any ``pass-through'' funding
intended for the Office of the Secretary of Defense for which
there was no request.
The Senate amendment approved the budget request.
The conferees agree to authorize $13.0 million in a new
operational systems development program element, a reduction of
$2.0 million. The conferees are following with interest the DOD
Space Architect's on-going reviews of the appropriate military
satellite communications architecture and the architecture for
space control. The conferees expect to be kept apprised of
progress during the conduct of these important reviews. The
conferees also strongly urge the Architect to consult closely
with the Commander-in-Chief, U.S. Space Command during these
reviews. Finally, the conferees direct that, in the submission
of the fiscal year 1998 budget request, funding for the Deputy
Under Secretary of Defense for Space not be included along with
funds for the Space Architect.

B-2 Conventional capability enhancements

The House bill would authorize an increase of $290.0
million in PE 64240F to accelerate precision guided munition
(PGM) integration and conventional weapons capability into the
B-2 bomber fleet.
The Senate amendment would authorize the budget request.
The conferees note that the Department plans to equip the
B-2 fleet with enhanced conventional capability, but are
concerned with the low levels of funding and slow pace of these
efforts. Consequently, the conferees authorize an increase of
$212.0 million to accelerate integration of PGMs and to provide
enhanced communications, information data link capability, and
improved conventional weapons accuracy for the existing fleet
of 21 B-2 bombers.

Nuclear weapons support

The budget request included $4.8 million in PE 64222F for
nuclear weapons support.
The conferees are concerned about the backlog of
requirements for nuclear weapons support for various systems
and the impact this backlog can have upon U.S. confidence in
the reliability of the nuclear weapons stockpile. Accordingly,
the conferees recommend an increase of $1.0 million for
activities of the Air Force's Nuclear Weapons Integration
Office. The conferees direct the Secretary of the Air Force to
include sufficient funds in the fiscal year 1998 budget request
to eliminate this backlog.

Global positioning system

The Senate amendment recommended an increase of $7.1
million in PE 64480F to sustain the development and support a
production rate of three Block IIF Global Positioning System
(GPS) satellites per year, which will be required to maintain a
full 24-satellite constellation. The Senate amendment also
recommended an increase of $5.0 million in PE 35164F to
accelerate activities necessary to ensure effective use of
high-precision GPS signals by United States forces, and the
means to deny access to those signals by hostile forces.
The House bill recommended approval of the budget request
for GPS.
The conferees agree to authorize an increase of $7.1
million in Missile Procurement, Air Force, to sustain the
development and support a production rate of three Block IIF
GPS satellites per year. The conferees also agree to authorize
an increase of $5.0 million in PE 35164F to accelerate
activities necessary to ensure effective use of high-precision
GPS signals by United States forces, and the means to deny
access to those signals by hostile forces.

Joint tactical information distribution system (JTIDS)

The budget request included $11.1 million for JTIDS.
The House bill would add $55.7 million to the budget
request.
The Senate amendment would add $19.8 million.
The conferees agree to an increase of $19.8 million to
the budget request for PE 64754F to accelerate the integration
of Link 16 into the B-1B, F-15E, and F-16.

F-15 countermeasures

The House bill would authorize an additional $17.0
million in PE 27134F to complete development of the ALQ-135 for
the F-15E.
The Senate amendment would provide no additional
authorization.
The conferees agree to authorize an additional $15.0
million to complete ALQ-135 development.

Trusted Rubix

The budget request included $6.9 million in PE 33140F for
information systems security. The conferees agree that of the
amount authorized to be appropriated in PE 33140F, up to $1.5
million may be used for the Trusted Rubix multi-level security
program.

Precision landing system

The House bill would authorize an additional $5.0 million
in PE 35114F to complete development of the precision landing
systems receiver.
The Senate amendment had no similar authorization.
The Senate recedes.

Blade tip repair

The budget request included $13.6 million for the Program
Office for Productivity, Reliability, Availability and
Maintenance (PE 78026F).
The Senate amendment would authorize an increase of $4.5
million in PE 78026F to extend the current modeling under the
Air Force Blade Repair Program to the Propulsion Directorate at
the Oklahoma Air Logistics Center.
The House bill would authorize the budget request.
The House recedes.

Overview

The budget request for fiscal year 1997 contained an
authorization of $8,672.8 million for Defense-Wide, Research
and Development in the Department of Defense. The House bill
would authorize $9,406.4 million. The Senate amendment would
authorize $9,679.5 million. The conferees recommended an
authorization of $9,691.3 million. Unless noted explicitly in
the statement of managers, all changes are made without
prejudice.

Defense research sciences

The budget request included $74.9 million for Defense
Research Sciences (PE 61101E).
The Senate amendment would authorize that, within the
funds provided in PE 61101E, $20.0 million be utilized for
optoelectronics development.
The House bill would authorize the budget request.
The House recedes with an amendment. The conferees agree
to an authorization of $89.9 million for PE 61101E. This amount
includes an increase of $20.0 million for optoelectronics,
$10.0 million for computer-assisted education programs, a
reduction of $2.7 million for gallium nitride programs, and a
reduction of $2.3 million for ultraphotonics programs.

University research initiative

The budget request included $209.2 million in PE 61103D
for the University Research Initiative (URI).
The House bill would authorize an increase of $20.0
million in PE 61103D for the continuation of the Defense
Experimental Program to Stimulate Research (DEPSCoR) program.
The Senate amendment would authorize a decrease of $10.0
million for the URI and an authorization of $20.0 million from
available funds for the DEPSCoR program. The Senate amendment
also included an authorization of $3.0 million from available
funds for the pilot program for the transfer of defense
technology information to private industry described elsewhere
in this report.
The conferees agree to an authorization of $219.2 million
in PE 61103D. This amount includes a general reduction of $10.0
million, an increase of $20.0 million for the DEPSCoR program
and $3.0 million for the pilot program for the transfer of
defense technology.

Tactical technology

The budget request included $117.9 million in PE 62702E
for tactical technology programs.
The House bill would authorize an increase of $12.0
million for the DP-2 program.
The Senate amendment would authorize an increase of $3.0
million for the expansion of the small low-cost interceptor
device (SLID) program.
The conferees agree to authorize $114.5 million in PE
62702E, including a $3.0 million increase for SLID in
accordance with the S. Rept. (104-267), a decrease of $3.9
million for the collaborative crises and mitigation program,
and a decrease of $2.5 million for the fast computational
algorithms program. The conferees agree that $12.0 million of
the available funding is for the continuation of testing and
demonstration of the DP-2 program.

Flat panel technology

The budget request included $45.0 million for flat panel
displays (FPDs) in PE 62708E.
The House bill would authorize an increase of $20.0
million in PE 62708E to accelerate the ability to produce high
quality, low cost flat panel displays for military equipment
and missions.
The Senate amendment would authorize the requested
amount.
The conferees agree to an increase of $20.0 million in PE
62708E for flat panel displays and infrastructure development.
The conferees support continued research and development
efforts and endorse the Defense Advanced Research Projects
Agency's (DARPA) industry team efforts and encourage DARPA's
continued investment in the program as outlined in the FPD
Initiative.

Materials and electronics technology

The budget request included $218.5 million for materials
and electronics technology programs (PE 62712E).
The House bill would authorize an increase of $8.0
million in PE 62712E for Chemical Vapor Composite (CVC) and
Chemical Vapor Deposition (CVD) synthetic diamond materials.
The Senate amendment would authorize an increase of $11.0
million in PE 62712E: $3.0 million for pulsed laser deposition
to create hard carbon based coatings and $8.0 million to
support continuation of high temperature superconductivity. The
Senate amendment would also authorize, of the funds available
for materials and electronics technology, $7.0 million to be
used for the seamless high off-chip connectivity (SHOCC)
program in PE 62712E.
The conferees agree to a total authorization of $222.3
million in PE 62712E. The conferees agree to an increase of
$4.0 million for CVD and CVC synthetic diamond materials; an
increase of $8.0 million for high temperature superconductivity
as discussed in the Senate report (S. Rept. 104-267); and an
increase of $3.0 million for carbon-based coatings. The SHOCC
program is authorized for $7.0 million within the program
element. The conferees further agree to reduce the
authorization by $7.5 million for healthcare information
infrastructure and $3.7 million for the nonvolatile memory
program.

Joint Department of Defense-Department of Energy munitions technology
development program

The budget request included $16.2 million for the joint
Department of Defense and Department of Energy munitions
technology development program.
The House bill would reduce the budget request by $1.6
million.
The Senate amendment would increase the budget request by
$5.0 million for projects approved by the joint technology
advisory committee.
The conferees agree to authorize the budget request.

Fuel cells

The House bill would authorize an increase of $2.4
million in PE 63226E to complete the fixed base powerplant
development and an increase of $4.0 million in PE 63573N for
competing conceptual ship service powerplant design studies.
The Senate amendment would authorize an increase of $8.0
million in PE 63851D to complete the development of the climate
change fuel cell program and an increase of $4.3 million in PE
63226E for the completion of the development of the 2 MW
carbonate-based fuel cell technology.
The conferees agree to an increase of $8.0 million in PE
63851D for the climate change fuel cell program, an increase of
$2.1 million in PE 63226E for the completion of development of
the 2 MW carbonate-based fuel cell program, and an increase of
$1.9 million in PE 63513N for competing conceptual ship service
powerplant design studies.

Experimental evaluation of major innovative technologies (EEMIT)

The budget request included $635.6 million for
experimental evaluation of major innovative technologies
(EEMIT) (PE 63226E).
The House bill would authorize an increase of $38.4
million in PE 63226E: $2.4 million for fuel cells; $5.0 million
for telemedicine (PE 63002A); $10.0 million for cruise missile
defense; $4.0 million for safety and survivability; $5.0
million for digital battlefield medical x-ray technology; and
$12.0 million for the passive millimeter wave camera.
The Senate amendment would authorize an increase of $77.3
million in PE 63226E: $50.0 million for cruise missile defense;
$3.0 million for the large millimeter wave telescope; $10.0
million for Crown Royal; $4.3 million for carbonate-based fuel
cells; and $10.0 million for thermophotovoltaics.
The conferees agree to a total authorization for EEMIT of
$648.7 million in PE 63226E. The conferees agree to authorize
$2.1 million for fuel cells; $8.0 million for the telemedicine
project for disaster relief and emergency medical services
(DREAMS); $10.0 million for thermophotovoltaics; $3.0 million
for the large millimeter wave telescope; and of the funds
available in the EEMIT line, $5.0 million may be used for the
passive millimeter wave camera.
The conferees agree to reduce the authorization by $5.0
million for dynamic multiuse information fusion, and by $5.0
million for the joint forward air combat control project.

Electronic commerce resource centers

The budget request included $332.1 million for Advanced
Electronics Technologies (PE 63739E).
The House bill would authorize an increase of $15.0
million in PE 63739E for the creation of five new electronic
commerce resource centers (ECRC).
The Senate authorized the budget request.
The Senate recedes. The conferees agree to authorize an
increase of $15.0 million in PE 63739 to expand the ECRC
program.

High performance computing modernization

The budget request included $99.9 million for the high
performance computing modernization program (PE 63755D).
The Senate amendment would authorize an increase of $25.0
million in PE 63755D to sustain the operations of
supercomputing centers.
The House bill would authorize the budget request.
The House recedes.

Mobile detection assessment response system

The budget request included $23.7 million for the Joint
Robotics Program (PE 63709D).
The House bill would authorize an increase of $8.0
million in PE 63709D for the continued development of the
mobile detection assessment response system (MDARS).
The Senate amendment would authorize the budget request.
The Senate recedes.

Non-acoustic antisubmarine warfare

The budget request included $24.0 million in PE 63714D
for the advanced sensor applications program (ASAP), the
independent non-acoustic antisubmarine warfare (NAASW) research
program managed by the Office of the Secretary of Defense.
The House bill would authorize an increase of $6.0
million above the budget request in PE 63714D for the ASAP
program. The report accompanying the House bill (H. Rept. 104-
563) observed that the funding level requested in the budget
request for the ASAP program is approximately 20 percent less
than the level appropriated for fiscal year 1996, and
approximately 10 percent of the level originally programmed in
the fiscal year 1996 future years defense program for fiscal
year 1997. The House report also discussed the increased
capabilities of advanced nuclear submarines, the proliferation
of modern, quiet diesel submarines and advanced non-nuclear
submarine technology, and significant strides in submarine
operational proficiency being made by several Third World
navies. Reflecting the conclusion that the reductions in
funding for the ASAP program in the budget request were
imprudent and that increased emphasis needs to be placed on
improving the anti-submarine warfare capabilities of U.S.
forces in general, and on the NAASW program in particular, the
House bill would authorize an increase of $6.0 million above
the budget request for the ASAP program and identify $1.0
million of this increase to conduct additional investigations
of foreign technology and systems relevant to the missions of
the ASAP program.
The report accompanying the Senate amendment (S. Rept.
104-267) expressed similar reservations about reductions in
funding for the Department of Defense (DOD) ASAP program. It
also commented on the Department's unsatisfactory response to
direction given in the statement of managers accompanying the
National Defense Authorization Act for Fiscal Year 1996 for DOD
to conduct a comparative evaluation of a light detection and
ranging (LIDAR) system, ATD-111, against other comparable
approaches. This response stated that DOD intends to test the
ATD-111 system in fiscal year 1996 but would delay testing for
another LIDAR system, April Showers, until fiscal year 1998.
Thus DOD would spend two more years developing April Showers
and then compare those two sets of test results.
The Senate amendment would authorize an increase of $10.0
million in PE 63714D for the ASAP program to:
(1) continue the work on scattering theory,
microwave radiometry, and the joint U.S.-UK radar ocean
imaging investigations; and
(2) conduct a competitive evaluation in fiscal year
1997 between ATD-111 and the April Showers LIDAR
system.
The conferees agree to authorize an increase of $4.0
million in PE 63714D for the following purposes:
(1) the comparative evaluation of ATD-111 and the
April Showers LIDAR system; and
(2) continuation of work on ocean remote sensing,
scattering theory, microwave radiometry, and the joint
U.S.-U.K. radar ocean imaging investigations.
The conferees acknowledge the concerns expressed in the
Senate report and agree that the Department's plan for
comparative assessment of ATD-111 and April Showers must
provide equitable treatment for both systems. The conferees
direct the Secretary of Defense to develop a new plan and
provide it to the congressional defense and intelligence
committees no later than January 15, 1997.
The conferees direct the program office to reassess the
value of some of the lower priority projects it is pursuing
with the aim of freeing up resources for higher priority
projects. The conferees reiterate that the ASAP program is a
congressional interest item.

Integrated weapons system database

The budget request included $1.9 million for the
Continuous Acquisition and Life-cycle Support Activities (PE
63736E).
The Senate amendment would authorize an increase of $4.0
million in PE 63736E for the Integrated System Database for
continuation of the Integrated Data Environment (IDE) program.
The House bill would authorize the budget request.
The House recedes.

Rapid acquisition of manufactured parts

The budget request did not include research and
development funds for the rapid acquisition of manufactured
parts (RAMP) program.
The House bill would authorize an increase of $12.0
million in PE 63736D for RAMP.
The Senate amendment would authorize an increase of $10.0
million in PE 63736D for RAMP.
The House recedes.

NATO research and development

The budget request included $22.7 million for NATO
research and development (PE 63790D)
The House bill would reduce the budget request by $2.2
million.
The Senate amendment would authorize the budget request.
The Senate recedes.

Data review and analysis monitoring aid (DRAMA)

The budget request included $13.8 million for the Defense
Support Activities (PE 65798S).
The Senate amendment would authorize an increase of $3.0
million in PE 65798S for the continuation of the DRAMA program
to reduce duplication in the defense supply system.
The House bill would authorize the budget request.
The House recedes.

Joint command, control, communications, and computers/intelligence,
surveillance, and reconnaissance

The budget request included $2.9 million in PE 33149K for
C4I for the Warrior, a new initiative that promotes the
development and demonstration of joint and coalition command,
control, communications, and computers/intelligence
interoperability.
The House bill would authorize an increase of $15.0
million for development of improved capabilities for concept
development, analysis, and evaluation of advanced technology
and concepts for joint command, control communications, and
computers/intelligence, surveillance, and reconnaissance,
including $10.0 million for establishment of a battle
laboratory and $5.0 million for development of advanced
modeling and simulation.
The Senate amendment would authorize the budget request.
The House recedes.

Defense Airborne Reconnaissance Office (DARO) research and development

The budget request included $438.6 million for research
and development for the Defense Airborne Reconnaissance
Program.
The House bill would add a total of $90.5 million to the
request. The Senate amendment would increase the request by
$23.4 million. Details of the adjustments in the House bill and
the Senate amendment, as well as the final conference
agreement, are displayed in the table below:

DEFENSE AIRBORNE RECONNAISSANCE PROGRAM DEVELOPMENT
[In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
Budget Conference
Program request Proposed House Change Senate agreement
----------------------------------------------------------------------------------------------------------------
Tactical UAV joint program--project
141:
Tactical UAV...................... 51,449 (18,000) (12,800) 33,449
Tactical control system........... 7,067 ...................... ...................... 7,067
Common systems development........ 6,092 ...................... ...................... 6,092
-------------------------------------------------------------------------
Subtotal--project 141........... 64,608 (18,000) (12,800) 46,608
=========================================================================
Airborne reconnaissance program--
project 525:
Advanced sensors.................. 66,367 15,000 ...................... 76,367
Reconnaissance advanced technology 17,523 8,000 ...................... 25,523
Common data link.................. 29,431 ...................... (6,500) 22,931
DARO operations................... 641 ...................... ...................... 641
-------------------------------------------------------------------------
Subtotal--project 525........... 113,962 23,000 (6,500) 125,462
=========================================================================
Endurance UAVs--project 527:
Predator.......................... 6,099 ...................... ...................... 6,099
High altitude endurance (HAE) UAV
common ground segment............ 71,642 ...................... ...................... 71,642
Conventional HAE (Global Hawk).... 81,227 ...................... ...................... 71,227
Low observable HAE (Dark Star).... 17,426 28,500 ...................... 45,926
-------------------------------------------------------------------------
Subtotal--project 527........... 176,394 28,500 ...................... 194,894
=========================================================================
Manned reconnaissance program--
project 530:
U-2............................... 4,161 57,000 42,700 46,861
U-2 support for precision guided
munitions........................ 24,119 ...................... ...................... 24,119
-------------------------------------------------------------------------
Subtotal--project 530........... 28,280 57,000 42,700 70,980
=========================================================================
Distributed common ground system
(DCGS)--project 531:
Common imagery ground/surface
system (CIGSS)................... 47,780 11,000 ...................... 47,780
Airborne reconnaissance ground
SIGINT system (ARGSS)............ 5,116 ...................... ...................... 5,116
DCGS interoperability............. 2,419 ...................... ...................... 2,419
-------------------------------------------------------------------------
Subtotal--project 530........... 55,315 11,000 ...................... 55,315
=========================================================================
Total PE 35154D................. 438,559 90,500 23,400 493,259
----------------------------------------------------------------------------------------------------------------

TACTICAL UNMANNED AERIAL VEHICLES (PROJECT 141)

The budget request for tactical unmanned aerial vehicles
(project 141) included $64.6 million for fiscal year 1997.
The House bill would reduce the budget request by $18.0
million.
The Senate amendment would reduce the budget request by
$12.8 million.
The conferees agree to recommend $46.6 million for the
joint tactical unmanned aerial vehicle (JTUAV) program, a
reduction of $18.0 million. The restructuring of the program
and the creation of an advanced concept technology
demonstration (ACTD) has resulted in excess unexpended funds
from fiscal years 1995 and 1996. Accordingly, the conferees
recommend a reduction of $18.0 million.
The conferees note the rapidity with which the DARO has
initiated the JTUAV program as an ACTD. The conferees are
skeptical of the Department's stated intention to transition
the JTUAV ACTD into an acquisition program before having any
experience with even a limited demonstration of the program. It
appears that the Department is using the ACTD program to
circumvent acquisition requirements, rather than to demonstrate
new technologies on a limited basis. Considering the
Department's unimpressive record of UAV acquisitions, and
continuing difficulties in fielding proposed sophisticated
UAVs, the conferees urge caution. Not only has the Department
had difficulties in fielding systems, but it continues to
endure significant losses of existing UAVs to mechanical
malfunction. The conferees intend to follow closely the JTUAV
development to ensure DARO adheres to accepted acquisition
principles and regulations, and its commitment to timely
results.
Finally, noting the continued difficulties experienced by
the DARO in developing a suitable heavy fuel engine for its
UAVs, the conferees encourage competition to the maximum extent
possible in developing this capability.

AIRBORNE RECONNAISSANCE PROGRAM (PROJECT 525)

Joint airborne signals intelligence (SIGINT) architecture (JASA)

The budget request included $51.8 million within the
$66.3 million contained in the advanced sensors line to
continue the joint airborne SIGINT system (JASS) development,
including continuing work on the JASS high band prototype
(HBP).
The House bill would authorize the request. The House
report (H. Rept. 104-563) would prohibit the Department from
obligating any funds for the HBP follow-on system, the JASS
high band subsystem (HBSS), until the completion of flight
testing and when the HBP had proven its utility.
The Senate amendment would authorize the request without
similar restrictions.
The conferees agree to authorize the requested amount for
HBP to continue airborne SIGINT functional developments,
including the technical infrastructure upgrades necessary for
aircraft to incorporate future developments. However, because
the Department is scheduled to award the HBSS contract before
the HBP flight testing has begun, the conferees direct that no
funds be obligated to integrate and develop the HBSS until the
Secretary of Defense certifies to the Congress that such
concurrency provides an acceptable level of technical and
schedule risks. The conferees also direct the Secretary to
provide a complete cost and capability analysis of those
elements of the HBP that will be used in the HBSS.
The conferees remain concerned about the health and long-
term well-being of airborne SIGINT reconnaissance, because of
the pressures to field sensor and system improvements to keep
abreast of constantly evolving threats. The conferees believe
the DARO should be managing the airborne SIGINT program in a
manner that provides for needed upgrades while moving toward
the objective JASA architecture.

Electro-optic camera framing technology

The budget request contained $114.0 million for the
airborne reconnaissance program (project 525), including $66.4
million for advanced sensor development.
The House report (H. Rept. 104-563) noted that several
technologies show promise for providing precision point
targeting and location data. The House bill would authorize an
additional $15.0 million for the continued development and
evolution of the electro-optic (EO) framing sensors with on-
chip forward motion compensation (FMC) technology, including:
(1) $3.0 million for the operational insertion and
testing of a medium altitude wide area coverage ``step
frame'' sensor;
(2) $2.2 million to develop enhanced data
compression algorithms;
(3) $5.8 million to conduct a study of, and begin
development for, an EO framing infrared (IR) charge-
coupled device with on-chip FMC; and
(4) $4.0 million to support multi-spectral EO
framing technologies with on-chip FMC.
The Senate amendment would authorize the budget request.
The conferees agree to authorize $10.0 million for
continued research and development of this capability,
including:
(1) $3.0 million for the medium altitude wide area
coverage step frame sensor;
(2) $4.0 million for enhanced data compression
algorithms; and
(3) $3.0 million for multi-spectral EO framing
technology development with on-chip FMC.
The conferees are aware that the area of EO/IR framing
technologies is dynamic, with several vendors offering
approaches to solving reconnaissance mission needs. Therefore,
the conferees encourage the DARO to avail itself of the
benefits of this competitive marketplace in addressing the
conferees' concerns.

Multi-function self-aligned gate technology

The budget request included $114.0 million for the
airborne reconnaissance program (project 525), including $17.5
million for the reconnaissance advanced technology project.
The House bill would provide an additional $8.0 million
for the reconnaissance advanced technology project for multi-
function self-aligned gate (MSAG) technology.
The Senate amendment would authorize the budget request.
The conferees agree to provide an additional $8.0 million
for MSAG as described in the House report (H. Rept. 104-563).

endurance unmanned aerial vehicles (project 530)

Global Hawk

The budget request included $81.2 million project 530 for
the Global Hawk UAV ACTD, including $10.0 million for
development of a signals intelligence payload.
The House bill would prohibit the obligation of funds for
the signals intelligence payload until the Global Hawk has been
proven in flight demonstrations.
The Senate amendment would authorize the budget request.
The conferees agree to recommend a reduction of $10.0
million to the budget request for the Global Hawk.

Dark Star

The budget request included $17.4 million within project
530 for the Dark Star UAV.
The House bill would increase the budget request by $17.5
million to upgrade electro-optical cameras, provide a
redesigned synthetic aperture radar antenna, and provide a more
robust aerial vehicle design.
The first Dark Star vehicle crashed on its second test
flight. Subsequent to this event and the passage of H.R. 3230,
the Intelligence Authorization Bill recommended adding $22.0
million to recover from the air vehicle crash.
The Senate amendment would support the authorization in
the budget request, but include a provision (sec. 216) on Dark
Star described elsewhere in the statement of managers. The
Senate recedes on the bill provision.
The conferees agree on the importance of returning the
Dark Star program to flight testing as soon as the program
manager has extracted the necessary lessons from the recent
crash. Realizing the potential of the Dark Star UAV to provide
unique support to operational users, the conferees agree to
authorize an additional $28.5 million for the Dark Star UAV,
for the following purposes:
(1) $22.0 million to complete the necessary
engineering and design efforts to recover from the
crash of the first air vehicle;
(2) $3.5 million for integrating EO framing
technology with on-chip forward motion compensation
into the aircraft and associated ground processing
equipment; and
(3) $3.0 million for long lead procurement for the
fifth air vehicle, which will replace the destroyed
aircraft.

manned reconnaissance program (Project 530)

The budget request for the manned reconnaissance program
(project 530) was $28.3 million.
The House bill would increase the budget request by $57.0
million for projects as follows:
(1) $10.0 million to improve and downsize the
Senior Year electro-optical system (SYERS) sensor to:
(a) enable the Air Force to fly the two
systems simultaneously on the U-2; and
(b) to improve SYERS geolocational
accuracies;
(2) $7.0 million to support the ASARS improvement
program (AIP) to ensure this upgrade can be fielded by
fiscal year 1998;
(3) $40.0 million, the remainder of recommended
additional funding, to upgrade Senior Ruby, Senior
Spear, and Senior Glass to a common configuration.
Specifically, the House report would direct the Air
Force to:
(a) upgrade the Senior Spear and Senior
Ruby sensors to the Senior Glass configuration;
and
(b) upgrade the existing Senior Glass
systems to an open architecture configuration
consistent with an architectural approach
approved by the Defense Cryptologic Program
manager.
The House bill would also direct the Department to
determine, and to program for, necessary future years level-of-
effort funding to continue evolutionary U-2 sensor upgrades.
The Senate amendment would authorize an additional $32.7
million to procure and integrate two additional Senior Glass
payloads for the U-2 fleet. The Senate amendment would also
provide an additional $10.0 million to repackage the SYERS
sensor for simultaneous operation with other sensors, and to
begin the effort to add geolocation, broad area coverage, and
multi-spectral imaging capabilities.
The conferees agree to recommend $70.9 million, or an
increase of $42.7 million, to be applied as follows:
(1) $32.7 million to procure and integrate
additional Senior Glass payloads;
(2) $10.0 million to repackage the SYERS sensor for
simultaneous operation with other sensors, and to begin
the effort to improve capabilities for geolocation,
broad area coverage, and multi-spectral imaging.
The conferees recognize that:
(1) the DARO needs to develop and field systems
compliant with the joint airborne SIGINT architecture
(JASA);
(2) the JASA effort is an important initiative for
providing future intelligence gathering capability; and
(3) the Department needs to continue making
incremental upgrades to U-2 SIGINT capabilities to
maintain near-term capability, while the Department
completes JASA development.

distributed common ground system (project 531)

The budget request included $55.3 million in project 531,
including $47.8 million for the common imagery ground/surface
system (CIGSS).
The House bill would authorize an additional $11.0
million to modify core CIGSS components to ensure the program
can achieve a common, interoperable baseline by fiscal year
1998. The House report complimented the Department's technical
solutions and management approach to migrating the various
imagery ground stations to the CIGSS configuration and
standards as outlined in the published handbook.
The Senate amendment would support the budget request.
The conferees agree to support the budget request of
$55.3 million for project 531.

AC-130 aircraft enhancements, Special Operations Command

The budget request included $83.9 million for tactical
systems development for the U.S. Special Operations Command
(SOCOM).
The Senate amendment would authorize an increase of $5.8
million in PE 1160404BB for enhancements to the SOCOM AC-130
aircraft.
The House bill would authorize the requested amount.
The Senate recedes.

Advanced SEAL delivery system

The budget request included $83.9 million in PE 1160404BB
for special operations tactical development.
In order to provide a significant improvement in the
acoustic characteristics of the advanced SEAL delivery system
(ASDS) before its procurement begins, the Senate amendment
would authorize an increase of $2.8 million above the budget
request in PE 1160404BB to provide quieter pumps and motors for
the base design of the ASDS.
The House bill would authorize the requested amount.
The House recedes.

Rigid hull inflatable boat

The budget request included $5.0 million for procurement
of special warfare equipment, including $4.5 million for
procurement of the Naval Special Warfare 10 meter Rigid Hull
Inflatable Boat (RHIB).
The House bill would authorize an increase of $2.75
million in PE 1160404BB to complete development and operational
testing of competing prototype RHIBs, a downselect decision to
a single contractor, and other activities relative to a
Milestone III decision for the RHIB in fiscal year 1997.
The Senate amendment would authorize the budget request.
The conferees agree to authorize the budget request.
The conferees agree to authorize an increase of $4.5
million in PE 1160404BB to complete development and operational
testing of the RHIB as recommended in the House report (H.
Rept. 104-563). The conferees further agree to a corresponding
reduction in the amount authorized for procurement of special
warfare equipment.

Ballistic missile defense funding and programmatic guidance

The fiscal year 1997 budget request for the Ballistic
Missile Defense Organization (BMDO) was $2.8 billion, including
research, development, test, and evaluation (RDT&E),
procurement, and military consideration.
The House bill would authorize an increase of $724.8
million for BMDO.
The Senate amendment would authorize an increase of
$855.9 million for BMDO.
The conferees agree to authorize a total of $3,712.9
million for BMDO, an increase of $914.2 million above the
budget request. The conferees' recommended funding allocations
are summarized in the following table. Additional programmatic
and funding guidance are also provided below.

BMDO FUNDING ALLOCATION
[Millions of dollars]
------------------------------------------------------------------------
Program Request Change Recommendation
------------------------------------------------------------------------
Support Technology................ 226.3 +147.5 373.8
THAAD............................. 481.8 +140.0 621.8
Hawk*............................. 19.4 ......... 19.4
TMD-BM/C3*........................ 19.3 ......... 19.3
Navy Lower Tier**................. 310.7 ......... 310.7
Navy Upper Tier................... 58.2 +246.0 304.2
Corps SAM......................... 56.2 ......... 56.2
BPI............................... ......... +24.3 24.3
NMD............................... 508.4 +350.0 858.4
Joint TMD***...................... 521.5 +6.4 527.9
PAC-3**........................... 596.9 ......... 596.9
-------------------------------------
BMDO Total.................... 2,798.7 +914.2 3,712.9
------------------------------------------------------------------------
*Procurement only.
**Procurement and RDT&E.
***RDT&E and Military Construction.

support technology

The budget request for BMDO's support technology programs
(E 62173C/63173C) was $226.3 million. The conferees agree to
authorize a net increase of $147.5 million for support
technology.
The conferees support BMDO's efforts in the area of wide
bandgap electronics that are funded in the Innovative Science
and Technology program (project 1651). The conferees agree to
authorize an increase of $10.0 million in PE 62173C to
facilitate a wide bandgap electronics program specifically
targeting gallium nitride and silicon carbide as the major
semiconductor technologies to be developed. The program should
be affiliated with an academic institution involving a research
and development facility for material growth, material
characterization (including material surface behavior), and
wide bandgap semiconductor device development.
The conferees recommend an increase of $20.0 million in
PE 63173C for United States-Russian cooperative BMD programs
and activities, as specified in the House report (H. Rep. 104-
563).
The conferees recommend an increase of $7.5 million in PE
63173C for the Scorpius space launch technology demonstration
program.
The conferees strongly support BMDO's development of the
Atmospheric Interceptor Technology (AIT) program and recommend
an increase of $40.0 million in PE 63173C for the AIT program.
The conferees continue to support development of the
Space-Based Laser (SBL) program. SBL offers the potential for a
high leverage system to deal with ballistic missiles of
virtually all ranges. The conferees agree to authorize an
increase of $70.0 million in PE 63173C to continue the SBL
effort. The conferees believe that the Air Force should begin
to take a much more active role in developing the SBL program.
Specifically, the committee believes that the Air Force Space
and Missile Systems Center should play a key role in designing
a demonstrator spacecraft and providing detailed cost estimates
for completion of such a demonstration program.

theater high altitude area defense system

The budget request included $481.8 million to complete
Theater High Altitude Area Defense (THAAD) demonstration and
validation (Dem/Val) and to begin engineering and manufacturing
development (EMD). The conferees continue to support the
development, production, and fielding of THAAD as a matter of
highest priority. The conferees remain committed to fielding
the THAAD system as quickly as technically feasible. The
conferees agree to authorize an increase of $75.0 million in PE
63861C and an increase of $65.0 million in PE 64861C, an
overall increase of $140.0 million for the THADD program.
The conferees also attach importance to the THAAD User
Operational Evaluation (UOES) system. This system will provide
valuable opportunities for training and testing. Most
importantly, it will provide some limited operational
capability in the event of a crisis. However, the conferees
question the adequacy of a UOES capability based on 40
interceptor missiles. The conferees believe that a total of 80
missiles is more appropriate, and direct the Secretary of
Defense to include funding to acquire these additional 40 UOES
missiles in the fiscal year 1998 budget request.
The administration's proposed program for THAAD does not
include funding for a second EMD radar until very late in the
program. The conferees believe that there are many compelling
reasons to fund this radar earlier. Accordingly, the conferees
direct the Secretary of Defense to proceed with acquisition of
a second EMD radar in fiscal year 1997 and agree to authorize
$65.0 million in long-lead funding for this purpose.
The conferees strongly reject the idea that the THAAD
development program should be delayed so as to allow a ``fly-
off'' between THAAD and the Navy Upper Tier system.
The conferees understand that the Army plans to complete
THAAD dem/val flight testing at the White Sands Missile Range
and transition to flight testing at the Kwajalein Missile Range
for the EMD phase. The conferees support this plan.

navy upper tier (theater wide)

The budget request included $58.2 million for continued
development of the Navy Upper Tier (Theater Wide) TMD system.
This is a significant reduction from the $200.4 million
authorized and appropriated in fiscal year 1996, and reflects
the low priority that the administration attaches to this
program. The conferees do not support the Department's
recommendation to delay the development and deployment of the
Navy Upper Tier system.
The National Defense Authorization Act for Fiscal Year
1996 mandates that the Navy Upper Tier system become the fourth
``core'' TMD system and establishes accelerated milestones for
this program. The conferees have not been made aware of any
technical reasons why a Navy Upper Tier capability cannot be
fielded on a much more aggressive schedule than proposed by the
administration.
The conferees continue to support the Navy Upper Tier
system as a matter of priority. Sea-based upper tier TMD
capability provides an important complement to ground-based
systems, and each has unique attributes. Accordingly, the
conferees recommend a net increase in PE 63868C of $246.0
million to support an accelerated Navy Upper Tier program.
The conferees are aware that BMDO has begun evaluating
the key modifications required for the THAAD kill vehicle to be
a candidate for the Navy Upper Tier mission. The conferees
recommend the use of not more than $10.0 million to support
this effort in fiscal year 1997 from the overall amount
authorized for the Navy Upper Tier program, and not more than
$10.0 million from the overall amount authorized for THAAD for
this purpose.
The conferees believe that the Navy, in conjunction with
BMDO, should assess the potential that development of a new
second stage motor for the Standard Missile could have for a
range of missile defense applications. Accordingly, the
conferees recommend the use of $10.0 million of the funds
authorized for Navy Upper Tier to initiate this second stage
motor development effort.

corps sam/medium extended air defense system

The budget request included $56.2 million for Corps
surface-to-air missile (SAM)/Medium Extended Air Defense System
(MEADS) program. The conferees endorse the MEADS program, which
is required to defend forward-deployed troops, and approve the
budget request, subject to limitation specified elsewhere in
this report.

united states-israel boost phase intercept program

In the Statement of Managers accompanying the National
Defense Authorization Act for Fiscal Year 1996, the conferees
endorsed a cooperative program between the United States and
Israel to develop a kinetic energy boost-phase intercept
program based on an unmanned aerial vehicle (UAV). The
conferees maintain their strong support for this concept. The
budget request included $9.3 million in the Joint TMD program
element (PE 63872C) to continue this effort. The conferees
recommend that these funds be transferred to the BPI program
element (PE 63870C) and that this amount be increased by $15.0
million for a total authorization of $24.3 million.
The conferees believe that the first step of this U.S.-
Israel BPI program should be a joint technology risk mitigation
effort, aimed at reducing technological uncertainties. If this
proves successful, it can be followed by an advanced technology
demonstration to validate the technical feasibility of the
concept and the major system elements. This would enable the
United States and Israel to evaluate the potential for a joint
acquisition program or one in which both countries continue to
collaborate on separate but mutually reinforcing efforts.

national missile defense

The budget request included $508.4 million for National
Missile Defense (NMD). Based on information received from the
Department of Defense, the conferees do not believe that the
administration's proposed budget and program plan for NMD are
adequate even to meet the stated purpose of its ``deployment
readiness'' program. As acknowledged by the Director of BMDO in
congressional testimony, the planned test program for the
exoatmospheric kill vehicle (EKV) is inadequate to support a
deployment decision within the framework of the ``3+3''
program. The administration's proposed NMD program consists of
just five EKV flights: two in fiscal year 1997; two in fiscal
year 1998; and one in fiscal year 1999. Under this plan, the
NMD deployment decision supposedly could be made at the end of
fiscal year 1999; however, such a decision would be based on a
single integrated interceptor tests. Furthermore, the test
booster would not represent an operational configuration.
To support a lower risk and more robust NMD program, the
conferees believe that additional EKV flight tests are
required. Specifically, the conferees direct the Secretary of
Defense to restructure the EKV program to support two flight
tests in fiscal year 1997, three in fiscal year 1998, and four
in fiscal year 1999. This requires the acquisition of
additional kill vehicle and test booster hardware.
Additionally, the conferees direct the Secretary to evaluate
the advantages of upgrading the Payload Launch Vehicle (PLV)
system to provide a more representative velocity regime and
test environment for NMD system tests. To accomplish these
objectives, and to ensure that other aspects of the NMD program
are able to support an initial operational capacity (IOC) in
fiscal year 2003 (which the administration's proposal
supposedly protects), the conferees recommend an increase of
$350.0 million in PE 63871C.
The conferees commend the Under Secretary of Defense
(Acquisition and Technology) for his recent decision to
establish an NMD joint-service program office (JPO), and direct
the Director of BMDO to ensure full participation by the Army,
Navy, and Air Force in the JPO. In addition, the committee
directs the Director of BMDO to ensure that the EKV and
associated booster designs are compatible with the widest
possible range of NMD system architectures and basing modes.
The conferees direct that the Director of BMDO inform the
Senate Committee on Armed Services and the House Committee on
National Security of his plans in this regard not later than
February 15, 1997.
The conferees note that the prototype ground-based radar
(GDR-P) is an important NMD system element, and the GBR-P is
scheduled to begin testing at U.S. Army Kwajalein Atoll (USAKA)
in 1998. This schedule must be maintained, or accelerated, in
order to realize cost savings associated with leveraging the
THAAD radar program and test schedule. Of the amounts
authorized in PE 63871C, the conferees recommend $68.0 million
for GBR-P in order to ensure that the radar is available for
integrated system testing in fiscal year 1998.
The conferees recognize the importance of the Midcourse
Space Experiment (MSX) for collecting and analyzing background
data of use to future midcourse sensors such as the Space
Missile and Tracking System. The conferees are concerned,
however, that BMDO has failed to budget funds to continue
operations through the end of the expected lifetime of the
satellite. Therefore, the conferees strongly urge the Director,
BMDO to provide adequate funds in the fiscal year 1998 budget
submission and over the Future Years Defense Plan (FYDP) for
MSX satellite operations.
The conferees understand the importance of an effective
battle management/command, control, and communications (BM/C3)
architecture to overall NMD system performance and reliability.
In this regard, the conferees are aware of proposals to
leverage existing TMD BM/C3 capabilities, including such
capabilities being developed under the THAAD program, to
support an NMD system. The committee therefore urges the
Director, BMDO to study these proposals and inform the
committee not later than February 15, 1997, of his views in
this regard.

joint national test facility

The budget request included $5.8 million for Joint
National Test Facility (JNTF) modernization, split among
program elements 63871C, 63872C, and 63173C. To adequately
satisfy the complex missile defense integration requirements
leading to successful joint tests, analysis, war gaming, CINC
exercises, and acquisition support, the conferees recommend
$15.0 million be made available for modernization,
computational and wide area network capabilities in support of
the Ballistic Missile Defense Network (BMDN) from within the
program elements listed above.

management

The budget request did not contain a separate program
element for management.
The House bill recommended a general reduction of $15.0
million for management.
The Senate did not recommend a reduction for management.
The House recedes.

joint theater missile defense

The budget request included $521.5 in BMDO's Joint TMD
program element (formerly known as Other TMD). The committee
recommends a net increase of $6.4 million in PE 63872C,
including the following adjustments: (1) a transfer of $9.3
million to the BPI program element for the U.S.-Israel Joint
BPI program; (2) an increase of $3.7 million for the Arrow
Deployability Project (ADP), for a total authorization of $35.0
million to fully fund the U.S. share of the program envisioned
in the recently completed Memorandum of Agreement between the
United States and Israel; (3) an increase of $7.0 million for
the Army's Advanced Research Center (ARC), for a total
authorization of $15.0 million; and (4) an increase of $5.0
million for BMDO to ensure that the Navy's Cooperative
Engagement Capability is compatible with all of BMDO's core TMD
programs.

Holloman high speed test track

The budget request included $116.0 million for the
Central Test and Evaluation investment development program (PE
64940D).
The Senate amendment would authorize an increase of $17.0
million in PE 64940D for the joint high speed upgrade for the
Holloman High Speed Test Track.
The House recedes.

items of special interest

Anti-submarine warfare program

The budget request included $49.6 million in PE 62314N
for exploratory development of advanced undersea warfare
surveillance technologies.
The House bill would authorize an increase of $21.0
million to the budget request to accelerate the development of
advanced anti-submarine warfare (ASW) technologies.
The Senate amendment would authorize the budget request.
The House recedes.
In the statement of managers accompanying the conference
report on the National Defense Authorization Act for Fiscal
Year 1996 (H. Rept. 104-450), the conferees directed the
Secretary of Defense to assess the current and projected U.S.
ASW capability in light of the continuing development of
quieter nuclear submarines, the proliferation of very capable
diesel submarines, the sale of sophisticated, submarine
launched weapons, and the declining trend in budget resources
associated with ASW program. The assessment was expected to
identify both short-term and long-term improvements that are
needed to cope with the evolving submarine threat in both
littoral and open ocean areas. The conferees directed that the
results of this assessment and the plan for the U.S. ASW
program be reported to the congressional defense committees by
July 1, 1996.
The conferees' comments on the Secretary's assessment are
included in the classified annex to this statement of managers.

Battle group airborne anti-submarine warfare

The report accompanying the Senate amendment (S. Rept.
104-267) expressed concern about the Navy's slow progress in
planning for and funding organic battle group airborne anti-
submarine warfare (ASW) systems suitable for countering the
existing and projected littoral ASW threat. The report
acknowledged the reality of current budgetary constraints, but
also emphasized the need for a solid conceptual plan, supported
by adequate resources, to meet the evolving littoral ASW
threat.
The Senate report expressed the opinion that the Navy's
overall plan for modernizing its H-60 series helicopters has
not met these criteria. It opined that the plan's broad
concept, to convert existing H-60 variants into a multi-mission
SH-60R helicopter and introduce it by fiscal year 2001 as a
complement to introduction of DDG-51 Flight IIA destroyers into
the fleet, appears sound. However, the mix of aircraft to be
converted and the funding programmed to implement this concept
have remained in a state of flux for the past two years. For
example, the Navy's integrated helicopter plan for fiscal year
1997 reversed the Navy's previous decision to convert aircraft
carrier based SH-60F ASW helicopters to HH-60H combat/utility
helicopters. Instead, the new plan would convert these SH-60F
helicopters to the SH-60R configuration. Some would be
converted in the near term to fill surface combatant
requirements, but the balance of the SH-60Fs would not undergo
conversion until after fiscal year 2006.
Last year, the Navy's fiscal year 1996 helicopter plan
would not have converted some 60 SH-60Fs to the SH-60R
configuration. The statement of managers accompanying the
National Defense Authorization Act for Fiscal Year 1996
directed the Secretary of the Navy to evaluate the cost
effectiveness of a modernization program for the dipping sonars
installed on these helicopters. Because the fiscal year 1997
plan now calls for conversion of these 60 helicopters to the
SH-60R configuration, implying eventual installation of the
airborne low frequency dipping sonar (ALFS), a different set of
assumptions applies, and different questions have emerged.
Although the 60 SH-60F helicopters are now to be
converted to the SH-60R configuration, most of these
conversions will not occur for at least 10 to 15 years. The
conferees are concerned about whether the dipping sonars
presently installed on these carrier based SH-60F helicopters
are now, or will remain, suitable for the littoral ASW
operations envisioned by the Navy's strategic concept ``Forward
. . . From the Sea'' during this 15 year period.
To help resolve their uncertainty, the conferees direct
the Secretary of the Navy to develop a plan, containing
decision options, that would ensure that its carrier based SH-
60F helicopters not scheduled for conversion to the SH-60R in
the near term, i.e., the helicopters that will remain
responsible for inner-zone battle group ASW, are equipped with
a dipping sonar, including possible modifications to the
presently installed sonar, that is suitable, and will remain
suitable, for littoral ASW operations. The Secretary is
directed to submit this plan no later than March 1, 1997.

Chemical and biological defense program

The budget request included a total of $505.0 million for
the chemical-biological defense program, including $296.8
million in research and development, test and evaluation and
$208.2 million in procurement.
The House bill would authorize an increase of $44.3
million for research, development, test and evaluation, and an
increase of $16.2 million in the operations and maintenance
accounts ($13.2 million for Army and $3.0 million for the Air
Force).
The Senate bill would authorize the budget request.
The conferees agree to provide an increase to the budget
request of $16.2 million for shortfalls in operations and
maintenance ($13.2 million in the Army account and $3.0 million
in the Air Force account).
The conferees remain concerned with findings contained in
the March 1996 General Accounting Office (GAO) report on
chemical and biological defense. While the GAO report notes
improvement in the readiness of U.S. military forces to operate
in a chemical or biological environment, the report also
identifies continued deficiencies in the areas of chemical-
biological defense training; inadequacy of the biological
vaccine stockpile; development and implementation of a DOD
immunization policy; and adequacy of training and equipment for
medical personnel. In this regard, the conferees express
concern with the Department's management and oversight of the
chemical and biological defense program.
The conferees direct the Deputy Secretary of Defense to
review and report back to the Congress on steps taken by the
Department to correct deficiencies highlighted by the GAO
report, to include a decision on the development and
implementation of a DOD immunization policy. The conferees
agree that it is essential that a decision be made on the
vaccines to be stockpiled and on an immunization policy.
Further the conferees agree that it is essential that medical
personnel assigned to deploy with U.S. military forces to high
threat areas have the necessary training and equipment to
protect themselves against chemical or biological agents, and
the necessary training and equipment to treat casualties in a
chemically or biologically contaminated area.

Composite materials insertion for fielded weapon systems

The House bill would direct the Secretary of Defense to
institute a composite materials insertion program in the
military services and cited a number of material technologies
to be considered. The conferees clarify that the Secretary may
include other materials, such as polymer based composites, in
the program at his discretion.

Dredge spoil disposal

The House bill would authorize an increase of $2.5
million in PE 62233N to investigate potential low cost
alternatives to the current methods of disposal or reclamation
of dredge spoils.
The Senate amendment contained no similar provision.
The conferees could not provide an authorization since
the project was not appropriated by either appropriations
committee. The conferees believe, however, that the Navy must
begin to look at alternative technologies to reduce the cost of
processing dredged material which it will incur as it faces the
costly challenge of dredging the 15 ports it cites will require
dredging over the next 15 years.

Electron scrubber technology

The electron scrubber (e-SCRUB) technology may
potentially be used to eliminate or reduce pollutants that
cause acid rain, air toxins, and volatile organic compounds
from off gas generated by incinerators. It may also be used in
the treatment of waste water. The technology combines electron
beam flue gas scrubbing treatment with high average electron
beam technology. Under the Strategic Defense Initiative, the
Defense Nuclear Agency (DNA) directed the development of e-
SCRUB as an antimissile technology. Several years ago, it was
first evaluated as an environmental compliance technology under
the Strategic Environmental Research and Development Program
(SERDP).
The conferees have followed with interest the progress of
the e-SCRUB technology under SERDP. The conferees note that
SERDP development and testing of the technology was hindered by
program funding reductions, the lack of relevance to the
Department of Defense (DOD) environmental requirements, and
poor performance.
In fiscal year 1995, DNA submitted a proposal for funding
of the e-SCRUB technology under the Environmental Security
Technology Certification Program (ESTCP). In order to receive
favorable consideration for ESTCP participation, the proposal
would have to satisfy a high priority need, be technically
mature, project a high return on investment, and include an
appropriate transition plan. A panel of experts reviewed the
technology and determined that it was not ripe for ESTCP
support.
The conferees have remaining concerns regarding the
technical maturity, the overall cost, and the utility to DOD.
However, proponents of the e-SCRUB technology maintain that it
is ready for prototyping and demonstration, and that it will
benefit major DOD maintenance and operation facilities
confronted with significant air and water pollution problems.
It is claimed that many of the significant problems associated
with early development of the e-SCRUB technology have been
overcome.
The conferees direct the Department to conduct another
review of the e-SCRUB technology to determine if it meets the
criteria for demonstration and validation of technology
relevant to the Department's environmental needs. If the
technology has no relevance or fails to meet the Department's
criteria, the Secretary of Defense shall submit a report to the
congressional defense committees describing those findings. If
the technology is relevant and meets the Department's criteria,
the Secretary shall use no more than $2.0 million from
available funds to complete demonstration and validation
through ESTCP or the National Defense Center of Environmental
Excellence.

FFG-7 modernization

The Navy now plans to retain more of its FFG-7s in active
and reserve status than had been previously planned. Heavy
operational demands have caused the Navy to reverse an earlier
decision to retire most of the FFG-7 class of ships. While the
Navy has not made a final decision on the total number that
will be retained, it is likely that the Navy will retain a
portion of them in active service until at least 2010. The
ships that will remain available include 12 that have the
coherent receiving transmitter (CORT) installed. There are an
additional 11 flight 3 and flight 4 ships that form a separate
subclass. They are somewhat less capable than the CORT ships
but are presently planned to remain in active service. The Navy
intends to transition the remaining ships of the FFG-7 class to
naval reserve force, ready reserve force or foreign military
sales status.
The conferees appreciate the Navy's rationale in
retaining some FFG-7s in service. However, it would now appear
prudent to evaluate the ability of these ships to deal with
evolving threats during their remaining service life. Factors
for consideration include:
(1) the FFG-7 class has several different
configurations, some have an updated anti-air warfare
(AAW) system, while others have a more capable anti-
submarine warfare (ASW) weapons system;
(2) the FFG-7 class was originally developed as a
design-to-cost, open ocean, anti-submarine escort, and
was not optimized for near land operations or
countering advanced sea-skimming cruise missiles; and
(3) several groups have approached the committee
during its review of the fiscal year 1997 budget
request, asserting that relatively inexpensive off-the-
shelf upgrades are available that will provide the FFG-
7 class with the capabilities needed to counter modern
threats.
The conferees want the Navy to clarify its intentions for
modernizing the FFG-7 class. Therefore, the conferees direct
the Secretary of the Navy to prepare a report on options for
modernizing the FFG-7 class and submit that report with the
fiscal year 1998 budget request. The report should include, but
need not be limited to, answers to the following questions:
(1) what are the threats that will likely be
encountered in operational situations where the FFG-7s
might be employed?
(2) what priority does the Navy place on
modernizing the FFG-7 class to deal with these threats?
(3) what are the alternatives for buying off-the-
shelf upgrade packages that could defeat these threats?
(4) would buying off-the-shelf upgrade packages be
cost effective relative to potential development
programs? and,
(5) what would be a reasonable funding and
installation program to procure and install either off-
the-shelf packages or upgrade packages deriving from a
development program?

Integrated avionics

Congress has frequently expressed concern over the
proliferation of avionics systems for strategic and tactical
aircraft. Congressional reports dating back to fiscal year 1980
brought attention to the fact that there were over thirty
discrete defensive avionics systems designed and developed to
counter the same threat.
During the past decade, the Department of Defense has
made some progress in fostering commonality among the military
services. The Joint Integrated Avionics Working Group (JIAWG)
has advanced the goal of developing common integrated avionics.
It is important that this progress continue.
The conferees reiterate the need for joint integrated
avionics to improve performance and substantially reduce the
operational and maintenance cost associated with aircraft
avionics.

Lithography

The conferees support the pursuit of extreme ultraviolet
(EUV) lithography aimed at the fabrication of 100 nanometer
design rule structures to support nanowriters, nanofabrication
prototypes, and the facilities for short wavelength
meterologies, calibration and standards. The conferees
recognize its potential as the technology of choice of the next
generation short wavelength tools for the industry and
encourage the Department of Defense to consider using $10.0
million, of the total authorization for lithography, for EUV
technologies.

Materials nanostructures

The conferees recognize that there is no appropriation to
accelerate this program. The conferees recognize the potential
of the emerging field of material nanostructures. This regime
of science offers the opportunity to integrate inorganic and
organic chemistry and physics at the material formative
dimension that will impact microelectronics, micromachines,
molecular level controllers and switches, among many other
applications. Nanostructures have the potential to
revolutionize future military technological superiority. The
conferees urge the Department of Defense to devote additional
funds to the development of these promising technologies.

Molecular design

Although there was no additional funding appropriated
above the Department of Defense's request that would allow the
conferees to consider any additional authorization for the
molecular design program, the conferees fully endorse the
current program in the Office of Naval Research (ONR) and urge
its continuance. The conferees agree that the scientific
investigations into the molecular synthesis of atoms as
foundational building blocks of new material nanostructures
will lead to a culture shift that will allow ``cross-cuts'' in
scientific disciplines of chemistry, biology and physics to
occur. The conferees commend ONR, the Defense Advanced Research
Projects Agency, and those universities participating in
innovative research for their initiatives in this revolutionary
direction of science. The conferees urge continued funding
support by the Department.

Nickel-zinc battery technology

The military services have requirements for low cost,
high energy density batteries with high power capability and
low maintenance requirements. The conferees have become aware
of emerging technology for a state-of-the-art, high energy
density nickel-zinc battery, which would be significantly
cheaper, lower maintenance and more durable than the silver-
zinc batteries now in service use, and would not carry the same
environmental penalties as a silver-zinc and nickel-cadmium
batteries. The conferees encourage the Secretary of the Navy to
develop and demonstrate high energy density nickel-zinc battery
technology that could provide great potential for a low cost,
high performance replacement for nickel-cadmium aircraft
batteries and for other applications.

Plasma Energy Pyrolysis System

The conferees support the ongoing joint effort between
the U.S. Army Environmental Center/Environmental Technology
Division and the Tennessee Valley Authority/Muscle Shoals
Environmental Research Center to develop, demonstrate, and
validate the Plasma Energy Pyrolysis System (PEPS) technology.
The conferees urge the Department of Defense to continue its
activity in this area with available funds. The Department of
the Army shall report to the congressional defense committees
on the feasibility of this technology not later than April 30,
1997.

legislative provisions

Subtitle A--Authorization of Appropriations

legislative provisions adopted

Dual use technology program (sec. 203)

The House bill contained a provision (sec. 203) that
would require the Secretary of Defense to designate a senior
official, reporting directly to the Under Secretary of Defense
for Acquisition and Technology, whose sole responsibility would
be to develop policy and ensure effective execution of dual use
programs and integration of commercial technologies into
military systems. Further, the provision would require that not
less than five, seven, ten, and fifteen percent, respectively
for each of fiscal years 1997-2000, of each service's science
and technology program be available only for dual use cost-
shared programs. The provision would prohibit the use of ``in-
kind'' contributions as a part of non-Federal entity
participation in dual use projects. The provision also modified
the other transaction authorities of the Department.
The conferees agree to a provision that would require
designation of an official to manage dual use programs governed
by this provision and a requirement for at least five percent
of the amounts appropriated for science and technology programs
for fiscal year 1997 be available for dual use programs. In
addition, the conferees agree to authorize $85.0 million in PE
63805E for this purpose and direct that the management of these
funds be under the jurisdiction of the person designated by the
Secretary of Defense to manage dual use programs. The Secretary
would be required to submit with the fiscal year 1998 budget
request the Department's outyear funding strategy for this dual
use program.
The conferees agree to modify the House provision to
allow ``in-kind'' contributions as a part of non-Federal entity
participation in dual use projects. The conferees direct the
official managing dual use programs in the Department of
Defense to develop a set of consistent and equitable procedures
for the treatment of the in-kind contributions. The official
shall ensure that such procedures are consistent with the
guidance on this issue contained in the Senate report (S. Rept.
104-267).

Defense Special Weapons Agency (DSWA) formerly known as the Defense
Nuclear Agency (DNA) (sec. 204)

The budget request included $314.3 million for the
Defense Nuclear Agency (DNA).
The Senate amendment contained provisions (secs. 109,
203, and 303) that would authorize a $15.0 million increase to
the budget request for the Defense Nuclear Agency (DNA) to
increase the frequency of nuclear weapons incidents field
training exercises ($3.0 million defense operations and
maintenance); to establish a counter terrorism support program
leveraging DNA capabilities developed during the Cold War, and
to establish a nuclear weapons delivery sustainment program
($12.0 million in research and development, PE 62715H).
The House bill would reduce the budget request for DNA by
$3.0 million. Additionally, it would deny $7.0 million
requested for the Topaz International Program (project AX), and
would make available $4.0 million to continue the counter
terrorist explosives research program.
The conferees agree to a provision that would authorize
$314.3 million for DNA ($192.1 million in PE 62715H, $26.2
million in PE 63711H, $88.1 million in operations and
maintenance, and $7.9 million in procurement). Of the amount
available in PE 62715H, the conferees agree that funds shall be
available for the following activities/programs: $4.0 million
for the continuation of the counter terrorism support program;
$3.0 million for Deep Digger; and $12.0 million to establish a
nuclear weapons delivery sustainment program.
Included in the budget request for DNA was $7.0 million
for the Topaz International program (project AX). The conferees
have reviewed the assessment conducted by the National Research
Council of this program. The conferees agree with a number of
conclusions and recommendations reached by the NRC. Substantial
amounts of money have been spent, both by the United States and
Russia, to develop space nuclear power. Despite the
identification of space reactor power as a potential enabler
for future missions, no potential users of mission requirements
have been identified.
Accordingly, the conferees deny the budget request for
the Topaz International Program (project AX). The conferees
understand that of the funds authorized for this program for
fiscal year 1996, $4.6 million remained unobligated and
unexpended. The conferees recommend that $3.0 million be used
to terminate the program. A substantial amount of money has
been spent over the decades on various space nuclear reactor
power technologies. To save this investment for potential
future use, the conferees recommend that all information and
technology related to the Topaz international program and the
U.S. space nuclear reactor power technology program be
deposited in a central repository.

Subtitle B--Program Requirements, Restrictions, and Limitations

LEGISLATIVE PROVISIONS ADOPTED

Space launch modernization (sec. 211)

The House bill contained a provision (sec. 211) that
would: (1) authorize $50.0 million for a competitive reusable
space launch vehicle (RLV) program; and (2) permit obligation
of the authorized funds only to the extent that the current
operating plan of the National Aeronautics and Space
Administration (NASA) allocates at least an equal amount for
the RLV program.
The Senate amendment contained a provision (sec. 211)
that would: (1) authorize $44.5 million for the Evolved
Expendable Launch Vehicle program and $25.0 million for a
competitive reusable launch vehicle technology program; (2)
prohibit the use of DOD funds for RLV in an amount in excess of
that dedicated to the program by NASA; and (3) prohibit the
obligation of funds authorized for the Evolved Expendable
Launch Vehicle (EELV) program in fiscal year 1997 until the
Secretary of Defense certifies that funds authorized to be
appropriated for RLV have been made available for obligation.
The House recedes with an amendment that would: (1)
authorize $44.5 million for the Evolved Expendable Launch
Vehicle program and $25.0 million for a competitive reusable
launch vehicle program; (2) permit obligation of the funds
authorized for RLV only to the extent that the current
operating plan of NASA allocates at least an equal amount for
the RLV program; (3) limit the obligation of funds for EELV to
$20.0 million until the Secretary of Defense makes available
for obligation funds authorized for RLV; and (4) require the
Secretary of Defense and the Administrator of the National
Aeronautics and Space Administration to submit to Congress a
joint plan for coordinating and eliminating unnecessary
duplication in the operations and planned improvements of
rocket engine test facilities managed by the Air Force and
NASA.

Space-Based Infrared System program (sec. 212)

The House bill contained a provision (sec. 219) that
would authorize funds for the Space-Based Infrared System
(SBIRS) program, prohibit the obligation of expenditure of
funds until the Secretary of Defense issues a certification to
Congress, and direct the Secretary to consider the appropriate
management responsibilities for the Space and Missile Tracking
System (SMTS) program.
The Senate amendment contained a similar provisions (sec.
213).
The Senate recedes with an amendment that would authorize
$427.4 million for the SBIRS program ($173.3 million for SBIRS
Space Segment High, $247.2 million for SMTS, and $6.9 million
for Cobra Brass), prohibit the obligation or expenditure of
more than $100.0 million for SBIRS Space Segment High until the
Secretary of Defense issues a certification to Congress, and
direct the Secretary to consider the appropriate management
responsibilities for the SMTS program.
The conferees are disappointed by the Department of
Defense's management of the SMTS program. The Department has
yet to present the revised SMTS program baseline as required by
section 216 of the National Defense Authorization Act for
Fiscal Year 1996. Additionally, poor management practices on
the part of the Air Force, the Office of the Secretary of
Defense, and the contractor have forced delays in the SMTS
program. The conferees are particularly disappointed by the
Department of Defense's decision to recommend for rescission
$51.0 million for fiscal year 1996 funds authorized and
appropriated for SMTS acceleration and competition. Shortly
after recommended these funds for rescission, the Department
endorsed a plan for enhanced competition. The Department's
handling of the fiscal year 1996 SMTS funding and its on-again,
off-again approach to competition is not acceptable. The
conferees direct the Secretary of Defense to promptly complete
the program baseline specified in section 216 of the National
Defense Authorization Act for Fiscal Year 1996, and to promptly
release the additional funds authorized for SMTS for fiscal
year 1997 for purposes of accelerating the program.

Clementine 2 micro-satellite development program (sec. 213)

The Senate amendment contained a provision (sec. 215)
that would authorize $50.0 million for the Clementine 2 mico-
satellite near-earth interception mission. The provision would
also prohibit the obligation of any funds for the Global
Positioning System (GPS) Block IIF satellite development
program until the Secretary of Defense certifies to Congress
that the fiscal year 1996 funds for Clementine 2 have been
obligated and the fiscal year 1997 funds for Clementine 2 have
been made available for obligation.
The House bill contained no similar provision.
The House recedes with an amendment that would authorize
$50.0 million for the Clementine 2 micro-satellite near-earth
asteroid mission and would prohibit the obligation of more than
$25.0 million for GPS Block IIF until the Secretary of Defense
certifies that fiscal year 1997 funds for Clementine 2 have
been made available for obligation.

Live-fire survivability testing of V-22 Osprey aircraft (sec. 214)

The House bill contained a provision (sec. 212) which
would permit the Secretary of Defense to waive the
survivability testing requirements of section 2366(c) of title
10, United States Code, notwithstanding the fact that the V-22
tilt-rotor aircraft has already entered engineering and
manufacturing development. The provision would require the
Secretary to report to the Congress on how the Secretary plans
to evaluate the survivability of the V-22 aircraft, his
assessment of possible alternatives to realistic survivability
testing of the aircraft, and alternative survivability test
requirements for the conduct of any alternative live-fire test
program. The provision would also require that funds required
for alternative live-fire testing of the V-22 shall be made
available from amounts appropriated for the V-22 program.
The Senate amendment contained a similar provision (sec.
242), but allowed rather than directed the use of V-22 program
funds to carry out the tests.
The Senate recedes.

Live-fire testing of the F-22 aircraft (sec. 215)

The House bill contained a provision (sec. 213) that
would provide authority to the Secretary of Defense to waive
certain live fire testing required by section 2366
of title 10, United States Code.
The Senate amendment contained a similar provision.
The conferees agree to a provision (sec. ) that would
provide the Secretary of Defense the waiver authority and
further require that alternative survivability testing be
funded from funds appropriated from the F-22 program.

Limitation on funding for F-16 tactical manned reconnaissance aircraft
(sec. 216)

The House bill contained a provision (sec. 216) that
would establish a limitation of $50.0 million on the total
obligations and expenditures of the Department of Defense for
the F-16 tactical manned reconnaissance aircraft program for
research, development, test, evaluation, acquisition, and
modification. The provision would exempt from limitation the
obligations for the incorporation of the common data link.
The Senate amendment contained no similar provision.
The Senate recedes.

Cost analysis of F-22 aircraft program (sec. 217)

The Senate amendment contained a provision (sec. 218)
that would direct the Secretary of Defense to review, analyze
and estimate the production costs of the F-22 aircraft program
using the Cost Analysis Improvement Group to complete the
study. Detailed requirements for the report were outlined in
the provision, and a date of March 30, 1997 was given for the
completion of the report. A limitation on the use of funds for
the F-22 program was also included pending receipt of the
report.
The House bill contained no similar provision.
The House recedes.

F-22 aircraft program reports (sec. 218)

The Senate amendment contained a provision (sec. 219)
that would require the Secretary of Defense to submit reports
to Congress on event-based decision making when submitting the
budget for an upcoming fiscal year. Reports of decisions made,
comparing previously defined criteria and decision outcomes,
would also be required.
The House bill contained no similar provision.
The House recedes.

Cost-benefit analysis of the F/A-18E/F aircraft program (sec. 219)

The Senate amendment contained a provision (sec. 228)
that would require the Secretary of Defense to submit a report
to the congressional defense committees on the F/A-18E/F
program, comparing the costs and benefits of the F/A-18C/D with
the F/A-18E/F. Not more than 90 per cent of the funds
appropriated for the F/A-18E/F could be obligated or expended
on the F/A-18E/F until 30 days after the date of receipt of the
report by the congressional defense committees.
The House bill contained no similar provision.
The House recedes.

Joint Advanced Strike Technology (JAST) program (sec. 220)

The House bill contained a provision (sec. 220) that
would preclude the obligation of funds for the Advanced Short
Takeoff and Vertical Landing variant of JAST, and require an
analysis of force structure alternatives and associated costs.
The Senate amendment contained no similar provision, but
would provide an additional $13.0 million for alternate engine
concepts.
The Senate recedes with an amendment that would remove
the prohibition on the obligation of funds for the Advanced
Short Takeoff and Vertical Landing variant of JAST, but would
retain the provisions in the House bill requiring an analysis
of future force structure needs and existing alternatives to
the JAST program.
The conferees agree to provide the additional $13.0
million as identified in the Senate report (S. Rept. 104-267)
for competitive engine initiatives.

Unmanned aerial vehicles (sec. 221)

The House bill contained a provision (sec. 217) that had
five sections addressing unmanned aerial vehicle (UAV)
programs. The sections would:
(1) prohibit the Secretary of Defense from entering
into a contract for the Joint Tactical Unmanned Aerial
Vehicle project until 30 days after certification was
received by the Congressional defense committee of the
justification and affordability of various
reconnaissance programs;
(2) require a clear depiction of reconnaissance
budget requests;
(3) transfer management of the Predator program to
the Department of the Air Force;
(4) prohibit the obligation of funds to operate
Predator UAV's from naval vessels; and
(5) provide $10.0 million for advanced concepts
technology demonstrations of air-to-surface precision
guided munitions employment using a UAV and a non
developmental laser target designator.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would remove
the following sections:
(1) the prohibition on entering into contracts on
the Joint Unmanned Aerial Vehicle, and
(2) authorization of $10.0 million for an ACTD of
air to surface precision guided munitions employment
using a UAV and a non developmental laser target
designator.

High altitude endurance unmanned aerial reconnaissance system (sec.
222)

The House bill contained a provision (sec. 223) that
would require that any funds authorized to be appropriated for
an improved Tier III Minus High Altitude Endurance Unmanned
Aerial Reconnaissance System that would increase the unit
flyaway cost above the established contracted for amount be
awarded through competitive acquisition procedures.
The Senate amendment contained no similar provision.
The Senate recedes.

Cyclone class patrol craft self-defense (sec. 223)

The Senate amendment contained a provision (sec. 225)
that would direct the Secretary of Defense to carry out a study
through the Commander in Chief of the U.S. Special Operations
Command (USSOCOM) of self-defense options for USSOCOM's Cyclone
class patrol craft and report the results to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives.
The House bill contained no similar provision.
The House recedes with an amendment.

One-year extension of deadline for delivery of Enhanced Fiber Optic
Guided Missile (EFOG-M) system (sec. 224)

The House bill contained a provision (sec. 243) that
would amend Section 272(a)(2) of the National Defense
Authorization Act for fiscal year 1996 (Public Law 104-106; 110
Stat. 239) by striking out ``September 30, 1998,'' and insert
``September 30, 1999'' that would extend the deadline for
delivery of the EFOG-M systems.
The Senate amendment contained no similar provisions.
The Senate recedes.

Hydra-70 rocket product improvement program (sec. 225)

The budget request included $6.2 million for enhancements
to existing missile programs.
The House bill included a provision (sec. 218) that would
authorize an increase of $15.0 million for at least one
composite motor type Hydra-70 missile evaluation on the Apache
helicopter.
The Senate amendment would authorize an increase of $9.0
million for a Hydra-70 missile evaluation and an additional
$4.5 million to develop and qualify an insensitive rocket motor
as well as to support minor software improvements for the
Hellfire missile.
The conferees agree to a provision (sec. 225) that would
authorize $9.0 million for the Hydra-70 evaluation. An
additional $3.9 million is authorized for Hellfire missile
insensitive rocket motor development, for a total of $19.1
million in PE 23802A.

Federally-funded research and development centers (sec. 226)

The Senate amendment contained a provision (sec. 222)
that would impose a combined ceiling on the funding that may be
provided to both federally-funded research and development
centers (FFRDCs) and university-affiliated research centers
(UARCs) fiscal year 1997 at the same level as that imposed for
fiscal year 1996.
The House bill contained no similar provision.
The House recedes with an amendment that would remove the
UARCs from the ceiling and would limit the statutory funding
ceiling for FFRDCs at the level reflected in projected
expenditures for studies and analyses FFRDCs in the fiscal year
1997 budget request. The conferees direct that funds expended
by an FFRDC on recapitalization not be limited by the amount of
the ceiling allocated to that FFRDC by the Department of
Defense. The conferees direct that management of the FFRDCs be
undertaken consistent with the direction in the House report
(104-563) and Senate report (104-267).
The conferees note the continued importance of
maintaining within the FFRDC community an international trade
and technology support capability as described in the Senate
report (104-112) to accompany the National Defense
Authorization Act for Fiscal Year 1996. The conferees urge the
Under Secretary of Defense for Acquisition and Technology to
ensure that this capability is continued at an appropriate
FFRDC and that sufficient funding be allocated to maintain it
at a robust level of effort.

Demilitarization of conventional munitions, rockets, and explosives
(sec. 227)

The House bill contained a provision (sec. 214) that
would authorize $15.0 million for the demilitarization of
conventional munitions, explosives and rockets, and would
require the Secretary of Defense to establish a five year
program for the development and demonstration of
environmentally compliant technologies for the disposal and
demilitarization of conventional munitions, explosives, and
rockets.
The Senate amendment contained no similar provision.
The Senate recedes.

Research activities of the Defense Advanced Research Projects Agency
relating to chemical and biological warfare defense technology
(sec. 228)

The House bill contained a provision (sec. 215) that
would amend provisions of Title XVII of the National Defense
Authorization Act of Fiscal Year 1994 (Public Law 103-160) to
clarify the role of the Defense Advanced Research Projects
Agency in the Department of Defense's research and developments
efforts related to chemical and biological warfare defense
technologies.
The Senate amendment contained no similar provision.
The Senate recedes.

Certification of capability of United States to prevent illegal
importation of nuclear, biological, or chemical weapons (sec.
229)

The House bill contained a provision (sec. 224) that
would require the President to certify to the Congress whether
or not the United States has the capability (as of the date of
certification) to prevent the illegal importation of nuclear,
biological, or chemical weapons into the United States and its
possessions.
The Senate amendment contained no similar provision.
The Senate recedes.
The Office of the Secretary of Defense report, titled
``Proliferation: Threat and Defense'', dated April 1996, cites
the growing threat posed by the proliferation of weapons of
mass destruction and the spread of technology for their
production. According to the report, one of the most volatile
and frightening scenarios for U.S. defense planning would be
based on a terrorist group that might attempt to smuggle
nuclear, chemical, or biological weapons materials into the
United States and attack U.S. domestic targets. The conferees
believe that the capability of the United States to deal with
the potential threat posed by the illegal importation of
nuclear, biological, or chemical weapons into the United States
should be acknowledged, so that U.S. citizens might understand
the seriousness of the threat and that increased emphasis might
be placed on meeting the threat.

Nonlethal weapons and technologies program (sec. 230)

The House bill contained a provision (sec. 222) that
would provide $3.0 million in PE 63640M for the nonlethal
weapons research and development program.
The Senate amendment contained a provision (sec. 220)
that would provide $15.0 million for a joint service research,
development, test and evaluation program for nonlethal weapons
and nonlethal technologies, and would require the establishment
of a new program element to be administered by the program's
designated executive agent. The provision would also place
limits on the funds authorized for the foreign comparative
testing program and the NATO research and development program
until the funds authorized for the joint service nonlethal
weapons and nonlethal technologies program in the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106), and additional funding for nonlethal weapons and
technologies authorized for fiscal year 1997, are released to
the executive agent for obligation. Additionally, a second
Senate provision (sec. 313) would authorize $2.0 million in
operations and maintenance funds for the Army and $3.0 million
in operations and maintenance funds for the Marine Corps for
procurement of nonlethal weapons capabilities to meet existing
deficiencies in current nonlethal weapons inventories.
The House recedes with an amendment.
Last year, $37.2 million was authorized for the nonlethal
weapons technologies program. The conferees have been troubled
by the reluctance of the DOD to release the funds for execution
and implementation of this program. Nonlethal weapons can
enhance significantly the flexibility and operational
effectiveness of forward deployed forces. As the military
services become increasingly involved in unorthodox, non-
traditional military operations, nonlethal weapons can help to
manage, contain, and defuse certain volatile and low-intensity
situations. The conferees do not accept or condone the
Department's failure to make these funds available to the
executive agent for obligation.
Currently, the Department's plan for execution of funds
authorized in fiscal year 1996 includes a total of $15.95
million for nonlethal weapons technologies, with $10.45 million
for research, development, test and evaluation, and $5.4
million for procurement. On July 17, 1996, the Under Secretary
of Defense for Acquisition and Technology forwarded
correspondence pledging to make available an additional $11.09
million in nonlethal funding during fiscal year 1996.
Specifically, the Department agrees to prepare a reprogramming
action that would transfer funding from the Defense Advanced
Research Projects Agency (DARPA) to the various services, as
follows: $5.4 million to reimburse the services ($1.0 million
to the Army, $2.1 million to the Marine Corps, and $2.3 million
to the Air Force); $1.04 million for research, development,
test and evaluation for additional investment; and $4.65
million to accommodate current nonlethal priorities for use at
the discretion of the executive agent.
The conferees understand that the fiscal year 1997 budget
submission includes $10.2 million for the various services and
DOD nonlethal initiatives. The conferees agree to an investment
strategy utilizing additional funds authorized by this
provision, allocated as follows: $13.74 million for research,
development, test and evaluation, as outlined in the July 17,
1996 letter from the Under Secretary of Defense for Acquisition
and Technology; $1.26 million available to the executive agent
for research, development, test and evaluation activities, at
his discretion; and $5.0 million for training and replenishment
of nonlethal technology needs ($2.0 million for the Army and
$3.0 million for the Marine Corps).
The conferees emphasize that the revised Department plan
for fiscal year 1996 does not bring the Department into
compliance with Section 219 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
However, it does represent a reasonable effort to ensure the
immediate and near term nonlethal requirements of the military
services. The conferees will closely monitor the formulation of
the fiscal year 1996 nonlethal reprogramming list, and expect
the Department to coordinate this effort with the relevant
congressional committees to ensure its prompt approval.
The conferees agree to eliminate the provision that would
prohibit the obligation or expenditure of funds authorized for
the foreign comparative testing program and the NATO research
and development program. That decision was reached with the
understanding that the Department will fully implement and
execute the nonlethal weapons technologies program for fiscal
years 1996 and 1997, as agreed to in the July 17, 1996 letter
from the Under Secretary of Defense for Acquisition and
Technology.
The conferees direct the Department to consult with the
Congress on a regular basis, and to include in its consultation
a review of the joint and individual service mission needs and
operational requirements for nonlethal weapons systems and
technologies. Additionally, the conferees expect the fiscal
year 1998 budget submission to include the funds necessary to
continue this effort. The conferees further direct the
Department of Defense to notify Congress 15 days in advance of
obligation or expenditure of fiscal year 1997 operations and
maintenance funds provided to the Army and the Marine Corps for
procurement of nonlethal weapons.
The conferees are aware that the Office of Technology
Assessment (OTA) had underway, when it closed on October 2,
1995, a major assessment of technology with applications
related to peace operations, with particular emphasis on non-
lethal weapons technology. Whereas in excess of $250,000 was
expended and substantial progress had been made by OTA, no
report was issued. The conferees direct that up to $70,000 of
the funds authorized for the non-lethal program in fiscal year
1997 be used by the Department to complete a report on non-
lethal weapons technology based on the work begun at OTA.

Counterproliferation support program (secs. 231 and 1309)

The Senate amendment contained a provision (sec. 221)
that would authorize $176.2 million for the
counterproliferation support program, a $82.5 million increase
to the budget request. Of this increase, $75.0 million would be
authorized for the tactical antisatellite technologies program,
and $7.5 million would be authorized for the high frequency
active auroral research program (HAARP). A second provision
(sec. 230) would make available $3.0 million from the
counterproliferation support program for a surgical strike
vehicle to defeat hardened and deep underground structures.
The House bill contained no similar provisions, but would
authorize the budget request for the counterproliferation
support program.
The House recedes with an amendment that would authorize
$186.2 million for the counterproliferation support program, a
$92.5 million increase to the budget request. Of those funds,
$75.0 million is authorized for the tactical antisatellite
technologies program; $7.5 million is authorized for the high
frequency active auroral research program (HAARP); $10.0
million is authorized for a nonproliferation and
counterproliferation research and development program to
enhance efforts at interdicting and detecting nuclear,
radiological, chemical and biological weapons and related
materials; and $3.0 million would be available to the Air
Combat Command for research and development of a near-term
capability to defeat hardened and deeply buried targets,
including tunnels and deeply buried facilities for the
production and storage of chemical, biological and nuclear
weapons and their delivery systems. Additionally, the conferees
agree that $4.0 million from funds authorized for the Air Force
operation and maintenance account be made available for U.S.
Strategic Command (USSTRATCOM) mission planning and analysis.
The conferees agree that funds authorized in this Act for
the technical studies and analyses program (PE 605104D) may not
be obligated until funds authorized for the tactical
antisatellite technologies program in this Act and in the
National Defense Authorization Act for Fiscal Year 1996 have
been released for obligation by the executive agent.

Joint Committee for Review of Counterproliferation Program of the
United States

The conferees agree to a provision (sec. 1309) that would
extend the authority of the Joint Committee for Review of
Counterproliferation Programs (CRCP) of the United States to
September 30, 2000, and require annual reports to the
congressional defense committees on the activities of the
committee by May 1 of each year. The provision would also
modify the composition of the committee by designating the
Assistant to the Secretary of Defense for Nuclear, Chemical and
Biological Defense as executive secretary for the committee.

Subtitle C--Ballistic Missile Defense Programs

legislative provisions adopted

Funding for ballistic missile defense programs for fiscal year 1997
(sec. 241)

The House bill contained a provision (sec. 231) that
would authorize funding for ballistic missile defense research
and development activities in fiscal year 1997.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would authorize
the following amounts for the following programs:
(1) $621.8 million for the Theater High Altitude
Area Defense System;
(2) $304.2 for the Navy Upper Tier system;
(3) $858.4 for National Missile Defense;
(4) $56.2 for the Corps Surface-to-Air Missile
(SAM)/Medium Extended Air Defense (MEADS) program.
The amended provision would also include the following
limitations: (1) a limitation on the use of funds for the
Office of the Under Secretary of Defense for Acquisition and
Technology for official representation until the Secretary of
Defense certifies that the above specified funds have been made
available for obligation and the Secretary has included the
Navy Upper Tier system in the theater missile defense core
program; and (2) a limitation on the obligation of more than
$15.0 million for the Corps SAM program until the Secretary of
Defense submits to Congress an initial program estimate, a
report on Corps SAM alternatives, and a certification that
there will be no increase in overall U.S. funding commitment as
a result of the withdrawal of France from the project
definition and validation phase of the program.

Certification of capability of United States to defend against single
ballistic missile (sec. 242)

The House bill contained a provision (sec. 232) that
would require the President to submit to the Congress a
certification stating whether the United States has the
military capability to intercept and destroy a single ballistic
missile launched at the territory of the United States.
The Senate amendment contained no similar provision.
The Senate recedes.

Report on ballistic missile defense and proliferation (sec. 243)

The House bill contained a provision (sec. 235) that
would direct the Secretary of Defense to submit a report to
Congress by December 31, 1996, on ballistic missile defense and
proliferation.
The Senate amendment contained no similar provision.
The Senate recedes.

Revision to annual report on ballistic missile defense and
proliferation (sec. 244)

The House bill contained a provision (sec. 236) that
would update the requirement for the annual ballistic missile
defense report to Congress.
The Senate amendment contained a similar provision.
The Senate recedes.

Report on Air Force National Missile Defense Plan (sec. 245)

The Senate amendment contained a provision (sec. 238)
that expressed the sense of the Senate that the Air Force
National Missile Defense (NMD) plan is an important NMD option
and is worthy of serious consideration. The provision would
also require the Secretary of Defense to submit to Congress a
report on the Air Force NMD plan not later than 120 days after
enactment of this Act.
The House bill contained no similar provision.
The House recedes with an amendment that would omit the
sense of the Senate language and require the report specified
in the Senate provision.

Capability of National Missile Defense system (sec. 246)

The House bill contained a provision (sec. 238) that
would direct the Secretary of Defense to ensure that any
national missile defense system deployed by the United States
is capable of defeating the threat posed by the Taepo Dong II
missile of North Korea.
The Senate amendment contained no similar provision.
The Senate recedes.

Actions to limit adverse effects on private sector employment of
establishment of National Missile Defense Joint Program Office
(sec. 247)

The Senate amendment contained a provision (sec. 908)
that would require the Director of the Ballistic Missile
Defense Organization to take such actions as are necessary in
connection with the establishment of the National Missile
Defense (NMD) Joint Program Office to ensure that establishment
of that office does not make it necessary for a Federal
Government contractor to reduce the number of persons employed
by the contractor for supporting the NMD program at any
particular location outside the National Capitol Region.
The House bill contained no similar provision.
The House recedes with an amendment that would require
the Director of the Ballistic Missile Defense Organization to
take such actions as are necessary in connection with the
establishment of the NMD Joint Program Office to ensure that
establishment of that office does not make it necessary for a
Federal Government contractor to significantly reduce the
number of persons employed by the contractor for supporting the
NMD program at any particular location outside the National
Capitol Region.

ABM Treaty defined (sec. 248)

The House bill contained a provision (sec. 237) that
would define the Anti-Ballistic Missile Treaty.
The Senate amendment contained a similar provision.
The Senate recedes.

Subtitle D--Other Matters

legislative provisions adopted

Maintenance and repair at Air Force installations (sec. 261)

The House bill contained a provision (sec. 241) that
would require that the Secretary of the Air Force establish
consistent procedures and criteria to allocate real property
maintenance and repair funds at all bases and facilities. The
absence of consistency leaves the Air Force test and evaluation
bases and facilities at a significant disadvantage in the
allocation of resources.
The Senate amendment contained no similar provision.
The Senate recedes.

Report relating to Small Business Innovation Research program (sec.
262)

The House bill contained a provision (sec. 242) that
would require the Secretary of Defense to ensure that the Small
Business Innovation Research (SBIR) program be managed and
executed by the individual program managers of programs for
which $20.0 million or more has been authorized for a fiscal
year. The provision would also require a report on the Small
Business Innovation Research program, as to whether there has
been a demonstrable reduction in the quality of research.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would eliminate
the requirement that program managers individually manage and
execute the SBIR program and would expand the reporting
requirements to include the degree to which competitive
procedures are being used and the degree to which the
technologies developed are being used in military programs.

Amendment to University Research Initiative Support program (sec. 263)

The House bill contained an amendment (sec. 244) that
would propose changes in the data base for calculation of
university eligibility for the University Research Initiative
Support program.
The Senate contained an identical provision (sec. 243).
The Senate amendment includes this provision.

Amendments to Defense Experimental Program to Stimulate Competitive
Research (sec. 264)

The House bill contained a provision (sec. 245) that
would allow the Department more flexibility to customize the
Defense Experimental Program to Stimulate Competitive Research
(DEPSCoR) program for defense needs and help to improve the
administration of the program.
The Senate amendment contained no similar provision.
The Senate recedes.

Elimination of report on the use of competitive procedures for the
award of certain contracts to colleges and universities (sec.
265)

The House bill contained a provision (sec. 246) that
would eliminate the annual reporting requirement on the use of
competitive procedures for award of research and development
contracts, and the award of construction contracts to colleges
and universities, primarily because this report duplicates
information already required in other reports.
The Senate amendment contained no similar provision.
The Senate recedes.

Pilot program for transfer of defense technology information to private
industry (sec. 266)

The Senate amendment contained a provision (sec. 813)
that would authorize the use of $3.0 million of the funds
available in the University Research Initiative program (PE
61103D) for the establishment of a pilot program at a
university to demonstrate online transfers of information on
defense technologies to businesses in the private sector and
through an interactive data network involving Small Business
Development Centers.
The House bill contained no similar provision.
The House recedes.
The conferees direct that all applicable competitive
procedures be used in the award of any contract, grant or other
agreement under this pilot program and that cost sharing
requirements for non-Federal participants be utilized where
appropriate.

Research under transactions other than contracts and grants (sec. 267)

The Senate amendment contained a provision (sec. 810)
that would modify section 2371 of title 10, United States Code,
to clarify when the authority under the section may be used.
The provision would also modify the annual reporting
requirement in section 2371 and specify certain information
that would not be required to be disclosed under section 552 of
title 5, United States Code.
The House bill contained a similar provision (sec. 203).
The House recedes.
The conferees direct the services to follow the example
of the Defense Advanced Research Projects Agency in the
aggressive use of this authority under section 2371.

Desalting technologies (sec. 268)

The Senate amendment contained a sense of the Senate
provision (sec. 244) that recognized the importance of
desalting technologies and encouraged the Secretary of Defense
to place greater emphasis on making funds available for
research and development into efficient and economical
processes and methods for converting saline water to fresh
water.
The House bill contained no similar provision.
The House recedes.

Evaluation of digital video network equipment used in Olympic games
(sec. 269)

The House bill contained a provision (sec. 1050) that
would require the Secretary of Defense to evaluate the digital
video network equipment used in the 1996 Olympic games to
determine whether such equipment would be the most appropriate
equipment for use as a test bed for the military application of
off-the-shelf technology.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment to defer the report
date from December 31, 1996 to April 1, 1997 to allow the
Department time to evaluate other comparative systems.

Annual joint warfighting science and technology plan (sec. 270)

The Senate amendment contained a provision (sec. 1052)
that would require the Secretary of Defense to submit to the
congressional defense committees the annual Joint Warfighting
Science and Technology plan so that it may be considered in the
congressional review of the President's defense budget request.
The provision would also require that additional information of
interest to Congress be submitted in conjunction with the plan.
The House bill contained no similar provision.
The House recedes.

Subtitle E--National Oceanographic Partnership Program

LEGISLATIVE PROVISIONS ADOPTED

National Oceanographic Partnership Program (sec. 282)

The House bill contained a provision (sec. 247) that
would establish a National Oceanographic Partnership Program
for the purpose of leveraging all U.S. oceanographic efforts to
the benefit of the military. The Partnership Program would
establish a National Oceanographic Leadership Council to
coordinate national oceanography programs, partnerships and
facilities, and coordinate policy efforts of all Federal
activities involved in oceanographic surveys and research. The
council would also provide a comprehensive plan to ensure
development of oceanography science and technology modeling and
simulation programs throughout government, universities and
that industry will be available to support military
requirements in the future. The House provision would also
create a national ocean data and remote sensing center to
centralize all unclassified, classified and sensitive
compartmented information databases, models and product
synthesis capabilities to support national oceanographic
requirements and a national natural littoral laboratory. The
House would authorize increases of $15.0 million in PE 61153N
and $15.0 million in PE 62435N for the National Oceanographic
Partnership Program.
The Senate amendment contained a similar provision (sec.
252) that would provide for the establishment of a National
Ocean Research Leadership Council, chaired by the Secretary of
the Navy or his designee and composed of representatives of
Federal agencies, industry and academia, to coordinate national
oceanography programs, partnerships and facilities. The Senate
amendment would provide an increase of $13.0 million in the
Navy's Oceanographic and Atmospheric Technology program (PE
62435N) for support of the National Oceanographic Partnership
Act. The Senate amendment also contained a provision that would
establish national coastal data centers on both the east and
west coasts at existing institutions of higher learning with
well established institutes or graduate schools of
oceanography.
The Senate recedes with an amendment that would authorize
an increase of $13.0 million in PE 62435N to be allocated as
directed in the Senate report (S. Rept. 104-267). The conferees
also agree to authorize $7.5 million for oceanographic ship
operations out of funds available in operations and
maintenance, project 80. The provision would also direct the
National Oceanographic Leadership Council to review the
requirement for the establishment of centers for the national
centralization of oceanographic research data, including
coastal data centers, and to establish such centers as it deems
necessary.

LEGISLATIVE PROVISIONS NOT ADOPTED

Joint United States-Israeli Nautilus Laser/Theater High Energy Laser
program

The House bill contained a sense of Congress provision
(sec. 221) that would strongly support the Joint U.S.-Israeli
Nautilus Laser/Theater High Energy Laser program and encourage
the Secretary of Defense to request authorization to develop
these programs as agreed to April 28, 1996, in the statement of
intent signed by the Secretary of Defense and the Prime
Minister of the State of Israel.
The Senate amendment contained no similar provision.
The House recedes.
The conferees agree to authorize an additional $50.0
million for a new program element to support the Nautilus/
Theater High Energy Laser program and the associated design
verification testing. The conferees understand that the
government of Israel is prepared to devote significant
resources to this effort and the committee urges the
administration to seek a rapid conclusion of a memorandum of
agreement (MOA) on the THEL program with Israel. The conferees
fully expect that additional funding to implement such an MOA
will be included in future Army budget requests.

Policy on compliance with the ABM Treaty

The House bill contained a provision (sec. 233) that
would codify the ``demonstrated capabilities'' standard for
assessing compliance of systems with the Anti-Ballistic Missile
(ABM) Treaty, state certain prohibitions, and define an ABM-
qualifying flight test as a test against a ballistic missile
with a range in excess of 3,500 kilometers and a velocity in
excess of five kilometers per second.
The Senate amendment contained a provision (sec. 239)
that would extend by one year section 235 of the National
Defense Authorization Act of Fiscal Year 1996 (Public Law 104-
106).
The House and the Senate recede from their respective
provisions.
The conferees note that the President's National Security
Advisor has stated that the Theater Missile Defense (TMD)
Demarcation agreement, to which the United States has
tentatively agreed, would modify the rights and obligations of
the parties and, hence, constitute a substantive change to the
ABM Treaty. The conferees acknowledge and reaffirm the
constitutional principle that any substantive treaty change may
be entered into only pursuant to the President's treaty making
power under the Constitution. The conferees note that this
constitutional principle is specifically codified with regard
to the ABM Treaty in section 232 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337).
The conferees would take strong exception to any
interpretation by the administration that section 235 of the
National Defense Authorization Act for Fiscal Year 1996 ``pre-
authorizes'' implementation of the TMD Demarcation agreement.
For example, because the agreement-in-principle does not apply
the ``demonstrated capabilities standard'' to all TMD systems,
it would not satisfy the standard specified in section
235(b)(1). More importantly, section 235 does not supersede the
constitutional requirement to submit a substantive change to
the ABM Treaty to the Senate for advice and consent.
In light of the fact that the President's National
Security Advisor has confirmed that the draft TMD Demarcation
agreement would constitute a substantive change to the ABM
Treaty, the conferees agree that legislation requiring
submission of the agreement for Senate advice and consent is
not needed.

Requirement that multilateralization of the ABM Treaty be done only
through treaty-making power

The House bill contained a provision (sec. 234) that
would state that any addition of a new signatory party to the
Anti-Ballistic Missile (ABM) Treaty (in addition to the United
States and the Russian Federation) constitutes an amendment to
the treaty that can only be agreed to by the United States
through the treaty making power of the United States. This
provision would prohibit the obligation or expenditure of funds
during any fiscal year for the purpose of implementing or
making binding upon the United States the participation of any
additional nation as a party to the ABM Treaty, unless that
nation is made a party to the treaty by an amendment to the
Treaty that is made in the same manner as the manner by which a
treaty is made.
The Senate amendment contained a provision (sec. 231)
that would express the sense of the Senate that during fiscal
year 1997 the United States shall not be bound by any
international agreement entered into by the President that
would substantively modify the ABM Treaty, including any
agreement that would add one or more countries as signatories
to the Treaty or would otherwise convert the treaty from a
bilateral Treaty to a multilateral treaty, unless the agreement
is entered pursuant to the treaty making power of the President
under the Constitution.
The House and the Senate recede from their respective
provisions.
The conferees acknowledge and reaffirm the constitutional
principle that any substantive change to a treaty may be
entered into only pursuant to the President's treaty making
power under the Constitution. The conferees note that, with
regard to the ABM Treaty, this constitutional principle is
specifically codified in section 232 of the National Defense
Authorization Act for Fiscal Year 1995 (Public Law 103-337). In
this regard, the accord on ABM Treaty succession, tentatively
agreed to by the administration, would constitute a substantive
change to the ABM Treaty, which may only be entered into
pursuant to the treaty making power of the President under the
Constitution. An explanation for this conclusion is presented
below.
First, the fundamental circumstances that provided the
rationale for the ABM Treaty have changed. The ABM Treaty, more
than any other arms control agreement, was a product of the
bipolar Cold War confrontation between the United States and
the Soviet Union. With the dissolution of the Soviet Union, the
United States faces strategic and political circumstances that
are vastly different than those that obtained in 1972.
Second, by having the Soviet Union succeeded, for
purposes of the ABM Treaty, by some but not all of the
independent states of the former Soviet Union, each possessing
sovereign rights under the Treaty, a succession agreement would
change, limit, and extend certain rights and obligations
previously possessed by the parties. This is virtually a text
book definition of a treaty amendment. The rights of the United
States would clearly be changed given the fact that the
Standing Consultative Commission (SCC), the ABM Treaty's
implementing body, would, for the first time, be comprised of
several parties, all of whom would need to consent to changes,
clarifications or amendments to the Treaty.
As the administration stated in a May 3, 1996, letter:
``Each party will participate in implementing the Treaty as a
sovereign entity. This includes a full and equal voice in the
SCC.'' When asked if the consent of all parties would be needed
before the Treaty could be amended, clarified, or interpreted,
the administration answered: ``Yes. The U.S. has insisted on a
decision-making mechanism in the SCC under which legally
binding obligations would be adopted by consensus.'' In effect,
the SCC would be transformed into a corporate body in which up
to a dozen affirmative votes would be required before the
Treaty could be amended. In addition, some of the new treaty
partners would only have partial rights. Of the former Soviet
states, for example, only Russia would be entitled to deploy an
operational ABM system.
Third, the functional mechanics of the ABM Treaty will be
changed through multilateralization. The ABM Treaty is based,
in part, on a geographical description of the United States and
the Soviet Union. For example, the Treaty states specifically
that certain large phased array radars may only be located
along the periphery of the national territory of the parties.
In the case of the former Soviet Union, however, some radars
are now located outside of Russia. The Skrunda radar in Latvia,
for example, is on the territory of an independent country that
has rejected membership in the ABM Treaty. Clearly, any
agreement that addresses the successorship issue will also have
to redefine these geographic aspects of the Treaty, which will
constitute substantive amendments to the Treaty. In this
regard, the Senate will be as interested to see which states do
not accede to the ABM Treaty as it will be to see which
countries do accede.
Fourth, all succession agreements related to existing
strategic arms control agreements have been addressed by the
Senate through the constitutional advice and consent mechanism,
with the exception of the Intermediate-Range Nuclear Forces
Treaty, which was clearly identified as an exception to the
rule at the time of succession.
In the case of the Conventional Armed Forces in Europe
(CFE) Treaty, the Senate specifically recognized the impending
breakup of the Soviet Union and adopted provisions that were
intended to take this into account during the ratification
debate. The Senate was so concerned about this issue with
regard to the CFE Treaty that it attached a condition to the
resolution of ratification that specified procedures for adding
new states parties and for evaluating the implications of the
withdrawal of key newly independent states from the Treaty.
In the case of the Strategic Arms Reductions Talks (START
I) Treaty, the succession agreement, known as the Lisbon
Protocol, was approved by a two-thirds vote of the Senate as
part of the overall ratification process. As in the case of
CFE, START I was surrounded by major succession issues that the
Senate had to address in a formal manner. It is the view of the
conferees that neither CFE nor START I would have been approved
by the Senate but for the fact that the succession issues were
thoroughly addressed as part of the ratification debate.
Given the compelling case that the ABM Treaty succession
agreement is a substantive change to the treaty, the conferees
affirm that such agreement must be submitted to the Senate for
advice and consent.

Funding increase for field emission flat panel technology

The House bill included a provision (sec. 248) that would
authorize an additional $10.0 million for the combat vehicle
improvement program to fund field emission flat panel
technology for the M1 tank upgrade.
The Senate amendment would also provide $10.0 million for
this project.
The House recedes from its legislative provision.
The conferees agree to recommend an additional $10.0
million in PE 23735A for flat panel display technology.

Natural resource assessment and training delivery system

The House bill contained a provision (sec. 249) that
would authorize funding to support a proposed natural resource
assessment and training delivery system. The purpose of the
program was to enhance the ability of the Department of Defense
to mitigate the environmental impact of its operational
training of forces and testing of weapons on military
installations more effectively and at lower costs.
The Senate amendment contained no similar provision.
The House recedes.
The conferees agree that there are advanced technology
methods such as remote sensing, satellite and aircraft mounted
sensors, integrated digital data sets, and advanced computing
resources that could offer the Department efficiencies in time,
cost and area coverage over personnel intensive ground
sampling, data processing and analysis when it monitors
environmental conditions at military installations.
The conferees urge the Department to investigate
industrial and academic capabilities to implement advance
technologies for environmental monitoring and training.

Funds for research, development, test, and evaluation relating to
humanitarian demining technologies

The budget request included $7.7 million for humanitarian
demining activities.
The Senate amendment contained a provision (sec. 204)
that would make $18.0 million available for humanitarian
demining activities in PE 63120D, to be administered by the
Assistant Secretary of Defense for Special Operations and Low
Intensity Conflict.
The House bill contained no similar provision, but would
recommend the budget request for humanitarian demining
activities.
The Senate recedes.
The conferees agree to authorize $18.0 million in PE
63120D for research, development, test, and evaluation of near-
term and long-term technologies and capabilities relating to
humanitarian demining technologies. The humanitarian demining
program will continue to be administered by the Assistant
Secretary of Defense for Special Operations and Low Intensity
Conflict. The relationship of this program to the Defense
countermine program is discussed elsewhere in the report.

Department of Defense Space Architect

The Senate amendment contained a provision (sec. 212)
that would require the Secretary of Defense to include the
kinetic energy tactical anti-satellite (ASAT) program in the
space control architecture to be developed by the Department's
new Space Architect. The provision would prohibit the use of
fiscal year 1997 defense funds to support the Space Architect
until the Secretary certifies that he will include the ASAT
program in the space control architecture, that he has
obligated fiscal year 1996 funds for the kinetic energy ASAT,
and that he has made available for obligation fiscal year 1997
funds appropriated for the kinetic energy ASAT, consistent with
congressional guidance.
The House contained no similar provision.
The Senate recedes.

Research for advanced submarine technology

The Senate amendment contained a provision (sec. 214)
that would repeal section 132 of the National Defense
Authorization Act for Fiscal Year 1996.
The House bill contained no similar provision.
The Senate recedes.

Tier III minus Unmanned Aerial Vehicle

The Senate amendment contained a provision (sec. 216)
that would prohibit the procurement of more than three air
vehicles for the Tier III minus UAV program until flight
testing is completed.
The House bill contained no similar provision.
The Senate recedes.

Defense airborne reconnaissance program

The Senate amendment contained a provision (sec. 217)
that would require the Secretary of Defense to submit a report
comparing the Predator unmanned aerial vehicle (UAV) with the
Dark Star (Tier III minus) UAV.
The House bill did not contain a similar provision.
The Senate recedes.

Advanced submarine technologies

The Senate amendment contained a provision (sec. 223)
that would authorize $489.4 million for the submarine
previously designated by the Navy as the New Attack Submarine
and an additional $100.0 million to address the inclusion on
future nuclear attack submarines of core, category I, and
category II technologies, as such technologies are identified
by the Secretary of Defense in Appendix C of the ``Report on
Nuclear Attack Submarine Procurement and Submarine
Technology'', submitted to Congress on March 26, 1996.
The House bill contained no similar provision.
The Senate recedes.

Funding for basic research in nuclear seismic monitoring

The Senate amendment contained a provision (sec. 224)
that would make available $6.5 million for basic research in
nuclear seismic monitoring from funds requested for the Air
Force for arms control implementation.
The House bill contained no similar provision.
The Senate recedes.
The budget request included $26.7 million for arms
control implementation in PE 35145F for research and
development activities to prepare the United States for
implementation of, and compliance with, nuclear testing
treaties. Those activities include the development of a
national and international data center, treaty implementation
and technical support, and nuclear monitoring techniques. The
conferees agree that, of those funds, $6.5 million shall be
available for basic research in nuclear seismic monitoring.

Computer-assisted education and training

The Senate amendment included a provision (sec. 226) that
would require that $10.0 million in the Defense Research
Sciences program (PE 61101E) be used for the continuation of
computer-assisted education and training programs in the
Department of Defense.
The House bill contained no similar provision.
The Senate recedes.

Seamless high off-chip connectivity

The Senate amendment included a provision (sec. 227) that
would require that $7.0 million in funds available for
research, development, test and evaluation in the Department of
Defense be used to continue research and development of
seamless high off-chip connectivity (SHOCC) programs.
The House bill contained no similar provision.
The Senate recedes.

National Polar-Orbiting Operational Environmental Satellite System

The Senate amendment contained a provision (sec. 229)
that would authorize $29.0 million for the National Polar-
Orbiting Operational Environmental Satellite System (NPOESS), a
reduction of $5.0 million from the Department of Defense
portion of the NPOESS budget request.
The House bill contained no similar provision but
recommended a reduction of $15.0 million.
The Senate recedes.
The conferees agree to authorize $29.0 million for
NPOESS.

Funding for upper tier theater missile defense systems

The Senate amendment contained a provision (sec. 232)
that would authorize funds for the Theater High Altitude Area
Defense (THAAD) system and the Navy Upper Tier theater missile
defense (TMD) system. The provision would also prohibit the use
of funds during fiscal year 1997 by the Undersecretary of
Defense for Acquisition and Technology for official
representation activities until the Secretary of Defense
certifies to Congress that: (1) fiscal year 1997 funds for
THAAD and Navy Upper Tier have been made available for
obligation; and (2) the Navy Upper Tier system has been
included in the core TMD program.
The House bill contained no similar provision.
The Senate recedes.

Scorpius space launch technology program

The Senate amendment contained a provision (sec. 235)
that would provide for the use of up to $7.5 million of funds
authorized for the Ballistic Missile Defense Organization for
the Scorpius space launch technology program.
The House bill contained no similar provision.
The Senate recedes.

Corps SAM/MEADS program

The Senate amendment contained a provision (sec. 236)
that would authorize $56.2 million for the Corps surface-to-
air/Medium Extended Air Defense System, and would require the
Secretary of Defense to submit certain items prior to
obligating more than $15.0 million in fiscal year 1997.
The House bill contained no similar provision.
The Senate recedes. Funding for Corps SAM/MEADS is
discussed elsewhere in this report.

Annual report on threat of attack by ballistic missiles carrying
nuclear, chemical, or biological warheads

The Senate amendment contained a provision (sec. 237)
that would require an annual report on the threat of attack by
ballistic missiles carrying weapons of mass destruction.
The House bill contained no similar provision.
The Senate recedes.

TITLE III--OPERATION AND MAINTENANCE

Overview

The budget request for fiscal year 1997 contained an
authorization of $88,859.7 million for Operation and
Maintenance in the Department of Defense and $1,910.9 for
Working Capital Fund Accounts in fiscal year 1997. The House
bill would authorize $90,728.8 million for Operation and
Maintenance and $2,070.9 for Working Capital Fund Accounts. The
Senate amendment would authorize $89,113.8 million for
Operation and Maintenance and $2,215.9 for Working Capital Fund
Accounts. The conferees recommended an authorization of
$89,871.0 million for Operation and Maintenance and $2,065.9
for Working Capital Fund Accounts for fiscal year 1997. Unless
noted explicitly in the statement of managers, all changes are
made without prejudice.

Military Personnel Operation and Maintenance Funding

Increased Funding For Off-Duty Education

The conferees agreed to increases of $4.5 million in off-
duty education funds for the U.S. Marine Corps and $9.5 million
in tuition assistance for the U.S. Air Force.

Increased Funding For Recruiting

The conferees agreed to increase funding for recruiting
and advertising above the amount requested in the President's
budget by $4.7 million for the U.S. Marine Corps and by $5.0
million for the U.S. Army Reserve.

New Parent Support Program

The conferees agreed to fund the New Parent Support
Program at $20 million, and direct that it be allocated as
follows: Army, $7.8 million; Navy, $5.5 million; Marine Corps,
$2.9 million; Air Force, $3.8 million.

Active and reserve component P-3 squadrons

The budget request included funding to sustain a maritime
patrol aircraft (MPA) force structure of 12 active and 8
reserve P-3 squadrons (12/8), a reduction of one active and one
reserve squadron from the fiscal year 1996 force structure.
The Senate amendment would authorize an increase of $45.3
million to sustain the MPA force structure at 13 active and 9
reserve squadrons (13/9) in fiscal year 1997. The Senate report
(S. Rept. 104-267) noted that the operational demands placed on
MPA by the unified commanders have been very heavy in recent
years because the P-3 has a multi-mission capability that is
well-suited to littoral warfare operations. Despite an intense
operating tempo, budget pressures have forced the Navy to cut
P-3 force structure in its current budget request.
The House bill would authorize the requested amount.
The conferees agree to an increase of $23.6 million above
the budget request to avoid the reductions in P-3 force
structure that would be dictated by the budget request. Of this
total, $10.6 million would be for squadron operations and $13.0
million would be for personnel.

Defense Health Program

The conferees agreed to increase the Defense Health
Program account within the Operation and Maintenance account by
$475.0 million to resolve a shortfall in the budget request.

National defense features

The budget request contained no funding in the National
Defense Sealift Fund (NDSF) for a national defense features
(NDF) program.
The Senate amendment would authorize $50.0 million for
the NDF program, using funds made available from repeal of
section 132 of the National Defense Authorization Act for
Fiscal Year 1996.
The House bill would authorize the requested amount for
NDF.
The Senate recedes.
The conferees direct the Secretary of Defense to
establish a separate line item in the NDSF budget request for
the NDF program. The conferees view the NDF program as a matter
of special interest and direct that the Secretary not transfer
any funds out of the NDF line item without approval of the
congressional defense committees.

Maritime training ship

The budget request for the National Defense Sealift Fund
(NDSF) contained no funding for the repair and refurbishment of
the United States Naval Ship (U.S.N.S.) Tanner prior to its
redesignation as a maritime training ship.
The Senate amendment would authorize an increase of $5.0
million in the NDSF to complete necessary repair and
refurbishment of U.S.N.S. Tanner prior to its redesignation as
a maritime training ship.
The House bill would authorize the requested amount.
The House recedes.

Items of special interest

Air Force automated maintenance data systems

The conferees are aware that the Air Force is moving
toward a new standard maintenance data-system--the Integrated
Maintenance Data System (IMDS). The conferees also understand
that one of the first information systems to be integrated into
IMDS, scheduled during the second quarter of fiscal year 1997,
will be TICARRS. While the House bill provided $10.0 million
for TICARRS, the Air Force indicates that only $5.5 million is
required to operate TICARRS through the second quarter of
fiscal year 1997. Therefore, the conferees agree to provide
$5.5 million for this purpose. Should schedule or technical
uncertainties delay the implementation of IMDS, the conferees
expect the Air Force to provide sufficient funding to operate
the legacy data maintenance systems, CAMS/REMIS and TICARRS,
through fiscal year 1997.

Center for Military History

The conferees are aware that the Army is reducing the
number of civilian personnel in its employ. The Congress has
been informed that any reduction of civilians at the Center for
Military History (CMH) would be commensurate with other
reductions within the Department of the Army. The conferees are
encouraged by this plan and direct the Secretary to ensure that
any reduction at CMH be proportional to reductions made at
other Army activities.

Consolidation of integration of the military exchange systems

The conferees are aware that the Department of Defense
has established a task force to examine how to achieve an
integrated military exchange system. The conferees recognize
the imperative to generate efficiencies and improve the
delivery of the exchange benefit. While a consolidated or
integrated exchange system may be an option for achieving these
goals, the conferees direct that no action be taken to
consolidate or integrate the military exchange systems without
approval of the Committee on Armed Services of the Senate and
the Committee on National Security of the House of
Representatives.

Second destination transportation

The congressional defense committees have authorized
expenditures of appropriated funds for second destination
transportation charges for the military exchanges since the end
of World War II. These funds are utilized to assist the
military exchanges in shipping items manufactured in the United
States to service members and their families stationed in
overseas locations, thereby assuring retail prices for those
stationed overseas as close as possible to stateside prices.
The conferees remind the Department that second
destination transportation expenditures are not discretionary.
The conferees direct the Department of Defense and the
Department of the Army, acting as executive agent of second
destination transportation, to fully fund the actual
expenditures necessary to fully fund second destination
transportation charges.
The conferees note that the Department of Defense has not
implemented section 334 of the National Defense Authorization
Act for Fiscal Year 1996 which directed the Secretary to
authorize the exchange systems and the Defense Commissary
Agency to negotiate directly with private carriers to achieve
the most cost effective rates for the transportation of goods
overseas. The current policies, procedures and methods of
planning and budgeting for second destination transportation
costs are ineffective and lead to under funding within the
account. The conferees direct the Secretary of Defense to
immediately implement the provisions of section 334 of the
National Defense Authorization Act for Fiscal Year 1996.

Defense Commissary Agency designation as a performance based
organization

The committee report to accompany S. 1745 (S. Rept. 104-
267) and the committee report to accompany H. 3230 (H. Rept.
104-563) included comments concerning the nomination by the
Department of Defense to convert the Defense Commissary Agency
(DeCA) to a Performance Based Organization. These reports note
that the committees strongly support the commissary benefit and
supports actions necessary to ensure the benefit is maintained.
The conferees concur in maintaining the commissary
benefit for our service members and their families. The
conferees are aware that the Department is studying whether the
leadership of DeCA should be uniformed or civilian in a
Performance Based Organization. The conferees believe that the
military services should maintain the same level of key
leadership within DeCA as that in effect on January 1, 1996. It
is imperative that the commissionary benefit not be degraded
and any transition plan must include safeguards to ensure that
trade-offs and management initiatives of a performance-based
organization serve the beneficiary population not the
organization or industry.

legislative provisions

Subtitle A--Authorization of Appropriations

legislative provisions adopted

Armed Forces Retirement Home (sec. 303)

The House bill contained a provision (sec. 303) that
would authorize $57.3 million from the Armed Forces Retirement
Home Trust Fund for the operation of the Armed Forces
Retirement Home.
The Senate amendment contained a similar provision (sec.
586) that would authorize $57.345 million from the Armed Forces
Retirement Home Trust Fund for the operation of the Armed
Forces Retirement Home.
The Senate recedes.

Transfer from National Defense Stockpile Transaction Fund (sec. 304)

The House bill contained a provision (sec. 304) that
would authorize the Secretary of Defense to transfer $250
million from the National Defense Stockpile Transaction Fund to
the operation and maintenance accounts of the military
services.
The Senate bill contained a similar provision (sec. 304)
that would authorize the transfer of $150 million.
The House recedes.

Civil Air Patrol Corporation (sec. 305)

The Senate amendment contained a provision (sec. 305)
that would permit the Department of Defense to provide the
Civil Air Patrol Corporation with $14.5 million. The provision
required that 25 percent of these funds be used for the Civil
Air Patrol's principal mission of search and rescue.
The House bill contained no similar provision.
The House recedes with an amendment that would require
that $14.5 million in operation and maintenance funds be made
available to the Civil Air Patrol Corporation and that 25
percent of these funds be used to support search and rescue and
disaster relief operations.

Availability of additional funds for Antiterrorism activities (sec.
306)

The conferees agree to a provision authorizing an
additional $14.0 million for use by the Secretary of Defense to
fund emergency anti-terrorist activities of the Department of
Defense. These funds are in addition to funds otherwise
authorize to be appropriated in this Act for anti-terrorism,
and are to be available for the Secretary of Defense to respond
quickly to emergency anti-terrorism requirements that are
identified by commanders of the unified combatant commands or
commanders of joint task forces in response to a change in
terrorist threat level.
The conferees urge the Secretary of Defense to propose an
emergency anti-terrorism program as part of the fiscal year
1998 budget submission.

SR-71 (sec. 308)

The House bill contained a provision (sec. 1040) that
would prohibit the Secretary of Defense from carrying out any
aerial reconnaissance program using the SR-71 aircraft.
The Senate amendment contained a provision (sec. 306)
that would provide $30.0 million in operations and maintenance
funding for the SR-71 contingency reconnaissance force.
The House recedes.

Subtitle B--Depot-Level Activities

legislative provisions adopted

Extension of authority for aviation depots and naval shipyards to
engage in defense-related production and services (sec. 311)

The House bill contained a provision (sec. 311) that
would extend the authority for aviation depots and shipyards of
the Department of Defense to engage in defense related
production and services.
The Senate amendment contained a similar provision (sec.
328).
The Senate recedes.

Test programs for modernization through spares (sec. 312)

The Senate amendment contained a provision (sec. 812)
that would require the Secretary of the Army to report to the
Committee on Armed Services of the Senate and the Committee on
National Security of the House of Representatives the steps
that have been taken to ensure that the Army's modernization-
through-spares program is conducted in accordance with
applicable federal laws.
The House bill contained no similar provision.
The House recedes.

Subtitle C--Environmental Provisions

legislative provisions adopted

Defense contractors covered by requirement for reports on contractor
reimbursement costs for response actions (sec. 321)

The House bill contained a provision (sec. 321) that
would repeal subsection (c) of section 2706 of title 10, United
States Code, which requires the Department of Defense to submit
an annual report to Congress that describes the reimbursement
of environmental response action costs and the amount and
status of pending requests for reimbursement for the top 100
defense contractors.
The Senate amendment contained a provision (sec. 342)
that would establish a reporting requirement that would limit
data collection to the top 20 defense contractors.
The House recedes.

Establishment of separate environmental restoration accounts for each
military department (sec. 322)

The Senate amendment contained a provision (sec. 341)
that would devolve the Defense Environmental Restoration
Account (DERA), from a single transfer account administered by
the Department of Defense, to four separate accounts
administered by the individual military departments.
The House bill contained no similar provision.
The House recedes.

Payments of stipulated penalties assessed under the Comprehensive
Environmental Response, Compensation, and Liability Act (sec.
323)

The House bill contained a provision (sec. 322) that
would authorize the payment from the Defense Environmental
Restoration Account (DERA) of stipulated civil penalties
assessed under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (CERCLA) (Public Law
96-510) at five military installations--Fort Riley, Kansas
($34,000), the Massachusetts Military Reservation ($55,000),
F.E. Warren Air Force Base, Wyoming ($10,000), the Naval
Education and Training Center, Newport, Rhode Island ($30,000),
and the Lake City Army Ammunition Plant, Missouri ($37,500).
The provision would also allow the Department of Defense (DOD)
to complete a supplemental environmental project (SEP)
($500,000) in lieu of stipulated penalties at the Massachusetts
Military Reservation.
The Senate amendment contained a similar provision (sec.
344).
The Senate recedes with a technical amendment.

Shipboard solid waste control (sec. 324)

The House bill contained a provision (sec. 324) that
would adopt the administration's legislative proposal to amend
section 1902(c) of the Act to Prevent Pollution from Ships
(APPS) (33 U.S.C. 1901, et seq.) to allow for the use of
pulpers and shredders for the disposal of non-plastic and non-
floating solid waste within ``special areas'' (the Baltic Sea,
the North Sea, the Mediterranean Sea, the Red Sea, the Persian
Gulf, and the Antarctic Ocean), consistent with Annex V of the
International Convention for the Prevention of Pollution on
Ships (MARPOL).
The Senate amendment contained a similar provision (sec.
348).
The House recedes.

Authority to develop and implement land use plans for Defense
Environmental Restoration Program (sec. 325)

The House bill contained a provision (sec. 325) that
would permit the Secretary of Defense to conduct a limited
pilot program to develop and implement, as a part of the
Defense Environmental Restoration Program, a land use plan for
up to ten defense sites where the Secretary is planning or
implementing environmental restoration activities. In
developing these plans, the Secretary would be required to
consult with technical review committees, restoration advisory
boards, local land use redevelopment authorities or other
appropriate agencies knowledgeable about the site and land use
planning. The House provision would require the submission of a
report to Congress by December 31, 1998.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require
an annual report consistent with section 2706(a) of title 10,
United States Code. The conferees expect that cleanup
activities conducted at contaminated sites will be consistent
with the anticipated future land use.

Pilot program to test alternative technology for limiting air emissions
during shipyard blasting and coating operations (sec. 326)

The House bill contained a provision (sec. 326) that
would direct the Secretary of the Navy to establish a pilot
program to test alternative technology designed to capture,
destroy or remove particulate emissions and volatile air
pollutants that occur during abrasive blasting and coating
operations at naval shipyards. The Secretary would be required
to test the validity of the technology, assess its cost
effectiveness, and determine the extent to which it would
facilitate compliance with environmental strictures. The
Secretary would then report to Congress and provide a
recommendation regarding large scale implementation of the
technology at naval shipyards.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of the Navy to determine the potential benefit of
the technology prior to initiation of the pilot program.

Agreements for services of other agencies in support of environmental
technology certifications (sec. 327)

The House bill contained a provision (sec. 328) that
would provide the Department of Defense with the authority to
enter into cooperative agreements with agencies of a State or
local government to obtain assistance in the demonstration,
validation, and regulatory certification of environmental
technology.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit the
authority to enter into cooperative agreements for technology
certification. As a prerequisite to entering into such
cooperative agreements, the amendment would require the
Secretary of Defense to determine that the technology in
question has the potential to benefit the Department
significantly and that there is no private market reasonably
available to facilitate regulatory certification. The amendment
also would expand the annual reporting requirement under
section 2706(a) of title 10, United States Code, to ensure
accountability for the use of these cooperative agreements.
The conferees agree that the purpose of this provision is
to expand the current practice of site specific environmental
technology certification and to facilitate broader regulatory
acceptance. The conferees expect that the use of cooperative
agreements will promote flexibility, cost effectiveness, and
efficiency in achieving regulatory acceptance and application
of new technologies that will help the Department meet
environmental requirements.
The continuation of this new authority will be contingent
upon the degree to which regulatory acceptance is effectively
expanded. The conferees will carefully review the Department's
annual report to determine the effectiveness of the cooperative
agreement authority.

Repeal of redundant notification and consultation requirements
regarding remedial investigations and feasibility studies at
certain installations to be closed under the base closure laws
(sec. 328)

The Senate amendment contained a provision (sec. 343)
that would repeal section 334 of the National Defense
Authorization Act for Fiscal Years 1992 and 1993. Section 334
triggers redundant notification and consultation requirements
regarding remedial investigations and feasibility studies at
certain installations to be closed under the base closure laws.
The House bill contained no similar provision.
The House recedes.

Authority for agreements with Indian tribes for services under the
environmental restoration program (sec. 329)

The Senate amendment contained a provision (sec. 352)
that would modify section 2701 of title 10, United States Code,
specifically to authorize the Secretary of Defense to enter
into agreements to obtain the reimbursable services of any
Indian tribe that assists the Secretary in carrying out
Department of Defense environmental restoration activities.
Section 2701 currently authorizes the Secretary to enter into
such agreements with any other Federal, State or local
government agency. The provision would make it clear that an
Indian tribe may be a party to such an agreement.
The House bill contained no similar provision.
The House recedes.

Authority to withhold listing of Federal facilities on the National
Priorities List (sec. 330)

The Senate amendment contained a provision (sec. 345)
that would amend section 120(d) of the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA)
of 1980 (42 U.S.C. 9620(d)) by providing the Environmental
Protection Agency with the discretion to withhold National
Priorities List designation of a Federal facility cleanup
action if the site is already subject to an approved Federal or
State cleanup plan.
The House bill contained no similar provision.
The House recedes.

Clarification of meaning of uncontaminated property for purposes of
transfer by the United States (sec. 331)

The Senate amendment contained a provision (sec. 347)
that would amend section 120(h)(4)(A) of the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA)
of 1980 (42 U.S.C. 9620(h)) to expand the scope of clean parcel
determinations.
The House bill contained no similar provision.
The House recedes.
The conferees have concluded that the Senate amendment
would facilitate the expeditious transfer of clean parcels on
closing installations, facilitating economic reuse. The
provision is consistent with the administration's legislative
proposal.

Conservation and cultural activities (sec. 332)

The House bill contained a provision (sec. 323) that
would authorize the Secretary of Defense to establish and
execute a ``Conservation and Readiness Program.'' The provision
would allow for the use of cooperative agreements and grants to
facilitate the participation of public and private agencies,
organizations, institutions, individuals, or other entities.
The purpose of the program would be to conduct and manage
coordinated conservation and cultural activities that have
regional or Department of Defense-side significance.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would permit
the Secretary of Defense to establish and carry out a program
to address cultural and natural resource issues that have
regional or Department of Defense-wide significance and that
involve more than one military department. The amendment would
eliminate the Secretary's authority to award grants and would
establish criteria for determining which conservation and
cultural activities would be eligible for the program.
The conferees recognize that there are many conservation
and cultural activities that are necessary to support joint
military requirements. For example, assessing bird migratory
patterns so that operational flights may avoid high bird volume
transit areas at certain times of the year enhances the safety
of flight operations for all the services, and it would not
make sense for each service to perform its own separate study
of such migratory patterns. The military departments have an
ongoing obligation to ensure that there is adequate funding to
respond to the conservation and cultural issues that arise at
military installations. Accordingly, the Department of Defense
has developed a definitive annual planning, programming, and
budgeting strategy for the preservation of cultural and natural
resources. The instant program recognizes that development.
The conferees believe that it is also necessary to have a
Defense-wide program for cultural and natural resource
management. However, there should be specific criteria for
determining program eligibility in order to avoid some of the
abuses that have existed under the Legacy Program. Such a
program will allow the Department of Defense to conduct
regionally significant, multi-component, operationally or
legally compelled natural and cultural activities in a
coordinated, uniform, and efficient manner. Any funds
appropriated for the Legacy Program shall be subject to the
criteria set forth in this provision.

Navy program to monitor ecological effects of organotin (sec. 333)

The House bill contained a provision (sec. 327) that
would require the Secretary of the Navy, in consultation with
the Environmental Protection Agency (EPA), to develop and
implement a program to monitor the concentrations of organotin
in the water column, sediments, and aquatic organisms of
representative estuaries and near-coastal waters of the United
States, as described in Organotin Antifouling Paint Control Act
of 1988 (OAPCA) (Public Law 100-333). The program would be
designed to produce high quality data to enable the EPA to
develop water quality criteria concerning organotin compounds.
In addition, the Secretary of the Navy would be required to
submit to Congress, no later than June 1, 1997, a report
explaining the monitoring program and describing the results of
the analysis performed pursuant to that program.
The Organotin Antifouling Paint Control Act of 1988
(OAPCA) (Public Law 100-333) was enacted by Congress to protect
marine life by reducing the quantities of organotin, a highly
toxic ingredient in antifouling paints used on vessels that
navigate the waters of the United States. Despite the fact that
the Act imposed a March 30, 1989 deadline on the Environmental
Protection Agency (EPA) for the certification of organotin
release rates and water quality criteria, such criteria have
yet to be established. As a result, there are no uniform
national water quality standards for organotin. The OAPCA also
directed the EPA to implement a 10 year organotin monitoring
program and to submit annual reports to Congress. Only one
report has been submitted.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit the
application of the provision. The EPA would be obligated to
agree to provide the Navy with advance funding. The requirement
for Navy monitoring would terminate after five years. The Navy
would also submit to Congress a report describing the results
of its monitoring activities.
Although the conferees agree that the Navy should not be
required to perform the entire organotin monitoring function it
does, however, appear evident that the EPA is incapable of
meeting its statutory mandate. The conferees agree that this is
a unique situation and does not set a precedent for assigning
environmental monitoring activities to the Navy in the future.
Finally, the conferees expect that, with the implementation of
the Navy monitoring activities, the EPA will make progress
toward completion of its remaining responsibilities and develop
water quality standards for organotin.

Authority to transfer contaminated Federal property before completion
of required response actions (sec. 334)

The Senate amendment contained a provision (sec. 346)
that would amend section 120(h)(3)(B) of the Comprehensive
Environmental Response, Compensation, and Liability Act
(CERCLA) of 1980 (42 U.S.C. 9620) to authorize the United
States to transfer contaminated federal property before an
approved remedial design is in place. The Senate provision
would require a federal agency to provide remedial action
assurances in the deed or other agreement that is proposed to
govern the transfer. That approach is similar to the purchase
agreements used in the private sector, with the additional
element of regulatory participation. The Senate provision was
based on a legislative proposal submitted by the administration
to facilitate reuse of contaminated property and to eliminate
the disparate treatment between public and private sector
transfers of contaminated property.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Prior to the transfer of property under this provision,
it must be determined that the property is suitable for
transfer, that the intended use is consistent with protection
of human health and the environment, and that the deed or other
agreement proposed to govern the transfer contains response
action assurances. The conferees note that the provision would
allow transfers to accommodate the laws of different states.
Moreover, the conferees agree that the provision does not
change existing federal responsibility with respect to response
action at transferred property. Although the provision amended
section 120(a)(4) of CERCLA (42 U.S.C. 9601 et seq.), with
respect to such property, it should not be construed to
otherwise limit or expand the sovereign immunity waiver under
this section.

Subtitle D--Commissaries and Nonappropriated Fund Instrumentalities

legislative provisions adopted

Contracts with other agencies to provide or obtain goods and services
to promote efficient operation and management of exchanges and
morale, welfare, and recreation activities (sec. 341)

The House bill contained a provision (sec. 341) that
would provide authority for exchanges and morale, welfare and
recreation systems (MWR) to enter into contracts or other
agreements with another element of the Department of Defense or
another Federal department, agency or instrumentality to
provide goods and services beneficial to the efficient
management and operation of exchange and MWR systems.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Noncompetitive procurement of brand-name commercial items for resale in
commissary stores (sec. 342)

The House bill contained a provision (sec. 342) that
would clarify that, in order to receive the exception from
competition in contracting requirements, a commercial item has
to be regularly sold outside the commissary store under the
same brandname as it would be sold in the commissary store.
The Senate amendment contained a similar provision (sec.
363).
The Senate recedes with a clarifying amendment.
The conferees intend that commissary stores only acquire
items for resale under the brand-name exemption to the
Competition in Contracting Act that are ordinarily available to
the general public. The military commissary system is not an
appropriate vehicle to sell items for which the distribution is
limited to the military market unless they have been acquired
for resale through competitive procedures. Because the dynamics
of the marketplace often offer significant opportunities for
consumer savings during the introductory sales period for new
products, it is not the conferees intent that these provisions
limit the introduction of the new items into the commissary
system when their release to the commissary system is
simultaneous with their introduction in the commercial sector.

Prohibition of sales or rental of sexually explicit material (sec. 343)

The House bill contained a provision (sec. 343) that
would prohibit the sale or rental of sexually explicit written
or videotaped material on property under the jurisdiction of
the Department of Defense.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.

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

LEGISLATIVE PROVISIONS ADOPTED

Extension of requirement for competitive procurement of printing and
duplication services (sec. 351)

The House bill contained a provision (sec. 351) that
would extend section 351 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106) which directed
the Defense Printing Service (DPS) to competitively procure
from private sector sources at least 70 percent of its printing
and duplication work. The provision also requires a report on
the DPS compliance with this requirement.
The Senate amendment contained no similar provision.
The Senate recedes.

Reporting Requirements under Demonstration project for purchase of
fire, security, police, public works, and utility services from
local government agencies (sec. 352)

The House bill contained a provision (sec. 832) that
would extend the authority of the Department of Defense (DOD)
to conduct a demonstration project for fire, safety, and other
services for an additional 2 years. The provision would also
require the DOD to submit a report on this project to the
Congress during each of these two years.
The Senate had a similar provision.
The Senate recedes with a technical amendment.

Subtitle F--Other Matters

legislative provisions adopted

Authority for use of appropriated funds for recruiting functions (sec.
361)

The House bill contained a provision (sec. 1034) that
would authorize the secretaries of the military departments to
expend appropriated funds for small meals and snacks during
recruiting functions.
The Senate amendment contained a similar provision (sec.
362) that would authorize this expenditure for a five year
period, and specify that the refreshments be provided for
members of the Delayed Entry Program, other prospects, and
community leaders.
The House recedes with a clarifying amendment.

Training of members of the uniformed services at non-government
facilities (sec. 362)

The Senate amendment contained a provision (sec. 1065)
that would authorize military personnel to use the same
procedures for acquiring commercial training courses as
civilian personnel.
The House bill contained no similar provision.
The House recedes with an amendment that would include
this authority in title 10, United States Code.

Requirement for preparation of plan for improved operation of working-
capital funds and effect of failure to produce an approved plan
(sec. 363)

The House bill contained a provision (sec. 360) that
would terminate the Defense Business Operations Fund (DBOF)
effective October 1, 1998. It also would require the Secretary
of Defense to submit to the Congress a plan to improve the
management and performance of the industrial, commercial, and
support activities currently managed through the DBOF not later
than September 30, 1997.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would delay the
termination of DBOF until October 1, 1999. The conferees
believe strong action is in order to focus the attention of the
Department of Defense (DOD) upon serious financial and
management shortfalls in DBOF. While the conferees fully
support the concept of providing full visibility of the total
costs of industrial and support activities, the conferees
believe that an update to the DBOF management plan is long
overdue. The conferees urge DOD to develop a plan that provides
stability to DBOF activities, while protecting unique
capabilities critical during war or mobilization. It is the
intent of the conferees to use the report required in this
provision as a basis to review the decision on the termination
of DBOF.

Increase in capital asset threshold under Defense Business Operations
Fund (sec. 364)

The House bill contained a provision (sec. 361) that
would raise the capital asset threshold in a Defense Business
Operations Fund (DBOF) activity from $50,000 to $100,000.
The Senate amendment contained no similar provision.
The Senate recedes.

Expansion of authority to donate unusable food (sec. 365)

The House bill contained a provision (sec. 369) that
would expand the list of eligible recipients for donations of
unusable food items from the Department of Defense to state and
local governments, many of whom operate their own shelters and
food kitchens to feed homeless citizens. The provision would
also allow the Defense Logistics Agency (DLA) to participate in
this program. Currently, section 2485 of title 10, United
States Code; does not include state and local governments among
the entities eligible to receive donations of unusable and
surplus food items such as Meals Ready To Eat (MREs), and
allows only the individual military departments to donate
unusable food. This provision would allow DLA to donate MREs
and other excess food items from various defense agencies to
cities and states who, in turn, could distribute them to
homeless individuals and families.
The Senate amendment contained no similar provision.
The Senate recedes.

Assistance to committees involved in inauguration of the President
(sec. 366)

The Senate amendment contained a provision (sec. 365)
that would amend section 2543 of title 10, United States Code,
to allow the Secretary of Defense to provide safety, security,
and ceremonial assistance to the Presidential inaugural
committee. The Secretary would also be authorized to provide
other assistance deemed appropriate, but only if done on a
reimbursable basis.
The House bill contained no similar provision.
The House recedes.

Department of Defense support for sporting events (sec. 367)

The Senate amendment contained a provision (sec. 366)
that would allow the Secretary of Defense to provide assistance
to civilian law enforcement agencies for security and safety at
civilian sporting events if the Attorney General of the United
States certifies that such assistance is required to meet
essential security and safety needs. The provision would also
allow the Secretary of Defense to provide other assistance for
these events but only to the extent that the assistance could
not be reasonably provided by a source other than the
Department of Defense, does not adversely impact on military
preparedness, and the organization requesting such assistance
reimburses the Department of Defense.
The House bill contained no similar provision.
The House recedes with a technical amendment.

Storage of motor vehicle in lieu of transportation (sec. 368)

The House bill contained a provision (sec. 363) that
would provide storage, at government expense, of privately-
owned vehicles for service members when there are restrictions
on the normal shipment of these vehicles, and would also
provide storage of vehicles for service members who are
deployed between 30 and 180 consecutive days.
The Senate amendment contained a similar provision (sec.
622).
The Senate recedes with an amendment that would limit
storage of vehicles to those service members who are deployed
on contingency operations.

Security protections at Department of Defense facilities in the
national capital region (sec. 369)

The House bill contained a provision (sec. 365) that
would permit the Defense Protection Service (DPS) to provide
emergency protection and security services to sensitive defense
activities in the National Capital Region (NCR).
The Senate amendment contained no similar provision.
The Senate recedes.

Administration of midshipmen's store and other Naval Academy support
activities as nonappropriated fund instrumentality (sec. 370)

The Senate amendment contained a provision (sec. 364)
that would authorize the conversion of all midshipmen trust
fund operations that support the Naval Academy and the Brigade
of Midshipmen to nonappropriated fund status.
The House bill contained no similar provision.
The House recedes with an amendment that would specify
that the employment status of current employees is protected
during and after this conversion.

Reimbursement under agreement for instruction of civilian students at
Foreign Language Institute of the Defense Language Institute
(sec. 371)

The Senate amendment contained a provision (sec. 369)
that would authorize the Secretary of the Army to determine the
amount of reimbursement an educational institution would be
required to pay in order to permit non-government students to
receive instruction at the Defense Language Institute.
The House bill contained no similar provision.
The House recedes with an amendment that would ensure
that the reimbursement rate would not be less than the rate
paid by other governmental agencies, and would permit the
Secretary of the Army to accept reimbursement in-kind as part
of the reimbursement on a case-by-case basis.

Assistance to local educational agencies that benefit dependents of
members of the Armed Forces and Department of Defense civilian
employees (sec. 372)

The House bill contained a provision (sec. 367) that
would authorize $58.0 million for payment to local educational
agencies that provide educational services to Department of
Defense personnel and their dependents. The provision would
also require DOD to notify these agencies that they are
eligible for such assistance.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would provide
$35.0 million.

Renovation of building for Defense Finance and Accounting Service
center, Fort Benjamin Harrison, Indian (sec. 373)

The Senate amendment contained a provision (sec. 367)
that would authorize the Department of Defense to transfer
operating funds to the General Services Administration (GSA)
for purposes of renovating Building 1 at Fort Benjamin
Harrison, Indiana, which is occupied by the Defense Finance and
Accounting Service.
The House bill contained no similar provision.
The House recedes with an amendment that would ensure
that the DOD is fully reimbursed by the GSA for the funds which
the DOD expends on the renovation project.

Food donation pilot program at service academies (sec. 374)

The Senate amendment contained a provision (sec. 1073)
that would authorize the service academies to conduct food
donation programs to serve the poor and homeless people
consistent with those programs authorized to be conducted by
other military activities.
The House bill contained no similar provision.
The House recedes.

Authority of Air National Guard to provide certain services at Lincoln
Municipal Airport, Lincoln, Nebraska (sec. 375)

The Senate amendment contained a provision (sec. 370)
that would provide the authority for the Nebraska Air National
Guard to provide fire and rescue services at the Lincoln
Municipal Airport in Lincoln, Nebraska.
The House bill contained no similar provision.
The House recedes with an amendment that would require
such services to be provided only if the Nebraska Air National
Guard and the Lincoln Municipal Airport Authority enter into an
agreement providing reimbursement to the Air National Guard for
the cost of providing such services. The agreement must also
provide an indemnification from any claim for damages or injury
to any person or property arising out of the provision of such
services or the failure to provide such services.

Technical amendment regarding impact aid program (sec. 376)

The Senate amendment contained a provision (sec. 1086)
that would amend the special rule for impact aid payments for
eligible federally connected children and would prohibit the
Secretary of Education from making payments to school districts
when the eligibility is associated with property used for
Department of Defense activities, unless such funds are
transferred from the Department of Defense.
The House bill contained no similar provision.
The House recedes with an amendment that would strike the
portion of the provision that required funds to be transferred
from the Department of Defense.

legislative provisions not adopted

Depot-level activities

The House bill contained a provision (sec. 312) that
would exclude large maintenance projects from the calculations
for determining the amount of depot maintenance that is
performed by private contractors.
The Senate amendment contained a number of provisions
(secs. 321-330) that would make numerous changes to the current
legislation regarding the performance of depot maintenance
within the Department of Defense (DOD). Section 321 would
reinforce the idea that core logistics functions of the DOD
should be performed at government owned depots, using
government owned equipment operated by government employees.
Section 322 would change the current 60/40 ratio, as outlined
in section 2466 of title 10, United States Code. Section 323
would require the Secretary of Defense to annually report on
the amount of depot maintenance performed by the public sector
during the previous year and the amount of maintenance
performed by the private sector. Section 324 would codify the
definition of depot maintenance.
In addition, section 325 would require the Department of
Defense to provide the congressional defense committees with a
report outlining its plan for the performance of depot
maintenance at public depots and by private industry. This
report would require the DOD to answer some of the questions
that they did not answer last year. Section 326 would require
the Department of Defense to provide the congressional defense
committees with a report outlining the competitive procedures
used by the Department of Defense in determining whether the
depot maintenance workload should be performed by a public
depot or a private entity.
Furthermore, section 327 would require the Joint Chiefs
of Staff to perform a risk assessment regarding what depot
maintenance workloads could be performed by the private sector
and what workloads need to be maintained in depots owned and
operated by the Department of Defense. Section 329 would
require a competition between all DOD aviation depots to
determine which depot can perform the depot maintenance on F-18
aircraft most efficiently. Finally, section 330 would require
the Department of Defense to perform a competition for the
workload currently performed at Kelly and McClellan AFB to
determine if the work should be moved to another public depot
or be privatized in place.
The House and Senate recede. The conference agreement
does not contain any of these provisions. The conferees agree
not to take any action regarding these issues this year.

Master Ship Repair Agreement

The House bill contained a provision (sec. 352) that
would require the Secretary of the Navy to award complex ship
repairs and overhauls only to qualified shipyard contractors.
The current Navy requirements for Master Ship Repair Agreement
(MSRA) qualification includes a requirement for a contractor
owned dry-dock facility. This section would not apply to
repairs and overhauls performed on the Pacific Coast of the
United States.
The Senate amendment contained no similar provision.
The House recedes.
The conferees are aware that the Navy would like to
revise its requirements for MSRA certification by increasing
capability requirements which will demand a more robust and
extensive repair capability, and will delete the requirement
for a contractor owned dry-dock facility. Under these new
requirements the Navy would establish dry-dock requirements on
an individual repair contract solicitation basis. The conferees
believe that such a revision in the MSRA requirements would
allow more private shipyards to compete for repair contracts
that do not require contractor owned dry-dock facilities. The
conferees understand that this new Navy policy for ship repair
contracts is designed to insure an adequate and comprehensive
ship repair industrial base to meet current and future Navy
requirements. The conferees further believe that this policy
change will provide stability to the Navy ship repair and
overhaul program. Therefore, the conferees direct the Secretary
of the Navy to implement this new policy as soon as possible.

National Defense Reserve Fleet

The budget request contained $90.0 million in the
National Defense Sealift Fund for the acquisition and
modification of roll-on/roll-off (RO/RO) ships for introduction
into the Ready Reserve Force (RRF) component of the National
Defense Reserve Fleet (NDRF).
The Senate amendment contained a provision (sec. 312)
that would:
(1) waive the current congressionally imposed
restriction on the acquisition of RO/ROs from the world
market to permit the acquisition and modification of up
to five such RO/ROs for introduction into the RRF; and
(2) authorize an increase of $60.0 million above
the budget request for the acquisition and modification
of two additional RO/ROs for the RRF.
The House bill contained no similar provision. The House
bill would reduce the budget request by the $90.0 million
included in it for the acquisition and modification of foreign-
built RO/ROs and apply these funds to the purchase of a
maritime prepositioning ship for the Marine Corps.
The Senate recedes.

Restriction on Coast Guard funding

The Senate amendment contained a provision (sec. 314)
that would reject any authorization for the Department of
Defense to fund the Coast Guard through budget subfunction 054.
The House bill contained no similar provision.
The Senate recedes.

Oceanography

The Senate amendment contained a provision (sec. 315)
that would authorize an additional $6.2 million for
oceanographic ship operations and data analysis for the U.S.
Navy.
The House bill contained no similar provision.
The Senate recedes.
The conferees recognize the importance of the
oceanographic activities of the Navy and authorize an
additional $6.2 million for this purpose in the operations and
maintenance account.

Firefighting and security-guard functions at facilities leased by the
Government

The Senate amendment contained a provision (sec. 361)
that would modify the current prohibition on contracting for
firefighting and security-guard services. This provision would
amend current legislation by clarifying the authority of the
Department of Defense to contract with non-federal employees
for these services if they are to be carried out at a private
facility at which a Federal Government activity is located
pursuant to a lease of the facility.
The House bill contained no similar provision.
The Senate recedes.

Computer emergency response team

The Senate amendment contained a provision (sec. 368)
that would authorize $2.0 million to be used by the Software
Engineering Institute for use by the Computer Emergency
Response Team.
The House bill contained no similar provision.
The Senate recedes.
The conferees support the important work of the Computer
Emergency Response Team and have agreed to authorize an
additional $2.0 million for this purpose in the operations and
maintenance tables.

Title IV--Military Personnel Authorizations

items of special interest

Military Personnel Funding

The conferees agreed to authorize that $70.1 billion,
which is $273.3 million above the President's request, be
appropriated for military personnel. The conference agreement
includes the following:

air national guard fighter aircraft

The conferees authorize the Air National Guard personnel
end strength 576 part-time personnel, 249 active guard/reserves
and 343 military technicians above the budget request and
recommend an increase of $8.5 million to the personnel
authorization to provide Air National Guard fighter squadrons
with 15 primary authorized aircraft (PAA) per squadron vice the
requested 12.

air national guard c-130 aircraft

The conferees authorize the Air National Guard personnel
end strength 310 part-time personnel, 25 active guard/reserves
and 50 military technicians above the budget request and
recommend an increase of $2.0 million to the personnel
authorization to provide Air National Guard tactical airlift
squadrons with 12 primary authorized aircraft (PAA) per
squadron vice the requested 10.

army military personnel account shortfall for fiscal year 1997

The conferees authorized a $50.0 million addition to the
Army military personnel account.

reserve full time manning increase

In recognition of the expanded role of both the Army and
Air Force Reserve in the early-deploying contingency forces and
day-to-day operational tempo, the conferees authorize the
Secretary of the Army to increase the number of Active Guard
and Reserve (AGR) by 254 personnel and authorize the Secretary
of the Air Force to increase the number of AGR by 30 personnel.
The conferees authorize an increase of $8.0 million above the
President's request for reserves on active duty to support the
reserves in the Army and $2.6 million for reserves on active
duty to support the reserves in the Air Force.

navy maritime patrol aircraft

The conferees authorize the Navy to increase the number
of Navy P-3C maritime patrol aircraft squadrons by two (1
active, 1 reserve) above the 12 active and 8 reserve squadrons
requested in the President's budget. As a consequence, the
conferees authorize the following increases: Navy active
personnel accounts (End Strength: 418 personnel, and $9.0
million); Naval Reserve personnel accounts (End Strength: 97
Training and Administration of the Reserves (TAR) personnel,
266 part-time personnel, and $4.0 million).

reserve component individual training funds

The conferees authorize $7.5 million above the
President's budget request for National Guard personnel account
to fund schools and special training for military occupational
skill training. In addition, the conferees authorize funding
within the Army Reserve personnel account to provide troop
program unit professional development training, as well as
individual skills training, by $7.5 million.

Subtitle A--Active Forces

legislative provisions adopted

End strengths for active forces (sec. 401)

The House bill contained a provision (sec. 401) that
would authorize end strengths for active forces.
The Senate amendment contained a similar provision (sec.
401).
The Senate recedes with an amendment that includes the
authorized strengths for officers.

------------------------------------------------------------------------
Fiscal year
-----------------------------------------
1996 1997 1997
authorization request recommendation
------------------------------------------------------------------------
Army:
Total..................... 495,000 495,000 495,000
Officer................... 81,300 80,300 80,300
Navy:
Total..................... 428,340 406,900 407,318
Officer................... 58,870 56,100 56,165
Marine Corps:
Total..................... 174,000 174,000 174,000
Officer................... 17,978 17,978 17,978
Air Force:
Total..................... 388,200 381,100 381,100
Officer................... 75,928 74,445 74,445
------------------------------------------------------------------------

Permanent end strength levels to support two major regional
contingencies (sec. 402)

The House bill contained a provision (sec. 402) that
would require that annual defense budget requests submitted to
Congress must provide at least enough funding to maintain the
minimum active end strengths prescribed in the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
The Senate amendment contained a provision (sec. 402)
that would increase the flexibility afforded military services
to manage their active duty end strengths from 0.5 percent to
5.0 percent.
The Senate recedes with an amendment that combines the
two provisions and provides the military services 1.0 percent
flexibility in order to manage their end strengths effectively.

Authorized strengths for commissioned officers on active duty in grades
of major, lieutenant colonel, and colonel and Navy grades of
lieutenant commander, commander, and captain (sec. 403)

The House bill contained a provision (sec. 403) that
would permanently raise the grade ceilings of active duty Army,
Air Force, and Marine Corps majors and lieutenant colonels and
active duty Navy lieutenant commanders, commanders, and
captains relative to the total number of commissioned officers
on active duty.
The Senate amendment contained a similar provision (sec.
403).
The House recedes.

Extension of requirement for recommendations regarding appointments to
joint 4-star officer positions (sec. 404)

The Senate amendment contained a provision (sec. 404)
that would extend, for three years, the process for exemption
of combatant commanders (CINCs), the Deputy Commander-in-Chief
of the U.S. European Command (DCINCEUR), and the Commander-in-
Chief, U.S. Forces, Korea, from the ceiling for grades above
major general or rear admiral under certain conditions.
The House bill contained no similar provision.
The House recedes with an amendment that would extend the
expiration date contained in section 525(b)(5)(c) from
September 30, 1997 to September 30, 2000.

Increase in authorized number of general officers on active duty in the
Marine Corps (sec. 405)

The Senate amendment contained a provision (sec. 405)
that would increase the number of active duty general officers
in the Marine Corps by 12, from 68 to 80.
The House bill contained no similar provision.
The House recedes.
The conferees do not intend that this action prejudice
the outcome of the comprehensive study of general and flag
officers required by section 1213 of this conference report
which would include these authorizations.

Subtitle B--Reserve Forces

Legislative provisions adopted

End strengths for selected reserve (sec. 411)

The House bill contained a provision (sec. 411) that
would authorize the end strength levels for the selected
reserve for fiscal year 1997.
The Senate amendment contained a similar provision (sec.
411).
The Senate recedes with an amendment that would authorize
selected reserve end strengths at the higher end strength level
for each component.
The following table summarizes the authorized end
strength levels for the selected reserve for fiscal year 1997.

------------------------------------------------------------------------
Fiscal year
-----------------------------------------
1996 1997 1997
authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
United States................ 373,000 366,758 366,758
The Army Reserve.............. 230,000 214,925 215,179
The Naval Reserve............. 98,894 95,941 96,304
The Marine Corps Reserve...... 42,274 42,000 42,000
The Air National Guard of the
United States................ 112,707 108,018 109,178
The Air Force Reserve......... 73,969 73,281 73,311
The Coast Guard Reserve....... 8,000 8,000 8,000
------------------------------------------------------------------------

End strengths for Reserves on active duty in support of the Reserves
(sec. 412)

The House bill contained a provision (sec. 412) that
would authorize reserve full-time support end strength levels
for fiscal year 1997.
The Senate amendment contained a similar provision (sec.
412).
The Senate recedes with an amendment that would authorize
end strengths for reserves on active duty in support of the
reserves at the higher end strength level for each component.
The following table summarizes the reserve full-time
support end strength levels for fiscal year 1997.

------------------------------------------------------------------------
Fiscal year
-----------------------------------------
1996 1997 1997
authorization request recommendation
------------------------------------------------------------------------
The Army National Guard of the
United States................ 23,390 22,798 22,798
The Army Reserve.............. 11,575 11,475 11,729
The Naval Reserve............. 17,587 16,506 16,603
The Marine Corps Reserve...... 2,559 2,559 2,559
The Air National Guard of the
United States................ 10,066 10,129 10,403
The Air Force Reserve......... 628 625 655
------------------------------------------------------------------------

End strengths for military technicians (sec. 413)

The House bill contained a provision (sec. 413) that
would authorize military technician end strength levels for
fiscal year 1997.
The Senate amendment contained a provision (sec. 518)
that would modify the authorization for military technicians in
the Air National Guard for fiscal year 1997.
The Senate recedes with an amendment that adds the
technician levels in the Senate amendment to those in the House
bill.
The following table summarizes the authorized end
strength levels for military technicians for fiscal year 1997.

------------------------------------------------------------------------
Fiscal year
-------------------------------------
1996 1997 1997
program request recommendation
------------------------------------------------------------------------
The Army National Guard of the
United States.................... 25,500 25,500 25,500
The Army Reserve.................. 6,630 6,799 6,799
The Air National Guard of the
United States.................... 22,906 22,281 23,299
The Air Force Reserve............. 9,802 9,704 9,802
------------------------------------------------------------------------

Assurance of continued assignment of military personnel to serve in
Selective Service System (sec. 414)

The Senate amendment contained a provision (sec. 413)
that would exempt from end strength ceilings military personnel
assigned to duties in support of the Selective Service System.
The House bill contained no similar provision.
The House recedes with an amendment that would require
the services to support the Selective Service System at the
requirement level set by the Director, Selective Service. The
requirement level would not exceed 745 military personnel.

Title V--Military Personnel Policy

items of special interest

General and flag officer career patterns

The conferees are concerned about the career patterns of
officers once they are selected for promotion to general and
flag officer grades. The current general and flag officer
selection, assignment and development process may not
effectively contribute to the preparation of those officers for
increasing levels of responsibility and maximum performance
efficiency at each level of assignment. Specific concerns
include: 1) the length of time officers spend on promotion
lists to grades 0-7 and 0-8 before they are actually promoted;
2) the tempo with which general and flag officers are rotated
through important positions; 3) the effect of this tempo both
on the effectiveness of individual officers in each position to
which they are assigned and on the overall value these officers
add in each position to which they are assigned; and 4) the
consequences of requiring general and flag officers to retire
upon completion of 35 years of service.
The conferees direct the Secretary of Defense to review
the career patterns of general and flag officers and report to
the Committee on Armed Services of the Senate and the Committee
on National Security of the House of Representatives not later
than April 1, 1997. The report should address, at a minimum:
(1) Average time-in-grade at the time of selection
for promotion to each general and flag officer grade.
Average time-in-grade should be reported by fiscal
year, by service, by competitive category and by grade.
For the purposes of this report, the time of selection
should reflect the date the respective promotion board
report is approved by the official authorized to
approve such report;
(2) Average time-in-grade at the time of promotion
to each general and flag officer grade. Average time-
in-grade should be reported by fiscal year, by service,
by competitive category and by grade;
(3) Average tour lengths for general and flag
officers who changed positions or assignments during
fiscal years 1991 through 1995. Tour lengths should be
reported by fiscal year, by service, and by grade.
Joint tours should be addressed separately from non-
joint tours; and
(4) Assessment of the continued appropriateness of
the mandatory retirement of officers after 35 years of
commissioned service as required by section 636 of
title 10, United States Code.
The conferees do not expect the Secretary of Defense to
delegate the conduct of this review or the preparation of the
required report to the individual military departments, the
uniformed services or to the Joint Staff.

LEGISLATIVE PROVISIONS

Subtitle A--Officer Personnel Policy

LEGISLATIVE PROVISIONS ADOPTED

Grade of Chief of Naval Research (sec. 501)

The Senate amendment contained a provision (sec. 506)
that would establish that an officer, while serving in the
Office of Naval Research as Chief of Naval Research, have at
least the grade of rear admiral (upper half).
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
The conferees do not intend that this action prejudice
the outcome of the comprehensive study of general and flag
officers required by section 1213 of this conference report
which would include this position.

Chief and Assistant Chief of Army Nurse Corps and Air Force Nurse Corps
(sec. 502)

The Senate amendment contained two provisions (sec. 540
and 541) that would establish the grade of the Chief of the
Army Nurse Corps and Chief of the Air Force Nurse Corps as a
Brigadier General, and the Assistant Chief of the Army Nurse
Corps and Assistant Chief of the Air Force Nurse Corps as a
Colonel.
The House bill contained no similar provision.
The House recedes with an amendment to combine the two
provisions.
The conferees do not intend that this action prejudice
the outcome of the comprehensive study of general and flag
officers required by section 1213 of this conference report
which will include these positions.

Navy spot promotion authority for certain lieutenants with critical
skills (sec. 503)

The House bill contained a provision (sec. 503) that
would make permanent the authority for the Navy to temporarily
promote certain lieutenants in skills for which there is a
shortage of qualified officers.
The Senate amendment contained a provision (sec. 501)
that would extend the authority for the Navy to promote
temporarily, without Senate confirmation, lieutenants in
certain positions from September 30, 1996 until September 30,
1997.
The Senate recedes with an amendment that would make
permanent the authority for the Navy to promote temporarily
certain lieutenants having certain skills and serving in
certain positions, limit the number who may be promoted under
this authority to 325, and make such temporary promotions
subject to the advice and consent of the Senate.

Time for award of degrees by unaccredited educational institutions for
graduates to be considered educationally qualified for
appointment as reserve officers in grade 0-3 (sec. 504)

The Senate amendment contained a provision (sec. 503)
that would increase the number of years that the Department of
Defense could recognize a baccalaureate degree awarded by
qualifying educational institution from three years to eight
years.
The House bill contained no similar provision.
The House recedes.

Exception to baccalaureate degree requirement for appointment in the
Naval Reserve in grades above 0-2 (sec. 505)

The House bill contained a provision (sec. 514) that
would provide members of the Naval Reserve participating in the
Seaman to Admiral program an exception to the requirement for
reserve officers to hold a baccalaureate degree in order to be
promoted above the grade of lieutenant (junior grade).
The Senate amendment contained a similar provision (sec.
502).
The conference agreement includes this provision.

Chief Warrant Officer promotions (sec. 506)

The Senate amendment contained a provision (sec. 504)
that would permit below the zone selection for promotion to
Chief Warrant Officer, W-3, and would reduce the time-in-grade
requirement for warrant officer promotions from three years to
two years.
The House bill contained no similar provision.
The House recedes.

Service credit for senior ROTC cadets and midshipmen in simultaneous
membership program (sec. 507)

The Senate amendment contained a provision (sec. 507)
that would provide service credit for longevity and pay to
individuals who are simultaneously Senior ROTC Cadets or
Midshipmen and enlisted members in the Selected Reserve under
the Simultaneous Membership Program (SMP).
The House bill contained no similar provision.
The House recedes.

Continuation on active status for certain reserve officers of the Air
Force (sec. 508)

The House bill contained a provision (sec. 507) that
would authorize the Secretary of the Air Force to retain up to
50 reserve officers who are designated judge advocates beyond
dates of mandatory retirement for years of service.
The Senate amendment contained no similar provision.
The Senate recedes.

Reports on response to recommendations concerning improvements to
Department of Defense joint manpower process (sec. 509)

The House bill contained a provision (sec. 504) that
would require the Secretary of Defense to provide a semi-annual
report to Congress on the status of actions taken to implement
the Inspector General recommendations resulting from inspection
of the joint manpower process. The provision would also require
that the General Accounting Office assess the adequacy and
completeness of the Department's corrective actions.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Frequency of reports to Congress on joint officer management policies
(sec. 510)

The House bill contained a provision (sec. 505) that
would change the requirement that the Secretary of Defense
report to Congress every six months on the promotion rates of
officers currently or formerly serving in joint duty
assignments.
The Senate amendment contained a similar provision (sec.
505).
The conference agreement includes this provision.

Subtitle B--Enlisted Personnel Policy

legislative provisions adopted

Career service reenlistments for members with at least 10 years of
service (sec. 511)

The House bill contained a provision (sec. 501) that
would permit the secretaries of the military departments to
reenlist noncommissioned officers with 10 or more years of
service for indefinite periods of time.
The Senate amendment contained a similar provision (sec.
536).
The House recedes.
The conferees recognize that some services may want to
retain the current fixed-term enlistment system. Specifically,
the conferees urge the Secretary of the Navy to permit the Navy
and the Marine Corps to pursue either policy independent of the
other service's choice.

Authority to extend period for entry on active duty under the Delayed
Entry Program (sec. 512)

The House bill contained a provision (sec. 502) that
would permit the secretaries of the military departments, on a
case-by-case basis, to extend to 18 months the maximum period
that a person can remain in the Delayed Entry Program.
The Senate amendment contained a similar provision (sec.
535).
The conference agreement includes this provision.

Subtitle C--Activation and Recall

legislative provisions adopted

Limitations on recall of retired members to active duty (sec. 521)

The Senate amendment contained a provision (sec. 532)
that would limit the number of retired officers who may be
recalled to active duty to 25 per service at any one time;
prohibit the recall of officers who retired as a result of an
early retirement board or who retired after being notified that
he or she was to be considered by an early retirement board;
and limit the tenure of a recall to 12 months.
The House bill contained no similar provision.
The House recedes with an amendment that would make the
provision effective on September 30, 1997.

Clarification of definition of active status (sec. 522)

The House bill contained a provision (sec. 513) that
would expand the definition of the term ``active status'' in
section 101(d)(4) of title 10, United States Code, to include
both officers and enlisted members of the reserve components
and make the definition consistent with other references in
title 10, United States Code.
The Senate amendment contained a similar provision (sec.
511).
The conference agreement includes this provision.

Limitation of requirement for physical examinations of members of
National Guard called into federal service (sec. 523)

The Senate amendment contained a provision (sec. 513)
that would repeal the requirement that each member of the
National Guard receive a physical examination when called into
and again when mustered out of federal service.
The House bill contained no similar provision.
The House recedes with an amendment that would repeal the
requirement that each member of the National Guard receive a
physical examination when called into and again when mustered
out of federal service, except when they are mobilized for a
contingency operation or a national emergency.

Subtitle D--Reserve Component Retirement

legislative provisions adopted

Increase in annual limit on days of inactive duty training creditable
towards reserve retirement (sec. 531)

The House bill contained a provision (sec. 631) that
would increase the limits on the annual amount of retirement
points that a reservist can earn as a result of inactive
training from 60 to 75.
The Senate amendment contained no similar provision.
The Senate recedes.

Retirement of reserve enlisted members who qualify for active duty
retirement after administrative reductions in enlisted grade
(sec. 532)

The House bill contained a provision (sec. 634) that
would permit a reserve enlisted member who qualifies for an
active duty retirement and who is reduced in grade for reasons
other than misconduct to retire in the highest enlisted grade
held.
The Senate amendment contained no similar provision.
The Senate recedes.

Authority for a reserve on active duty to waive retirement sanctuary
(sec. 533)

The Senate amendment contained a provision (sec. 514)
that would permit a reservist serving on active duty for less
than 180 days to waive the applicability of the retirement
sanctuary.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Eligibility of reserves for disability retirement (sec. 534)

The House bill contained a provision (sec. 633) that
would authorize disability retirement benefits defined in
Section 702 of the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106), to certain reservists.
The Senate amendment contained a similar provision (sec.
515).
The House recedes with an amendment that would clarify
the effective date for transition of eligibility criteria for
reserve disability retirement and other benefits from proximate
result of performing duty to a determination of in line of
duty.

Subtitle E--Other Reserve Component Matters

LEGISLATIVE PROVISIONS ADOPTED

Training for reserves on active duty in support of the reserves (sec.
541)

The House bill contained a provision (sec. 512) that
would clarify that a reservist on active duty in support of the
reserves may receive training and professional development in
the same manner as any other member on active duty.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Eligibility for enrollment in Ready Reserve mobilization income
insurance program (sec. 542)

The House bill contained a provision (sec. 517) that
would amend the Ready Reserve mobilization income insurance
program to permit members of the Individual Ready Reserve who
transfer to the selected reserve to be eligible to participate
in the mobilization insurance program.
The Senate amendment contained no similar provision.
The Senate recedes.

Reserve credit for participation in Health Professions Scholarship and
Financial Assistance Program (sec. 543)

The House bill contained a provision (sec. 555) that
would amend title 10, United States Code, to provide
discretionary authority to the secretaries of the military
departments to award service credit toward a non-regular
retirement for certain members of the armed forces health
professions scholarship and financial assistance programs.
The Senate amendment contained a similar provision (sec.
516).
The conference agreement includes this provision.

Amendments to Reserve Officer Personnel Management Act provisions (sec.
544)

The Senate amendment contained a provision (sec. 512)
that would make several amendments to the Reserve Officer
Personnel Management Act.
The House bill contained no similar provision.
The House recedes.
The conferees direct that the Secretary of Defense
provide a report on the number and category of waivers granted
under the authority of this provision to the Committee on Armed
Services of the Senate and the Committee on National Security
of the House of Representatives not later than March 31, 1998.

Report on number of advisers in active component support of reserves
pilot program (sec. 545)

The House bill contained a provision (sec. 515) that
would require the Secretary of Defense to determine the
appropriate number of active component advisors and recommend
such number to Congress.
The Senate amendment contained no similar provision.
The Senate recedes.

Sense of Congress and report regarding reemployment rights for
mobilized reservists employed in foreign countries (sec. 546)

The House bill contained a provision (sec. 516) that
would express the sense of Congress that there is a lack of
reemployment rights afforded reservists who now live in foreign
countries and work for U.S. or foreign companies. The provision
would also direct the Secretary of Defense, together with the
Secretaries of State and Labor, to provide the Congress with
recommendations to alleviate the reemployment problems of this
group of reservists.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Subtitle F--Officer Education Programs

legislative provisions adopted

Payment of premiums under mobilization income insurance program (sec.
547)

The conferees recommend a provision that would clarify
how premiums are to be paid under the reserve mobilization
income insurance program.

Oversight and management of Senior Reserve Officers' Training Corps
program (sec. 551)

The House bill contained a provision (sec. 552) that
would give priority for enrollment in ROTC to students who were
qualified for advanced training, and would prohibit anyone who
was ineligible for advanced training from participating in
practical military training, field training, or practice
cruises, unless the ineligibility was waived by the service
secretary. The section would also permit civilians attending
ROTC or other courses of military instruction to wear military
uniforms only when the individual service regulations
specifically authorize such wear.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would ensure
uniform application of any criteria that would limit acceptance
in ROTC.

Prohibition on reorganization of Army ROTC Cadet Command or termination
of senior ROTC units pending report on ROTC (sec. 552)

The Senate contained a provision (sec. 523) that would
prohibit the reorganization, restructuring, or termination of
any Reserve Officers' Training Corps Cadet Command or Senior
Reserve Officers Training Corps until 180 days after the
issuance of a report on various aspects of the selection for
termination process.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Pilot program to test expansion of ROTC program to include graduate
students (sec. 553)

The House bill contained a provision (sec. 554) that
would permit the initial award of Reserve Officers' Training
Corps (ROTC) scholarships to people who already have received a
baccalaureate degree, provided the recipient executes the
required contractual commitments, including enrollment in the
ROTC advanced course.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit the
number of scholarships which could be awarded to graduate
students, place a 3-year limit on duration of the program, and
require a report from the Secretary of Defense.

Demonstration project for instruction and support of Army ROTC units by
members of the Army Reserve and National Guard (sec. 554)

The Senate contained a provision (sec. 522) that would
require the Secretary of the Army to conduct a demonstration
program in order to assess the feasibility and advisability of
providing instruction and support to units of the Reserve
Officers' Training Corps (ROTC) that use members of the Army
Reserve, including the Individual Ready Reserve and the Army
National Guard.
The House bill contained no similar provision.
The House recedes with an amendment that would limit the
demonstration program to three years.

Extension of maximum age for appointment as a cadet or midshipman in
the Senior Reserve Officers' Training Corps and the service
academies (sec. 555)

The House bill contained a provision (sec. 551) that
would increase the maximum age for appointment in the Senior
Reserve Officers' Training Corps (ROTC), permitting the
appointment of persons under 27 years of age. The section would
also permit former enlisted members who had served on active
duty to be appointed in the Senior ROTC program even though
they were older than 27, so long as on the date of their
commissioning they would be under 30 years of age. This section
would also increase the maximum allowable age of entry into the
service academies to 23.
The Senate amendment contained a similar provision (sec.
521).
The Senate recedes.

Expansion of eligibility for education benefits to include certain
Reserve Officers' Training Corps (ROTC) participants (sec. 556)

The House bill contained a provision (sec. 556) that
would expand the eligibility for the Montgomery GI Bill
education benefits to include ROTC scholarship students who
received scholarships with values of less than $2,000 annually.
The Senate amendment contained no similar provision.
The Senate recedes.

Comptroller General report on cost and policy implications of
permitting up to five percent of service academy graduates to
be assigned directly to reserve duty upon graduation (sec. 557)

The House bill contained a provision (sec. 557) that
would require the Comptroller General to analyze and report to
Congress the cost and policy implications of requiring up to
five percent of the graduating class of each of the service
academies to serve in the reserve components, and that there be
a corresponding increase in the number of Reserve Officers'
Training Corps (ROTC) graduates each year placed on active
duty.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle G--Decorations and Awards

legislative provisions adopted

Authority for award of medal of honor to certain African American
soldiers who served during World War II (sec. 561)

The House bill contained a provision (sec. 1035) that
would authorize the Secretary of the Army to award the Medal of
Honor to African American former service members who served in
the United States Army during World War II and for whom the
Army recommended the award of the Medal of Honor after a
congressionally mandated review of their records.
The Senate amendment contained a similar provision (sec.
539).
The Senate recedes.

Waiver of time limitations for award of certain decorations to
specified persons (sec. 562)

The Senate amendment contained a provision (sec. 542)
that would waive the statutory time limitations for the award
of military decorations to provide for the award of the
Distinguished Flying Cross to certain individuals who have been
recommended by the Secretary of the Navy for receipt of this
award.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Replacement of certain American Theater Campaign Ribbons (sec. 565)

The House bill contained a provision (sec. 563) that
would authorize the Secretary of the Army to replace, upon
request, the American Theater Campaign Ribbon awarded to
certain veterans of World War II.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle H--Other Matters

legislative provisions adopted

Hate crimes in the military (sec. 571)

The House bill contained a provision (sec. 561) that
would direct the Secretary of Defense to require each of the
military services to conduct human relations training designed
to promote a thorough awareness of equal opportunity issues, as
well as a sensitivity to ``hate group'' activity. It also would
require the Secretary to ensure that prospective recruits, both
officer and enlisted, understand the full implications of the
oath of office or oath of enlistment in terms of the equal
protection and civil liberties protection of the Constitution.
Finally, this section would require the Secretary to conduct an
annual survey on race relations, gender discrimination and hate
group activity.
The Senate amendment contained no similar provision.
The Senate recedes.

Disability coverage for members granted excess leave for educational or
emergency purposes (sec. 572)

The Senate amendment contained a provision (sec. 533)
that would provide disability coverage for officers who are on
excess leave while participating in an educational program.
The House bill contained no similar provision.
The House recedes with an amendment that would extend
disability coverage to enlisted members on excess leave for
emergency purposes.

Clarification of authority of a reserve judge advocate to act as a
military notary public when not in a duty status (sec. 573)

The House bill contained a provision (sec. 562) that
would authorize all judge advocates of the armed forces,
adjutants, assistant adjutants, personnel adjutants, and other
members of the armed forces designated by regulations of the
armed forces to have the same notary public authority without
regard to whether they are on active duty or performing
inactive duty for training.
The Senate amendment contained a similar provision (sec.
1064).
The Senate recedes with an amendment that would not
permit the authority to apply prior to the date of enactment.

Panel on jurisdiction of courts-martial for the National Guard when not
in Federal service (sec. 574)

The House bill contained provisions (sec. 531-539) that
would make several changes to the law governing the
jurisdiction and powers of courts-martial conducted by the
National Guard when not in federal service.
The Senate amendment contained no similar provisions.
The House recedes with an amendment that would direct the
Secretary of Defense to establish a panel to study the
jurisdiction of such courts-martial. Matters reviewed by the
panel would include the extent of use of courts-martial and
nonjudicial punishment in the National Guard when not in
federal service and the extent to which such courts-martial and
nonjudicial punishments were conducted under authority provided
by title 32, United States Code or state law. The conference
agreement would require a report to Congress no later than
March 1, 1997.

Authority to expand law enforcement placement program to include
firefighters (sec. 575)

The Senate amendment contained a provision (sec. 571)
that would include federal firefighters in the program
established by the Secretary of Defense to assist eligible
members and former members of the armed forces and eligible
civilian employees of the Department of Defense to obtain
employment in public safety jobs.
The House bill contained no similar provision.
The House recedes.

Improvements to program to assist separated military and civilian
personnel to obtain employment as teachers or teachers' aides
(sec. 576)

The Senate amendment contained two provisions (sec. 572
and sec. 1122) pertaining to the Troops-to-Teachers program.
These provisions would permit service members retiring under
the temporary early retirement authority to participate in the
program and would reduce the teaching obligation, incentive
grant, and local education authority reimbursement periods from
five years to two years.
The House bill contained no similar provision.
The House recedes with an amendment that would combine
the two Senate provisions into a single provision.

Retirement at grade to which selected for promotion when a physical
disability is found at any physical examination (sec. 577)

The House bill contained a provision (sec. 632) that
would permit disability retirements for service members at the
grade to which they would have been promoted had it not been
for an intervening physical disability.
The Senate contained a similar provision (sec. 531).
The conference agreement includes this provision.

Revisions to missing persons authorities (sec. 578)

The Senate amendment contained a provision (sec. 537)
that would repeal certain provisions in the Missing Persons Act
in the National Defense Authorization Act for Fiscal Year 1996.
The House bill contained no similar provision.
The House recedes with an amendment that would strike the
repeal of the requirement that a counsel be appointed for the
missing person; strike the repeal of the right to judicial
review; and modify the mandatory review of preenactment and
special interests cases to include missing persons from the
Korean War era.

Subtitle I--Commissioned Corps of the Public Health Service

legislative provisions adopted

Applicability to Public Health Service of prohibition on crediting
cadet or midshipmen service at the service academies (sec. 581)

The Senate amendment contained a provision (sec. 561)
that would clarify that commissioned officers of the Public
Health Service, like members of the Armed Forces, do not
receive length-of-service credit for service as a student at a
service military academy.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Exception to strength limitations for Public Health Service officers
assigned to the Department of Defense (sec. 582)

The House bill contained a provision (sec. 742) that
would amend section 207, title 42, United States Code, to
exclude commissioned officers of the Public Health Service
(PHS) assigned to duty in the Department of Defense from being
counted when computing the maximum number of commissioned PHS
officers authorized by law.
The Senate amendment contained a similar provision (sec.
562).
The Senate recedes.

Authority to provide legal assistance to Public Health Service officers
(sec. 583)

The House bill contained a provision (sec. 563) that
would authorize active duty or retired officers of the
Commissioned Corps of the Public Health Service and their
dependents to be eligible for legal assistance at military
installations.
The Senate amendment contained no similar provision.
The Senate recedes.

LEGISLATIVE PROVISIONS NOT ADOPTED

Repeal of requirement that commissioned officers be initially appointed
in a reserve grade

The House bill contained a provision (sec. 506) that
would repeal the requirement that all commissioned officers be
appointed initially as reserve officers.
The Senate amendment contained no similar provision.
The House recedes.

Individual Ready Reserve activation authority

The House bill contained a provision (sec. 511) that
would authorize the President, under Presidential Selection
Reserve Call-up, to recall up to 30,000 members of a new
category of the Individual Ready Reserve (IRR) that would be
created by this section. The new category of the IRR would
consist of those personnel in the military skills and
occupations, designated by the Secretary of Defense, who had
volunteered prior to leaving active duty.
The Senate amendment contained no similar provision.
The House recedes.

ROTC scholarship student participation in simultaneous membership
program

The House bill contained a provision (sec. 553) that
would direct the Secretary of Defense to establish a program to
permit Reserve Officers' Training Corps (ROTC) scholarship
cadets to serve simultaneously as a member of a Selected
Reserve unit.
The Senate amendment contained no similar provision.
The House recedes.

Restoration of regulations prohibiting service of homosexuals in the
armed forces

The House bill contained a provision (sec. 566) that
would rescind the current Department of Defense policy and
relative directive and regulations concerning homosexuality in
the armed forces and related Department of Defense and military
department regulations, and would reinstate the regulations
that were in effect on January 19, 1993.
The Senate amendment contained no similar provision.
The House recedes.

Reenactment and modification of mandatory separation from service for
members diagnosed with HIV-1 virus

The House bill contained a provision (sec. 567) that
would restate, with modifications, section 5676 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106) to require the separation of members determined to be HIV-
positive.
The Senate amendment contained no similar provision.
The House recedes.

Uniform policy regarding retention of members who are permanently
nonworldwide assignable

The Senate amendment contained a provision (sec. 534)
that would require the Secretary of Defense to prescribe
regulations and directives establishing uniform policies and
procedures regarding the retention of members of the armed
forces who are permanently nonworldwide assignable for medical
reasons.
The House bill contained no similar provision.
The Senate recedes.

Period for filing a claim for correction of military records not be
extended by reason of military service

The Senate amendment contained a provision (sec. 538)
that would clarify that the three-year statute of limitations
for the filing of a request for relief before the Boards for
Correction of Military Records is not waived by the Soldiers'
and Sailors' Civil Relief Act.
The House bill contained no similar provision.
The Senate recedes.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

legislative provisions

Subtitle A--Pay and Allowances

legislative provisions adopted

Military pay raise for fiscal year 1997 (sec. 601)

The House bill contained a provision (sec. 601) that
would provide a 3.0 percent military pay raise and a 4.6
percent increase in the rate of the basic allowance for
quarters.
The Senate amendment contained a similar provision (sec.
601) that would increase the rates of basic pay and the basic
allowance for subsistence for members of the uniformed services
by 3.0 percent. The provision would increase the rate of the
basic allowance for quarters for members of the uniformed
services by 4.0 percent.
The Senate recedes.

Adjustment of rate of cadet and midshipman pay (sec. 602)

The Senate amendment contained a provision (sec. 602)
that would repeal a provision in title 37, United States Code,
that links the rate of cadet and midshipman pay to changes in
military pay.
The House bill contained no similar provision.
The House recedes.

Pay of senior noncommissioned officers while hospitalized (sec. 603)

The Senate amendment contained a provision (sec. 603)
that would authorize the senior enlisted member of an armed
force to continue to receive the basic pay authorized for that
position for no more than 180 days while no longer in that
position and hospitalized prior to retirement.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Availability of basic allowance for quarters for certain members
without dependents who serve on sea duty (sec. 604)

The House bill contained a provision (sec. 602) that
would authorize several changes concerning the payment of basic
allowance for quarters and variable housing allowance for
service members assigned to sea duty.
The Senate amendment contained a similar provision (sec.
604).
The Senate recedes with an amendment that would clarify
payment of basic allowance for quarters to military couples
assigned to sea duty, and payment of variable housing allowance
to members above the grade of E-4 assigned to sea duty.

Uniform applicability of discretion to deny an election not to occupy
government quarters (sec. 605)

The House bill contained a provision (sec. 651) that
would clarify the authority for the secretaries of the military
departments to deny the election not to occupy inadequate
government quarters made by a service member in the grade of E-
6.
The Senate amendment contained a similar provision (sec.
605).
The conference agreement includes this provision.

Establishment of minimum monthly amount of variable housing allowance
for high housing cost areas (sec. 606)

The House bill contained a provision (sec. 603) that
would require the Secretary of Defense to establish a minimum
amount of variable housing allowance.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees direct the Secretary of Defense to perform
a comprehensive review of all housing allowances and submit a
legislative recommendation that would reform and streamline the
housing allowances while dealing with housing costs in a more
effective manner. The report and legislative recommendations
shall be submitted to the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives not later than March 1, 1997.

Family separation allowance for members separated by military orders
from spouses who are members (sec. 607)

The Senate amendment contained a provision (sec. 606)
that would authorize payment of the family separation allowance
to the senior of two service members who are married to each
other and who would normally reside with each other but are
separated by military orders.
The House bill contained no similar provision.
The House recedes.

Waiver of time limitations for claim for pay and allowances (sec. 608)

The Senate amendment contained a provision (sec. 607)
that would provide the Comptroller General authority, upon the
request of a service secretary, to waive the time limits in the
case of a claim for pay and allowances up to a maximum of
$25,000, subject to the availability of appropriations.
The House bill contained no similar provision.
The House recedes.

Subtitle B--Bonuses and Special and Incentive Pays

LEGISLATIVE PROVISIONS ADOPTED

One-year extension of certain bonuses and special pay authorities for
reserve forces (sec. 611)

The House bill contained a provision (sec. 611) that
would extend the authority for the selected reserve
reenlistment bonus, the selected reserve enlistment bonus, the
selected reserve affiliation bonus, the ready reserve
enlistment and reenlistment bonus, and the prior service
enlistment bonus until September 30, 1998.
The Senate amendment contained a similar provision (sec.
611).
The conference agreement includes this provision.

One-year extension of certain bonuses and special pay authorities for
nurse officer candidates, registered nurses, and nurse
anesthetists (sec. 612)

The House bill contained a provision (sec. 612) that
would extend the authority to pay certain bonuses and special
pay for nurse officer candidates, registered nurses, and nurse
anesthetists until September 30, 1998.
The Senate amendment contained a similar provision (sec.
612).
The conference agreement includes this provision.

One-year extension of authorities relating to payment of other bonuses
and special pays (sec. 613)

The House bill contained a provision (sec. 613) that
would extend the authority to pay the aviation officer
retention bonus, reenlistment bonus for active members,
enlistment bonus for critical skills, special pay for nuclear
qualified officers extending period of active service, nuclear
career accession bonus, nuclear career annual incentive bonus,
and repayment of education loans for certain health
professionals who serve in the selected reserve until September
30, 1998.
The Senate amendment contained a similar provision (sec.
613).
The conference agreement includes this provision.

Special pay for certain Public Health Service officers (sec. 614)

The Senate amendment contained two provisions (secs. 615
and 616) that would authorize retention special pay for
optometrists in regular and reserve components of the
Commissioned Corps of the Public Health Service (PHS) and
special pay for nonphysician health care providers in the
Commissioned Corps of the PHS.
The House bill contained no similar provisions.
The House recedes with an amendment that would combine
the two provisions.

Special incentives to recruit and retain dental officers (sec. 615)

The House bill contained a provision (sec. 614) that
would increase the amount of special pay for dental officers,
to establish an entitlement to special pay for reserve dental
officers consistent with special pay entitlements for
physicians, and to establish an accession bonus for dental
officers. Additionally, this section would require the
Secretary of Defense to report to Congress on the feasibility
of increasing dental participation in the Armed Forces Health
Professions Scholarship and Financial Assistance Program.
The Senate amendment contained a similar provision (sec.
614) that would increase the special pay, additional special
pay, and board certified pay for certain dental officers of the
armed forces.
The Senate recedes.

Foreign language proficiency pay for Public Health Service and National
Oceanic and Atmospheric Administration officers (sec. 616)

The Senate amendment contained a provision (sec. 617)
that would extend foreign language proficiency pay now
authorized for members of the armed services to any member of
the uniformed services whose duties require such language
proficiency.
The House bill contained no similar provision.
The House recedes.

Subtitle C--Travel and Transportation Allowances

legislative provisions adopted

Allowance in connection with shipping motor vehicle at government
expense (sec. 621)

The House bill contained a provision (sec. 622) that
would authorize travel allowances for travel to and from a port
while transporting motor vehicles at government expense in
conjunction with a permanent change of station move between the
continental United States and overseas locations.
The Senate amendment contained a similar provision (sec.
621).
The conference agreement includes this provision.

Dislocation allowance at a rate equal to two and one half months basic
allowance for quarters (sec. 622)

The House bill contained a provision (sec. 623) that
would increase the amount of dislocation allowance paid to
service members from two months of basic allowance for quarters
to two and one half months basic allowance for quarters.
The Senate amendment contained no similar provision.
The Senate recedes.

Allowance for travel performed in connection with leave between
consecutive overseas tours (sec. 623)

The House bill contained a provision (sec. 624) that
would authorize the service secretaries to defer the travel and
transportation allowances that accrue in conjunction with
service members being ordered to consecutive overseas tours
when participation in a contingency mission precludes
completion of the travel within one year.
The Senate amendment contained a similar provision (sec.
623).
The conference agreement includes this provision.

Funding for transportation of household effects of Public Health
Service officers (sec. 624)

The Senate amendment contained a provision (sec. 624)
that would extend the authorization to be reimbursed for ``do-
it-yourself'' moves currently authorized for members of the
armed forces to the Public Health Service.
The House bill contained no similar provision.
The House recedes.

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

LEGISLATIVE PROVISIONS ADOPTED

Effective date for military retiree cost-of-living adjustment for
fiscal year 1998 (sec. 631)

The Senate amendment contained a provision (sec. 631)
that would establish the date of the military retirement cost-
of-living adjustment in fiscal year 1998 as January 1, 1998.
The House bill contained no similar provision.
The House recedes.

Clarification of initial computation of retiree COLAs after retirement
(sec. 632)

The House bill contained a provision (sec. 635) that
would make a technical correction to the method used to
calculate the initial cost-of-living adjustment for certain new
retirees.
The Senate amendment contained no similar provision.
The Senate recedes.

Suspension of payment of retired pay of members who are absent from the
United States to avoid prosecution (sec. 633)

The House bill contained a provision (sec. 1044) that
would require the Secretary of Defense to develop uniform
procedures under which a member or former member of the
uniformed services would forfeit retired pay if they willingly
remain outside the United States to avoid criminal or civil
prosecution or civil liability.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Nonsubstantive restatement of Survivor Benefit Plan statute (sec. 634)

The House bill contained a provision (sec. 639) that
would restate the Military Survivor Benefit Plan statute
(subchapter II of chapter 73 of title 10, United States Code)
in its entirety to include amendments to the statute through
the National Defense Authorization Act for Fiscal Year 1996.
The Senate amendment contained no similar provision.
The Senate recedes.

Increases in Survivor Benefit Plan contributions to be effective
concurrently with payment of retired pay cost-of-living
increases (sec. 635)

The Senate amendment contained a provision (sec. 633)
that would require that annual cost-of-living increases to
Survivor Benefit Plan premiums be effective on the date on
which the retired pay cost-of-living increase is effective.
The House bill contained no similar provision.
The House recedes.

Amendments to the Uniformed Services Former Spouses' Protection Act
(sec. 636)

The House bill contained a provision (sec. 637) that
would amend the Uniformed Services Former Spouses' Protection
Act (Public Law 97-252) to simplify the processing of court
orders related to retirement pay. The section would also
clarify that the Secretary of Defense could not accept a court
order from a state that modifies a previous court order from
another state unless the court issuing the modifying court
order has jurisdiction over both the military member and the
spouse or former spouse.
The Senate amendment contained no similar provision.
The Senate recedes.

Prevention of circumvention of court order by waiver of retired pay to
enhance civil service retirement annuity (sec. 637)

The Senate amendment contained a provision (sec. 636)
that would provide that a former spouse of a military retiree,
whose military retired pay is part of a divorce settlement,
would continue to receive the amount of money directed by court
order if the military retiree becomes a federal employee and
waives military retired pay in favor of having military service
count towards civil service retirement benefits.
The House bill contained no similar provision.
The House recedes with an amendment that would make the
provision prospective, taking effect after January 1, 1997 and
prohibit back pay or lump sum restitution.

Administration of benefits for so-called minimum income widows (sec.
638)

The House bill contained a provision (sec. 638) that
would transfer the responsibility for making payments under the
minimum income widows program to the Department of Defense with
payments from pension programs for widows of veterans paid by
the Department of Veterans' Affairs.
The Senate amendment contained a similar provision (sec.
635) that would adjust the maximum level of annual income at
which eligibility for minimum income widows payments end.
The Senate recedes with an amendment that would combine
the two provisions.

Subtitle E--Other Matters

legislative provisions adopted

Discretionary allotment of pay including retired or retainer pay (sec.
651)

The Senate amendment contained a provision (sec. 632)
that would require the Secretary of Defense to establish
procedures to allow military retirees a maximum of six retiree
pay allotments.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Reimbursement for adoption expenses incurred in adoptions through
private placements (sec. 652)

The Senate amendment contained a provision (sec. 641)
that would extend the authority to reimburse adoption expenses
to those service members who adopt through private agencies if
the adoption is supervised by the court.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Waiver of recoupment of amounts withheld for tax purposes from certain
separation pay (sec. 653)

The Senate amendment contained a provision (sec. 642)
that would for involuntarily separated members, waive the
recoupment of the amount of separation pay withheld for tax
purposes if the separation pay is later recouped.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Technical correction clarifying limitation on furnishing clothing or
allowances to enlisted National Guard technicians (sec. 654)

The House bill contained a provision (sec. 652) that
would clarify the circumstances under which uniforms could be
furnished to enlisted National Guard technicians.
The Senate amendment contained a similar provision (sec.
1103).
The conference agreement includes this provision.

Technical correction to prior authority for payment of back pay to
certain persons (sec. 655)

The House bill contained a provision (sec. 636) that
would make a technical correction to section 634 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106) to clarify the level of compensation to be paid to
certain veterans.
The Senate amendment contained no similar provision.
The Senate recedes.

Compensation for persons awarded prisoner of war medal who did not
previously receive compensation as a prisoner of war (sec. 656)

The House bill contained a provision (sec. 1036) that
would require the secretaries of the military departments to
pay subsistence and other allowances authorized to be paid to
prisoners of war interned by a government of a nation with
which the United States has been at war to former service
members who were awarded the Prisoner of War Medal as a result
of being interned by a nation with which the United States was
not at war.
The Senate amendment contained no similar provision.
The Senate recedes.

Payments to certain persons captured and interned by North Vietnam
(sec. 657)

The Senate amendment contained a provision (sec. 643)
that would authorize a payment of $40,000 to a person, or the
survivor of a person, who demonstrates that he or she served as
a Vietnamese operative pursuant to OPLAN 34A, was captured, and
remained in captivity after 1973, and has not received any
payment for the period spent in captivity.
The House bill contained no similar provision.
The House recedes with an amendment that would: increase
the payment to $50,000 for those persons who can demonstrate
that they spent more than 20 years in prison; include persons
who served in Laos pursuant to OPLAN 35; limit disbursement
only to locations in the United States or its territories, or
in a manner prescribed by the person eligible for the payment;
and make the authorization subject to appropriation.

legislative provisions not adopted

Temporary lodging expenses of member in connection with first permanent
change of station

The House bill contained a provision (sec. 621) that
would authorize service members traveling to their first
permanent duty station to receive a temporary lodging expense
allowance.
The Senate amendment contained no similar provision.
The House recedes.

Annuities for certain military surviving spouses

The Senate amendment contained a provision (sec. 634)
that would require the Secretary of Defense to pay an annuity
to the surviving spouses of retired service members who died
before March 21, 1974.
The House bill contained no similar provision.
The Senate recedes.

Title VII--Health Care Provisions

items of special interest

Programs for hospital and health facilities medical management in the
Department of Defense

The conferees are concerned that the medical facilities
of the Department of the Army, the Department of the Air Force
and the Department of the Navy may not be implementing cost-
containment programs similar to those in the private sector.
The conferees note that private sector medical facilities have
developed and are using such programs for equipment maintenance
management, equipment and utilization tracking, quality
outcomes benchmarks and protocols and clinical pathways for
both managing care and for reporting results.
The conferees urge the Secretary of Defense to establish
a program comparable to those in use in the private sector to
measure the performance of military facilities. The conferees
suggest that such a program be initially established in several
large military medical facilities (500 bed facilities) and
later expanded to all medical facilities as the program
matures. The conferees direct the Secretary to submit a report
on the progress of this effort not later April 15, 1997 to the
Committee on Armed Services of the Senate and the Committee on
National Security of the House of Representatives.

legislative provisions

Subtitle A--Health Care Services

legislative provisions adopted

Preventive health care screening for colon and prostate cancer (sec.
701)

The House bill contained a provision (sec. 702) that
would establish that male members and former members of the
uniformed services are entitled to preventative health care
screening for colon and prostate cancer.
The Senate amendment contained a similar provision (sec.
710) which also would add colon cancer screening to the
preventative health care services available to female members
and former members.
The Senate recedes with a clarifying amendment.

Implementation of requirement for Selected Reserve dental insurance
plan (sec. 702)

The Senate amendment contained a provision (sec. 701)
that would extend the implementation date of the selected
reserve dental insurance program from October 1, 1996 into
fiscal year 1997 and stipulate a full and open competition for
the award of the contract or contracts.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.
Though this section would extend the implementation date
for the reserve dental insurance program, the conferees are
disappointed that a Request For Proposal has not yet been
issued. The conferees urge the Department to proceed
expeditiously with procurement of a contract for reserve dental
care.

Dental insurance plan for military retirees and unremarried surviving
spouses and certain other dependents of military retirees (sec.
703)

The Senate amendment contained a provision (sec. 702)
that would establish a dental insurance plan for military
retirees and certain dependents. The program, which would be
available to eligible beneficiaries not later than October 1,
1997, would be based on voluntary enrollment and would require
premiums to be paid by the participants.
The House bill contained no similar provision.
The House recedes with an amendment that would prohibit
discretionary premium sharing by the Secretary of Defense.

Plan for health care coverage for children with medical conditions
caused by parental exposure to chemical munitions while serving
as members of the armed forces (sec. 704)

The Senate amendment contained a provision (sec. 709)
that would authorize 10.0 million dollars to be available for
research on the possible causal relationship between ``Gulf War
Syndrome'' and exposure to chemical agents and hazardous
materials during military service in the Persian Gulf. The
provision would also establish medical and dental benefits for
children of Gulf War veterans who are born with congenital
defects and illnesses. The provision would waive the CHAMPUS
fees, deductibles, and copayments for children entitled to care
under this section.
The House bill contained no similar provision.
The House recedes with an amendment that would eliminate
the entitlement to health care for the children of those who
are no longer eligible for health care within the Military
Health Care System. Additionally, the amendment would require
the Secretary of Defense, in coordination with the Secretary of
Veterans Affairs, to develop a plan for ensuring that children
who have a congenital defect or catastrophic illness, proven to
a reasonable degree of scientific certainty to have resulted
from exposure of the service member to a chemical warfare agent
or other hazardous material during military service, are
provided medical care.
Since the end of the Persian Gulf War, over 17,000
veterans have reported suffering from a wide range of symptoms
collectively referred to as ``Gulf War Syndrome.'' Some of
these veterans believe their illnesses may be the result of
exposure to chemical warfare agents.
The conferees are concerned that exposure to chemical
warfare agents may be a causal factor of the Gulf War Syndrome
and congenital birth defects or catastrophic illness among
children born to service members who served in the Gulf War,
particularly in light of the Department of Defense's recent
disclosure that some Persian Gulf War veterans may have been
exposed to chemical agents during the war.
As a result, the conferees believe the Department of
Defense should expeditiously arrange for independent research
to determine whether exposure to low levels of chemical warfare
agents could have caused the symptoms associated with Gulf War
Syndrome. Furthermore, the conferees believe the Department
should study the possible health implications of administering
a ``cocktail mix'' of inoculations and using investigational
new drugs, as was done during the Persian Gulf deployment. The
Department of Defense has a responsibility to current military
members, former members, and their children, to invesigate
fully any possible links between exposure to chemical agents or
the use of combined inoculations and illnesses suffered by
these members or their offspring.

Subtitle B--TRICARE Program

legislative provisions adopted

CHAMPUS payment limits for TRICARE Prime enrollees (sec. 711)

The House bill contained a provision (sec. 712) that
would permit health care providers who are not participating in
the TRICARE network to be paid higher amounts than now
permitted in certain limited circumstances in which they
provide care to TRICARE Prime enrollees.
The Senate amendment contained no similar provision.
The Senate recedes.

Improved information exchange between military treatment facilities and
TRICARE Program contractors (sec. 712)

The House bill contained a provision (sec. 713) that
would require the Secretary of Defense to field a uniform
version of the Composite Health Care System (CHCS) throughout
the military health services system.
The Senate amendment contained a similar provision (sec.
703).
The Senate recedes with an amendment that would include a
definition of the Department of Defense managed-care program.

Plans for Medicare subvention demonstration programs (sec. 713)

The Senate amendment contained a provision (sec. 708)
that would require the Secretary of Defense and the Secretary
of Health and Human Services to devise and submit to the
Congress a plan for the implementation of a demonstration
program under which the Department of Defense would be
reimbursed by Medicare for medical care provided to Medicare-
eligible beneficiaries in military medical facilities. The
provision would also require the Secretary of Defense to
conduct a study of the feasibility and advisability of
providing fee-for-service reimbursement and would also
authorize $75.0 million for a Medicare subvention demonstration
program, should one be authorized in the 104th Congress.
The House bill contained no similar provision.
The House recedes with an amendment that would eliminate
the authorization for funding.

Subtitle C--Uniformed Services Treatment Facilities

legislative provisions adopted

Definitions (sec. 721)

The House bill contained a prevision (sec. 721) that
would define various terms pertaining to the Uniformed Services
Treatment Facilities.
The Senate amendment contained an identical provision
(sec. 721).
The conference agreement includes this provision.

Inclusion of designated providers in uniformed services health care
delivery system (sec. 722)

The House bill contained a provision (sec. 722) that
would provide for the inclusion of the Uniformed Services
Treatment Facilities (USTFs) in the health care delivery system
of the uniformed services and would establish the terms under
which the USTFs would become designated providers of managed
health care services to military beneficiaries.
The Senate amendment contained a similar provision (sec.
722).
The conference agreement includes this provision.

Provision of uniform benefit by designated providers (sec. 723)

The House bill contained a provision (sec. 723) that
would require the designated providers to implement the TRICARE
uniform benefit, including the uniform cost-sharing
requirements, upon implementation of TRICARE in the designated
provider's region or October 1, 1997, whichever date is later.
The Senate amendment contained a similar provision (sec.
723) which would require the implementation of the uniform
benefit either on the date of implementation of the TRICARE
program in the designated provider's region or October 1, 1996,
whichever is later.
The Senate recedes.

Enrollment of covered beneficiaries (sec. 724)

The House bill contained a provision (sec. 724) that
would establish several controls on the number of beneficiaries
enrolled in managed care programs of designated providers. The
provision also would prohibit the disenrollment of current
participants, except in certain cases, and would establish
additional enrollment criteria for designated providers.
The Senate amendment contained an identical provision
(sec. 724).
The conference agreement includes this provision.

Application of CHAMPUS payment rules (sec. 725)

The House bill contained a provision (sec. 725) that
would clarify that the Civilian Health and Medical Care Program
of the Uniformed Services (CHAMPUS) rules may apply in
situations when the health care provided to military
beneficiaries is not provided outside the Uniformed Services
Treatment Facility's catchment area.
The Senate amendment contained an identical provision
(sec. 725).
The conference agreement includes this provision.

Payments for services (sec. 726)

The House bill contained a provision (sec. 726) that
would require the payments made to designated providers to be
full-risk capitation based on the utilization experience of
enrollees and competitive market rates for equivalent health
care services. It also would limit payments to a designated
provider to no more than the government would pay if enrollees
received their care through the TRICARE program or through
Medicare.
The Senate amendment contained an identical provision
(sec. 726).
The conference agreement includes this provision.

Repeal of superseded authorities (sec. 727)

The House bill contained a provision (sec. 727) that
would repeal previous Uniformed Services Treatment Facility's
(USTFs) legislative provisions, effective October 1, 1997, the
date on which the USTFs would become ``designated providers''
under the TRICARE program.
The Senate amendment contained a similar provision (sec.
727).
The Senate recedes with a clarifying amendment.

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

legislative provisions adopted

Authority to waive CHAMPUS exclusion regarding nonmedically necessary
treatment in connection with certain clinical trials (sec. 731)

The House bill contained a provision (sec. 731) that
would permit the Secretary of Defense, pursuant to an agreement
with the Secretary of Health and Human Services, to waive the
exclusion of non-medically necessary treatment with respect to
clinical trials sponsored or approved by the National
Institutes of Health.
The Senate amendment contained no similar provision.
The Senate recedes.

Exception to maximum allowable payments to individual health-care
providers under CHAMPUS (sec. 732)

The House bill contained a provision (sec. 733) that
would provide the Secretary of Defense the authority to
authorize the commander of a military treatment facility, a
TRICARE lead agent, or a civilian, at-risk health care
contractor to modify the CHAMPUS payment limitations to ensure
the availability of care for military beneficiaries.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Codification of annual authority to credit CHAMPUS refunds to current
year appropriation (sec. 733)

The House bill contained a provision (sec. 734) that
would make permanent the authority that allows the Civilian
Health and Medical Program of the Uniformed Services (CHAMPUS)
to credit refunds and similar collections to the current-year
appropriations and thus be available to pay current-year
obligations.
The Senate amendment contained a similar provision (sec.
705).
The conference agreement includes this provision.

Exceptions to requirements regarding obtaining nonavailability-of-
health-care statements (sec. 734)

The House bill contained a provision (sec. 735) that
would prohibit the requirement for non-availability statements
for outpatient services for military beneficiaries who chose
the TRICARE Standard (fee-for-service) option.
The Senate amendment contained no similar provision.
The Senate recedes.

Enhancement of third-party collection and secondary payer authorities
under CHAMPUS (sec. 735)

The House bill contained a provision (sec. 736) that
would refine the Third Party Collection Program under which
military medical facilities collect from third party payers for
health care services provided to beneficiaries who have
additional coverage by a third-party plan or the CHAMPUS Double
Coverage Program.
The Senate amendment contained a similar provision (sec.
704).
The conference agreement includes this provision.

Subtitle E--Other Matters

legislative provisions adopted

Alternatives to active duty service obligation under Armed Forces
Health Professions Scholarship and Financial Assistance Program
and Uniformed Services University of the Health Sciences (sec.
741)

The House bill contained a provision (sec. 741) that
would establish four alternative obligations for members of the
Health Professions Scholarship and Financial Assistance Program
who do not, or cannot, complete their active-duty service
obligations.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would establish
that the alternatives be: (1) service in another armed force
for a period of time not less than the remaining obligation;
(2) service in a reserve component assignment of a duration
twice as long as the remaining active-duty obligation; or (3)
repayment of a percentage of the total cost incurred by the
Department under the program equal to the percentage of the
member's total active-duty service obligation being relieved,
plus interest. The provision would also establish that members
relieved of an active duty service obligation due to a physical
disability may fulfill the obligation as a health professional
civil service employee in a facility of the uniformed services.

External peer review for Defense Health Program extramural medical
research involving human subjects (sec. 742)

The conferees recommend a provision that would establish
that research projects that involve human subjects, that are
conducted solely by a non-Federal entity, and are funded
through the Defense Health Program (DHP), would be required to
undergo a peer review process, established by the Secretary of
Defense, to ensure the precept of basic scientific merit and
the protection of subjects before DHP funds be obligated or
expended.

Comptroller General review of health care activities of the Department
of Defense relating to Gulf War illnesses (sec. 744)

The Senate amendment contained a provision (sec. 706)
that would require the Comptroller General to conduct several
reviews related to Persian Gulf Illnesses.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Report regarding specialized treatment facility program (sec. 745)

The House bill contained a provision (sec. 745) that
would require the Secretary of Defense to provide Congress with
a report on the impact of reducing the catchment areas for
specialized treatment facilities from 200 miles to 100 miles.
The Senate amendment contained no similar provision.
The Senate recedes.

Study of means of ensuring uniformity in provision of medical and
dental care for members of reserve components (sec. 746)

The House bill contained a provision (sec. 701) that
would define the entitlement to medical and dental care for
reserve component members in a specific military duty status.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to conduct a review of the provision
of medical and dental care to members of the reserve components
on active duty, including active duty for training and annual
duty training, members on inactive duty training, and members
on full-time National Guard duty. The report should include
recommendations for a comprehensive plan for ensuring that the
medical treatment, active-duty entitlements, and consideration
for disability evaluation available to reserve component
members is sufficient and in parity with that provided to
members of the active component.

Sense of Congress regarding tax treatment of Armed Forces Health
Professions Scholarship and Financial Assistance Program (sec.
747)

The House bill contained a provision (sec. 744) that
would express the sense of Congress that the Secretary of
Defense should continue to work with the Secretary of the
Treasury to seek relief from the taxable status of tuition and
related expenses as taxable income subject to withholdings.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees, recognizing the extraordinary benefit to
the Armed Services, believe that tuition and related expenses
provided under the Armed Forces Health Professions Scholarship
Program or the Financial Assistance Program should not be
considered taxable income. The current situation is the result
of an Internal Revenue Service ruling which reversed
longstanding practice that payments under these programs were
not considered taxable income. The conferees believe that the
President can and should direct the Internal Revenue Service to
reverse the current ruling and return to the previous policy.
Further, the conferees believe that any action to collect taxes
from those personnel who participated in the Armed Forces
Health Professions Scholarship Program or the Financial
Assistance Program while the previous policy was in effect
should be terminated.

legislative provisions not adopted

Definition of TRICARE Program

The House bill contained a provision (sec. 711) that
would define the managed-care program of the Department of
Defense known as TRICARE.
The Senate amendment contained no similar provision.
The House recedes.

Authority to waive or reduce CHAMPUS deductible amounts for reservist
called to active duty in support of contingency operations

The House bill contained a provision (sec. 732) that
would provide the Secretary of Defense the authority to waive
or reduce CHAMPUS deductible amounts in the case of the
dependents of a member of a reserve component of the uniformed
services who is on active duty under a call or order to active
duty of less than one year.
The Senate amendment contained no similar provision.
The House recedes.

Restoration of previous policy regarding restrictions on use of
Department of Defense Medical Facilities

The Senate amendment contained a provision (sec. 707)
that would repeal the restriction on the use of Department of
Defense funds to perform abortions in overseas medical
facilities.
The House bill contained no similar provision.
The Senate recedes.

Title VIII--Acquisition Policy, Acquisition Management, and Related
Matters

LEGISLATIVE PROVISIONS

Subtitle A--Acquisition Management

LEGISLATIVE PROVISIONS ADOPTED

Procurement technical assistance programs (sec. 801)

The Senate amendment contained a provision (sec. 801)
that would provide an increase of $12.0 million to continue the
procurement technical assistance center program in fiscal year
1997.
The House bill contained an increase of $8.0 million for
the continuation of this program with no legislative language.
The House recedes. The conferees believe that the
Department of Defense should continue to administer this
program and urge the Secretary of Defense to continue to
utilize the infrastructure of the procurement technical
assistance centers to support the implementation of acquisition
streamlining initiatives in the Federal Acquisition
Streamlining Act of 1994 such as electric commerce.

Extension of pilot Mentor-Protege program (sec. 802)

The Senate amendment contained a provision (sec. 802)
that would extend the period in which mentor firms under the
Mentor-Protege program may incur costs for furnishing
developmental assistance under the program until September 30,
1999. The provision would also extend the period during which
new agreements can be entered into until September 30, 1998.
The House bill contained a provision (sec. 808) that
would extend the pilot Mentor-Protege program through fiscal
year 1997.
The House recedes.

Authority to waive certain requirements for defense acquisition pilot
programs (sec. 803)

The House bill contained a provision (sec. 801) that
would expand existing authorities provided to the Secretary of
Defense to waive or modify certain acquisition laws in
executing programs designated as defense acquisition pilot
programs.
The Senate amendment contained no similar provision.
The Senate recedes.

Modification of authority to carry out certain prototype projects (sec.
804)

The House bill contained a provision (sec. 804) that
would reauthorize the authority provided by section 845 of the
National Defense Authorization Act for Fiscal Year 1994 (Public
Law 103-160) to allow additional flexibility in the acquisition
of prototype technologies and systems. The provision would also
expand this authority to the military services.
The Senate amendment contained a similar provision (sec.
803).
The Senate recedes.

Increase in threshold amounts for major systems (sec. 805)

The House bill contained a provision (sec. 804) that
would update the existing statutory dollar amount threshold for
the definition of ``major systems'' to fiscal year 1990
constant dollars from fiscal year 1980 dollars. It would also
allow the Secretary of Defense to further adjust this threshold
for inflation after notification to the congressional defense
committees. These changes would conform the definition for
``major systems'' to that used for ``major defense acquisition
program'' in title 10, United States Code.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment clarifying that any
subsequent adjustment in the threshold should be rounded to the
nearest $5.0 million.

Revision in information required to be included in Selected Acquisition
Reports (sec. 806)

The House bill contained a provision (sec. 805) that
would adjust and improve the terminology and references used in
the acquisition reporting process of major defense acquisition
programs. The provision would add ``procurement unit cost'' as
an additional reporting element of the Selected Acquisition
Report to provide a more meaningful measure of recurring unit
cost. The provision would also eliminate the reporting element
for completion status for a program because, as currently
defined, it provides statistical measures of only marginal
utility for program oversight.
The Senate amendment contained no similar provision.
The Senate recedes.

Increase in simplified acquisition threshold for humanitarian or
peacekeeping operations (sec. 807)

The House bill contained a provision (sec. 806) that
would expand the current authority that doubles the simplified
acquisition threshold, for purchases made outside of the United
States in support of a contingency operation, to cover
humanitarian and peacekeeping operations.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would expand
the authority to all Federal agencies.

Expansion of audit reciprocity among Federal agencies to include post-
award audits (sec. 808)

The House bill contained a provision (sec. 807) that
would expand current statutory authorities in two ways in order
to reduce administrative burdens and duplication of efforts by
different governmental entities. First, it would extend audit
reciprocity considerations to post-award audit to expedite the
contract closeout process and the issuance of final contract
payments. Second, it would require the Office of Management and
Budget to issue guidance to ensure that State and local
entities accept cognizant Federal agency audits in order to
minimize duplication of effort and reduce cost for contractors
engaged in contracting at various levels of government.
The Senate amendment contained no similar provision.
The Senate recedes. The conferees expect that guidance
implementing this provision will provide that a contracting
officer consult, as necessary, with the available resident
audit authority in making a determination that the objectives
of indirect cost audit can be met by accepting the results of a
prior audit.

Compensation of certain contractor personnel prohibited (sec. 809)

The Senate amendment contained a provision (sec. 1076)
that would modify the statutory cost principles to limit annual
reimbursement of individual compensation to $200,000.
The House bill contained no similar provision.
The House recedes with an amendment raising the
individual compensation limit to $250,000 and modifying such
limitation to apply only in fiscal year 1997. The conferees
have also limited the restriction to officers of the firm to be
defined in regulation. The conferees intend this term to
include individuals in senior management positions with
responsibility for the management of a firm or a major segment
thereof.
The conferees also agree to language clarifying the
definition of compensation for the purposes of this limitation.
In this definition, compensation is defined as wages and
elective deferred compensation. Further, the conferees intend
for this provision to be applied in a manner that results in
the $250,000 compensation limit being the aggregate total limit
that any one individual may submit for reimbursement. The
conferees acknowledge the difficulty of determining a general
policy for the treatment of deferred compensation under a cost
reimbursement limitation of this nature.
The conferees intend this provision to be an interim
approach pending the development and consideration of a
permanent change to the statutory cost principles. The
conferees have included a provision requiring the Administrator
of the Office of Federal Procurement Policy, in consultation
with the Secretary of the Treasury and the Secretary of
Defense, to provide to Congress no later than March 1, 1997, a
legislative proposal to address, in an equitable and clear
fashion, the limitation of reimbursement of individual
compensation under government contracts. The proposal shall
include a definition of compensation, including the treatment
of deferred compensation, to be covered by such limitation as
may be proposed. In developing such legislative proposal, the
Administrator shall make every effort to develop an approach
that allows contractors to avoid using internal tracking
procedures other than those currently used for the purposes of
complying with accepted accounting practices and current tax
law.

Exception to prohibition on procurement of foreign goods (sec. 810)

The House bill contained a provision (sec. 831) that
would delay the expiration of the current statutory domestic
source restriction for valves and machine tools from October 1,
1996 to October 1, 2001.
The Senate amendment contained a provision (sec. 806)
that would amend section 2534 of title 10, United States Code,
by providing additional authority for the Secretary of Defense
to waive limitations on the procurement of goods other than
United States goods. The amendment would authorize the
Secretary to waive a limitation in a case where he determines
that the application of the limitation would impede the
reciprocal procurement of defense items under a memorandum of
understanding entered into under section 2531 of title 10,
United States Code.
The House recedes.
The conferees note that the Defense Federal Acquisition
Regulation Supplement interprets the domestic source limitation
in section 2534(a)(5) of title 10, United States Code, for ball
bearings and roller bearings ``in accordance with subpart
225.71 of part 225 of the Defense Federal Acquisition
Regulation Supplement, as in effect on October 23, 1992'' as
allowing only those waivers that were included in the cited
DFARS subpart, rather than the general waivers in section
2534(d) of title 10, United States Code, to be applied to the
domestic source restrictions for ball and roller bearings. The
conferees do not intend the new provision to have any effect on
the Department's interpretation.

Subtitle B--Other Matters

legislative provisions adopted

Prohibition on release of contractor proposals under Freedom of
Information Act (sec. 821)

The House bill contained a provision (sec. 822) that
would exempt contractor proposals provided to the Federal
government from release under the Freedom of Information Act
(Public Law 89-554). This provision is intended to allow
Federal agencies to dispense with the lengthy line-by-line
reviews that are currently required to arrive at the non-
disclosure determination for this material. This provision is
not intended to affect information available to be placed under
a General Accounting Office protective order pursuant to
section 3553(f) of title 31, United States Code.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment clarifying the
status of those portions of contractor proposals included in a
government contract.

Amendments relating to reports on procurement regulatory activity (sec.
822)

The House bill contained a provision (sec. 824) that
would repeal the requirement for the Administrator for Federal
Procurement Policy to publish a semiannual regulatory activity
report on procurement regulations.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would make the
semiannual reporting requirement an annual requirement and
modify the required content of the report.

Amendment of multi-year limitation on contracts for inspection,
maintenance, and repair (sec. 823)

The House bill contained a provision (sec. 825) that
would repeal the current statutory limitation on multi-year
contracts for inspection, maintenance, and repair functions
thereby enabling the multi-year policy provisions of the
Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355) to govern such contracts.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment extending the
limitation period to not more than five years, vice three
years.

Streamlined notice requirements to contractors and employees regarding
termination or substantial reductions in contracts under major
defense programs (sec. 824)

The House bill contained a provision (sec. 826) that
would streamline and simplify the notification process
resulting from termination or substantial reduction in defense
contract funding required by the Defense Conversion,
Reinvestment, and Transition Assistance Act of 1992 (Division D
of Public Law 102-484). This provision would modify the
notification process to occur upon actual contract termination
or substantial reduction rather than prematurely during the
budget process as currently required.
The Senate amendment contained no similar provision.
The Senate recedes.

Repeal of notice requirements for substantially or seriously affected
parties in downsizing efforts (sec. 825)

The House bill contained a provision (sec. 827) that
would repeal the requirement for the Secretary of Defense to
notify Federal, state, county, local and labor officials if the
President's annual budget submission, or long-term guidance
documents, or public announcements of base or facility closures
or realignments, or cancellation or curtailment of a major
contract will affect them seriously and substantially.
The Senate amendment contained no similar provision.
The Senate recedes.

Study of effectiveness of defense mergers (sec. 826)

The House bill contained a provision (sec. 833) that
would require a study conducted by the Secretary of Defense on
the effect of defense mergers and acquisitions in the defense
sector. The study would address the effectiveness of defense
mergers and acquisitions in eliminating excess capacity within
the defense industry, the degree of change in the dependence of
defense contractors on defense-related Federal contracts after
mergers, and the effect on defense industry employment
resulting from defense mergers and acquisitions.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment adding the effect on
competition for defense contracts as a matter to be addressed.

Annual report relating to Buy American Act (sec. 827)

The House bill contained a provision (sec. 1053) that
would require the Secretary of Defense to submit an annual
report on the amount of purchases by the Department of Defense
from foreign entities in that fiscal year. The report would
also include the dollar value of items for which the Buy
American Act of 1933 (41 U.S.C. 10) was waived.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment extending the date
the report is required to be submitted to 120 days after the
end of the fiscal year.

Foreign environmental technology (sec. 828)

The Senate amendment contained a provision (sec. 3165)
that would allow the Secretary of Energy to waive the
prohibition under section 2536(b) of title 10, United States
Code, on award of certain Department of Defense and Department
of Energy contracts to companies owned by an entity controlled
by a foreign government. The provision would authorize the
waiver if the Secretary of Energy determines that it is
essential to the national security or advances the
environmental restoration objectives of the Department, without
harm to the national security interests of the United States.
Moreover, the waiver only applies if the entity is controlled
by a foreign government with which the Secretary is authorized
to exchange restricted data under section 144(c) of the Atomic
Energy Act of 1954 (42 U.S.C. 2164(c)).
The House bill contained no similar provision.
The House recedes with an amendment that would extend the
waiver authority to the Secretary of Defense.
The conferees direct the Secretary of Defense to provide
a report to the congressional defense committees on whether the
standards identified in this new waiver authority should be
modified or expanded.

Assessment of national defense technology and industrial base and
dependency of base on supplies available only from foreign
countries (sec. 829)

The Senate amendment contained a provision (sec. 804)
that would substantially amend the requirements in chapter 148
of title 10, United States Code, for analysis, assessment and
planning concerning the national technology and industrial
base. The amendments would clarify that the Secretary of
Defense has responsibility for preparing periodic and selected
assessments of the capability of the national technology and
industrial base to attain the national security objectives
outlined in section 2501(a) of title 10, United States Code.
The provision would also establish a requirement that the
Secretary prepare and submit to Congress an annual report
describing the assessment and analyses used to identify and
address concerns about national technology and industrial base
capabilities as well as each program in the annual budget
request designed to sustain such capabilities.
The House bill contained a provision (sec. 829) that
would direct the Department of Defense to conduct an assessment
of the degree of dependency on foreign sources for key
components of defense systems.
The House recedes with an amendment that would require
foreign dependency risk assessments be included as part of the
periodic selected industrial base assessments conducted by the
Secretary of Defense. In assessing whether a case of foreign
dependency constitutes an unacceptable risk, the Secretary
should take into consideration the overall degree of dependence
by the national technology and industrial base on the item or
supply in question, the production or development risks that
could result from the disruption of access to such item or
supply, and the programs and initiatives in place to reduce
dependence on such item or supply.

Expansion of report on implementation of automated information systems
to include additional matters regarding information resources
management (sec. 830)

The Senate amendment contained a provision (sec. 809)
that would require the Secretary of Defense to report to
Congress on the establishment of the integrated management
framework for the implementation of the Information Technology
Management Reform Act of 1996 (division E of Public Law 104-
106) and to provide the Department's overall strategic
information resources management plan.
The House bill contained no similar provision.
The House recedes with an amendment that would make
technical and clarifying changes and that would break out the
section of the provision concerning the ``year 2000 issue''
into a separate provision discussed elsewhere in this report.

Year 2000 software conversion (sec. 831)

The Senate amendment contained a provision (sec. 809(b))
that addressed the potential problem of converting date fields
in software code an embedded systems in the year 2000 and
directed the Department of Defense (DOD) to assess the risk to
DOD information systems, and report to Congress on the
resources necessary to complete conversion by the year 2000.
The Senate amendment also directed the Secretary of Defense to
ensure that after September 30, 1996 all information technology
purchased by the Department will operate in the year 2000
without technical modifications.
The House had no similar provision.
The House recedes with a clarifying amendment. The
conferees agree it is critical for the Department to address
immediately the matter of ``year 2000 compliance'', and to
ensure to the greatest extent practicable that prospective
acquisitions do not include products that are non-compliant.
While DOD contracting personnel are authorized to consider and
accept offers for non-compliant products, this authority should
be conditioned on the offerors providing and committing to a
timetable whereby products sold to the government after
September 30, 1996 will be ``year 2000 compliant'', or will be
modified to achieve ``year 2000 compliance'' with minimal cost
to the government.

Procurement from firms in industrial base for production of small arms
(sec. 832)

The Senate amendment contained a provision (sec. 805)
that would authorize the Secretary of Defense to require that
any procurement of property or services associated with repair
parts for small arms, or modifications of parts to improve
small arms used by the armed forces, be made only from a firm
in the small arms industrial base. The small arms industrial
base would include those firms described in the plan entitled
``Preservation of Critical Elements of the Small Arms
Industrial Base,'' dated January 8, 1994, that was prepared by
the Army Science Board.
The House bill contained no similar provision.
The House recedes with an amendment.
The conferees support the findings in Army Science Board
study referred to in the Senate report (S. Rept. 104-267) and
include a legislative provision (sec. 832) that authorizes the
Secretary of Defense to limit procurement of small arms repair
parts and modification of parts to those firms identified in
the study which comprise the small arms production industrial
base.

Cable television franchise agreements (sec. 833)

The House bill contained a provision (sec. 833) that
would express the sense of Congress that the United States
Court of Federal Claims should transmit a report to Congress as
specified in section 823 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106) by the date
specified in that section.
The Senate amendment contained a provision (sec. 807)
that would require that cable television franchise agreements
with the Department of Defense be considered as a contract for
telecommunications services for purposes of part 49 of the
Federal Acquisition Regulation (FAR) if the court sustained
that position in its report to Congress.
The House recedes with an amendment. Section 823 of the
National Defense Authorization for Fiscal Year 1996 (Public Law
104-106) required the United States Court of Federal Claims to
render and transmit to Congress an advisory opinion on whether
the executive branch is empowered to treat cable television
franchise agreements as contracts under the FAR without
violating title VI of the Cable Act (47 U.S.C. 521 et seq.)
and, if so, whether the executive branch is required by law to
treat such agreements as contracts. The court transmitted its
advisory opinion to Congress on July 15, 1996. The court found
that, as a matter of law, cable television franchise agreements
are contracts subject to part 49 of the FAR. The conferees
agree to a provision which reflects the opinion of the court.
The conferees do not intend that this section should in
any way interfere with arrangements between cable television
operators on military bases that have closed and the public or
private parties that have taken possession of these base
properties after closure.

legislative provisions not adopted

Exclusion from certain post-education duty assignments for members of
the acquisition corps

The House bill contained a provision (sec. 802) that
would authorize the Secretary of Defense to exclude from the
mandatory joint duty requirement military members of the
acquisition corps who have graduated from the senior
acquisition course at the Industrial College of the Armed
Forces (ICAF).
The Senate amendment contained no similar provision.
The House recedes.

Implementation of information technology management reform

The House bill contained a provision (sec. 821) that
would expand the definition of national security systems items
exempt from the application of the centralized management
provisions of the Information Technology Management Reform Act
of 1996 (Division E of Public Law 104-106) to include all
classified systems.
The Senate amendment contained a provision (sec. 1081)
that would limit the definition of national security systems
items exempt from the application of the centralized management
provisions of the Information Technology Management Reform Act
of 1996.
The House and Senate recede from their respective
provisions.

Repeal of annual report by advocate for competition

The House bill contained a provision (sec. 823) that
would repeal the requirement for agency competition advocates
to submit an annual report to agency senior procurement
executives.
The Senate amendment contained no similar provision.
The House recedes.

Testing of defense acquisition programs

The House bill contained a provision (sec. 828) that
would modify existing statutes governing live fire testing of
major defense systems.
The Senate amendment contained no similar provision.
The House recedes.

Remedies for reprisal against contractor whistleblowers

The Senate amendment contained a provision (sec. 808)
that would modify the remedies in current law available to a
contractor employee who is wrongfully terminated because he
reported wrongdoing. The amendment would also allow for the
payment of back pay and other compensation in the event the
employee is not reinstated.
The House bill contained no similar provision.
The Senate recedes.

Title IX--Department of Defense Organization and Management

legislative provisions

Subtitle A--General Matters

legislative provisions adopted

Repeal of reorganization of Office of Secretary of Defense (secs. 901
and 903)

The House bill contained a provision (sec. 902) that
would clarify that the 25 percent, five year reduction in
personnel assigned to the Office of the Secretary of Defense
required by section 901 of the National Defense Authorization
Act for Fiscal Year 1996 (Public Law 104-106) must be
implemented on an annual basis.
The Senate amendment contained a provision (sec. 901)
that would repeal sections 901 and 903 of the National Defense
Authorization Act for Fiscal Year 1996 which directed the
reorganization of the Office of the Secretary of Defense.
The House recedes with an amendment that would retain
section 901 of the National Defense Authorization Act for
Fiscal Year 1996 and include the annual reductions required by
section 901 of the House bill.
The conferees note that section 901 required the
Secretary of Defense to conduct a review of the organization
and functions of the Office of the Secretary of Defense and to
submit a report not later than March 1, 1996. The Secretary has
failed to comply with this statutory requirement. The conferees
direct the Secretary to complete the review and to submit the
required report immediately.
The conferees agreed to strike the repeal of the
statutory basis for certain Presidential appointment positions.
The conferees expect that the Secretary will include in the
review of the organization and functions a zero-based review of
the structure of the Office of the Secretary of Defense, and
propose legislative changes, as necessary, if there is a
recommendation to eliminate any of the current statutorily-
required positions.

Additional required reduction in defense acquisition workforce (sec.
902)

The House bill contained a provision (sec. 901) that
would require a reduction in the number of personnel assigned
to defense acquisition organizations of 25,000 during fiscal
year 1997.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment limiting the number
of required reductions to 15,000 in fiscal year 1997 and
clarifying that the reductions are required to be made in
numbers of acquisition personnel rather than in acquisition
positions. The conferees agree that the impact of the
reductions required to date in this specific category should be
properly and fully assessed prior to the consideration of
further cuts of such magnitude.

Report on military department headquarters staffs (sec. 904)

The House bill contained a provision (sec. 903) that
would require the Secretary of Defense to conduct a
comprehensive assessment on the management and functional
responsibilities of the offices of the military department
secretaries and chiefs of staff.
The Senate amendment contained no similar provision.
The Senate recedes.

Matters to be considered in next assessment of current missions,
responsibilities, and force structure of the unified combatant
commands (sec. 905)

The Senate amendment contained a provision (sec. 907)
that would direct the Chairman of the Joint Chiefs of Staff to
consider various matters (including geographic size,
population, and threats) as part of the next review by the
Chairman of the missions, responsibilities, and force structure
of the unified combatant commands.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Transfer of authority to control transportation systems in time of war
(sec. 906)

The House bill contained a provision (sec. 364) that
would shift the responsibility for all systems of
transportation during time of war from the Secretaries of the
Army and the Air Force to the Secretary of Defense.
The Senate amendment contained a similar provision (sec.
904).
The House recedes.

Codification of requirements relating to continued operation of the
Uniformed Services University of the Health Sciences (sec. 907)

The House bill contained a provision (sec. 743) that
would restate the directive to the Secretary of Defense to
budget for ongoing operations at the Uniformed Services
University of the Health Sciences (USUHS).
The Senate amendment contained a provision (sec. 902)
that would codify in title 10, United States Code, those
portions of the National Defense Authorization Acts for Fiscal
Years 1995 and 1996 that prohibit the closure of the Uniformed
Services University of the Health Sciences (USUHS).
The House recedes.

Joint Requirements Oversight Council (sec. 908)

The House bill contained a provision (sec. 904) that
would delay the effective date of the statutory charter for the
Joint Requirements Oversight Council (JROC) from January 1,
1997 to January 1, 1998.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would amend the
JROC charter to specify that the Secretary of Defense is
required to provide Congress with analysis and rationale for
programmatic recommendations that were accepted by the
Secretary. The amendment would retain the January 1, 1997
effective date.

Membership of the Ammunition Storage Board (sec. 909)

The House bill contained a provision (sec. 906) that
would permit qualified federal civilian employees to serve as
board members on the Department of Defense ammunition storage
board.
The Senate amendment contained no similar provision.
The Senate recedes.

Removal of Secretary of the Army from membership on the Foreign Trade
Zone Board (sec. 910)

The House bill contained a provision (sec. 905) that
would repeal the requirement for membership of the Secretary of
the Army on the Foreign Trade Zone Board.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees encourage the Department of Defense to
advise the Board on infrastructure improvements and
environmental evaluations, as appropriate.

Composition of aircraft accident investigation boards (sec. 911)

The House bill contained a provision (sec. 1033) that
would require the Secretaries of the military departments to
appoint a minimum of one representative of the service's safety
center as a voting member on all aircraft accident
investigation boards and to appoint a majority of the
membership of accident investigation boards from units outside
the chain of command of the unit involved in the mishap.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would eliminate
the requirement that a representative of the service's safety
center be a member of an investigation board and would
authorize the Secretary to select other individuals possessing
knowledge or expertise that might prove useful to those
conducting the investigation. The amended provision also allows
the Secretary to waive the requirement to appoint a member or
members from outside the command if the crash site is remote;
the need to conduct the investigation is urgent; or the
aircraft is very unique and limited in number to the extent
that it is not feasible to locate, within the military
department, another unit whose personnel have sufficient
knowledge.

Mission of the White House Communications Agency (sec. 912)

The House bill contained a provision (sec. 1051) that
would require the Secretary of Defense to ensure that the
activities of the White House Communications Agency of the
Department of Defense are limited to the provision of
telecommunications support to the President and Vice President
and related elements such as the National Security Council.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would: (1)
permit the White House Communications Agency to provide
services other than telecommunications so long as the
Department of Defense is reimbursed for the cost of providing
those services, (2) delay the effective date until October 1,
1997, and (3) require a series of reports during fiscal year
1997 on support provided by the White House Communications
Agency.

Subtitle B--Force Structure Review

LEGISLATIVE PROVISIONS ADOPTED

Force Structure Review (secs. 921-926)

The Senate amendment contained a number of provisions
(secs. 1091-1096) in subtitle G of title 10, referred to as the
``Armed Forces Force Structure Review Act of 1996.'' This Act
would require the Secretary of Defense, in consultation with
the Chairman of the Joint Chiefs of Staff, to conduct a
Quadrennial Defense Review (QDR) as recommended by the
Commission on Roles and Missions of the Armed Forces. This
review would be a complete re-examination of the defense
strategy, force structure, force modernization plans, budget
plans, infrastructure, and other elements of the defense
program and policies with a view toward determining and
expressing the defense strategy of the United States, and
establishing a national defense program, as we enter the 21st
Century.
In carrying out this review, the Department would examine
the potential near- and long-term threats to U.S. national
security including:
(a) the proliferation of weapons of mass
destruction and the means to deliver them;
(b) conventional threats across a spectrum of
conflicts;
(c) the vulnerability of our information systems
and other advanced technologies to non-traditional
threats;
(d) domestic and international terrorism; and
(e) the potential emergence of a major adversary.
The Act would also create an independent, non-partisan
panel of defense experts (to be known as the National Defense
Panel) that would provide the Secretary of Defense and the
Congress alternative recommendations regarding the optimal
force structure required to meet the national security needs of
the United States. This panel would be appointed by the
Secretary of Defense after consultation with the Chairmen and
Ranking Members of the Committee on Armed Services of the
Senate and the Committee on National Security of the House of
Representatives.
The creation of the National Defense Panel is intended to
help ensure the validity of the process by playing a very
active role in reviewing and commenting on the QDR from the
early stages of its development. The Panel is designed to
provide the Congress, and the Secretary of Defense, with an
independent review of the national security requirements of the
United States, including the force structure necessary to meet
those requirements. This will, hopefully, allow the Congress
and the Secretary to consider alternative options when making
decisions affecting the security of the United States.
Upon completion of the QDR, the Act would require that
the Chairman of the Joint Chiefs of Staff and the Chairman of
the National Defense Panel prepare and submit to the Secretary
of Defense, for inclusion in the Secretary's report to the
Congress, their assessment of the QDR. The Secretary's report
would also include a comprehensive discussion of the defense
strategy of the United States, and the assumptions regarding
the threats to our national security, mission sharing, levels
of acceptable risk, warning times, and intensity and duration
of the conflict. In addition, the report would address the
effect on the force structure of preparations for, and
participation in, peace operations and military operations
other than war. It also would require a discussion of the
effects which emerging technologies will have on the U.S. force
structure and a number of other matters.
The House bill contained no similar provision.
The House recedes.
The conferees believe this is an appropriate time to
review the strategy and force structure necessary to protect
the interests of the United States in any future conflict. The
pace of global change requires that the United States reexamine
its military capabilities with a view toward preparing the
military services for the 21st century.

Title X--General Provisions

legislative provisions

Subtitle A--Financial Matters

legislative provisions adopted

Transfer authority (sec. 1001)

The House bill contained a provision (sec. 1001) that
would provide the authority for reprogramming involving the
transfer of authorization between amounts authorized as set out
in bill language.
The Senate amendment contained an identical provision.
The conference agreement includes this provision.

Incorporation of classified annex (sec. 1002)

The House bill contained a provision (sec. 1002) that
would incorporate the classified annex prepared by the
Committee on National Security into this Act.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment providing
that the classified annex prepared by the committee of
conference is incorporated into this Act.

Authority for obligation of certain unauthorized fiscal year 1996
defense appropriations (sec. 1003)

The House bill contained a provision (sec. 1003) that
would authorize fiscal year 1996 programs that received
appropriations but no authorization.
The Senate amendment contained an identical provision.
The conference agreement includes this provision.

Authorization of prior emergency supplemental appropriations for fiscal
year 1996 (sec. 1004)

The House bill contained a provision (sec. 1004) that
would extend authorization to those items appropriated by the
fiscal year 1996 emergency supplemental appropriations
legislation.
The Senate amendment contained an identical provision.
The conference agreement includes this provision.

Format for budget requests for Navy/Marine Corps and Air Force
ammunition accounts (sec. 1005)

The House bill contained a provision (sec. 1005) that
would require the President to request funding for ammunition
for the Navy and the Marine Corps, and ammunition for the Air
Force in separate appropriation accounts.
The Senate amendment contained no similar provision.
The Senate recedes.

Defense airborne reconnaissance program (DARP) (sec. 1006)

The House bill contained a provision (sec. 1006) that
would require the Secretary of Defense to identify all DARP
research and development (R&D) programs, projects, or
activities, with a unique program element number and
procurement line item number, respectively, for all future
budget requests beginning with fiscal year 1998.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment.
The conferees agree that the consolidated Defense
Airborne Reconnaissance Office (DARO) budget request does not
provide sufficient funding detail for the numerous DARO
programs to enable the congressional defense committees to
conduct necessary oversight. The major DARO programs currently
consolidated in one R&D program element identification number
and spread across three procurement line item identification
numbers include: tactical unmanned aerial vehicles; endurance
unmanned aerial vehicles; airborne reconnaissance systems;
manned reconnaissance systems; and distributed common ground
systems. The conferees therefore include a legislative
provision that would require the Secretary of Defense to
identify at least these major DARP R&D and procurement programs
by unique program element identification number and procurement
line item identification number, respectively, for all future
budget requests beginning with the fiscal year 1998.

Limitation on use of Department of Defense funds transferred to the
Coast Guard (sec. 1007)

The Senate amendment contained a provision (sec. 1004)
that would require the Secretary of Defense and the Secretary
of Transportation to jointly certify to the Congress that the
funds transferred from the Department of Defense to the Coast
Guard will be used for the national security functions of the
Coast Guard.
The House bill contained no similar provision.
The House recedes with a technical amendment.

Fisher House Trust Fund for the Department of the Navy (sec. 1008)

The Senate amendment contained a provision (sec. 1008)
that would establish a trust fund in the U.S. Treasury for the
Navy Fisher Houses.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Designation and liability of disbursing and certifying officials for
the Coast Guard (sec. 1009)

The Senate amendment contained a provision (sec. 1009)
that would extend the authorization for the designation and
appointment of disbursing and certifying officials within the
Department of Defense to the Secretary of Transportation for
the Coast Guard. The Department of Defense was authorized to
designate and appoint disbursing and certifying officials in
the National Defense Authorization Act for Fiscal Year 1996.
The recommended provision would extend these financial
management authorities to the Coast Guard.
The House bill contained no similar provision.
The House recedes.

Authority to suspend or terminate collection actions against deceased
members of the Coast Guard (sec. 1010)

The Senate amendment contained a provision (sec. 1010)
that would rescind the requirement to initiate and pursue
collection actions against the estates of members of the Coast
Guard who die while on active duty and are indebted to the
government.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Department of Defense disbursing official check cashing and exchange
transactions (sec. 1011)

The House bill contained a provision (sec. 907) that
would permit Department of Defense disbursing officials to
provide check cashing services and exchange services to U.S.
chartered federal credit unions serving U.S. military personnel
and their dependents in foreign countries where military
banking facilities are not available.
The Senate amendment contained a similar provision (sec.
1011).
The Senate recedes with a clarifying amendment.

Subtitle B--Naval Vessels and Shipyards

Legislative provisions adopted

Repeal of requirement for continuous applicability of contracts for
phased maintenance of AE class ships (sec. 1021)

The Senate amendment contained a provision (sec. 1023)
that would repeal section 1016 of the National Defense
Authorization Act of Fiscal Year 1996.
The House bill contained no similar provision.
The House recedes.

Funding for second and third maritime pre-positioning ships out of
National Defense Sealift Fund (sec. 1022)

The budget request included $963.0 million in the
National Defense Sealift Fund (NDSF) for strategic sealift,
including $603.8 million for the procurement of two large
medium speed roll-on/roll-off (LMSR) ships, $260.8 million for
operations and maintenance of the ready reserve force (RRF),
$90.0 million for acquisition of additional ships for the RRF,
and $8.4 million for sealift research and development
The Senate amendment contained a provision (sec. 311)
that would authorize an increase of $240.0 million in the NDSF
for the purchase and conversion, or construction if it is
competitive based on price and timeliness, of two additional
ships for the Marine Corps maritime prepositioning force
enhancement (MPF(E)) program. Acquisition of these two ships
would satisfy the Marine Corps MPF(E) threshold operational
requirement. The Senate report (S. Rept. 104-267), which was
published on May 13, 1996, provided the rationale for this
provision. A subsequent MPF(E) life cycle cost comparison was
undertaken by the Congressional Research Service (CRS) at the
request of the Committee on Armed Services of the Senate and
completed on June 21, 1996. CRS evaluated a number of possible
options, including purchase and conversion of an existing hull,
a new construction variant of the Army's LMSR, and a lengthened
version of a national defense features roll-on/roll-off design
that was developed as a maritime technology initiative. The
study concluded that, with a threshold operational requirement
and any time horizon from fiscal year 2009 out to thirty years
of service life as the benchmarks, the purchase and conversion
of an existing ship to satisfy the Marine Corps threshold
requirement for an MPF(E) ship would be the most cost effective
option.
The House bill contained no similar provision. However,
the House bill would authorize an increase of $160.0 million
for the purpose of procuring a second MPF(E) ship. The House
bill also included a separate provision, discussed elsewhere in
this statement of managers, that would ensure that the second
and third ships acquired to satisfy the MPF(E) requirement are
new vessels constructed in U.S. shipyards.
The House recedes.

Transfer of certain obsolete tugboats of the Navy (sec. 1023)

The Senate amendment contained a provision (sec. 1022)
that would authorize the Secretary of the Navy to transfer six
obsolete tugboats from the Navy to an instrumentality of the
State of Wisconsin, the Northeast Wisconsin Railroad
Transportation Commission, if the Secretary determines that the
tugboats are not needed for transfer, donation, or other
disposal under title II of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 481 et seq.).
The transfer would be at no expense to the Navy. The provision
would also direct the Secretary to require, as a condition of
transfer, that use of the vessels by the Commission not
commence until the terms of any necessary environmental
compliance letter have been met.
The House bill contained no similar provision.
The House recedes with an amendment that will clarify the
terms under which the transfer could be made.

Transfer of the U.S.S. Drum to city of Vallejo, California (sec. 1024)

The House bill contained a provision (sec. 1049) that
would authorize the Secretary of the Navy to transfer the
U.S.S. Drum (SSN-677) to the City of Vallejo, California, upon
satisfactory completion of a ship donation application. This
transfer would be at no cost to the government.
The Senate amendment contained no similar provision.
The Senate recedes.

Sense of Congress concerning LCS 102 (LSSL 102) (sec. 1025)

The Senate amendment contained a provision (sec. 1025)
that would express the sense of the Senate that the Secretary
of Defense should use existing authorities in law to seek
return, upon completion of service, of the former U.S.S. LCS
102 (LSSL 102) from the Government of Thailand in order for the
ship to be transferred to the United States Shipbuilding
Museum.
The House bill contained no similar provision.
The House recedes.
The conferees agree to adopt the Senate provision as a
sense of Congress.

Subtitle C--Counter-Drug Activities

legislative provisions adopted

Overview

The budget request for drug interdiction and other
counterdrug activities of the Department of Defense totals
$782.2 million. This includes the $642.7 million drug
interdiction account, and $139.5 million in the military
services' operating budgets for counterdrug operations. This
compares with a total of $810.9 million for these activities
during fiscal year 1996, including $679.4 million for the drug
interdiction account and $131.5 million in the services's
operating budgets.
The conferees recommend an additional $153.8 million for
the counterdrug initiatives of the Department of Defense. These
increases, along with the budget request for counter-narcotics
activities, are shown in the table below.

Drug Interdiction & Counterdrug Activities--Operations and Maintenance

[In thousands of dollars; may not add due to rounding]

Fiscal Year 1997 Drug and Counterdrug Request................. 782,200
Source Nation Support..................................... 154,000
Detection and Monitoring.................................. 232,100
Disruption of Drug Mafia Organizations.................... 57,100
Law Enforcement Agency.................................... 255,000
Demand Reduction.......................................... 84,000
Increases:
Support for Military Counterdrug Units of Mexico.......... 8,000
Laser Strike.............................................. 8,000
Riverine Operations in South America...................... 4,000
Signal Intelligence Equipment for Southwest Border........ 2,500
Southwest Border Fence.................................... 5,000
Refurbish and Install TPS-70 Radar........................ 15,000
P-3B AEW Retrofit (2 a/c)................................. 98,000
Non-Intrusive Inspection Systems.......................... 6,000
Gulf States Counterdrug Initiative........................ 2,800
Multi-Jurisdictional Task Force........................... 1,000
C-26 Upgrades............................................. 3,500
Recommendation................................................ 936,000

The increase in funding will enable the Department of
Defense and the Federal Government to more rigorously pursue
its counter-narcotics efforts including priority programs
identified by the Office of National Drug Control Policy.

Mexico-Southwest Border Initiative

The conferees recognize that a substantial quantity of
the narcotics entering the United States from South America
continues to come across the southwest border. Some reports put
this quantity as high as 70 percent. The conferees urge the
Department to increase its effort in working with the
Government of Mexico to stem the flow of narcotics across this
border and recommend an increase of $8.0 million in fiscal year
1997 to be used for this purpose.
The conferees are encouraged by the Department's
intelligence gathering activities related to the prevention of
drug-smuggling across the southwest border. The conferees
recommend an increase of $2.5 million for the purchase of
signal intelligence equipment to be used for communications
intercept activities along the southwest border.
The conferees continue to have an interest in
facilitating support for the border fence project along the San
Diego-Tijuana border area in Southern California. The conferees
are aware of the efforts of JTF-6 and the California National
Guard in sustaining an adequate level of support to enhance
this barrier. The conferees endorse the decision to fund the
effort to enhance the fence from within the immigration control
budget. However, to ensure that the existing program to extend
the length of fence coverage is not unnecessarily interrupted,
the conferees recommend an additional $5.0 million for
continued support of this national project.
In addition, the conferees recommend an additional $6.0
million for the purchase of non-intrusive inspection devices to
be deployed at major ports of entry along the southwest border.
This will help to ensure that the U.S. war on drugs in this
region is provided with the most up to date detection
equipment.

Caribbean and South American Initiative

The conferees are aware that the Department's request is
insufficient to provide full funding of Operation Laser Strike
in fiscal year 1997. Laser Strike will build on the success of
Operation Green Clover and involves a sustained level of U.S.
detection, monitoring and tracking resources, as well as
assessments and training, to support expanded interdiction and
law enforcement efforts by nations of the source region. The
conferees support this important operation and recommend an
increase of $8.0 million in order to provide full funding.
The conferees are also aware that drug traffickers are
making greater use of the vast river network in the Andean
region to transport processed cocaine and pre-cursor materials.
Currently, the governments in the source nations are ill-
prepared to interdict drug trafficking on their rivers and
waterways. Therefore, the conferees recommend an increase of
$4.0 million for assistance to the governments of the source
nations in their efforts to stem the flow of narcotics moving
on these rivers.
The conferees are encouraged by the level of success
achieved by the Department in reducing the movement of
narcotics by air. The conferees recommend an additional $15.0
million for the installation of a TPS-70 radar which will
assist the Department, and those cooperative governments of the
source nations, in efforts to further reduce the amount of
drugs that smugglers are moving with the use of aircraft. In
addition, the conferees recommend an additional $98.0 million
for the retrofitting of two P-3B aircraft with airborne radars
which will provide the U.S. Customs Service with additional
detection and monitoring capability.

Domestic Counter-Narcotics Initiative

The conferees have learned that the number of OH-58D
helicopters in the Army National Guard will be reduced
dramatically under the Army's Aviation Restructure Initiative.
These helicopters, with their forward looking infrared radar
(FLIR), are particularly useful in the National Guard's
detection of illicit marijuana fields. The conferees have been
advised that the Department of Defense's Office of Drug
Enforcement Policy and Support is reviewing this situation with
a view towards the retention of additional OH-58D helicopters,
as appropriate, within existing funding resources. The
conferees support this initiative and direct that Office, in
coordination with the Department of the Army and the National
Guard Bureau, to ensure the allocation of additional
helicopters to those states that have historically used these
assets for the detection and destruction of illicit marijuana
fields.
The conferees are aware of a shortfall in funding for the
National Guard C-26 aircraft photo reconnaissance and infrared
surveillance upgrade program. Therefore, the conferees
recommend an increase of $3.5 million to restore the number of
aircraft involved in the C-26 photo reconnaissance upgrade
program to its previous level.
The conferees continue to support the Gulf States
Counterdrug Initiative (GSCI) and are pleased to note that the
budget request contains $3.2 million for this initiative.
However, the conferees are concerned that this funding level
does not adequately cover the required costs for the Regional
Counterdrug Training Academy, integrating the state of Georgia
into the program and other priority initiatives. Therefore, the
committee recommends an increase of $2.8 million over the
requested amount. The committee strongly believes that funds
provided for this program should remain focused on training and
improving command, control, communications, and computer
capabilities.
The conferees continue to support the efforts of the
Multi-Jurisdiction Task Force to provide valuable counter-
narcotics training to our nation's state and local law
enforcement agencies. The conferees recommend an additional
$1.0 help in these efforts.

Legislative Provisions (secs. 1031-1032)

In order to facilitate the Department's ability to carry
out these initiatives, the conferees recommend two provisions.
The first provision would authorize the transfer of both the
non-intrusive inspection devices and 2 P-3B aircraft to the
U.S. Customs Service. Prior to the obligation of funds for the
P-3B aircraft, the Secretary would have to certify to Congress
that the transfer of these aircraft to the U.S. Customs Service
will significantly reduce the level of support that would
otherwise be requested of the Department's E-3 AWACS aircraft.
The conferees also include a provision from the Senate
amendment (sec. 1031) that would grant the Secretary of Defense
the authority to provide additional support for the counter-
drug activities of the Government of Mexico. This provision
would authorize the Secretary to transfer non-lethal protective
and utility personnel equipment, spare parts, and non-lethal
specialized equipment, such as navigation equipment,
communications equipment, and photo equipment, to Mexico. The
conferees wish to make clear that the Secretary would only be
authorized to transfer equipment specified by this provision
and in no way could use this authority to transfer helicopters
or other aircraft.

Transfer of excess personal property to support law enforcement
activities (sec. 1033)

The House bill contained a provision (sec. 362) that
would provide permanent authority for the Department of Defense
(DOD) to provide excess personal property to state and local
law enforcement agencies. This property includes vehicles,
helicopters, weapons, ammunition and other property that is
needed by law enforcement agencies. Section 1208 of the
National Defense Authorization Act for Fiscal Years 1990 and
1991 (Public Law 101-189) estabished a one year program to
provide excess personal property to law enforcement agencies
for use in drug enforcement activities. This provision was
extended until September 30, 1997 by section 1005 of the
National Defense Authorization Act for Fiscal Year 1991 (Public
Law 101-510). This provision would make the section 1208
program permanent and expand it to all law enforcement
activities with a priority to counter-narcotics activities.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment which would give
priority to counter-narcotics and counter-terrorist law
enforcement activities. The amendment would also ensure that
DOD would incur no cost of transferring this excess equipment
to these law enforcement agencies except the cost associated
with the management of the program within DOD.

Sale by Federal departments or agencies of chemicals used to
manufacture controlled substances (sec. 1034)

The Senate amendment contained a provision (sec. 1082)
that would prevent the sale of chemicals that could be used in
the manufacture of controlled substances. These chemicals could
be sold, however, if the head of the department or agency
certifies that there is no reasonable cause to believe the sale
will result in an improper use.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Subtitle D--Reports and Studies

LEGISLATIVE PROVISIONS ADOPTED

Annual report on Operation Provide Comfort and Operation Enhanced
Southern Watch (sec. 1041)

The House bill contained a provision (sec. 1021) that
would require a consolidated annual report on the conduct of
Operations Provide Comfort and Enhanced Southern Watch over and
within Iraq. This annual report would be required to be
submitted to the Congress so long as the operations continue.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.

Annual report on emerging operational concepts (sec. 1042)

The Senate amendment contained a provision (sec. 1051)
that would require the Chairman of the Joint Chiefs of Staff to
provide an annual report to Congress describing the process of
defining emerging operational concepts in each of the services
and the manner in which the services' processes are coordinated
in matters of doctrine, operational concepts, organization and
acquisition strategy.
The House bill contained no similar provision.
The House recedes with an amendment requiring the
Secretary of Defense to prepare and submit the report in
consultation with the Chairman of the Joint Chiefs of Staff.

Report on Department of Defense military child care programs (sec.
1043)

The Senate amendment contained a provision (sec. 1078)
that would express the sense of the Senate that the Department
of Defense should share its experiences with providing child
care services with other federal, state, and local agencies.
The House bill contained no similar provision.
The House recedes with an amendment that would express
the sense of the Congress.

Report on Department of Defense military youth programs (sec. 1044)

The Senate amendment contained a provision (sec. 1077)
that would express the sense of the Senate that the Department
of Defense should share its experiences in conducting youth
programs with other federal, state, and local agencies.
The House bill contained no similar provision.
The House recedes with an amendment that would express
the sense of the Congress.

Quarterly reports regarding coproduction agreements (sec. 1045)

The House bill contained a provision (sec. 1046) that
would amend the Arms Export Control Act (22 U.S.C. 2776(a)) to
require that quarterly reports to the Congress required by this
statute include information on specified government-to-
government agreements on foreign co-production of defense
articles.
The Senate amendment contained no similar provision.
The Senate recedes.

Report on witness interview procedures for Department of Defense
criminal investigations (sec. 1046)

The House bill contained a provision (sec. 1023) that
would require the Comptroller General to survey and report on
the policies and practices of all military criminal
investigative agencies with respect to the manner in which
interviews of witnesses and suspects are conducted.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would narrow
the focus of the survey to the subject of procurement fraud
investigations in the Department of the Navy.

Report on military readiness requirements of the Armed Forces (sec.
1047)

The Senate amendment contained a provision (sec. 1053)
that would establish a requirement for a one-time report from
the Chairman of the Joint Chiefs of Staff on the military
readiness requirements of all U.S. armed forces, including
active and reserve components as well as support units, using a
tiered readiness system. The provision would also direct the
service chiefs and the Commander-in-Chief of the U.S. Special
Operations Command to prepare the report for the Chairman. The
report which they prepare should assign each force unit,
described by type rather than unit name, to one of three tiers
of combat readiness which are defined in the provision. The
provision establishes parameters for the assessment. The
provision would also direct the Chairman to provide a listing
of all forces that are not assigned to one of the three
readiness tiers. After the service chiefs provide the Chairman
with this report, the Chairman shall provide the report to the
congressional defense committees together with his comments.
The report is required to be submitted by January 31, 1997.
The Senate bill also contained a provision (sec. 517)
that would require the Secretary of Defense to provide a report
on the role of specific Guard and Reserve units in the current
force structure.
The House bill contained no similar provisions.
The House recedes with an amendment that would combine
the two reports and would require the Secretary of Defense to
report to the Committee on Armed Services of the Senate and the
Committee on National Security of the House of Representatives.
The Chairman of the JCS and the service chiefs would prepare
the report. The Chairman of the JCS would consult with the
commander of the U.S. Special Operations Command in preparation
of the report.

Report on NATO enlargement (sec. 1048)

The Senate amendment contained a provision (sec. 1047)
that would require the President to submit a report on
enlargement of the membership of the North Atlantic Treaty
Organization (NATO) to Congress by December 1, 1996. The
provision would also require the appointment of congressional
members to serve on a bipartisan review group of
nongovernmental experts to conduct an independent assessment of
the enlargement of NATO, and to report to Congress by December
1, 1996.
The House bill contained no similar provision.
The House recedes with an amendment that would change the
date from December 1, 1996 to February 1, 1997 for the
President's report on NATO enlargement. Additionally, the
conferees agree to eliminate the legislative requirement for a
congressionally-appointed group of nongovernmental experts to
conduct an independent assessment of NATO enlargement.
The conferees expect that Congress will conduct its own
independent assessment on the issue of NATO enlargement.

Subtitle E--Management of Armed Forces Retirement Home

LEGISLATIVE PROVISIONS ADOPTED

Retirement home boards of directors (sec. 1051)

The House bill contained an amendment (sec. 366) that
would amend the Armed Forces Retirement Home Act of 1991
(Public Law 101-510) to update the terms of office for members
of the armed forces or federal civilians who are appointed as
members of the Retirement Home Board, authorize the disposal of
real property, and establish annual evaluation procedures for
the directors of the individual retirement homes.
The Senate amendment contained a provision (sec. 581) to
clarify references to the Armed Forces Retirement Home Act of
1991.
The Senate amendment also contained a provision (sec.
584) that would enable members of the Armed Forces Retirement
Home (AFRH) Board and local boards to be reappointed under
certain conditions. The provision also would permit a change in
the method by which certain AFRH employees are compensated.
The Senate recedes on both provisions.

Acceptance of uncompensated services (sec. 1052)

The Senate amendment contained a provision (sec. 582)
that would enable the Chairman of the Armed Forces Retirement
Home (AFRH) Board, or the directors of the individual homes, to
accept uncompensated or gratuitous services from volunteers
under procedures similar to those currently in place in the
Department of Defense.
The House bill contained no similar provision.
The House recedes.

Disposal of tract of real property in the District of Columbia (sec.
1053)

The House bill contained a provision (sec. 366) that
would amend the Armed Forces Retirement Home Act of 1991
(Public Law 101-510) to authorize the disposal of real
property, and establish annual evaluation procedures for the
directors of the individual retirement homes.
The Senate amendment contained a provision (sec. 583)
that would authorize the disposal of a 49 acre parcel of real
property at the Armed Forces Retirement Home (AFRH) in
accordance with title 24, United States Code.
The Senate recedes with an amendment that would establish
a procedure under which the Congress is notified about
proceedings on the sale of property.

Subtitle F--Other Matters

LEGISLATIVE PROVISIONS ADOPTED

Policy on protection of national information infrastructure against
strategic attack (sec. 1061)

The House bill contained a provision (sec. 1022) that
would require the President to submit a report to Congress
setting forth national policy on protecting the national
information infrastructure. The provision would require a
number of specific issues to be addressed in the report which
would be required to be submitted no later than 180 days after
the date of enactment of this Act.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.

Information systems security program (sec. 1062)

The House bill contained a provision (sec. 1031) that
would require the Secretary of Defense to allocate an
increasing percentage of funds appropriated for the defense
information infrastructure to security beginning in fiscal year
1998.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would delay
implementation of the percentage allocation formula until
fiscal year 1999, and require a report in 1997 from the
Secretary of Defense on the Department's information security
objectives, strategy, and investment preferences. If the
Secretary submits an investment plan that adequately addresses
current and projected shortfalls and vulnerabilities of the
information infrastructure, the conferees will reconsider the
necessity of allowing this legislative provision to take
effect.

Authority to accept services from foreign governments and international
organizations for defense purposes (sec. 1063)

The House bill contained a provision (sec. 1307) that
would amend section 2608(a) of title 10, United States Code, to
authorize the Department of Defense to accept services, money
and property from foreign governments and international
organizations. The funds and services from these additional
sources would be used to defray the costs of U.S. military
forces participating in multi-national operations.
The Senate amendment contained no similar provision.
The Senate recedes.

Prohibition on collection and release of detailed satellite imagery
relating to Israel (sec. 1064)

The Senate amendment contained a provision (sec. 1044)
that would limit the collection and release of satellite
imagery of Israel or other countries or geographical areas
designated by the President.
The House bill contained no similar provision.
The House recedes with an amendment.

George C. Marshall European Center for Strategic Security Studies (sec.
1065)

The House bill contained a provision (sec. 1037) that
would authorize the Secretary of Defense to accept
contributions of money or services from any foreign nation
intended to defray the cost of, or enhance the operations of,
the George G. Marshall European Center For Strategic Studies.
This provision would also authorize the Secretary of Defense to
approve the participation of European or Eurasian nations in
Marshall Center programs.
The Senate amendment contained a provision (sec. 1068)
that would authorize the George C. Marshall Center for
Strategic Security to accept contributions from foreign
governments, foundations, charitable organizations, and
individuals in foreign countries.
The Senate recedes with an amendment that would combine
the two provisions.

Authority to award to civilian participants in the defense of Pearl
Harbor the congressional medal previously authorized only for
military participants in the defense of Pearl Harbor (sec.
1066)

The Senate amendment contained a provision (sec. 1069)
that would extend to civilians who participated in the defense
of Pearl Harbor eligibility for award of a bronze medal to
commemorate the services of those persons.
The House bill contained no similar provision.
The House recedes.

Assimilative crimes authority for traffic offenses on military
installations (sec. 1067)

The Senate amendment contained a provision (sec. 1079)
that would allow the Secretary of Defense or his designee to
promulgate rules or regulations concerning traffic offenses
committed on military installations and apply the surrounding
community's authorized punishments to those offenses in
specified circumstances.
The House bill contained no similar provision.
The House recedes.

Uniform Code of Military Justice amendments (sec. 1068)

The Senate amendment contained a provision (sec. 1061)
that would make a series of amendments to the Uniform Code of
Military Justice: a technical amendment to existing legislation
governing forfeitures adjudged at special courts-martial to
conform 10 U.S.C. 858b(a)(1) to the maximum punishment
currently prescribed by law; and a provision that would amend
Article 143(c) of the Uniform Code of Military Justice (10
U.S.C. 943(c)) to allow judges of the United States Court of
Appeals for the Armed Forces to make excepted service
appointments to non-attorney positions on the personal staff of
a judge;
The House bill contained a similar provision.
The Senate amendment contained a provision that would
extend the length of one of the transitional judges on the
United States Court of Appeals for the Armed Forces from 13
years to 15 years.
The House bill contained no similar provision.
The House recedes with an amendment that would combine
Senate provision 1061 and House provision 564.

Punishment of interstate stalking (sec. 1069)

The Senate amendment contained a provision (sec. 543)
that would make it a Federal crime to stalk members of the
armed forces or a member of their immediate family.
The House bill contained no similar provision.
The House recedes with an amendment that would broaden
the provision to apply to any incident of stalking involving
interstate movement or which occurs on Federal property.

Participation of members, dependents, and other persons in crime
prevention efforts at installations (sec. 1070)

The House bill contained a provision (sec. 1038) that
would require the Secretary of Defense to promulgate
regulations to require service members, dependents, civilian
employees and defense contractors working on a military
installation to report to military law enforcement officials
any criminal activity that occurs on a military installation.
It also would require the Secretary of Defense to report to
Congress by February 1, 1997, on efforts to implement this
provision.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require
the Secretary of Defense to prepare an incentive-based plan to
encourage the reporting of crimes.

Display of State flags at installations and facilities of the
Department of Defense (sec. 1071)

The Senate amendment contained a provision (sec. 1067)
that would prohibit the adoption or enforcement of any rule
that discriminates against the display of any official state or
United States' Territory flag. This prohibition involves
official ceremonies conducted on Department of Defense
installations that display all state flags.
The House bill contained no similar provision.
The House recedes with a clarifying amendment.

Treatment of excess operational support airlift aircraft (sec. 1072)

The Senate amendment contained a provision (sec. 1083)
that would require that all excess operational support airlift
aircraft (OSA) be placed in inactive status and stored pending
completion of any study or analysis of the costs and benefits
of disposing or operating such aircraft.
The House bill contained no similar provision. The House
Report (H. Rept. 104-563) would prevent the Secretary of the
Army from making changes in the Army OSA program until the
Secretary of Defense submits a detailed plan for reducing and
redistributing all OSA aircraft.
The House recedes with an amendment that would direct the
Secretary of Defense to ensure that attempts to reuse or sell
the aircraft are given precedence over reutilization or sale of
individual parts of those aircraft.
The conferees understand that the Department has
submitted the plan and analysis directed in the House report.

Correction to statutory references to certain Department of Defense
organizations (secs. 1073-1074)

The House bill contained a provision (sec. 1039(a)) that
would make a number of minor technical and clerical amendments.
The Senate amendment contained similar provisions (secs.
112, 905, 1063).
The conference agreement includes all provisions.

Modification to third-party liability to United States for tortious
infliction of injury or disease on members of the uniformed
services (sec. 1075)

The Senate amendment contained a provision (sec. 1066)
that would amend section one of the Medical Care Recovery Act
(42 U.S.C. 2651) to enable the United States to recover the
costs of compensation provided to members of the armed forces
by the United States when they are unable to perform their
regular military duties due to circumstances in which a third
party has tort liability.
The House bill contained no similar amendment.
The House recedes.

Chemical Stockpile Emergency Preparedness Program (sec. 1076)

The House bill contained a provision (sec. 1045) that
would require the Secretary of the Army to submit a report to
Congress assessing the implementation and success of
establishing site-specific integrated product and process teams
as a management tool for the chemical stockpile emergency
preparedness program (CSEPP).
The Senate amendment contained no similar provision.
The Senate recedes.

Exemption from requirements applicable to savings associations for
certain savings institutions serving military personnel (sec.
1077)

The Senate amendment contained a provision (sec. 1089)
that would amend the Home Owners' Loan Act to permit an
exemption to the act for a savings association subsidiary of a
savings and loan holding company if not less than 90 percent of
the customers are active or former officers in the military
services or their survivors.
The House bill contained no similar provision.
The House recedes with an amendment that would permit
these savings institutions to serve all military personnel.

Improvements to National Security Education Program (sec. 1078)

The Senate amendment contained a provision (sec. 1075)
that would revise government service requirements for student
recipients of undergraduate scholarships and graduate
fellowships awarded under the National Security Education Act
of 1991 (NSEA) and administered by the National Security
Education Program (NSEP).
The House bill contained no similar provision.
The House recedes with an amendment that would clarify
the terms of the service agreement between the recipient and
the NSEP.
The conferees support the intended purpose of NSEA to
promote international education and foreign language study by
U.S. students, who later serve in defense and intelligence
related positions in the U.S. government. If administered
effectively, the conferees regard this program as constructive
in assisting the education of qualified students, while
strengthening national security institutions by introducing
prospective candidates to the workforce. In this light, the
conferees expect the Secretary of Defense to emphasize that
student experience from foreign studies be reinvested in the
government's national security efforts, establish greater
awareness in the national security agencies about the
availability and skills of such resources, and pursue an active
and effective program in utilizing these individuals realizing
their service obligation.

Aviation and vessel war risk insurance (sec. 1079)

The House bill contained a provision (sec. 1032) that
would authorize the Department of Defense to transfer funds to
the Department of Transportation in the event of a loss
incurred incident to aviation insurance issued by the Federal
Aviation Administration pursuant to title 49, United States
Code, or vessel war risk insurance issued by the Maritime
Administration pursuant to title 46, United States Code, when
reimbursement is required by those statutes or implementing
agreements. In the case of a reimbursement required as the
result of an aviation incident, reimbursement to the Secretary
of Transportation would be required within 30 days following
the presentment of a valid claim to the Administrator of the
Federal Aviation Administration. For vessel war risk claims,
such reimbursement would be made not later than 90 days
following adjudication of the claim by the Administrator of the
Maritime Administration.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would limit
payments to mortgage responsibilities on the lost or damaged
aircraft or a vessel until such time as the claim is
adjudicated and settled.

Designation of memorial as National D-Day Memorial (sec. 1080)

The Senate amendment contained a provision (sec. 1074)
that would designate the D-Day Memorial in Bedford, Virginia as
the National D-Day Memorial.
The House bill contained no similar provision.
The House recedes.

Sense of Congress regarding semiconductor trade agreement between
United States and Japan (sec. 1081)

The Senate amendment contained a sense of the Senate
provision (sec. 1072) urging the President to negotiate an
extension of the United States-Japan Semiconductor agreement
that is set to expire on July 31, 1996.
The House bill contained no similar provision.
The House recedes with an amendment making the sense of
the Senate a sense of Congress.

Agreements for exchange of defense personnel between the United States
and foreign countries (sec. 1082)

The Senate amendment contained a provision (sec. 1041)
that would authorize the Secretary of Defense to enter into
agreements with governments of allies of the United States and
other friendly countries for the exchange of military and
civilian personnel of the Department of Defense and military
and civilian personnel of the defense ministries. The purpose
of the agreement would be to facilitate greater understanding,
standardization, and interoperability.
The House bill contained no similar provision.
The House recedes.
The conferees note that no funds are authorized by this
provision for familiarization, orientation, or certification of
exchange personnel.
The conferees agree that the authority granted to the
Secretary by this provision shall be implemented specifically
as written. This authority is not to be used as a mechanism to
require the Department of Defense to fund visits and training
of military and civilian personnel from allied and other
foreign countries without reciprocal exchanges that provide
substantially equivalent benefits to the United States.

Sense of the Senate regarding Bosnia and Herzegovina (sec. 1083)

The Senate amendment contained a provision (sec. 1084)
that would express the sense of the Senate that the price of
equipment transferred to Bosnia and Herzegovina should not
exceed the lowest level price for the same or similar equipment
transfer to any other country under a government program.
The House bill contained no similar provision.
The House recedes.

Defense burdensharing (sec. 1084)

The House bill contained a provision (sec. 1041) that
would express the sense of the Congress about discrepancies
between U.S. and allied defense spending, concluding that the
United States continues to bear a greater burden for the common
defense than its allies. The provision would also direct the
President to seek increases to allied defense spending through
increased contributions in any of four areas: increasing the
cost share of all non-U.S. nations where U.S. military forces
are deployed by reaching specific percentages by certain dates;
increasing defense spending comparable to that of the United
States; increasing foreign assistance; or, increasing the
amount of military resources contributed to multinational
military activities. Additionally, the provision would require
two reports regarding actions taken to increase allied
burdensharing and progress in increasing allied burdensharing.
The Senate amendment contained a similar provision (sec.
1045) that would express the concerns of the Senate that the
United States is bearing a disproportionate share of the common
defense; directs the President to seek increases to allied
defense burdensharing through one or a combination of four
areas, similar to the four areas identified in the House
language. Additionally, the provision would require the
Department of Defense to report to Congress by March 1, 1997 on
progress in increasing allied burdensharing and the
relationship of burdensharing and forward deployment of U.S.
military forces. In addition, the provision modifies the
current burdensharing reporting requirement from an annual to a
biannual frequency.
The conferees agree to a provision that would provide the
President with the latitude to seek increases to allied
burdensharing in one or more of four areas; would require a
consolidated report to Congress addressing progress in
increasing allied burdensharing as well as the relationship
between forward deployment of United States military forces
outside the U.S. and allied burdensharing.
In seeking increases in allied levels of support, the
conferees are mindful that the success of such efforts will
justifiably differ depending upon a number of variables,
including the gross domestic product and the unique aspects of
the U.S. relationship with each ally. The conferees recognize,
for example, that a goal of securing financial contributions at
high levels to offset the nonpersonnel costs incurred by the
U.S. Government for overseas force presence may be
inappropriate with regard to many U.S. allies.

legislative provisions not adopted

Authority to transport health professionals seeking to provide health-
related humanitarian relief services

The House bill contained a provision (sec. 1042) that
would provide the Department of Defense with the authority to
provide transportation to civilian health professionals engaged
in humanitarian activities.
The Senate amendment contained no similar provision.
The House recedes.

Treatment of excess defense articles of Coast Guard under Foreign
Assistance Act of 1961

The House bill contained a provision (sec. 1043) that
would permit excess property of the Coast Guard to be treated
in the same manner as the excess property of the other armed
services under the Foreign Assistance Act of 1961 (22 U.S.C.
2403(g)).
The Senate amendment contained no similar provision.
The House recedes. The intent of this provision has been
accomplished by separate legislation.

Authority to transfer naval vessels

The House bill contained a provision (sec. 1052) and the
Senate amendment contained a provision (sec. 1021) that would
authorize transfer of six Knox class frigates, one Oliver
Hazard Perry class guided missile frigate, one Newport class
tank landing ship, and two Stalwart class ocean surveillance
ships to various countries.
These provisions were not included in the conference
agreement. The transfer of these ships has been authorized by
separate legislation (H.R. 3121).

Southwest Border States Anti-drug Information System

The House bill contained a provision (sec. 1055) that
would express the sense of Congress that the Federal Government
should support and encourage the full utilization of the
Southwest Border States Anti-Drug Information System.
The Senate amendment contained no similar provision.
The House recedes. The conferees recognize the valuable
contribution that the Southwest Border States Anti-Drug
Information System continues to make to the national
counterdrug effort and have agreed to fully fund the request.

Sikes Act improvements amendments

The House bill contained a provision (secs. 1401-1414)
that would amend the Sikes Act (Public Law 99-561) to address
issues related to the preparation and implementation of
integrated natural resource management plans at military
installations.
The Senate amendment contained no similar provision.
The House recedes.

LEGISLATIVE PROVISION NOT ADOPTED

Use of hunting and fishing permit fees collected at closed military
reservations

The House bill contained a provision (sec. 1407) that
would amend section 670(a) of title 16, United States Code,
commonly known as the ``Sikes Act'' to authorize the transfer
of fees collected on a closing military installation for
hunting and fishing permits. The provision would allow the
transfer of those fees collected at a closing installation to
another open installation for the conservation purposes
expressed in the Act.
The Senate amendment contained a similar provision (sec.
351).
The House recedes from its provision and the Senate
recedes from its provision.

Defense and security assistance

The House bill contained provisions (secs. 1501-1553)
that would amend the Foreign Assistance Act of 1961 and the
Arms Export Control Act, and address matters relating to
International Military Education and Training, anti-terrorism
assistance, and narcotics control assistance.
The Senate amendment contained no similar provisions.
The House recedes.
The intent of this title has been accomplished by
separate legislation.

General limitations

The Senate amendment contained a provision (sec. 4) that
would limit the total amount authorized to be appropriated by
this Act for fiscal year 1997 for the national defense function
to $265,583,000,000.
The House bill contained no similar provision.
The Senate recedes.

Fees for residents

The Senate amendment contained a provision (sec. 585)
that would direct the Secretary of Defense, in conjunction with
the military departments and the Armed Forces Retirement Home
(AFRH) Board, to report to the congressional defense committees
on aspects of the AFRH resident fees structure and the monthly
assessment on active duty service members
The House bill contained no similar provision.
The Senate recedes.

Military-to-Military Contacts program

The Senate amendment contained a provision (sec. 1005)
that would expand the authority of the Military-to-Military
Contacts program within the Department of Defense in order to
permit the Department to use this program to pay for
international military education and training activities.
The House bill contained no similar provision.
The Senate recedes.

Reimbursement of Department of Defense for costs of disaster assistance
provided outside the United States

The Senate amendment contained a provision (sec. 1007)
that would express the sense of Congress that whenever the
President directs the Secretary of Defense to provide disaster
assistance outside the United States, the President should also
direct the Administrator of the Agency for International
Development (AID) to reimburse the Department of Defense for
the cost of the assistance provided.
The House bill contained no similar provision.
The Senate recedes.
The conferees are concerned with the current practice of
using funds appropriated to the Department of Defense to
provide disaster assistance to foreign nations. The conferees
believe that funds appropriated to AID should be used to
provide such assistance. The conferees urge the Secretary of
Defense and the Director of AID to establish procedures to
reimburse the DOD for its funding of international disaster
assistance.

Contract options for LMSR vessels

The Senate amendment contained a provision (sec. 1024)
that would amend section 1013 of the National Defense
Authorization Act for Fiscal Year 1996 to prohibit the
Secretary of the Navy from negotiating and awarding contracts
or contract options for two large medium speed roll-on/roll-off
(LMSR) vessels before fiscal year 1998.
The House bill contained no similar provision.
The Senate recedes.

National Drug Intelligence Center

The Senate amendment contained a provision (sec. 1032)
that would prohibit the funding of the National Drug
Intelligence Center by the Department of Defense. The Senate
amendment also contained a provision (sec. 1033) that would
require an investigation of the National Drug Intelligence
Center by the Inspectors General of the Department of Defense,
the Department of Justice, the Central Intelligence Agency, and
the Comptroller General of the United States.
The House bill contained no similar provisions.
The Senate recedes.

Authority for reciprocal exchange of personnel between the United
States and foreign countries for flight training

The Senate amendment contained a provision (sec. 1042)
that would authorize the exchange of students from U.S.
military flight training schools on a one-for-one basis to
comparable flight training schools of foreign countries.
The House bill contained no similar provision.
The Senate recedes.
The conferees understand that legislation passed by both
the House and Senate, which amended the Foreign Assistance Act
of 1961 and the Arms Export Control Act to make improvements to
certain defense and security assistance provisions under those
Acts, contains a similar provision.

Report on facilities used for testing launch vehicle engines

The Senate amendment contained a provision (sec. 1056)
that would require the Secretary of Defense, in consultation
with the Administrator of the National Aeronautics and Space
Administration, to provide a report to Congress on the
facilities used for testing launch vehicle engines.
The House bill contained no similar provision.
The Senate recedes.

Equitable treatment for the generic drug industry

The Senate amendment contained a provision (sec. 1080)
that would allow companies that successfully demonstrate that
they have made a ``substantial investment'' in certain generic
drugs before adoption of the 1994 changes to General Agreement
on Tariffs and Trade (GATT) to market those drugs despite a
three-year patent extension granted by GATT that would
otherwise block their marketing.
The House bill contained no similar provision.
The Senate recedes.

Facility for military dependent children with disabilities, Lackland
Air Force Base, Texas

The Senate amendment contained a provision (sec. 1087)
that would authorize the Secretary of the Air Force to transfer
$2.0 million to the Children's Association for Maximum
Potential (CAMP) for the construction of a facility for
military dependent children with disabilities at Lackland Air
Force Base, Texas. The grant is contingent upon an agreement
between the Secretary and CAMP that would specify a 25-year
lease for the facility and, as consideration for the lease
CAMP, would be responsible for operations and maintenance cost
of the facility.
The House bill amendment contained no similar provision.
The Senate recedes.

Prohibition on the distribution of information relating to explosive
materials for a criminal purpose

The Senate amendment contained a provision (sec. 1088)
that would prohibit the teaching or demonstration of the
manufacture of explosive materials to certain individuals.
Violations of this section would be punishable by fines and
imprisonment.
The House bill contained no similar provision.
The Senate recedes.

Sense of the Senate regarding the reopening of Pennsylvania Avenue

The Senate amendment contained a provision (sec. 3601)
that would express the sense of the Senate that the President
should request the Department of the Treasury and the Secret
Service to work with the Government of the District of Columbia
to develop a plan to reopen Pennsylvania Avenue in front of the
White House to vehicular traffic. The Secretary of the Treasury
and the Secret Service would be required to certify that the
plan protects the people who live and work in the White House.
The House bill contained no similar provision.
The Senate recedes.

Title XI--National Imagery and Mapping Agency

National Imagery and Mapping Agency (secs. 1101-1124)

The Senate amendment contained provisions (secs. 911-934)
that would establish a new organization known as the National
Imagery and Mapping Agency (NIMA).
The House bill contained no similar provision.
The House recedes with an amendment that would: (1)
address NIMA's support for the all-source analysis and
production process; (2) address NIMA's personnel provisions in
a consolidated Department of Defense Intelligence Personnel
provision, discussed elsewhere in this report; and (3)
establish a uniform standard (in a provision separate from the
NIMA legislation) regarding the Secretary of Defense's
recommendation to the President on the appointment of the
Directors of NIMA, the National Security Agency, and the
National Reconnaissance Office.
The conferees expect that the creation of NIMA will
enhance support to the all source analysis and production
process. Because of the importance attached to the achievement
of this goal, the conferees agree to highlight it as one of the
key mission areas to be reviewed in the overall review of
NIMA's performance of its assigned national missions.
The conferees endorse the grant of authority recently
given to the Director of the National Security Agency by the
Deputy Secretary of Defense over research and development and
urge the Secretary of Defense and the Director of Central
Intelligence to grant to the Director of NIMA similar approval
authority over tactical imagery programs and intelligence
agency investment programs.
NIMA will provide a single agency focus for imagery and
geospatial information within the United States Government.
NIMA would: (1) be the focal point for the growing and diverse
number and types of customers of imagery and geospatial
information; (2) ensure visibility and accountability for
imagery and geospatial resources; (3) harness, leverage, and
focus rapid technological developments to serve imagery,
imagery intelligence, and geospatial information customers; and
(4) identify and advocate customer needs for this growing and
diverse customer pool. The term ``imagery'', as defined and
used in this Act, includes products produced from space-based
national intelligence reconnaissance systems, in accordance
with Executive Order 12951 and any successor or superseding
Orders.
Although NIMA would carry out its mission
responsibilities under the authority, direction, and control of
the Secretary of Defense, with the advice of the Chairman of
the Joint Chiefs of Staff, it would have a vital ``national''
mission to serve the imagery and geospatial information needs
of consumers outside the Department of Defense. It would carry
out its responsibilities to national intelligence customers in
accordance with the policies and priorities of the Director of
Central Intelligence (DCI). The Central Intelligence Agency
(CIA) would have clear, affirmative authorization to provide
administrative and contracting services to the NIMA to insure
accomplishment of the national mission of the NIMA or the
performance of intelligence community activities of common
concern, notwithstanding provisions of law that would otherwise
limit such an authorization. The CIA also would be permitted to
provide security police services for NIMA facilities,
notwithstanding any limitations on jurisdiction of such
personnel contained in section 15 of the Central Intelligence
Agency Act of 1949.
NIMA would be established by bringing together various
agencies and organizations already in existence within the
Department of Defense and the Intelligence Community.
Specifically, NIMA would be made up of: the Defense Mapping
Agency; the Central Imagery Office; other elements of the
Department of Defense identified in the classified annex to
this Act; the National Photographic Interpretation Center of
the CIA; and other elements of the CIA identified in the
classified annex to this Act.
NIMA would be responsible for imagery requirements
management, exploitation, dissemination, and archiving. It
would define and recommend policies on imagery and geospatial
information, and coordinate requirements for an end-to-end
architecture, integrated into the National and Defense
Information Infrastructure, to satisfy customer needs and to
ensure appropriate interoperability.
NIMA would not be responsible for developing, procuring,
or operating imagery collection systems, which are
responsibilities currently held by the National Reconnaissance
Office, the Defense Airborne Reconnaissance Office, and the
intelligence elements of the military services. Nor would NIMA
include or replace current organizations for tactical military
exploitation and use of imagery products. In effect, NIMA would
provide a coherent and uniform linkage between these two ends
of the imagery spectrum.
NIMA would not replace or diminish the current
responsibilities of Federal civilian agencies for mapping,
charting, and geodesy, or change their existing
responsibilities for disaster or emergency response or civil
imagery archives. Rather, NIMA would facilitate their access to
critical national security information, when appropriate, and
promote technology exchange through established interagency
mechanisms, such as the Civil Applications Committee. The
ability of all members of the intelligence community to obtain
both imagery intelligence support regarding matters of common
concern and support necessary for individual agency
requirements would be maintained and expanded, as appropriate.
The conferees believe that the legislative charter for
NIMA contained in this Act strikes an appropriate balance
between the needs of ``national'' intelligence and combat
support. As a Combat Support Agency, NIMA must be under the
clear authority, direction, and control of the Secretary of
Defense. But the charter also provides for a clear and
prominent role for the DCI to task imagery systems and exploit
imagery products in support of the national mission. The
committee notes that the Director of Central Intelligence
strongly supports establishment of NIMA as a Combat Support
Agency in Title 10, United States Code. The DCI has testified
that his peacetime imagery tasking authorities are protected
under this arrangement and that he does not believe that
support to national customers will be in any way jeopardized.
Except as otherwise provided in this Act, establishment of NIMA
will not derogate from the existing authorities of the
Secretary of Defense or the DCI.
The conferees also note that the Commission on the Roles
and Capabilities of the United States Intelligence Community
strongly endorsed the establishment of NIMA as a combat support
agency within the Department of Defense. The conferees share
the Commission's conclusion that NIMA will significantly
improve imagery support to both military operations and
planning, as well as to national consumers of intelligence.
The conferees note that limited collective bargaining
would be permitted in NIMA. Collective bargaining units that
were recognized by the Defense Mapping Agency at the time its
employees and positions were transferred to NIMA would continue
to represent the same categories of employees in the NIMA,
although expansion of those units or the creation of new
bargaining units in NIMA would be prohibited. Positions
determined at any time to be engaged in intelligence,
counterintelligence, investigative, or security work directly
affecting national security would be excluded, at the
discretion of the NIMA Director. Permitting continuation of
limited collective bargaining in NIMA would not be intended to
be a precedent affecting current or future employees or
agencies of the Intelligence Community. It would be a one-time
solution to a unique situation.

Title XII--Reserve Forces Revitalization

Short title (sec. 1201)

The House bill contained a provision (sec. 1201) that
would establish the short title for the follow-on sections as
the Reserve Forces Revitalization Act of 1996.
The Senate amendment contained no similar provision.
The Senate recedes.

Purpose (sec. 1202)

The House bill contained a provision (sec. 1202) that
would establish the purpose of the Reserve Forces
Revitalization Act for 1996.
The Senate amendment contained no similar provision
The Senate recedes.

LEGISLATIVE PROVISIONS

Subtitle A--Reserve Component Structure

LEGISLATIVE PROVISIONS ADOPTED

Reserve component commands (sec. 1211)

The House bill contained a provision (sec. 1211) that
would establish separate reserve commands and commanders for
the Army, Navy, Marine Corps and Air Force reserves. The
section would also delineate the forces to be assigned to each
reserve command, as well as prescribe the subsequent assignment
of the reserve forces to the commanders-in-chief (CINCs) of the
joint combatant commands.
The Senate amendment contained a provision (sec. 903)
that would codify the requirement for the United States Army
Reserve Command. The recommended provision would establish that
the chain of command for the United States Army Reserve Command
shall be prescribed by the Secretary of the Army.
The House recedes with an amendment that would strike the
portion of the House provision pertaining to the Army Reserve
Command and include the Senate language pertaining to the Army
Reserve Command.

Reserve component chiefs (sec. 1212)

The House bill contained a provision (sec. 1212) that
would establish separate offices of the military reserve chiefs
as part of the staffs of the senior military headquarters of
each of the services. In addition, the section would also
prescribe the appointment criteria and procedures, and term of
office, for the reserve chiefs, and would also assign budget,
annual reporting, and other management responsibilities to the
reserve component chiefs.
The Senate amendment contained no similar provision.
The Senate recedes.

Review of active duty and reserve general and flag officer
authorizations (sec. 1213)

The House bill contained a provision (sec. 1213) that
would require the Secretary of Defense to conduct a
comprehensive review of the existing statutory reserve and
active general and flag officer authorizations and report to
Congress any recommendations for revisions to those
authorizations, as well as recommendations for the statutory
designation of other general and flag officers. The section
would also require the Secretary to report on whether reserve
component general and flag officers should be exempt from
existing active duty general officer ceilings.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees stress that the Comptroller General has a
broad right of access to agency records under section 716 of
title 31, United States Code. Accordingly, it is expected that
the Department of Defense will provide the Comptroller General
with timely access, before the due date for the Secretary's
report to Congress, to all analyses, memoranda, drafts,
reports, and other documents prepared or used by the Department
in connection with meeting the requirements of this section.

Guard and reserve technicians (sec. 1214)

The House bill contained a provision (sec. 1214) that
would mandate that military technicians be authorized and
accounted for as a separate category of civilian employees who
are exempt from general civilian personnel reductions in the
Department of Defense. The section would permit military
technician reductions only if the reductions were related to
force structure changes.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle B--Reserve Component Accessibility

legislative provisions adopted

Report to Congress on measures to improve national guard and reserve
ability to respond to emergencies (sec. 1231)

The House bill contained a provision (sec. 1231) that
would require the Secretary of Defense to report
comprehensively on the measures taken or planned to improve the
timeliness, adequacy, and effectiveness of reserve component
responses to domestic emergencies. The section would also
require the Secretary of Defense to assess the recommendations
of the 1995 RAND report, ``Assessing the State and Federal
Missions of the National Guard.''
The Senate amendment contained no similar provision.
The Senate recedes.

Report to Congress concerning tax incentives for employers of members
of reserve components (sec. 1232)

The House bill contained a provision (sec. 1232) that
would require the Secretary of Defense to report to Congress on
tax incentives for employers of members of the reserve
components.
The Senate amendment contained no similar provision.
The Senate recedes.

Report to Congress concerning income insurance program for activated
reservists (sec. 1233)

The House bill contained a provision (sec. 1233) that
would require the Secretary of Defense to report to Congress on
income insurance programs for activated reservists.
The Senate amendment contained no similar provision.
The Senate recedes.

Report to Congress concerning small business loans for members released
from reserve service during contingency operations (sec. 1234)

The House bill contained a provision (sec. 1234) that
would would require the Secretary of Defense to report to
Congress on small business loans for reservists released from
active duty following contingency operations.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle C--Reserve Forces Sustainment

Legislative provisions adopted

Report concerning tax deductibility of nonreimbursable expenses (sec.
1351)

The House bill contained a provision (sec. 1251) that
would require the Secretary of Defense to sumbit a report to
Congress that includes recommended legislation to restore tax
deductibility of nonreimbursable expenses incurred by members
of the reserve components in conjunction with military service.
The Senate amendment contained no similar provision.
The Senate recedes.

Authority to pay transient housing charges for members performing
active duty for training (sec. 1252)

The House bill contained a provision (sec. 1252) that
would authorize reimbursement of housing service charges
incurred by reserve component personnel while participating in
active duty training. It would authorize the reserve component
personnel participating in active duty training to stay in
contract quarters at no expense to the member.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that strikes the
authority for reserve component personnel participating in
active duty training to stay in contract quarters.
The conferees believe that military personnel should use
on-base transient lodging facilities when training or on
temporary duty away from their home station. The conferees
direct the Secretary of Defense to review the current policies
and practices concerning use of on-base facilities and
provision of contract lodging and to report the results of that
review, including any recommended legislative changes, to the
Committee on Armed of the Senate and the Committee on National
Security of the House of Representatives not later than March
31, 1997.

Sense of Congress concerning quarters allowance during service on
active duty for training (sec. 1253)

The House bill contained a provision (sec. 1253) that
would express the sense of the Congress that members of the
reserve components should receive appropriate quarters
allowances during periods of service on active duty for
training.
The Senate amendment contained no similar provision.
The Senate recedes.

Sense of Congress concerning military leave policy (sec. 1254)

The House bill contained a provision (sec. 1254) that
would express the sense of the Congress that military leave
policies pertaining to members of the reserve components in
effect upon enactment of the National Defense Authorization Act
for Fiscal Year 1997 should not be changed.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees intend that military leave referred to in
this provision is the non-chargeable leave available to
civilian employees of federal, state or local government
agencies while these employees are participating in active duty
for training.

Reserve Forces Policy Board (sec. 1255)

The House bill contained a provision (sec. 1255) that
would commend the Reserve Forces Policy Board for its good work
as an independent body that provides advice to the Secretary of
Defense on reserve component matters.
The Senate amendment contained a provision (sec. 1054)
that would correct references in title 10, United States Code,
pertaining to the annual report of the Armed Forces Policy
Board and specify that the annual report shall be a separate
report transmitted to the Congress by the Secretary of Defense
in conjunction with the Secretary's annual report.
The Senate recedes with an amendment that would combine
the two provisions.

Report on parity of benefits for active duty service and reserve
service (sec. 1256)

The House bill contained a provision (sec. 1256) that
would require the Secretary of Defense to submit a report to
the Congress providing recommendations, where appropriate, to
reduce disparities in pay and benefits that occur between
active component members and reserve component members as a
result of eligibility based on length of time on active duty.
The Senate amendment contained no similar provision.
The Senate recedes.

Information on proposed funding for the Guard and Reserve components
(sec. 1257)

The Senate amendment contained a provision (sec. 1055)
that would require the Secretary of Defense to specify, in each
year of the Future-Years Defense Plan, the estimated
expenditures and proposed appropriations for the procurement of
equipment and for military construction for each of the Guard
and Reserve components.
The House bill contained no similar provision.
The House recedes.

Title XIII--Arms Control and Related Matters

items of special interest

Implementation of arms control agreements

The budget request included $282.3 million in
procurement, operation and maintenance, and research and
development in the defense and military service accounts for
the implementation of arms control agreements. The budget
request for these accounts is based on anticipated dates of
implementation of the various arms control agreements and
treaties.
The conferees agree to a $24.0 million reduction to the
budget request due to changes in the anticipated dates of
implementation of the various arms control agreements and
treaties. The reductions are as follows: $14.0 million from the
operation and maintenance account for the On-Site Inspection
Agency (OSIA); $2.0 million from weapons procurement, Navy;
$7.0 million from operation and maintenance, Army; and $1.0
million from operation and maintenance, Air Force.
The conferees agree that the Department of Defense shall
keep the Congress informed on the status of the OSIA mission to
implement Annex 1-B of the General Framework for Peace in
Bosnia and Herzegovina Agreement (known as the Dayton
Agreement), and any impact this mission may have on the ability
of OSIA to conduct its other arms control inspection
responsibilities.
Additionally, the conferees reiterate the concerns that
were expressed in the statement of managers in the conference
report accompanying the National Defense Authorization Act for
Fiscal Year 1996 (Public Law 104-106) with regard to limiting
the expenditure of funds to provide reimbursement for arms
control implementation inspection costs borne by the inspected
party to a treaty or agreement. As expressed in the statement
of managers, funds may only be expended if the Congress has
been notified 30 days in advance of an agreement by the
President to a policy or policy agreement, and that policy or
policy agreement does not modify any obligation imposed by the
arms control agreement. Currently, the Congress is aware of
only two such policy agreements that would reimburse Belarus,
Kazakhstan, and Ukraine for the costs of U.S. inspections
conducted within those states. The conferees understand that
those reimbursements occur on a six-month basis after the
inspections have been conducted. Those policy agreements are
with regard to the Intermediate-Range Nuclear Forces (INF)
Treaty and the Strategic Arms Reduction Treaty (START),
concluded in May 1994 and February 1995.
Once again, the conferees express their concern that arms
control consultative commissions are being used as a mechanism
to make substantive changes or modifications to arms control
treaties and agreements that should be brought to the Senate
for its review and subsequent advice and consent. There may be
very good reasons for changes in implementation of specific
arms control treaties or agreements. However, if a change or
modification to the treaty or agreement would result in a
substantive change to the understanding under which the Senate
provided its advice and consent prior to ratification, the
Congress should be consulted about the recommended change or
modification in advance of any agreement in the consultative
commissions, and must provide its subsequent agreement to the
change or modification.
The conferees support the ratification and full
implementation by all parties of the Chemical Weapons
Convention (CWC), as negotiated. However, the conferees remain
concerned that Russia continues to engage in chemical weapons
activities inconsistent with the accord. In addition, Iran, a
signatory to the convention, has been characterized by one U.S.
official as having ``the most active chemical weapons program''
in the Third World. Further, a number of states that possess
active chemical weapons programs, such as Libya, are not
signatories to the accord. For example, the Secretary of
Defense and the Director of Central Intelligence have confirmed
that Libya is engaged in the construction of an underground
chemical weapons facility carved into a mountain near Tarhunah.
This extensive project demonstrates the Libyan commitment to
the acquisition of a significant chemical weapons capability
and raises questions about the ability of arms control
agreements like the CWC to restrain the rogue regimes from
acquiring these types of weapons of terror.
With regard to the negotiations on a comprehensive test
ban, many experts believe that a Comprehensive Test Ban Treaty
(CTBT) is unlikely to be effectively verifiable. Countries
intent on cheating could identify and implement evasive
measures that would make it virtually impossible for U.S.
sensors to detect low-yield tests. This thesis is given
additional credibility by reports that the Russians may have
recently conducted a nuclear test, in violation of their self-
imposed moratorium, at Novaya Zemlya.
The conferees support the budget request for arms control
implementation, which includes $26.7 million for research,
development, test and evaluation of technologies to aid in the
detection of nuclear tests. As discussed elsewhere in the
statement of managers, the conferees recommend $6.5 million for
basic research on seismic nuclear monitoring, which could be
used to detect low-yield nuclear tests.

FY 1997 ARMS CONTROL IMPLEMENTATION BUDGET
----------------------------------------------------------------------------------------------------------------
Account Program Request Recomm Rec auth
----------------------------------------------------------------------------------------------------------------
WPN........................................ Arms control compliance........... 14.840 -2.000 12.840
OPAF....................................... Spares & repairs.................. 0.207 0.000 0.207
PDA........................................ OSIA.............................. 3.286 0.000 3.286
RDT&E, AF.................................. Arms control implementation....... 26.786 0.000 26.786
RDT&E, DA.................................. Ver tech dem, DNA (603711)........ 26.199 0.000 26.199
O&M, Army.................................. .................................. 37.255 -7.000 31.255
O&M, Navy.................................. .................................. 35.402 0.000 35.402
O&M, AF.................................... .................................. 29.331 -1.000 28.331
O&M, DA.................................... OSIA.............................. 109.030 -14.000 95.030
--------------------------------
Total................................ .................................. 282.336 -24.000 258.336
----------------------------------------------------------------------------------------------------------------

LEGISLATIVE PROVISIONS

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

LEGISLATIVE PROVISIONS ADOPTED

Extension of counterproliferation authorities (sec. 1301)

The House bill contained a provision (sec. 1301) that
would extend the authority of the Department of Defense to
provide support to the United Nations Commission on Iraq
(UNSCOM) through the end of fiscal year 1997.
The Senate amendment contained a similar provision (sec.
1043) that would extend the authority of the Department of
Defense to provide support to UNSCOM through the end of fiscal
year 1998.
The Senate recedes with an amendment that would extend
the authority of the Department of Defense to provide support
to UNSCOM through the end of fiscal year 1997. Additionally,
the conferees agree to a provision that would provide the
Department with authority to exceed the levels authorized in
fiscal year 1997 for DOD support to UNSCOM in the event of a
significant unforeseen development. In that event, the
Secretary of Defense would be required to notify the
congressional defense committees in writing, prior to providing
assistance that would exceed the levels authorized for DOD
support. However, if the Secretary of Defense determines that
prior notification of such action is not possible, he must
notify the congressional defense committees of his actions no
later than 15 days after the date the additional assistance was
provided.

Limitation on retirement or dismantlement of strategic nuclear delivery
systems (sec. 1302)

The House bill contained a provision (sec. 1302) that
would prohibit the use of funds appropriated to the Department
of Defense during fiscal year 1997 for retiring or dismantling
any B-52H bombers, Trident ballistic missile submarines,
Minuteman III intercontinental ballistic missiles (ICBMs), or
Peacekeeper ICBMs.
The Senate amendment contained a similar provision (sec.
1062) that would prohibit the use of funds during fiscal year
1997 for the retirement of B-52H bombers, Trident ballistic
missile submarines, Minuteman III intercontinental ballistic
missiles, or Peacekeeper intercontinental ballistic missiles,
or preparing to retire or dismantle such systems. The provision
would allow the Secretary of Defense to waive the funding
restrictions on retiring or dismantling strategic nuclear
delivery systems, other than for B-52H bombers, to the extent
necessary to implement the START II Treaty.
The House recedes with an amendment that would limit the
obligation of funds during fiscal year 1997 for early
deactivation of U.S. strategic nuclear delivery systems until
30 days after the date on which the President submits to
Congress a report concerning such actions. The conferees note
that discussions have been held between the governments of the
United States and the Russian Federation regarding an agreement
on early deactivations of strategic nuclear weapons and/or
strategic nuclear delivery systems, once the START II Treaty
has entered into force. However, the conferees have not been
given information about the substance of these discussions or
negotiations.
In order to retain 94 B-52H aircraft in an operational
status (28 in attrition reserve), the conferees recommend an
increase of $42.9 million in Operation and Maintenance, Air
Force. Of the amounts available in Aircraft procurement, Air
Force, $42.7 million shall be available for B-52H aircraft
modifications. Of the amounts available in Military Personnel,
Air Force, $3.3 million shall be available for support of the
28 attrition reserve aircraft. In making these recommendations,
the conferees do not intend to alter the Air Force's ongoing
effort to consolidate B-52 squadrons. The conferees also do not
intend to preclude long-range pre-planning, design, or
evaluation efforts to allow the Navy and Air Force to be ready
to execute various retirement and dismantlement options in an
efficient manner.

Strengthening certain sanctions against nuclear proliferation
activities (sec. 1303)

The Senate amendment contained a provision (sec. 1085)
that would authorize the President to impose Export-Import Bank
sanctions against specific persons or entities that knowingly
aid or abet countries to acquire nuclear weapons, or nuclear
materials for such weapons, by amending the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(4)).
The House bill contained no similar provision.
The House recedes with a technical and clarifying
amendment.
The global spread of nuclear weapons constitutes one of
the gravest threats to the national security of the United
States and that our friends and allies. The persistent and
ever-changing nature of this threat, together with the numerous
pathways available to countries to acquire these weapons,
require both the Congress and the Executive Branch to ensure
that the United States possesses tools, including necessary
statutes, to combat this threat.
Current law requires the denial of Export-Import Bank
credits: to finance goods destined to countries that violate
safeguards or a U.S. nuclear agreement, to any non-nuclear
weapon state that has detonated a nuclear weapon or device,
and, to any country that has willfully aided or abetted a non-
nuclear weapon state to acquire or develop a nuclear weapon.
In 1996, a Chinese government-owned entity transferred
sensitive uranium enrichment technology to Pakistan. This
action raised the possibility that several billion dollars of
Export-Import Bank-financed credits for U.S. exports to China
would be denied. However, the specific entity, the China
Nuclear Energy Industry Corporation (CNEIC), escaped sanctions
under current law because the administration judged that
current law, which prescribes sanctions only against a
``country'' that willfully aids and abets proliferation, does
not authorize sanctions against a person or entity, such as the
CNEIC.
The conferees agree that enabling the President to target
sanctions against specific proliferators that are not countries
will provide important additional options to the President and
thereby strengthen the U.S. ability to use sanctions as a tool
to discourage future business with enterprises that knowingly
promote the global spread of nuclear weapons and materials.

Authority to pay certain expenses relating to humanitarian and civic
assistance for clearance of landmines (sec. 1304)

The Senate amendment contained a provision (sec. 1006)
that would allow funds appropriated to the overseas
humanitarian, disaster, and civic assistance program to be used
to pay for the travel, transportation, and subsistence expenses
of Department of Defense personnel providing humanitarian
demining assistance. The provision would also allow for the
purchase of supplies, services, and equipment to be used in
providing such assistance and the transfer of this equipment
and supplies to a foreign country in furtherance of the
Department's landmine clearance program. The cost of equipment
and supplies transferred, or services hired to support
Department of Defense humanitarian demining deployments, may
not exceed $5.0 million in any given fiscal year.
The House bill contained a similar provision (sec. 1304).
The House recedes.

Report on military capabilities of People's Republic of China (sec.
1305)

The House bill contained a provision (sec. 1305) that
would require an unclassified report and a classified report be
submitted to Congress, no later than February 1, 1997, on the
potential for, and likelihood of, the People's Liberation Army
pursuing modernization of its military capabilities.
The Senate amendment contained no similar provision.
The Senate recedes.

Presidential report regarding weapons proliferation and policies of the
People's Republic of China (sec. 1306)

The House bill contained a provision (sec. 1048) that
would express the concerns of the Congress with regard to the
transfer by China to Pakistan of sophisticated equipment
important to the development of nuclear weapons in Pakistan,
China's compliance with nuclear proliferation regimes, and the
decision of the United States not to impose sanctions against
China for its transfer of equipment to Pakistan. The provision
would express the sense of the Congress that the President
should not have decided that the evidence of China's actions
was not sufficient to warrant sanctions. The provision would
also require the President to report to Congress on the
administration's response to China's transfer of equipment to
Pakistan, on specific information related to the justification
for the President's determination not to enforce sanctions
against China, and on subsequent actions taken by the United
States to enforce compliance with nonproliferation and export
control regimes.
The Senate had no similar provision.
The Senate recedes with an amendment that would express
congressional concerns regarding China's transfer of assistance
to Iran and Pakistan that could contribute to the manufacture
of nuclear weapons; transfer of nuclear weapons technology and
assistance, as well as the transfer of M-11 missiles, to
Pakistan; and China's compliance with proliferation regimes
such as the nuclear Nonproliferation Treaty and the Missile
Technology Control Regime (MTCR). The provision would also
require the President to submit a report to Congress within 60
days of enactment of this Act regarding the transfer of nuclear
weapons technology and assistance, as well as their means of
delivery, by China to Pakistan, subsequent actions taken by the
President to express concern with China's compliance with
nuclear proliferation regimes, and information related to the
specific justification by the Secretary of State that there was
no sufficient basis for imposing sanctions against China.

United States-People's Republic of China Joint Defense Conversion
Commission (sec. 1307)

The House bill contained a provision (sec. 1306) that
would prohibit obligation or expenditure of fiscal year 1997
funds for activities associated with the United States-People's
Republic of China Joint Defense Conversion Commission until
Congress receives reports required by section 1343 of the
National Defense Authorization Act for Fiscal Year 1996 (Public
Law 104-106).
The Senate amendment contained no similar provision.
The Senate recedes.

Sense of the Congress concerning export controls (sec. 1308)

The Senate amendment contained a provision (sec. 1046)
that would express the sense of the Senate that an
international export control regime is critically important;
that agreement on an international export control regime should
be a top priority of the United States; that the United States
should encourage the adoption by friends and allies of a
commodity control list similar to the U.S. list; that
enforcement activities should be strengthened; and, that the
United States should use unilateral controls.
The House bill contained no similar provision.
The House recedes with a technical and clarifying
amendment.
During the Cold War, the Coordinating Committee for
Multilateral Export Controls (COCOM) regime assisted the North
Atlantic Treaty Organization (NATO) in maintaining a
qualitative military edge over the Warsaw Pact. However, in the
post-Cold War era, while allies have a strong interest in
coordinating exports, they have rejected efforts to implement
restrictive procedures, such as those used in COCOM, to ensure
the restriction of exports of militarily significant dual use
technologies and commodities.
Dual-use technologies and commodities are civilian items
which have military application; they are not munitions. The
United States controls the export of its dual use technologies
and commodities for national security, foreign policy, and
short supply purposes. The legislative framework that controls
the exports of these dual use items is the Export
Administrative Act (EAA).
The world has changed dramatically since 1988 (the last
time the Export Administration Act (EAA) was revised). COCOM
coordinated NATO restrictions on exports of conventional
weapons and related dual use goods to communists countries, but
was disbanded in March 1994. To date, the administration's
effort to negotiate an effective successor regime to COCOM,
which would restrict exports to targeted countries (Iran, Iraq,
Libya and North Korea) from former COCOM members and new
members from neutral and eastern European countries, has
failed.
Additionally, the Export Administration Act (EAA) expired
in August 1994 and new legislation has not been adopted by
Congress. Currently, the President's authority to control the
export of dual use technologies is exercised under Executive
Order 12938. Executive Order 12938 declared a national
emergency with respect to the threat posed to U.S. national
security by the proliferation of weapons of mass destruction.
Under this executive order the President can enforce most
export controls on dual use technologies and commodities that
would contribute to the proliferation of weapons of mass
destruction. The executive order, however, does not provide
full enforcement authority.
The capability to build weapons of mass destruction
(WMD), including nuclear, chemical and biological weapons, and
missiles to deliver WMD, is spreading. Without adequate export
controls on sensitive dual use technologies and commodities,
their export could enable an adversary to design, develop,
test, produce, stockpile or use weapons of mass destruction,
missile delivery systems, and other significant military
capabilities.
The availability of sensitive military technologies to
countries, without sufficient safeguards to ensure that these
technologies cannot be transferred to a third country (which
could be a rogue nation), remains a fundamental concern to the
United States and should be eliminated through deterrence,
negotiations, and other appropriate means.
Export controls remain part of a comprehensive approach
that effectively responds to U.S. national security interests.
The United States should continue to work with its friends and
allies to negotiate an agreement to restrict exports of dual
use technologies and commodities to foreign countries that
threaten U.S. national security, nonproliferation, or foreign
policy interests.

Sense of Congress concerning assisting other countries to improve
security of fissile material (sec. 1310)

The House bill contained a provision (sec. 1054) that
would express the sense of Congress that it is in the national
interest of the United States to take actions to assist other
countries in securing and accounting for plutonium and highly
enriched uranium from dismantled nuclear weapons.
The Senate amendment contained no similar provision.
The Senate recedes.

Review by Director of Central Intelligence of National Intelligence
Estimate 95-19 (sec. 1311)

The House bill contained a provision (sec. 1308) that
would direct the Director of Central Intelligence (DCI) to
review the underlying assumptions and conclusions of the
November, 1995, National Intelligence Estimate on ``Emerging
Missile Threats to North America During the Next 15 Years,'' to
convene a panel of independent, non-governmental experts, and
to report the panel's findings to Congress, along with the
DCI's comments.
The Senate amendment contained no similar provision.
The Senate recedes.

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

legislative provisions adopted

Commission to assess the ballistic missile threat to the United States
(secs. 1321-1329)

The House bill contained provisions (secs. 1321-1329)
that would establish a commission to be known as the
``Commission to Assess the Ballistic Missile Threat to the
United States.'' The commission's members would be private
citizens with knowledge and expertise in the political and
military aspects of proliferation of ballistic missiles and the
ballistic missile threat to the United States, and would have
access to the resources and information of the intelligence
community necessary to carry out their responsibilities. The
commission would consist of nine members appointed by the
Director of Central Intelligence. Consistent with the
consultative nature of the appointment process used by the
Defense Base Closure and Realignment Commission (Public Law
101-510), three members would be chosen in consultation with
the Speaker of the House of Representatives, three members
would be chosen in consultation with the Majority Leader of the
Senate, and three members would be chosen in consultation with
the minority leaders of the House and Senate.
The Senate amendment contained no similar provision.
The Senate recedes.

LEGISLATIVE PROVISIONS NOT ADOPTED

Certification required before observance of moratorium on use by armed
forces of antipersonnel landmines

The House bill contained a provision (sec. 1303) that
would require the Secretary of Defense, after consultation with
the Chairman of the Joint Chiefs of Staff, to certify to
Congress that a moratorium on the use of antipersonnel
landmines would not adversely affect the ability of U.S. armed
forces to defend against attack and that effective substitutes
for antipersonnel landmines exist, prior to implementation of
such a moratorium.
The Senate amendment contained no similar provision.
The House recedes with the understanding that further
legislation on a landmine moratorium will not be introduced or
enacted in the remainder of this Congress.
The conferees support efforts to minimize and eliminate
post-combat civilian casualties, and note that the United
States has been the global leader in working toward this
objective. U.S. military forces use non-self-destructing
landmines only along internationally recognized borders or in
demilitarized zones within perimeter-marked areas that are
monitored by military personnel and protected by adequate means
to ensure the exclusion of civilians.
The conferees note the announcement by the President on
May 16, 1996, regarding U.S. military use of antipersonnel
landmines, that is, to cease immediately the use of non-self-
destructing landmines, except for training purposes and
deployment along the demilitarized zone in Korea; and, with
regard to self-destructing antipersonnel landmines, a
commitment to cease the use of self-destructing antipersonnel
landmines, when an international agreement is reached, with
exceptions for training and in Korea.

TITLE XIV--DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION

Cooperative threat reduction (CTR) program, domestic emergency
assistance programs and programs for the defense against
weapons of mass destruction (secs. 1401-1505)

The House bill contained provisions (sec. 1101-1105) that
would: authorize $302.9 million for the Cooperative Threat
Reduction (CTR) program, a $25.0 million reduction to the
budget request; would specify CTR programs; allocate fiscal
year 1997 funding for the various CTR programs and activities;
prohibit the use of CTR funds for specific purposes; prohibit
the obligation of CTR funds until various reports are submitted
to Congress; and make fiscal year 1997 CTR funds available for
three fiscal years. Additionally, the House report (H. Rept.
104-563) encouraged the Secretary of Defense to report to the
Congress by September 30, 1996, an assessment of the
advisability of the Department of Defense's establishing a
program for enhancing the capability of the Department to
assist law enforcement agencies in responding to terrorism or
natural disasters involving chemical or biological agents and
recommended an increase of $12.0 million in PE 65160D to
preserve the option of initiating such a program in fiscal year
1997.
The Senate amendment would fully fund the budget request
for CTR at $327.9 million. In addition, the Senate amendment
contained provisions (secs. 1301-1356) that would increase the
overall budget request for defense operation and maintenance by
$150.0 million, and add $85.0 million to the budget request for
the Department of Energy to establish a comprehensive program
to improve U.S. capabilities to deal with the use, or
threatened use, of weapons of mass destruction. In that regard,
the amendment would expand the scope of the DOD CTR program and
the DOE arms control and materials, protection, control and
accountability programs to include additional activities,
especially assistance to the independent states of the former
Soviet Union. Of the $235.0 million budget increase for DOD and
DOE, $80.0 million would be authorized for the establishment of
a DOD and DOE domestic emergency assistance program; $59.0
would be authorized for domestic and international border
security assistance DOD CTR and DOE materials, protection,
control and accountability activities would be increased by
$94.0 million; and $2.0 million would be authorized for
research activities of the proliferation coordinator.
Additionally, the provision would provide the President
with more specific authorities than exist under current law by
authorizing the limited use of U.S. military forces to assist
the Department of Justice in domestic emergency situations
involving the terrorist use of WMD and by amending the
International Emergency Economic Powers Act.
The House recedes with an amendment to the Senate
provisions.
The Senate recedes with an amendment to the House
provisions.
Since the end of the Cold War, materials and technologies
related to weapons of mass destruction--nuclear, radiological,
chemical, and biological weapons--have become increasingly more
available to rogue states, terrorist groups, and unstable
individuals. Controls over nuclear materials in the former
Soviet Union continue to require significant improvement. Easy
access to dual-use materials and technologies to fabricate
chemical and biological weapons make the proliferation of these
weapons arguably the most urgent and serious threat the United
States faces today.
The United States government must improve and make
comprehensive the way it addresses this threat. To this end,
the conferees agree to a series of provisions that address all
aspects of the threat of the proliferation of weapons of mass
destruction. The conferees agree to recommend an additional
$201.0 million to the budget to address this issue. These
increased funds would: increase the budget request for the
Cooperative Threat Reduction (CTR) program by $37.0 million;
authorize a $10.0 million increase to the budget request for
the counterproliferation support program; authorize $30.0
million for U.S. and international border security activities;
add $65.0 million for the establishment of a domestic emergency
response program; and add $57.0 for DOE materials, protection,
control and accountability.

Domestic Preparedness

Enhancing the nation's ability to prevent, and, if
necessary, to respond to a terrorist incident involving
nuclear, radiological, chemical, or biological weapons or
materials is the cornerstone of this program. The conferees
note that an interagency group, composed of the Federal
Response Plan signatory agencies led by the Federal Emergency
Management Agency (FEMA) completed and forwarded to the
President on July 1, 1996, a report titled ``Consequences
Management for Nuclear, Biological, and Chemical (NBC)
Terrorism.'' The report documents the inadequacy of the Federal
Response Plan to deal with NBC terrorist incidents and makes
specific recommendations regarding capability enhancements. The
conferees agree to a provision (sec. 1411) that would require
the President to take immediate action to enhance the
capability of the Federal Government to respond to such
incidents and to provide enhanced support to improve the
capabilities of State and local emergency response and law
enforcement agencies to respond to such incidents. The
provision would further require the President to provide to the
Congress by January 31, 1997, a report containing an assessment
of such capabilities, improvements required, and measures that
should be taken to achieve such improvements, including
additional resources and legislative authority that might be
necessary.
The conferees agree to recommend $50.0 million for the
establishment of a domestic emergency assistance program for
the Department of Defense to immediately begin sharing its
unique expertise, experience, and equipment in dealing with
chemical and biological weapons and materials with local
emergency first respondents (firemen, policemen, and medical
workers).
The conferees expect that the Secretary of Defense will
work expeditiously with the Secretary of Health and Human
Services in providing DOD resources and expertise to the Office
of Emergency Preparedness for the formation of emergency
medical teams that are trained and equipped to handle incidents
involving weapons of mass destruction.
The conferees agree to provide $15.0 million for DOD to
conduct interagency exercises that will focus on testing and
improving the U.S. Government's ability to respond to incidents
involving weapons of mass destruction.
The conferees have agreed to an additional provision
(sec. 1414) that would require DOD to establish at least one
Chemical-Biological Emergency Response Team for rapid response
to domestic terrorism. The conferees expect that such teams
would be similar in concept to the Nuclear Emergency Search
Team and Accident Response Groups that are maintained by DOE
for response to a nuclear incident. The conferees note in the
joint DOD/DOE report to the Congress, ``Preparedness and
Response to a Nuclear, Radiological, Biological, or Chemical
Terrorist Attack,'' dated June 13, 1996, that the DOD is
attempting to establish such a capability. The conferees note
that many of the capabilities sought for such teams are already
present in the Army's Technical Escort Unit, Edgewood Research,
Development, and Engineering Center, and Chemical Defense and
Infectious Disease Medical Research Institutes. The conferees
also note the Counterproliferation Program Review Committee's
``Report on Activities and Programs for Countering
Proliferation'', dated May 1996, which states that U.S. Marine
Forces, Atlantic was scheduled to activate a Department of the
Navy/Marine Corps Chemical/Biological Incident Response Force
on June 1, 1996, to respond to chemical and biological
incidents (terrorist or otherwise) occurring on Naval
installations and Department of State legations worldwide. The
conferees understand that the unit has been activated and is
now in training.
In section 1416, the conferees agree to provide
authority, very narrowly defined and carefully constructed, for
the President and the Attorney General to request military
support to local authorities in incidents involving chemical
and biological weapons. This authority is in addition to the
authorities otherwise provided in Chapter 18 of title 10, U.S.
Code. The conferees agree that the use of the military in any
emergency situation involving biological or chemical weapons or
materials should be limited both in time and scope to dealing
with the specific chemical or biological weapons-related
incident.
Finally, the conferees have included a provision (sec.
1417) that would require Federal Response Plan agencies to
develop and maintain an inventory of equipment and other assets
that could be made available to aid State and local officials
in search and rescue and other disaster management and
mitigation efforts associated with an emergency involving
weapons of mass destruction, and would require FEMA to maintain
a comprehensive master list of the inventory. The provision
would also require FEMA to establish a data base on chemical
and biological agent and munitions characteristics and safety
precautions and to develop a system to provide federal, State,
and local officials access to the data base and to the master
inventory.

Interdiction of weapons of mass destruction and related materials

This section focuses attention on enhancing our efforts
at interdicting and detecting nuclear, radiological, chemical,
and biological weapons and related materials, the next step of
protecting the United States against the threat posed by the
proliferation of weapons of mass destruction. The conferees
agree to recommend $15.0 million for the DOD to assist the U.S.
Customs Service in interdicting these materials before they
enter the United States.
As mentioned above, the conferees also agree to an
increase of $10.0 million to the DOD counterproliferation
support program and an increase of $17.0 million to the DOE
nonproliferation and verification research and development
program to conduct research and development of technical means
for detecting the presence, transportation, production, and use
of weapons of mass destruction and related materials and
technologies.
Additionally, the conferees agree to provisions that
would amend the International Emergency Economic Powers Act to
provide penalties to cover attempts to import or export weapons
of mass destruction and related materials, and would express
the sense of the Congress that criminal penalties for
proliferation-related activities should be increased.
Finally, the conferees agree to recommend $15.0 million
for DOD training and assistance to customs services and border
guards in the former Soviet Union, the Baltic states, and
Eastern Europe in detecting and interdicting the smuggling of
weapons of mass destruction and related materials. This program
is intended to be separate and distinct from the existing DOD/
FBI counterproliferation assistance program, which focuses
largely on training law enforcement officials in the
interdiction of these materials. The conferees believe that law
enforcement and Customs agents, and border guards, must be
familiar with proliferation issues if any counterproliferation
effort is to be viable. While there may be some beneficial
overlap between the DOD/FBI effort and the DOD/Customs program
envisioned in this legislation, it is the view of the conferees
that the most effective way to reach and establish productive
relations is through expanding relations between analogous
counterparts. The conferees expect the Secretary of Defense to
make DOD equipment and related materials and technologies
available to the Commissioner of Customs for use in detecting
and interdicting the movement of weapons of mass destruction
into the United States to the extent authorized under existing
law. The Secretary of Defense and the U.S. Customs Commissioner
shall provide to Congress a joint report on the scope and
impact of this program and an inventory of items provided under
this authority. This report should also include the extent to
which it will interface with the DoD/FBI effort.

Control and disposition of weapons of mass destruction and related
materials threatening the United States

With regard to the DOD budget request for the CTR program
and the DOE budget request for materials, protection, control
and accountability, the conferees agree to recommend authority
for a variety of programs that focus on assisting the states of
the former Soviet Union to better control and/or eliminate
their stockpiles of weapons of mass destruction and related
materials. Programs include: $15.0 million for DOE MPC&A
activity; $10.0 million for DOD MPC&A activity; $10.0 million
for a DOE program to develop technologies associated with
improving the verification of nuclear warhead dismantlement;
$15.0 million for DOD activities related to the dismantlement
of chemical and biological weapons-related facilities; $9.0
million for DOE's Lab-to-Lab program; and $6.0 million for DOE
to work with the Russian government in enhancing the security
of fissile material used for the propulsion of Russian military
and civilian ships.
It is the view of the conferees that both DOE and DOD
should seek to expand these activities in the former Soviet
Union beyond nuclear activities in Russia, Ukraine, Kazakhstan,
and Belarus. While programs to date have appropriately focused
on the most pressing strategic concerns, critical work remains
to be done in combating the threat of proliferation at a
variety of sites in the other states of the former Soviet Union
where nuclear, chemical, and biological weapons-related
materials and technologies continue to be vulnerable to
proliferation.
The conferees agree to transfer $10.0 million in DOD
funds to DOE for activities related to the conversion of
several Russian nuclear core reactors so they no longer produce
weapons-grade plutonium. It is the view of the conferees that
the Secretary of Defense should transfer these funds to the
Secretary of Energy expeditiously so that the Department of
Energy can continue to move forward on this program.

Coordination of policy and countermeasures against proliferation of
weapons of mass destruction

The conferees agree that the nation's overall
coordination of policy, efforts, and activities addressing the
threat posed by the increasing availability of nuclear,
chemical, and biological weapons, materials, and technology
must be improved. The conferees agree to a provision that would
direct the appointment by the President of a national
coordinator on proliferation within the Executive Office of the
President, to advise the President on nonproliferation and
related issues regarding terrorism and international organized
crime. The provision would establish a committee on
nonproliferation, to be chaired by the coordinator, and
composed of members of the Executive Branch who have
responsibilities for crisis and consequence management,
nonproliferation, and related issues. This committee will
review and coordinate programs, policies, and directives
related to the proliferation of weapons of mass destruction and
the threat they pose to our national security. The conference
agreement also requires the President, through the committee on
nonproliferation, to submit a comprehensive report for carrying
out this amendment.

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

TITLE XVI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

legislative provisions

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

legislative provisions adopted

Modification of requirement for conversion of military positions to
civilian positions (sec. 1601)

The Senate amendment contained a provision (sec. 1101)
that would repeal the portion of section 1032 of the National
Defense Authorization Act for Fiscal Year 1996 that would
require the Secretary of Defense to convert 7,000 military
positions to civilian positions during fiscal year 1997.
The House bill contained no similar provision.
The House recedes with an amendment that would repeal the
requirement for the conversion of 7,000 military positions to
civilian positions during fiscal year 1997, contingent on the
Secretary of Defense's having certified to the Committee on
Armed Services of the Senate and the Committee on National
Security of the House of Representatives that the Department of
Defense has completed the conversion of 3,000 military
positions to civilian positions during fiscal year 1996, as
required by section 1032 of the National Defense Authorization
Act for Fiscal Year 1996.
The certification shall include: (1) a description of the
types and grades of positions converted; (2) the distribution
of converted positions across the services and defense
agencies; (3) the extent to which any military positions
converted to civilian positions were vacant when converted; (4)
the extent to which any newly-converted civilian positions
remain vacant; (5) an analysis of the follow-on assignment of
those military personnel whose positions were converted to
civilian positions; (6) a discussion of any costs associated
with the required conversion; and (7) the effect on operational
readiness, if any, caused by the required conversion.

Retention of civilian employee positions at military training bases
transferred to national guard (sec. 1602)

The House bill contained a provision (sec. 368) that
would require the Secretary of Defense to retain civilian
employee positions at installations being transferred to the
National Guard during fiscal year 1997 to provide transitional
support to active and reserve component training missions on
the installations.
The Senate amendment contained a provision (sec. 1102)
that, while similar, did not specify that the transfer of an
installation to the National Guard had to occur in 1997 in
order for the provision to have effect.
The Senate recedes with an amendment that would retain
the directive nature of the House provision while eliminating
the requirement that transfers occur in 1997.

Clarification of applicability of certain management constraints on
major range and test facility base structure (sec. 1603)

The House bill contained a provision (sec. 508) that
would clarify that major range and test facility base
activities are covered by certain limitations on the use of end
strengths or other personnel management caps that are used to
reduce personnel levels or restrict funding for Federal
employees. The provision would also clarify that funding
available to major range and test facility base activities
includes both direct appropriated funds and funds provided by
major range and test facility customers.
The Senate amendment contained no similar provision.
The Senate recedes.

Travel expenses and health care for civilian employees of the
Department of Defense abroad (sec. 1604)

The Senate amendment contained a provision (sec. 1104)
that would authorize the Secretary of Defense, under certain
circumstances, to pay allowances and benefits to civilian
personnel serving overseas comparable to those paid to members
of other government agencies that routinely assign personnel
overseas.
The House bill contained no similar provision.
The House recedes.

Travel, transportation, and relocation allowances for certain former
nonappropriated fund employees (sec. 1605)

The Senate amendment contained a provision (sec. 1105)
that would authorize a nonappropriated fund employee who moves
in conjunction with being hired as an appropriated fund
employee to receive the same travel, transportation, and
relocation expenses authorized for appropriated fund employees.
The House bill contained no similar provision.
The House recedes.

Employment and salary practices applicable to Department of Defense
overseas teachers (sec. 1606)

The Senate amendment contained a provision (sec. 1106)
that would permit the Secretary of Defense to reclassify
General Schedule professional educator positions as ``overseas
teachers'' compensable under the Overseas Teacher Pay and
Personnel Act.
The House bill contained no similar provision.
The House recedes.

Employment and compensation of civilian faculty members at certain
Department of Defense schools (sec. 1607)

The Senate amendment contained a provision (sec. 1107)
that would authorize the Asia-Pacific Center for Security
Studies and the English Language Center of the Defense Language
Institute to employ and compensate the civilian faculty,
including the Director and Deputy Director of the Asia-Pacific
Center, in the same manner as the George C. Marshall European
Center for Security Studies and other Department of Defense
education facilities.
The House bill contained no similar provision.
The House recedes.

Reimbursement of Department of Defense domestic dependent school board
members for certain expenses (sec. 1608)

The Senate amendment contained a provision (sec. 1108)
that would authorize Department of Defense domestic dependent
school board members to be reimbursed for travel and
transportation expenses, program fees, and activity fees that
the Secretary of Defense determines reasonable and necessary in
the performance of their duties.
The House bill contained no similar provision.
The House recedes with an amendment that would include
lodging expenses among those expenses for which domestic
dependent school board members could be reimbursed.

Modification of authority for civilian employees of Department of
Defense to participate voluntarily in reductions in force (sec.
1609)

The House bill contained a provision (sec. 336) that
would extend until September 30, 2001, the authority to allow
employees who are not affected by a reduction-in-force (RIF) to
volunteer to be RIF-separated in place of other employees who
are scheduled for RIF separation.
The Senate amendment contained a similar provision (sec.
1109).
The conference agreement includes this provision.

Wage-board compensatory time off (sec. 1610)

The House bill contained a provision (sec. 333) that
would provide federal managers of wage-board employees the same
flexibility to use compensatory time off afforded federal
managers of general schedule employees, by authorizing agency
heads to grant compensatory time off in lieu of overtime pay
under certain circumstances.
The Senate amendment contained a similar provision (sec.
1110).
The Senate recedes with an amendment that would preclude
agency heads from directly or indirectly forcing employees to
accept compensatory time off in lieu of pay for overtime work.

Liquidation of restored annual leave that remains unused upon transfer
of employee from installation being closed or realigned (sec.
1611)

The Senate amendment contained a provision (sec. 1111)
that would require, under certain circumstances, automatic
liquidation of annual leave restored under section 6304(d) of
title 5, United States Code.
The House bill contained no similar provision.
The House recedes.

Waiver of requirement for repayment of voluntary separation incentive
pay by former Department of Defense employees reemployed by the
Government without pay (sec. 1612)

The House bill contained a provision (sec. 332) that
would allow civilian employees who have previously received
separation or incentive pay to leave federal employment to
volunteer for government service without the loss of their
separation or incentive pay.
The Senate amendment contained a similar provision (sec.
1112).
The conference agreement includes this provision.

Simplification of rules relating to the observance of certain holidays
(sec. 1613)

The House bill contained a provision (sec. 334) that
would allow the head of an agency within the Department of
Defense to change the Federal day off from Monday to an
alternate day for those employees who would normally have
Monday off under a compressed work schedule.
The Senate amendment contained a similar provision (sec.
1113).
The Senate recedes.
The conferees intend that when a Federal holiday falls on
a Monday and that day is a day off for certain employees, that
those employees will receive the next normal work day off. The
conferees do not intend that this authority would be used to
disrupt what would have been an extended weekend break by
forcing employees to take a mid-week day off.

Revision of certain travel management authorities (sec. 1614)

The House bill contained a provision (sec. 331) that
would provide Department of Defense (DOD) civilian personnel
with the flexibility to make more efficient lodging decisions
based on overall mission requirements by considering overall
travel costs.
The Senate amendment contained a provision (sec. 1114)
that would repeal a reporting requirement and repeal the
prohibition on paying lodging expenses to DOD civilian
employees who do not use adequate government quarters when they
are available.
The House recedes.
The conferees believes that these and other provisions
related to travel reform can assist the DOD in its ongoing
efforts to simplify the travel management system and, in doing
so, improve efficiency and reduce costs associated with
official travel.
The conferees note, however, that the success or failure
of travel management initiatives will not depend on the
relaxation of the many detailed rules and regulations which
have governed travel management over the years. Rather, the
success or failure will be a direct reflection of the courage
and discipline with which executives and supervisors at every
level approach their individual responsibilities in overseeing
their own official travel and lodging decisions and those of
their subordinates. Official travel is not a prerequisite of
position to be exploited. Individual responsibility and the
effective stewardship of official travel funds must be
institutionalized as fundamental management principles at all
levels.

Failure to comply with veterans' preference requirements to be treated
as a prohibited personnel practice (sec. 1615)

The House bill contained a provision (sec. 1047) that
would make failure to take, recommend or approve any personnel
action involving a veteran's preference a prohibited personnel
practice.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Pilot programs for defense employees converted to contractor employees
due to privatization at closed military installations (sec.
1616)

The Senate amendment contained a provision (sec. 1121)
that would permit certain federal workers who accept employment
with a contractor in conjunction with a privatization
initiative, referred to as ``transferred'' employees, to
continue to accrue years of federal service for the purpose of
determining eligibility for federal retirement, but not for
determining the amount of the employees retirement benefit.
The House bill contained no similar provision.
The House recedes with an amendment clarifying that the
facility must have been recommended for privatization in place
by the Base Realignment and Closure Commission.

Subtitle B--Department of Defense Intelligence Personnel Policy

legislative provisions adopted

Department of Defense intelligence personnel policy (secs. 1631-1635)

The Senate amendment contained several provisions (sec.
1131-1134) that would provide new personnel management
authorities to the Secretary of Defense for managing the
civilian personnel in the DOD intelligence community.
These provisions would authorize the Secretary of Defense
to: 1) establish Senior Executive Service (SES) positions in
the intelligence community without regard to individual service
or agency caps while retaining the overall DOD cap; 2)
establish senior-level positions in the intelligence community
to provide upward mobility for individuals whose career
patterns and areas of expertise do not afford or require the
management experience required of an SES; 3) establish term-
limited non-competitive positions for periods of up to two
years to permit the rapid expansion or contraction of portions
of the workforce to meet evolving needs; 4) terminate the
employment of a member of the intelligence community in the
interests of the United States; 5) adjust the size, quality and
skill mix of the intelligence community workforce by allowing
greater weight to be given to performance and skill than is
currently possible under existing reduction-in-force rules.
The Senate amendment also contained several provisions
(secs. 921, 924, and 925) that would provide personnel
management authorities to the Secretary of Defense for managing
the civilian personnel in the National Imagery and Mapping
Agency that are consistent with other authorities affecting the
defense intelligence community.
The House bill contained no similar provision.
The House recedes with an amendment that would
consolidate those provisions addressing the management of
civilian personnel of the defense intelligence community
including those assigned to the National Imagery and Mapping
Agency.
The conferees intend that the section concerning time-
limited appointments be used for non-competitive appointments
to meet crisis or surge requirements. The conferees do not
intend to limit the temporary limited appointment or ``not-to
exceed'' authorities currently in effect.

LEGISLATIVE PROVISIONS NOT ADOPTED

Phased retirement

The House bill contained a provision (sec. 335) that
would authorize the Department of Defense to establish a pilot
program to encourage some civilians to retire in stages by
changing current annuity offset rules.
The Senate amendment contained no similar provision.
The House recedes.

Title XVII--Federal Employee Travel Reform

Federal Employee Travel Reform (secs. 1701-1725)

The Senate amendment contained several provisions (secs.
1401-1434) that would reform federal travel policy to provide
employees who transfer in the interest of the government more
effective and efficient delivery of relocation services,
alleviate administrative burdens associated with travel and
employee relocations, and reduce travel and relocation costs.
These provisions are the product of the Joint Financial
Management Improvement Program: a multi-agency task force that
includes the Office of Management and Budget; the General
Accounting Office; the Department of the Treasury; and the
Office of Personnel Management. The provisions would: (1)
provide authority to offer employees a choice of methods of
reimbursement for house-hunting trips and reimbursement for
subsistence expenses when lodged in temporary quarters; (2)
establish a cap on reimbursement of residence transaction
expenses based on a percentage of the price of a home; (3)
provide authority for reimbursement for property management
services expenses; (4) authorize the transportation of an
employee's privately owned vehicle within the continental
United States under certain circumstances; and (5) authorize
the use of home marketing incentives and other streamlining
initiatives.
The House bill contained no similar provision.
The House recedes.
The conferees recognize that the Committee on Government
Reform and Oversight of the House of Representatives has been
active in seeking reform of federal travel processes and has
developed separate legislation that incorporates many of the
provisions in the conference agreement. In the legislation
being considered by the Committee on Government Reform and
Oversight of the House of Representatives, there are
significant new measures that warrant further attention and
review. One such provision would require the use of the
government-wide travel charge card program. The conferees urge
that executive branch agencies, when appropriate, use their
discretionary authority to maximize the use of the travel
charge card in order to maximize the rebate the government
receives for the purchases of travel and travel related
services.

Title XVIII--Federal Charter for the Fleet Reserve Association

Federal Charter for the Fleet Reserve Association (secs. 1801-1816)

The Senate amendment contained provisions (sec. 1201-
1216) that would establish a Federal charter for the Fleet
Reserve Association.
The House bill contained no similar provision.
The House bill recedes with a technical amendment.

Division b--military construction authorizations

Overview

The budget request for fiscal year 1997 included
$9,132,311,000 for military construction and family housing.
The House bill would authorize $10,032,311,000 for
military construction and family housing.
The Senate amendment would provide $9,832,711,000 for
this purpose.
The conferees recommend authorization of apppropriations
of $9,982,311,000 for military construction and family housing,
including general reductions and termination of prior year
projects.
The conferees are deeply concerned about the condition of
the military infrastructure and troubled by the shortfalls
evident in the administration's budget request for fiscal year
1997 for military construction and military family housing
programs. The conferees note that the construction and
modernization of facilities and their upkeep and maintenance
are a critical component of military readiness, which has been
under funded in recent years. The conferees are also mindful of
the serious deficiencies in facilities designed to support the
quality of life of military personnel and their families.
From an operational and readiness perspective, shortfalls
in the construction and repair and maintenance accounts have
exacerbated problems in the facilities infrastructure. Needed
improvements to basic infrastructure have often been deferred,
leading to the creation of a steep backlog in facilities,
construction and maintenance. For example, approximately 20
percent of the Army's facilities are unsuitable, either due to
deteriorated conditions or they are unable to meet mission
requirements. Additionally, the Army lacks 30 percent of the
facilities required to meet specific mission requirements,
making do with work-arounds that impair efficiency. To cite
another example, over two-thirds of the Navy's piers were
constructed during the Second World War. According to the
Navy's estimates, by the year 2010, only 20 percent of existing
piers and wharves would adequately be able to service the
fleet.
The condition of military housing for families and
unaccompanied personnel and other quality of life
infrastructure is in a similar state of deterioration.
According to the Defense Science Board Task Force on Quality of
Life, 62 percent of barracks and dormitories are currently
unsuitable and 64 percent of family housing units are in the
same condition. In spite of these serious deficiencies, the
administration's budget request fails to keep pace with current
levels of funding to support the construction of barracks and
dormitories. The budget request for fiscal year 1997 further
proposes to reduce sharply the expenditure of funds on new
construction of military family housing and improvements to
existing family housing units. The administration also proposes
to reduce funding for basic maintenance of family housing.
The conferees believe the administration's budget request
for military construction and military family housing programs
for fiscal year 1997, which is $1.56 billion below the fiscal
year 1996 request, is seriously under funded. The conferees
recommend an increase in new budget authority for these
programs of $850,000,000. Approximately 60 percent of that
amount is dedicated to a major quality of life initiative. The
conferees recommend an additional $200,816,000 for the
construction of new barracks and dormitories and an additional
$266,170,000 for the construction of military family housing
and improvements to existing family housing units. The
conferees also recommend an additional $30,410,000 for the
construction of child development centers. The conferees
reiterate their support for the military housing privatization
initiative authorized in section 2801 of the Military
Construction Authorization Act of Fiscal Year 1996 (division B
of Public Law 104-106) and recommend an additional $10,000,000
to support both the family housing and unaccompanied housing
privatization initiatives.
The conferees remain concerned about the instability in
funding for the military construction and military family
housing programs contemplated by the current Future Years
Defense Plan. The conferees believe the serious backlog of
military construction requirements can no longer be deferred.
The conferees urge the Secretary of Defense to address the need
to reduce the backlog of military construction requirements
affecting the operational needs of the military departments and
to enhance those programs that directly support improvements in
the quality of life for military personnel and their families.
A tabular summary of the authorizations provided in
Division B for fiscal year 1997 follows:

Title XXI--Army

fiscal year 1997

Overview

The House bill would authorize $2,037,653,000 for Army
military construction and family housing programs for fiscal
year 1997.
The Senate amendment would authorize $1,913,297,000 for
this purpose.
The conferees recommend authorization of appropriations
of $1,942,557,000 for Army military construction and family
housing for fiscal year 1997.

items of special interest

Improvements Of Military Family Housing, Army

The conferees recommend that, within authorized amounts
for improvements of military family housing and facilities, the
Secretary of the Army execute the following projects:
$16,000,000 for Whole Neighborhood Revitalization, Phase II
(228 units) at Fort Rucker, Alabama; $7,800,000 for family
housing improvements (48 units) at Fort Richardson, Alaska;
$8,600,000 for family housing improvements (52 units) at Fort
Wainwright, Alaska; $7,300,000 for family housing improvements
(120 units) at Stuttgart, Germany; $4,600,000 for family
housing improvements (64 units) at Baumholder, Germany;
$8,200,000 for family housing improvements (136 units) at
Mannheim, Germany; $9,600,000 for Whole Neighborhood
Revitalization, Phase III (102 units) at Fort Campbell,
Kentucky; $7,200,000 for family housing improvements (250
units) at Fort Polk, Louisiana; and $2,300,000 for family
housing improvements (42 units) at Tobyhanna Army Depot,
Pennsylvania.

legislative provisions

legislative provisions adopted

Land acquisition, National Ground Intelligence Center, Charlottesville,
Virginia (sec. 2105)

The conferees include a provision that would authorize
the Secretary of the Army to acquire real property for the
National Ground Intelligence Center, Charlottesville, Virginia.
The acquisition would be contingent upon the Secretary
certifying to the congressional defense committees that the
acquisition of the property would provide the most cost-
effective means of securing a location for the National Ground
Intelligence Center.

legislative provisions not adopted

Correction in authorized uses of funds, Fort Irwin, California

The House bill contained a provision (sec. 2105) that
would correct the authorized use of funds authorized for
appropriation in prior years for a military construction
project at Fort Irwin, California. The provision would permit
the use of previously authorized funds to construct a heliport
at Fort Irwin to support the National Training Center.
The Senate amendment contained no similar provision.
The House recedes.

TITLE XXII--NAVY

fiscal year 1997

Overview

The House bill would authorize $2,303,173,000 for Navy
military construction and family housing programs for fiscal
year 1997.
The Senate amendment would authorize $2,054,793,000 for
this purpose.
The conferees recommend authorization of appropriations
of $2,213,731,000 for Navy military construction and family
housing for fiscal year 1997.
The conferees agree to a general reduction of $12,000,000
in the authorization of appropriations for the Navy military
construction account. The general reduction is to be offset by
savings from favorable bids, reduction in overhead costs, and
cancellation of projects due to force structure changes. The
general reduction shall not cancel any military construction
authorized by title XXII of this Act.

items of special interest

Improvements of Military Family Housing, Navy

The conferees recommend that, within authorized amounts
for improvements of military family housing and facilities, the
Secretary of the Navy execute the following projects:
$6,600,000 for Whole House Revitalization, Phase I (160 units)
at Naval Air Station Meridian, Mississippi; $5,900,000 for
family housing improvements (1,257 units) at Marine Corps Air
Station Beaufort, South Carolina; $2,400,000 for Whole House
Revitalization (55 units) at Joint Reserve Base Fort Worth,
Texas; and $6,900,000 for Whole House Revitalization (100
units) at Naval Air Station Whidbey Island, Washington.

legislative provisions

legislative provisions adopted

Beach replenishment, Naval Air Station, North Island, California (sec.
2205)

The House bill contained a provision (sec. 2205) that
would provide for a cost-sharing agreement between the
Secretary of the Navy, the State of California, and local
governments concerning beach replenishment executed as part of
a military construction project at Naval Air Station, North
Island, California.
The Senate amendment contained no similar provision.
The Senate recedes with a technical amendment.

legislative provisions not adopted

Defense access roads

The Senate amendment contained a provision (sec. 2204)
that would authorize the Secretary of the Navy to make
advances, in the amount of $300,000, to the Secretary of
Transportation for the construction of defense access roads at
various locations.
The House bill contained no similar provision.
The Senate recedes.

TITLE XXIII--AIR FORCE

fiscal year 1997

Overview

The House bill would authorize $1,823,456,000 for Air
Force military construction and family housing programs for
fiscal year 1997.
The Senate amendment would authorize $1,844,786,000 for
this purpose.
The conferees recommend authorization of appropriations
of $1,894,594,000 for Air Force military construction and
family housing for fiscal year 1997.

items of special interest

Improvements of Military Family Housing, Air Force

The conferees recommend that, within authorized amounts
for improvements of military family housing and facilities, the
Secretary of the Air Force execute the following projects:
$8,600,000 for family housing improvements (112 units) at Eglin
Air Force Base, Florida; $6,000,000 for Whole House
Revitalization (52 units) at Wright-Patterson Air Force Base,
Ohio; $13,000,000 for family housing improvements (133 units)
at Laughlin Air Force Base, Texas; and $7,500,000 for Whole
House Revitalization (92 units) at Hill Air Force Base, Utah.

legislative provisions

legislative provisions adopted

Elimination of authority to carry out fiscal year 1995 project,
Spangdahlem Air Force Base, Germany (sec. 2305)

The conferees recommend a provision (sec. ) that would
amend the table in 2301(b) of the Military Construction
Authorization Act for Fiscal Year 1995 (Division B of Public
Law 103-337) relating to Spangdahlem Air Force Base, Germany by
reducing the authorization by $2.1 million and terminating the
authority to upgrade the sewage and storm water system.

TITLE XXIV--DEFENSE AGENCIES

fiscal year 1997

Overview

The House bill would authorize $3,396,336,000 for Defense
Agencies military construction and family housing programs for
fiscal year 1997.
The Senate amendment would authorize $3,399,136,000 for
this purpose.
The conferees recommend authorization of appropriations
of $3,379,703,000 for Defense Agencies military construction
and family housing for fiscal year 1997.

LEGISLATIVE PROVISIONS

legislative provisions adopted

Reduction in amounts authorized to be appropriated for fiscal year 1996
defense agencies military construction, land acquisition, and
military family housing functions (sec. 2407)

The conferees recommend a provision (sec. ) that would
amend section 2405 of the Military Construction Authorization
Act for Fiscal Year 1996 (Division B of Public Law 104-106) by
reducing the authorization of appropriations for defense
agencies by $7.0 million.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT
PROGRAM

fiscal year 1997

Overview

The House bill would authorize $177,000,000 for the U.S.
contribution to the NATO Security Investment Program for fiscal
year 1997.
The Senate amendment would authorize $172,000,000 for
this purpose.
The conferees authorize $172,000,000 for the U.S.
contribution to the NATO Security Investment Program.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

fiscal year 1997

Overview

The House bill would authorize $294,693,000 for military
construction and land acquisition for fiscal year 1997 for the
Guard and Reserve components.
The Senate amendment would authorize $451,099,000 for
this purpose.
The conferees recommend authorization of appropriations
of $388,826,000 for military construction and land acquisition
for fiscal year 1997. This authorization would be distributed
as follows:

Army National Guard..................................... $59,194,000
Army Reserve............................................ 55,543,000
Naval/Marine Corps Reserve.............................. 32,779,000
Air National Guard...................................... 188,505,000
Air Force Reserve....................................... 52,805,000

legislative provisions

legislative provisions adopted

Authorization and funding for construction and improvement of Naval
Reserve Centers (sec. 2602)

The Senate amendment contained a provision (sec. 2602)
that would reallocate $10.4 million appropriated under the
heading ``Military Construction, Naval Reserve'' in the
Military Construction Appropriations Act, 1995 (P.L. 103-307)
for the construction of a Joint Reserve Center at Fort Lawton,
Washington and the construction of other reserve facilities in
the State of Washington.
The House bill contained no similar provision.
The House recedes with an amendment that would broaden
the availability of funds for unspecified minor construction
and planning and design. The amendment would also make a
technical correction by designating a new section (sec. 2835)
regarding a modification to the related land conveyance
language in the Military Construction Appropriations Act, 1995.

Upgrade Air National Guard facilities, Bangor International Airport,
Maine (sec. 2603)

The conferees recommend a provision that would authorize
the Secretary of the Army to carry out a construction project
to upgrade Air National Guard Base and support facilities at
Bangor International Airport, Maine. The total cost of the
project authorized may not exceed $13,000,000. The amount
authorized to be appropriated for fiscal year 1997 is
$7,000,000.

legislative provisions not adopted

Authorized Guard and Reserve construction and land acquisition projects

The Senate amendment contained a provision (sec.
2601(1)(A)) that would prohibit the obligation of funds
authorized for the combined maintenance shop at Camp Guernsey,
Wyoming until the Secretary of Defense certifies to Congress
that the project is in the current future years defense
program.
The House bill contained no similar provision.
The Senate recedes.

Title XXVII--Expiration and Extension of Authorizations

legislative provisions

legislative provisions adopted

Extension of authorizations of certain fiscal year 1994 projects (sec.
2702)

The House bill contained a provision (sec. 2702) that
would provide for extension of certain fiscal year 1994
military construction authorizations until October 1, 1997, or
the date of the enactment of an Act authorizing funds for
military construction for fiscal year 1997, whichever is later.
The Senate amendment contained a similar provision.
The Senate recedes with an amendment that would add the
following project:
South Carolina; Summerville; Organizational Maintenance
Shop; $834,000.

Extension of authorizations of certain fiscal year 1993 projects (sec.
2703)

The Senate amendment contained a provision (sec. 2703)
that would provide for extension of certain fiscal year 1993
military construction authorizations until October 1, 1997, or
the date of the enactment of the Act authorizing funds for
military construction for fiscal year 1997, whichever is later.
The House bill contained a similar provision.
The House recedes with an amendment that would add the
following project:
New Mexico; Clayton; Armory; $1,400,000.

legislative provisions not adopted

Prohibition on use of funds for certain projects

The Senate amendment contained a provision (sec. 2705)
that would prohibit the obligation or expenditure of funds for
certain military construction projects in Kentucky until the
Secretary of Defense certifies that the projects are included
in the current future years defense program.
The House bill contained no similar provision.
The Senate recedes.

Title XXVIII--General Provisions

legislative provisions

Subtitle A--Military Construction and Military Family Housing

legislative provisions adopted

Increase in certain thresholds for unspecified minor construction
projects (sec. 2801)

The Senate amendment contained a provision (sec. 2801)
that would amend sections 2805 and 18233(a) of title 10, United
States Code, to increase the operations and maintenance minor
construction limit from $300,000 to $500,000 for the active and
reserve components. The provision would further amend section
18233(a) to increase the reserve component minor military
construction limit from $400,000 to $1.5 million.
The House bill amendment contained no similar provision.
The House recedes.

Redesignation of North Atlantic Treaty Organization Infrastructure
Program (sec. 2802)

The Senate amendment contained a provision (sec. 2503)
that would amend section 2806 of title 10, United States Code,
by redesignating the North Atlantic Treaty Organization
Infrastructure Program as the North Atlantic Treaty
Organization Security Investment Program. The provision would
establish in law the name change implemented by the North
Atlantic Treaty Organization when it revamped the
infrastructure program in 1993.
The House bill contained a similar provision.
The House recedes.

Improvements to military family housing units (sec. 2803)

The House bill contained a provision (sec. 2803) that
would make technical changes to the calculation of cost of
major maintenance and repair to military housing units.
The Senate amendment contained a similar provision.
The Senate recedes with a technical amendment.

Availability of funds for planning, execution, and administration of
contracts for family housing and unaccompanied housing (sec.
2804)

The conferees recommend an amendment to section 2883 of
title 10, United States Code, to make a technical correction
that would authorize the Department of Defense to pay expenses
incurred for planning, execution, and administration of
contracts entered into under the Military Housing Privatization
Initiative authority from the funds established under the
Initiative and from other Department of Defense funds that are
otherwise available for such purposes.

Subtitle B--Defense Base Closure and Realignment

Legislative Provisions Adopted

Restoration of authority for certain intragovernmental transfers under
1988 Base Closure Law (sec. 2811)

The House bill contained a provision (sec. 2811) that
would restore the ability of the Secretary of Defense to
transfer property at a closing or realigning military
installation to a military department, including a
nonappropriated fund instrumentality, or to the Coast Guard.
The previous authority for such transfers was inadvertently
repealed in a prior year through a technical drafting error.
The Senate amendment contained a similar provision.
The Senate recedes.

Contracting for certain services at facilities remaining on closed
installations (sec. 2812)

The House bill contained a provision (sec. 2812) that
would authorize the Department of Defense to contract out for
certain services at facilities remaining on military
installations closed under the base closure and realignment
process.
The Senate amendment contained a provision (sec. 2812)
that would amend section 204(b)(8)(A) of the Defense
Authorization Amendments and Base Closure and Realignment Act
of 1988 (P.L. 100-526) and section 2905(b)(8)(A) of the Defense
Base Closure and Realignment Act of 1990 (P.L. 101-510) to
increase the authority of the service secretaries to contract
for services, such as fire fighting or security guards, for
facilities not yet transferred or otherwise disposed of at
installations closed under the applicable closure law.
The House recedes.

Authority to compensate owners of manufactured housing (sec. 2813)

The House bill contained a provision (sec. 2813) that
would authorize payments from the base closure and realignment
accounts to compensate owners of manufactured housing at
military installations to be closed or realigned. Under the
provision, the payment may be made if the manufactured housing
park is eliminated or relocated. No payment authorized by this
section may exceed 90 percent of the purchase price of the
manufactured housing unit.
The Senate amendment contained no similar provision.
The Senate recedes.

Additional purpose for which adjustment and diversification assistance
is authorized (sec. 2814)

The House bill contained a provision (sec. 2814) that
would restore the authority of the Secretary of Defense to make
grants, conclude cooperation agreements, and supplement other
Federal funds to assist base reuse planning by the States and
local redevelopment authorities at military installations to be
closed. The previous authority for such support was
inadvertently repealed in a prior year through a technical
drafting error.
The Senate amendment contained no similar provision.
The Senate recedes.

Payment of stipulated penalties assessed under CERCLA in connection
with Loring Air Force Base, Maine (sec. 2815)

The House bill contained a provision (sec. 2815) that
would authorize payments from the base closure and realignment
accounts for stipulated penalties assessed under the
Comprehensive Environmental Response, Compensation, and
Liability Act (CERCLA) of 1980 in connection with the closure
of Loring Air Force Base, Maine.
The Senate amendment contained a similar provision.
The Senate recedes.

Plan for utilization, reutilization, or disposal of Mississippi Army
Ammunition Plant (sec. 2816)

The House bill contained a provision (sec. 2816) that
would require the Secretary of the Army to submit to the
Congress a plan for the utilization, reutilization, or disposal
of the Mississippi Army Ammunition Plant. The plan shall be
submitted not later than 180 days after enactment of this Act.
The Senate amendment contained no similar provision.
The Senate recedes with a clarifying amendment.

Subtitle C--Land Conveyances

legislative provisions adopted

Part I--Army Conveyances

Transfer of lands, Arlington National Cemetery, Arlington, Virginia
(sec. 2821)

The Senate amendment contained a provision (sec. 2821)
that would authorize the Secretary of the Interior to transfer
to the Secretary of the Army a parcel of real property in
section 29 of the National Park System known as the Arlington
Cemetery Internment Zone and all those lands in the area of
section 29 known as the Robert E. Lee Memorial Preservation
Zone, except those lands in the Preservation Zone that the
Secretary of the Interior determines must be retained because
of historical significance. The conveyance would be carried out
in accordance with the Interagency Agreement dated February 22,
1995.
Prior to executing a transfer of property in the Robert
E. Lee Memorial Preservation Zone, the Secretaries would be
required to submit a report to the Committee on Armed Services
of the Senate and the Committee on National Security of the
House of Representatives, which includes a summary of the
cultural resource study, a summary of any environmental
analysis, and a summary of the general manner in which the
Secretary of the Army plans to develop the property.
The provision would further authorize the Secretary of
the Interior to convey to the Secretary of the Army a parcel of
real property and improvements containing 2.43 acres. It would
also authorize the Secretary of the Army to transfer to the
Secretary of the Interior a parcel of real property and
improvements containing 0.17 acre.
The House bill contained a similar provision.
The House recedes with an amendment that would include in
the summary required by paragraph (2)(A)(ii) any analysis
required by the National Historic Preservation Act of 1966.

Transfer of jurisdiction and land transfer, Fort Sill, Oklahoma (sec.
2822)

The Senate amendment contained a provision (sec. 2828)
that would authorize the Secretary of the Army to transfer to
the Secretary of Veterans Affairs administrative jurisdiction
of approximately 400 acres of real property, comprising a
portion of Fort Sill, Oklahoma. The property transferred is to
be used as a national cemetery.
The House bill contained no similar provision.
The House recedes.

Land conveyance, Army Reserve Center, Rushville, Indiana (sec. 2823)

The House bill contained a provision (sec. 2822) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of real property with improvements, to
the City of Rushville, Indiana. The property is to be used for
the benefit of public safety. The cost of any surveys necessary
for the conveyance shall be borne by the City.
The Senate amendment contained no similar provision.
The Senate recedes.

Land conveyance, Army Reserve Center, Anderson, South Carolina (sec.
2824)

The House bill contained a provision (sec. 2823) that
would authorize the Secretary of the Army to convey, without
consideration, a parcel of real property with improvements, to
the County of Anderson, South Carolina. The property is to be
used for educational purposes. The cost of any surveys
necessary for the conveyance shall be borne by the County.
The Senate amendment contained no similar provision.
The Senate recedes.

Land conveyance, Army Reserve Center, Montpelier, Vermont (sec. 2825)

The Senate amendment contained a provision (sec. 2823)
that would authorize the Secretary of the Army to convey,
without consideration, the Army Reserve Center, Montpelier,
Vermont consisting of approximately 4.3 acres and improvements,
to the City of Montpelier, Vermont. The provision would require
the City to lease, at no rental charge, to the Civil Air Patrol
the space that the Civil Air Patrol leases from the Army at the
time of enactment of the National Defense Authorization Act for
Fiscal Year 1997. The conveyance would be contingent on a
determination that no other Federal agency has an interest in
the property.
The House bill contained no similar provision.
The House recedes with an amendment that would strike the
language pertaining to expressions of interest by other Federal
agencies.

Land conveyance, Craft Brothers Reserve Training Center, Manchester,
New Hampshire (sec. 2826)

The Senate amendment contained a provision (sec. 2832)
that would authorize the Secretary of the Army to convey,
without consideration, approximately 3.5 acres of real property
containing the Craft Brothers Reserves Center in Manchester,
New Hampshire to Saint Anselm College. The Secretary would be
prohibited from initiating the conveyance until the Army
reserve units currently located at the Craft Brothers Reserves
Center are relocated to the Joint Reserve Center to be
constructed at the Manchester Airport, New Hampshire. The
conveyance would be contingent on a determination that no other
federal agency has an interest in the property.
The House bill contained no similar provision.
The House recedes.

Land conveyance, Pine Bluff Arsenal, Arkansas (sec. 2827)

The Senate amendment contained a provision (sec. 2835)
that would authorize the Secretary of the Army to convey,
without consideration, a 1500-acre parcel of land located at
Pine Bluff Arsenal, Arkansas to the Economic Development
Alliance of Jefferson County, Arkansas for economic
development. The conveyance would be conditioned on the
following: that the Secretary of the Army must have all
required permits for the operation of the Chemical
Demilitarization (DEMIL) facility prior to the conveyance; that
the Secretary of Defense must certify that the proposed
conveyance would not negatively impact the ability of the
Department of Defense to carry out the DEMIL mission; and that
the Federal government must be reimbursed if, at any time
during the 25 years after the conveyance, the County sells the
property.
The House bill contained no similar provision.
The House recedes.

Reaffirmation of land conveyances, Fort Sheridan, Illinois (sec. 2828)

The House bill contained a provision (sec. 2824) that
would provide authority to the Secretary of the Army to
complete, as soon as practicable, the previously authorized
land conveyance at Fort Sheridan, Illinois.
The Senate amendment contained an identical provision.
The conference agreement includes this provision.

Part II--Navy Conveyances

Land transfer, Potomac Annex, District of Columbia (sec. 2831)

The Senate amendment contained a provision (sec. 2822)
that would direct the Secretary of the Navy to transfer
approximately three acres of real property located at the
Potomac Annex in the District of Columbia to the administrative
jurisdiction of the United States Institute of Peace. As a
condition of the transfer, the Institute shall agree to make
available to the Navy permanent parking space at the
headquarters building and interim parking during construction
of the headquarters building.
The House bill contained no similar provision.
The House recedes with an amendment that would make the
conveyance permissive.
The conferees urge the Secretary and the Institute to
move forward with the transfer and expect the Institute to
proceed with its plans to raise private funds for the
construction of a headquarters facility on the site.

Land Exchange, St. Helena Annex, Norfolk Naval Shipyard, Virginia (sec.
2832)

The House bill contained a provision (sec. 2832) that
would authorize an exchange of real property, with
consideration, relating to Norfolk Naval Shipyard, Virginia. As
consideration for the real property located at the Shipyard
conveyed by the Secretary, the transferee shall convey to the
United States a parcel or parcels of real property, with
improvements, located in the area of Portsmouth, Virginia, and
shall pay to the Secretary an amount equal to the amount by
which the fair market value of the parcel conveyed by the
Secretary exceeds the fair market value of the parcel conveyed
to the United States. In lieu of such consideration, the
Secretary and the transferee may agree upon in-kind
consideration under which the transferee would provide for the
improvement, maintenance, or repair of real property under the
control of the Secretary in the area of Hampton Roads,
Virginia. The exact acreage and legal description of the
parcels shall be determined by a survey satisfactory to the
Secretary. The cost of the survey shall be borne by the
transferee.
The Senate amendment contained no similar provision.
The Senate recedes.

Land conveyance, Calverton Pine Barrens, Naval Weapons Industrial
Reserve Plant, Calverton, New York (sec. 2833)

The House bill contained a provision (sec. 2833) that
would authorize the Secretary of the Navy to convey a parcel of
real property, comprising the Calverton Pine Barrens and
located at the Naval Weapons Industrial Reserve Plant,
Calverton, New York, to the Department of Environmental
Conservation of the State of New York. The property is to be
used as a nature preserve. The cost of any surveys necessary
for the conveyance shall be borne by the Department of
Environmental Conservation.
The Senate amendment contained no similar provision.
The Senate recedes.

Land conveyance, former Naval Reserve Facility, Lewes, Delaware (sec.
2834)

The Senate amendment contained a provision (sec. 2824)
that would authorize the Secretary of the Navy to convey,
without consideration, to the State of Delaware a parcel of
real property, consisting of approximately 16.8 acres and
improvements, at the former Naval Reserve Facility, Lewes,
Delaware. The provision would require the State to use the
property, in perpetuity, solely as a public park or
recreational area. The property would revert to the United
States if at any time, the Secretary of the Interior determines
that the property is not being used in accordance with the
conditions of conveyance. The conveyance would be contingent on
a determination that no other Federal agency has an interest in
the property.
The House bill contained no similar provision.
The House recedes with an amendment that would require
the Secretary of the Navy to determine that the property is not
being used in accordance with the conditions of conveyance. The
amendment would also strike the language pertaining to
expressions of interest by other Federal agencies.

Modification of land conveyance authority, Naval Reserve Center,
Seattle, Washington (sec. 2835)

The Senate amendment contained a provision (sec. 2602)
that would reallocate $10.4 million appropriated under the
heading ``Military Construction, Naval Reserve'' in the
Military Construction Appropriations Act, 1995 for the
construction of a Joint Reserve Center at Fort Lawton,
Washington and the construction of other reserve facilities in
the State of Washington.
The House bill contained no similar provision.
The House recedes with an amendment that would broaden
the availability of funds for unspecified minor construction
and planning and design. The amendment would also make a
technical correction by designating a new section regarding a
modification to the related land conveyance language in the
Military Construction Appropriations Act, 1995.

Release of condition on reconveyance of transferred land, Guam (sec.
2836)

The House bill contained a provision (sec. 2831) that
would repeal section 818(b)(2) of the Military Construction
Authorization Act for Fiscal Year 1981 (Public Law 96-418)
relating to a condition on the disposal by the Government of
Guam of real property conveyed by the United States.
The Senate bill contained no similar provision.
The Senate recedes.

Lease to facilitate construction of reserve center, Naval Air Station,
Meridian, Mississippi (sec. 2837)

The House bill contained a provision (sec. 2206) that
would permit the Secretary of the Navy to lease to the State of
Mississippi, without reimbursement, approximately five acres of
real property at Naval Air Station, Meridian, Mississippi. The
State shall use the property to construct a reserve center and
ancillary supporting facilities. The section also would provide
for a leaseback of the reserve center by the Navy.
The Senate amendment contained a similar provision.
The Senate recedes.

Part III--Air Force Conveyances

Land conveyance, Radar Bomb Scoring Site, Belle Fourche, South Dakota
(sec. 2841)

The House bill contained a provision (sec. 2842) that
would authorize the Secretary of the Air Force to convey,
without consideration, approximately 37 acres of real property
and improvements to the Belle Fourche School District, Belle
Fourche, South Dakota. The property is to be used for
educational, economic development, and housing purposes. The
cost of any surveys necessary for the conveyance shall be borne
by the School District.
The Senate amendment contained a similar provision.
The Senate recedes.

Conveyance of primate research complex and Air Force-owned chimpanzees,
Holloman Air Force Base, New Mexico (sec. 2842)

The Senate amendment contained a provision (sec. 2826)
that would authorize the Secretary of the Air Force to convey,
on a competitive basis and at no cost to the Air Force, the
primate research complex and the colony of Air Force-owned
chimpanzees located at Holloman Air Force Base, New Mexico. The
authorized conveyance would not include the real property on
which the research complex is sited. The Secretary, in
cooperation with the Department of Agriculture and the National
Institutes of Health, would be required to develop standards of
care and use of the primate research complex and of the
chimpanzees, to be used in solicitation of bids. The conditions
of conveyance would require that the recipient use the
chimpanzees for scientific research, medical research, or
retire and provide adequate care for the chimpanzees.
The House bill contained a similar provision.
The House recedes with an amendment that would: clarify
that the Air Force-owned chimpanzees are included in the
transfer; specify competitive negotiations required in the
disposal; make the recipient of the complex and chimpanzees
subject to the existing lease; and make certain technical
corrections.

Part IV--Other Conveyances

Land conveyance, Tatum Salt Dome Test Site, Mississippi (sec. 2851)

The House bill contained a provision (sec. 2851) that
would authorize the Secretary of Energy to convey the Tatum
Salt Dome Test Site to the State of Mississippi after
certification by the Administrator of the Environmental
Protection Agency and the State that any contamination of the
property has been remediated in accordance with applicable
Federal and state statutory and regulatory requirements. The
property is to be used by the State as a wildlife refuge and is
to be designated as the Jamie Whitten Wilderness Area.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would designate
the property as the Jamie Whitten Forest Management Area and
specify that all subsurface estate be retained by the United
States.

Land conveyance, William Langer Jewel Bearing Plant, Rolla, North
Dakota (sec. 2852)

The House bill contained a provision (sec. 2852) that
would authorize the Administrator of the General Services
Administration to convey, without consideration, approximately
9.77 acres of real property with improvements comprising the
formerly Army-owned William Langer Jewel Bearing Plant, Rolla,
North Dakota to the Job Development Authority of the City of
Rolla, North Dakota. The property is to be used for economic
development. The cost of any surveys necessary for the
conveyance shall be borne by the Authority.
The Senate Amendment contained a similar provision.
The House recedes with an amendment that would make the
funds made available under the Department of Defense
Appropriations Act, 1995 (Public Law 103-335) for the
maintenance of the William Langer Jewel Bearing Plant available
pending the conveyance of the plant.

Land conveyance, Air Force Plant No. 85, Columbus, Ohio (sec. 2853)

The Senate amendment contained a provision (sec. 2834)
that would authorize the Secretary of the Air Force to instruct
the Administrator of General Services to convey, without
consideration, a parcel of real property consisting of
approximately 240 acres of land and improvements, known as Air
Force Plant No. 85, to the Columbus Municipal Airport
Authority. The conveyance would be contingent on a
determination that no other Federal agency has an interest in
the property.
The House bill contained no similar provision.
The House recedes with a technical amendment.

Modification of boundaries of White Sands National Monument and White
Sands Missile Range (sec. 2854)

The Senate amendment contained a provision (sec. 2836)
that would authorize the Secretary of the Interior and the
Secretary of the Army to exchange administrative jurisdiction
of certain parcels of real property to facilitate the
administration of the White Sands National Monument and the
White Sands Missile Range, New Mexico.
The House bill contained no similar provision.
The House recedes with an amendment that would make the
exchange permissive.

Subtitle D--Other Matters

Legislative Provisions Adopted

Authority to grant easements for rights-of-way (sec. 2861)

The Senate amendment contained a provision (sec. 2803)
that would amend section 2668(a) of title 10, United States
Code, by including poles, lines, structures, and facilities
used for transmission or distribution of electrical power and
communication signals in the authority for which the Secretary
may grant easements on military installations. The provision
would also make section 2668(a) the only easement authority for
the military departments.
The House bill contained a similar provision.
The House recedes.

Authority to enter into cooperative agreements for the management of
cultural resources on military installations (sec. 2862)

The House bill contained a provision (sec. 2862) that
would authorize the military departments to enter into
cooperative agreements for the management of cultural
resources. In the absence of specific statutory authority, the
military departments have been reluctant to enter into such
cooperative agreements. The Sikes Act (Public Law 99-561)
currently authorizes the Secretary of Defense to plan, develop,
maintain, and coordinate wildlife conservation and
rehabilitation efforts on Department of Defense installations
through the use of cooperative agreements.
The Senate amendment contained a similar provision (sec.
349).
The Senate recedes.

Demonstration project for installation and operation of electric power
distribution systems at Youngstown Air Reserve Station, Ohio
(sec. 2863)

The House bill contained a provision (sec. 2863) that
would authorize the Secretary of the Air Force to carry out a
demonstration project to assess the feasibility of permitting
private entities to install, operate, and maintain electric
power distribution systems at military installations. The
demonstration project would be conducted at Youngstown Air
Reserve Station, Ohio.
The Senate amendment contained a similar provision.
The Senate recedes with an amendment that would specify
the source of funding to support the demonstration project and
would establish a reporting requirement.

Renovation of the Pentagon Reservation (sec. 2864)

The Senate amendment contained a provision (sec. 2829)
that would reduce, by $100.0 million, the $1.2 billion cap on
the renovation of the Pentagon.
The House bill contained no similar provision.
The House recedes.

Plan for repairs and stabilization of the historic district at the
Forest Glen Annex of the Walter Reed Medical Center, Maryland
(sec. 2865)

The Senate amendment contained a provision (sec. 2105)
that would require the Secretary of the Army to submit to the
congressional defense committees a comprehensive plan for basic
repairs and stabilization measures for the historic district at
the Forest Glen Annex of Walter Reed Army Medical Center,
Maryland, together with funding options for implementing the
plan. The provision would require the report to be submitted
not later than 30 days after the date of enactment of the
National Defense Authorization Act for Fiscal Year 1997.
The House bill contained no similar provision.
The House recedes with an amendment that would extend the
report submission time to 120 days.

Naming of range at Camp Shelby, Mississippi (sec. 2866)

The House bill contained a provision (sec. 2602) that
would designate the Multi-Purpose Range Complex (Heavy) at Camp
Shelby, Mississippi as the ``G.V. (Sonny) Montgomery Range''.
The provision would take effect at noon, January 3, 1997, or
the first day on which G.V. Montgomery otherwise ceases to be a
Member of the House of Representatives.
The Senate amendment contained no similar provision.
The Senate recedes.

Designation of Michael O'Callaghan Military Hospital (sec. 2867)

The House bill contained a provision (sec. 2864) that
would designate the Nellis Federal Hospital, Las Vegas, Nevada,
as the Michael O'Callaghan Military Hospital.
The Senate amendment contained a similar provision (sec.
1070).
The Senate recedes.

Naming of building at the Uniformed Services University of the Health
Sciences (sec. 2868)

The Senate amendment contained a provision (sec. 1071)
that would express the sense of the Senate that the Secretary
of Defense name Building A at the Uniformed Services University
of the Health Sciences the ``David Packard Building.''
The House bill contained no similar provision.
The House recedes with an amendment that would express
the sense of the Congress.

legislative provisions not adopted

Authority to demolish excess facilities

The House bill contained a provision (sec. 2802) that
would authorize a program to demolish excess facilities. Funds
authorized for appropriation under the authorities contained in
this section may not be used for the demolition of military
family housing, facilities involved in a base closure and
realignment action, or facilities which would be demolished as
an integral part of a specific military construction project.
The Senate amendment contained no similar provision.
The House recedes.

Land transfer, Vernon Ranger District, Kisatchie National Forest,
Louisiana

The Senate amendment contained a provision (sec. 2833)
that would direct the Secretary of Agriculture to transfer
85,000 acres of the Kisatchie National Forest in Louisiana to
the Secretary of the Army for use as training and maneuver
space at Fort Polk, Louisiana. Within 6 months of enactment of
the Act, the transfer shall occur unless the two Secretaries
reach an agreement on land management and conservation
activities related to National Forest land available for
military training activities. The deadline may be extended by 6
months. If after the last deadline an agreement is not reached,
the Secretary of Agriculture shall transfer the property to the
Army for training use.
The House bill contained no similar provision.
The Senate recedes.
The conferees recognize the requirement for expanded
training acreage to accommodate the training mission at Fort
Polk. The conferees also recognize the administration's concern
for addressing the Army's needs and note the administration's
commitment to reaching an agreement between the Department of
the Army and the Department of Agriculture through other than
legislative means.
The conferees understand that the Department of the Army
and the Department of Agriculture have agreed on a statement of
principles which will be incorporated in a Memorandum of
Agreement for the use of Kisatchie National Forest lands for
Army training at Fort Polk. The conferees also understand that
the Departments are committed to reaching an agreement on a
final Memorandum of Agreement by August 1, 1996. The conferees
support this effort and request that the administration provide
a copy of the Memorandum of Agreement to the Committee on Armed
Services of the Senate and National Security Committee of the
House of Representatives as soon as it is available.

Bandelier National Monument

The Senate amendment contained a provision (sec. 2837)
that would authorize the Secretary of the Interior and the
Secretary of Energy to exchange administrative jurisdiction
over certain parcels of land to facilitate the administration
of the Bandelier National Monument.
The House bill contained no similar provision.
The Senate recedes.

Title XXIX--Military Land Withdrawals

Legislative Provisions

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

Legislative Provisions Adopted

Fort Carson-Pinon Canyon military lands withdrawal (sec. 2901-2913)

The House bill contained provisions (sec. 2901-2913) that
would: withdraw and reserve, subject to valid existing rights,
approximately 3,133 acres of public lands and approximately
11,415 acres of mineral rights in the State of Colorado for use
by the Secretary of the Army for military maneuvering,
training, and other defense-related purposes at Fort Carson,
Colorado; withdraw and reserve, subject to valid existing
rights approximately 2,517 acres of public lands and
approximately 130,139 acres of mineral rights in the State of
Colorado for use by the Secretary of the Army for military
maneuvering, training, and other defense-related purposes at
the Pinon Canyon Maneuver Site, Colorado; require that maps and
legal descriptions of the lands withdrawn and reserved by this
subtitle be prepared and published by the Secretary of the
Interior; provide for the management by the Secretary of the
Army, in coordination with the Secretary of the Interior, of
the withdrawn lands under this subtitle; provide that the
management of withdrawn and acquired mineral resources shall be
conducted, as applicable, pursuant to the Military Lands
Withdrawal Act of 1986 (Public Law 99-606); provide that
hunting, fishing, and trapping activities on the lands
withdrawn and reserved under this subtitle shall be conducted
in accordance with section 2671 of title 10, United States
Code; and provide that the withdrawal and reservation of public
lands and mineral rights will terminate 15 years after the date
of enactment of this subtitle.
The provisions would also: provide for procedures to
permit a determination of continuing military need for the
withdrawn and reserved public lands and mineral rights; provide
for procedures under which the Secretary of the Army could
relinquish all or part of the lands withdrawn and reserved
under this subtitle; provide for decontamination of the
withdrawn lands, both during the period of withdrawal and upon
relinquishment of the lands by the Department of the Army;
provide that the functions of the Secretary of the Army and the
Secretary of the Interior under this subtitle may be delegated
without restriction, except that an order by the Department of
the Interior accepting jurisdiction over withdrawn lands
relinquished by the Department of the Army may be signed only
by the Secretary of the Interior, the Deputy Secretary of the
Interior, or an Assistant Secretary of the Interior; provide
that any party conducting any mining, mineral, or geothermal
leasing activity on lands withdrawn under this subtitle shall
indemnify the Untied States against any costs, fees, damages,
or other liabilities incurred by the United States, arising
from those activities; amend the Military Lands Withdrawal Act
of 1986 (Public Law 99-606) to permit, subject to valid
existing rights, military use of sand, gravel, and similar
construction materials on the lands withdrawn by that Act; and
authorize such sums as may be necessary to carry out the
purposes of this subtitle.
The Senate amendment contained no similar provision.
The Senate recedes.

Subtitle B--El Centro Naval Air Facility Ranges Withdrawal

legislative provisions adopted

El Centro Naval Air Facility ranges withdrawal (sec. 2921-2931)

The House bill contained provisions (sec. 2921-2931) that
would: withdraw and reserve, subject to valid existing rights,
approximately 46,600 acres of public lands in the State of
California for use by the Secretary of the Navy for defense-
related purposes at Naval Air Facility, El Centro, California;
require that maps and legal descriptions of the lands withdrawn
and reserved be prepared and published by the Secretary of the
Interior; and provide for the management by the Secretary of
the Interior, in coordination with the Secretary of the Navy.
The provision would also provide: that the withdrawal and
reservation of lands at Naval Air Facility, El Centro,
California, shall terminate 25 years after the date of
enactment of this Act; that the Secretary of the Navy maintain
a program of decontamination of the lands; for procedures to
permit a determination of continuing military need for the
lands; for procedures under which the Secretary of the Navy
could relinquish all or part of the lands; that the functions
of the Secretary of the Navy and the Secretary of the Interior
under this provision may be delegated without restriction,
except that an order by the Department of the Interior
accepting jurisdiction over withdrawn lands relinquished by the
Department of the Navy may be signed only by the Secretary of
the Interior, the Deputy Secretary of the Interior, or an
Assistant Secretary of the Interior; that hunting, fishing, and
trapping activities on the lands withdrawn and reserved under
this subtitle shall be conducted in accordance with section
2671 of title 10, United States Code; and that any party
conducting any mining, mineral, or geothermal leasing activity
on lands withdrawn under this subtitle shall indemnify the
United Sates against any costs, fees, damages, or other
liabilities incurred by the United States arising from those
activities.
The Senate amendment contained no similar provision.
The Senate recedes.

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

Title XXXI--Department of Energy National Security Programs

Overview

The budget request for fiscal year 1977 contained an
authorization of $11,049.5 million for the Department of Energy
National Security Programs. The House bill would authorize
$11,214.1 million. The Senate amendment would authorize
$11,499.5 million. The conferees recommended an authorization
of $11,399.5 million. Unless noted explicitly in the statement
of managers, all changes are made without prejudice.

legislative provisions

Subtitle A--National Security Programs Authorizations

legislative provisions adopted

Weapons Activities (sec. 3101)

The House bill contained a provision (sec. 3101) that
would authorize $3,935.0 million for Department of Energy (DOE)
weapons activities.
The Senate amendment contained a similar provision (sec.
3101) that would authorize $3,949.0 million for Department of
Energy weapons activities.
The Senate recedes with an amendment that would authorize
$3,918.0 million for weapons activities, an increase of $208.0
million above the requested amount, for the following
activities: $1,661.8 million for stockpile stewardship
activities; $1,962.8 million for stockpile management
activities; $313.4 million for program direction. The
authorization includes an undistributed reduction of $20.0
million to be offset by the availability of prior year funds
that have not been obligated, or if obligated, have not been
expended and would not be needed for the projects that were the
basis for obligation.
In balancing the stockpile stewardship and stockpile
management programs, the conferees continue to be concerned
that the Department is placing an undue reliance on the long-
term, unproven science-based stockpile stewardship program at
the expense of modernizing the more traditional production,
engineering, and surveillance approaches needed to maintain
stockpile safety and reliability over the next ten to fifteen
years. The conferees direct the Department to seek an
appropriate balance between the two approaches to ensure that
the United States can maintain the safety, effectiveness, and
reliability of its nuclear stockpile.
Of the amount made available for technology transfer and
education, the conferees recommend $13.0 million for the
American Textiles Partnership project.
In the stockpile management program, the conferees
believe that the United States must maintain viable weapons
manufacturing capabilities and capacities to rebuild aging
weapons and to retain the ability to reconstitute, if
necessary, its nuclear forces, consistent with U.S. treaty
obligations. In this regard, the conferees are concerned that
the underlying rationale of the Department's Draft Programmatic
Environmental Impact Statement for Stockpile Stewardship and
Management could negatively impact production capabilities and
capacities by needlessly downsizing the production plants (Y-
12, Pantex, Kansas City, and Savannah River Site) and stripping
those facilities of unique skills and expertise. The conferees
also raised additional concerns regarding the Department's
phased approach to restore tritium production elsewhere in this
bill.
Of the amounts made available for stockpile management
activities, the conferees authorize an additional $90.0 million
for the four weapons production plants to begin a long-term
modernization and upgrade programs; an additional $60.0 million
for tritium production; an additional $5.0 million for a surety
program to improve waste minimization efforts in the new
stockpile management modernization program; an additional $6.0
million for tritium recycling plant upgrades; and an additional
$3.0 million for planning and construction of a tritium
extraction facility.
Weapons activities program direction is authorized at
$313.4 million, a reduction of $21.0 million. The conferees
direct that this decrease be used to continue reductions in
Federal employee staffing, foreign and domestic travel, and
non-technical support service contracts. The conferees direct
that reductions to the Federal workforce at DOE headquarters
and the non-technical contract support services workforce at
DOE headquarters be balanced. Further, the conferees direct the
Secretary of Energy to submit a report to Congress identifying
the frequency, destination, and cost of foreign travel funded
by the Department through grants, cooperative agreements, and
subcontracts.
The conferees note that the report required by section
3160 of the National Defense Authorization Act for Fiscal year
1996 has not been provided to the congressional defense
committees. The conferees direct the Secretary to provide the
required report not later than February 1, 1997. The conferees
further require that the report include information relating to
past instances in which safety or reliability issues in the
stockpile have resulted in a requirement to conduct nuclear
tests at yields above hydronuclear yields. The described data
shall include the types of problems identified, the solutions
to those problems, the type of nuclear test deemed necessary to
assure the resolution of each problem, and the element of the
stockpile stewardship program being undertaken as a substitute
for testing that could provide the analytical capacity to
understand, monitor, and make judgements regarding the impact
such a problem or problems would have on the reliability of the
stockpile. For each such instance, the report should indicate
the methods that were available to address the identified
problem which did not rely on nuclear testing, and the
confidence the Department could have expected from those
methods.
The conferees direct the Secretary to update the Warhead
Master Plan report required under Section 3153 of the National
Defense Authorization Act for Fiscal Year 1996 (Public Law 104-
106) on a biennial basis and to inform the congressional
defense committees of noteworthy changes in the plan.

Environmental restoration and waste management (sec. 3102)

The House bill contained a provision (sec. 3102) that
would authorize funds for Department of Energy (DOE) defense
environmental restoration and waste management activities for
fiscal year 1997 at $5,409.3 million, the level of the budget
request.
The Senate amendment contained a provision (sec. 3102)
that would authorize $5,607.3 million for DOE defense
environmental restoration and waste management activities for
fiscal year 1997.
The conferees agree to provide $5,509.3 for DOE defense
environmental restoration and waste management activities for
fiscal year 1997 for the following activities: $1,762.1 million
for environmental restoration; $1,578.6 million for waste
management; $1,291.2 million for nuclear material and facility
stabilization; $411.5 million for program direction; $303.7
million for technology development; $23.1 million for policy
and management; $62.1 million for the environmental science
program; $185.0 million for privatization; and $50.0 million
for closure-acceleration activities. The conferees recommend
approval of the Department's request for a reduction of $150.4
million for prior year balances and an $8.0 million offset for
the Savannah River Site Pension Refund.
Of the funds authorized to be appropriated under section
3102(b), the conferees recommend: an additional $15.0 million
to accelerate Defense Waste Processing Facility operations and
associated high-level waste treatment; an additional $20.0
million for a one-time payment to the State of New Mexico
pursuant to a provision contained elsewhere in this bill; and
an additional $7.0 million for the Waste Isolation Pilot Plant
to make preparations for receipt of waste shipments.
Of the funds authorized to be appropriated under section
3102(c), the conferees recommend an additional $43.0 million
for nuclear material stabilization operations at the F- and H-
canyon facilities and an additional $15.0 million for the
National Spent Nuclear Fuel Program.
To provide additional resources for cleanup, the
conferees recommend reducing the budget request for the office
of policy and management (sec. 3102(f)) by $25.0 million. This
reduction would result in an authorization for this subaccount
that is comparable to that authorized and appropriated in
fiscal year 1996. Approximately $4.0 to $7.0 million of this
reduction would be derived by eliminating the requirement to
submit to Congress, on an annual basis, the baseline
environmental management report as required by the National
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
360). The conferees recommend elsewhere in this title that the
annual reporting requirement be converted to a biennial
requirement.
The conferees recommend a reduction to the budget request
for program direction (sec. 3102(d)) of $35.0 million. The
conferees direct that the Department absorb this funding
reduction by reducing the number of Federal employees assigned
to the Department's headquarters, by reducing administrative
overhead and travel expenses at DOE headquarters, and by
reducing non-technical contract support services at DOE
headquarters. The conferees direct that reductions to the
Federal workforce at DOE headquarters and the non-technical
contract support services workforce at DOE headquarters be
balanced. The conferees encourage the Department to examine
options for moving programmatic functions that currently reside
at DOE headquarters to Department field offices. Further, the
conferees direct the Secretary of Energy to submit a report to
the congressional defense committees identifying the frequency,
destination, and cost of foreign and domestic travel funded by
the Department through grants, cooperative agreements, and
subcontracts.
The conferees decline to accept the recommendation to
create a separate budget account for the office of site
operations. The conferees appreciate the role of this new
office and have no objection to this activity being performed
within the office of nuclear materials and facilities
stabilization. The conferees recommend funding the construction
projects associated with the office of site operations under
the budget function for the office of nuclear materials and
facilities stabilization. All of these projects have been
funded in the past under the latter office's budget function.
The conferees encourage the Department to continue
implementation of a viable stakeholder involvement program,
such as site specific advisory boards and other public
participation initiatives, at a level of activity equivalent to
that in fiscal year 1996. As with section 3153, in which the
conferees establish a requirement to develop future use plans,
the conferees believe strongly that public participation is
critical to the development of public trust and acceptance of
cleanup plans and programs, and that the public can be an
effective partner in helping the Department accelerate cleanup
schedules and thereby reduce long-term cleanup costs. The
conferees, therefore, urge the Secretary to work to preserve
resources for public participation in DOE cleanup activities.
The conferees recommend the creation of a new initiative
to be managed by the Assistant Secretary for Environmental
Management to accelerate the closure of facilities or
significantly reduce out year mortgage costs associated with
management of radioactive and other hazardous materials. In
doing so, the conferees direct that increased funding be
applied to those sites in the field where actual remediation
occurs. The conferees recommend that resources be applied to
sites such as Rocky Flats, Hanford, Oak Ridge, Savannah River,
and Idaho, where additional funding could be used to reduce
life-cycle costs significantly through acceleration of existing
activities, initiation of cost reducing deactivation and
decommissioning activities, and the application of innovative
cleanup technologies. Criteria for selection of projects under
this closure acceleration program are contained elsewhere in
this title.
The conferees recommend funding to establish a
privatization program for the treatment of high and low level
wastes at the Hanford facility. The conferees direct that the
Department provide a report to the congressional defense
committees no later than December 31, 1996, on the projected
cost savings, the extent of commercial competition and
participation in this initiative, and a recommendation on
changes that should be made to Federal procurement regulations
to make the program more effective.
The conferees encourage the Department to explore all
available options, including alternative allocation processes,
use of prior year balances, and other means, to ensure that
fiscal year 1997 funding for the Hanford privatization program
does not serve to slow the pace of cleanup at Hanford.
The conferees are aware that the Department will soon
select a new lead contractor for the Hanford facility. New
contract provisions should result in cost savings at this site.
The conferees strongly encourage the Department, to the maximum
extent possible, to allocate those savings that result from the
new management contract to the privatization program discussed
earlier. This approach should help to diminish any potential
negative budgetary impacts resulting from the creation of the
privatization fund in fiscal year 1997 and should eliminate any
negative impact on current cleanup activities at the Hanford
facility. Creation of a privatization fund is not intended to
interfere with or impede on-going critical stabilization,
maintenance, and cleanup operations at this site.
Finally, the conferees have been advised that a small
number of current and former employees at the Hanford facility
have failed to receive credit for the total years of service
performed at this facility, because of changes in contractors
on at least four occasions. While the four Hanford site pension
plans have been consolidated into a single pension plan,
apparently all of the service has not been included. The
conferees direct that the Department examine this issue and
provide a report to the congressional defense committees no
later than December 31, 1996, with a recommendation on how to
correct this problem or certifying that sufficient corrective
action has been taken.

Defense fixed asset acquisition/privatization (sec. 3103)

The House bill contained a provision (sec. 3103) that
would authorize $182.0 million to establish a new asset
acquisition and privatization program for the Department of
Energy's national security assets.
The Senate amendment contained no similar provision.
The Senate recedes.
The conferees recommend: $77.0 million for the advanced
mixed waste treatment project, Idaho Falls, Idaho; $15.0
million for the advanced mixed waste treatment project, Oak
Ridge, Tennessee; $70.0 million for the transuranic waste
treatment project, Oak Ridge, Tennessee; and $20.0 million for
other projects. No outlays are anticipated in fiscal year 1997
under this program. The conferees intend that pre-construction
planning expenditures for each of these projects be funded from
operating and maintenance funds authorized in section 3102 of
this Act.
The conferees recommend $7.0 million in pre-construction
funding for the advanced mixed waste treatment project. The
conferees believe this project is important to fulfilling the
Department's agreement with the State of Idaho and the
Department of the Navy with respect to the interim storage of
Naval nuclear spent fuel in Idaho.

Other defense activities (sec. 3104)

The budget request included $1.548 billion for Other
Defense Activities of the Department of Energy (DOE) for the
fiscal year 1997. The House bill contained a provision (sec.
3104) that would authorize $1.493 billion for Other Defense
Activities, a reduction of $55.0 million to the budget request.
The Senate amendment contained a provision (sec. 3103)
that would authorize $1.561 billion for the Other Defense
Activities, an increase of $85.0 million to the budget request.
The conferees agree to a provision that would authorize
$1.590 billion for these activities.

Verification and control technology

The conferees agree to authorize $513.3 million for
verification and control technology, an increase of $57.0
million to the budget request. Of the funds available in
nonproliferation and verification research and development, the
conferees agree that $10.0 million shall be available to
accelerate the Department's forensic analytical program to
develop capabilities to address the prevention, detection,
interception, and attribution of international nuclear
smuggling events. Additionally, $1.5 million shall be available
for the conduct of a joint DOE-National Defense study on
nuclear smuggling.
The conferees agree to provide $17.0 million to carry out
research and development of technical means for detecting the
presence, transportation, production, and use of weapons of
mass destruction and related technologies and materials. In
addition, the conferees direct the Secretary of Energy to
produce an annual evaluation of the expected powers and
expected limits that define the extent to which science and
technology can aid the nonproliferation effort. Additionally,
the conferees agree to provide $10.0 million for continuing and
expediting cooperative activities with the Government of Russia
to develop: (1) technologies for improving verification of
nuclear warhead dismantlement; (2) technologies for converting
plutonium from weapons into forms that are better suited for
long-term storage, to facilitate verification; and (3)
technologies that promote openness in Russian production,
storage, use, and final and interim disposition of weapons
usable fissile material.
With regard to arms control and control technology, the
budget request included $181.2 million. The conferees agree to
provide $246.2 million, an increase to the budget request of
$65.0 million for materials, protection and control activities.
Of these funds, the conferees agree to a $35.0 million increase
to the budget request for the Industrial Partnering Program
(IPP) and $7.9 million shall be available to complete the
canning of spent fuel rods in North Korea, pursuant to the
Agreed Framework, and to initiate post-canning technical
activities.
The conferees recommend an increase to the budget request
of $9.0 million for Lab-to-Lab activities. It is the view of
the conferees that DOE should seek to expand these activities
in the former Soviet Union beyond nuclear activities in Russia,
Ukraine, Kazakstan, and Belarus. While programs to date have
appropriately focused on the most pressing, strategic concerns,
critical work remains to be done in combating the threat of
proliferation at a variety of sites in the other states of the
former Soviet Union where nuclear, radiological, chemical, and
biological weapons-related materials and technologies continue
to be vulnerable to proliferation.
In addition, the conferees agree to provide $6.0 million
for DOE to carry out cooperative activities with the government
of Russia to improve the security of highly enriched uranium
that is used for propulsion of Russian military and civilian
ships. The Secretary of Energy is directed to develop and
periodically update a plan for such cooperative activities, and
shall coordinate the development and updating of this plan with
the Secretary of Defense, who shall involve the Joint Chiefs of
Staff in the coordination.

Intelligence

The conferees recommend an authorization of $35.2 million
for the intelligence program, a $6.0 million increase to the
budget request for fiscal year 1996 to expand
counterintelligence activities at the nuclear weapons
laboratories and at other high-risk facilities, and for
expanded analysis of the Russian and Chinese nuclear weapons
programs.

International Nuclear Safety

In addition to the $6.0 million recommended by the
conferees for core conversion activities at plutonium
production reactors in Russia, the conferees agree that
Department of Defense will transfer $10.0 million to DOE for
the replacement of core reactors at Tomsk and Krasnoyarsk.

Naval Reactors

The conferees recommend an additional $18.0 million for
the naval reactors program to allow the prototype plant
inactivation plan endorsed by the Department's Office of Naval
Reactors to proceed.

Defense nuclear waste disposal (sec. 3105)

The House bill contained a provision (sec. 3105) that
would authorize $200.0 million for defense nuclear waste
disposal activities of the Department for fiscal year 1997, the
requested amount.
The Senate amendment contained a similar provision (sec.
3104).
The Senate recedes.

Subtitle B--Recurring General Provisions

Legislative Provisions Adopted

Reprogramming (sec. 3121)

The House bill contained a provision (sec. 3121) that
would prohibit the reprogramming of funds in excess of 110
percent of the amount authorized for the program, or in excess
of $1.0 million above the amount authorized for the program
until the Secretary of Energy has notified the congressional
defense committees and a period of 30 days has elapsed after
the date on which the report is received. Should the Department
demonstrate that it has improved its procedures for handling
reprogramming requests, the committee would consider returning
a more flexible reprogramming statute in the future.
The Senate amendment contained an identical provision
(sec. 3121).
The conference agreement includes this provision.

Limits on general plant projects (sec. 3122)

The House bill contained a provision (sec. 3122) that
would limit the initiation of ``general plant projects'' if the
current estimated cost for any project exceeded $2.0 million.
If the Secretary of Energy found that the estimated cost of any
project would exceed $2.0 million, the appropriate committees
of Congress would have to be notified of the reasons for the
cost variation.
The Senate amendment contained a similar provision (sec.
3122) that would limit the initiation of ``general plant
projects'' if the current estimated cost of the project
exceeded $5.0 million dollars. The Senate amendment further
required the Secretary of Energy to conduct a study on the
establishment of a permanent authorization formula for
determining defense and civilian ``general plant projects''
limitations. Such a limitation would be adjusted periodically
for inflation and other factors. The Senate provision would
require the Secretary to report to Congress on the findings of
the study not later than February 1, 1997.
The Senate recedes with an amendment that would require
the Secretary of Energy to conduct a study and report to
Congress on a permanent formula for ``general plant projects''
not later than February 1, 1997.

Limits on construction projects (sec. 3123)

The House bill contained a provision (sec. 3123) that
would permit any construction project to be initiated and
continued only if the estimated cost for the project does not
exceed 125 percent of the higher of: (1) the amount authorized
for the project; or (2) the most recent total estimated cost
presented to the Congress as justification for such project. To
exceed such limits, the Secretary of Energy must report in
detail to the appropriate committees of Congress and the report
must be before the committees for 30 legislative days. This
provision would also specify that the 125 percent limitation
would not apply to projects estimated to cost under $5.0
million.
The Senate amendment contained an identical provision
(sec. 3123).
The conference agreement includes this provision.

Fund transfer authority (sec. 3124)

The House bill contained a provision (sec. 3124) that
would permit the transfer of authorized funds to other agencies
of the government for performance of work for which their funds
were authorized. The provision would allow the transferred
funds to be merged with the authorizations of the receiving
agency. The provision would also establish a five percent limit
for funds that may be transferred.
The Senate amendment contained an identical provision
(sec. 3124).
The conference agreement includes this provision.

Authority for conceptual and construction design (sec. 3125)

The House bill contained a provision (sec. 3125) that
would limit the Secretary of Energy's authority to a request
construction funding until the Secretary has certified a
conceptual design. This limitation would apply to construction
projects with a total estimated cost in excess of $2.0 million.
The provision would provide an exception in the case of
emergencies.
The Senate amendment contained a similar provision (sec.
3125) that would limit that Secretary's authority to
construction projects with a total estimated cost in excess of
$5.0 million. The Senate amendment would also require the
Secretary to provide a report on each conceptual design
completed under this paragraph.
The House recedes with an amendment that would exempt
construction project with a total estimated cost of less than
$2.0 million.

Authority for emergency planning, design, and construction activities
(sec. 3126)

The House bill contained a provision (sec. 3126) that
would permit, in addition to any authorized advance planning
and construction design, the Secretary of Energy to perform
planning and design with available funds for any Department of
Energy national security program construction project whenever
the Secretary determines that the design must proceed
expeditiously to protect the public health and safety, to meet
the needs of national defense, or to protect property.
The Senate amendment contained an identical provision
(sec. 3126).
The conference agreement includes this provision.

Funds available for all national security programs of the Department of
Energy (sec. 3127)

The House bill contained a provision (sec. 3127) that
would authorize amounts appropriated for management and support
activities and for general plant projects to be made available
for use, when necessary, in connection with all national
security programs of the Department of Energy.
The Senate amendment contained an identical provision
(sec. 3127).
The conference agreement includes this provision.

Availability of funds (sec. 3128)

The House bill contained a provision (sec. 3128) that
would authorize amounts appropriated for operating expenses or
for plant and capital equipment to remain available until
expended.
The Senate amendment contained an identical provision
(sec. 3128).
The conference agreement includes this provision.

Subtitle C--Program Authorizations, Restrictions, and Limitations

legislative provisions adopted

Stockpile Stewardship Program (sec. 3131)

The House bill contained a provision (sec. 3131) that
would authorize an additional $100.0 million for various
stockpile stewardship activities.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would authorize
an additional $85.0 million for stockpile stewardship and
management activities.
The conferees direct that a portion of the additional
funds be used for enhanced surveillance of the nuclear weapons
stockpile, dual revalidation of the warheads in the nuclear
weapons stockpile, stockpile life extension programs,
production capability assurance programs for critical non-
nuclear components, accelerating capability to produce
prototype war reserve-quality plutonium pits, and conducting
subcritical tests among other programs, as the Secretary shall
determine.
The conferees note the postponement of subcritical
experiments at the Nevada Test Site. As a result, the conferees
direct the Secretary to report to the Congress within ninety
days of enactment of this Act on the reasons for the
postponement of the experiments planned to be conducted in
fiscal year 1996. As part of this report, the conferees direct
that the Secretary set out the basis for the requirement to
undertake subcritical tests to include the use of the tests to
baseline aspects of an aging stockpile, the date at which those
aspects might be expected to manifest themselves in the
stockpile, how the subcritical tests will add to the baseline
data on the reliability of the stockpile, and any other
information relevant to the decision to undertake subcritical
tests or to further postpone tests. Such a report should be
submitted both in classified and unclassified form.
Although the majority of additional funds authorized for
stockpile stewardship would be spent at the nuclear weapons
laboratories, the conferees strongly endorse and encourage a
continued, close collaboration among the weapons laboratories
and the production sites.

Manfacturing infrastructure for nuclear weapons stockpile (sec. 3132)

The House bill contained a provision (sec. 3132) that
would authorize an additional $125.0 million for the stockpile
manufacturing infrastructure program at the four Department of
Energy (DOE) weapons production plants (Savannah River Site,
South Carolina; Pantex Plant, Texas; Kansas City Plant,
Missouri; and Y-12 Plant, Tennessee) established in section
3137 of the National Defense Authorization Act for Fiscal Year
1996 (Public Law 104-106). The additional funds would be used
to: establish and maintain the necessary capability and
competencies fully to support the evaluation, surveillance,
maintenance, repair, and dismantlement of the nuclear
stockpile; provide flexibility to respond to new production
requirements; maintain and improve the manufacturing technology
necessary to support fully the stockpile; and achieve
significant reductions in operating costs for the complex. This
provision would also require the Secretary of Energy to submit
a report to the congressional defense committees on obligations
under the program.
The Senate amendment contained a similar provision (sec.
3133) that would require DOE to pursue modernization activities
within the stockpile management program to assist in assuring
near-term confidence in the nuclear stockpile.
The House recedes with an amendment that would provide
$90.0 million above the budget request to pursue a
modernization initiative within the stockpile management
program.
The conferees find that the ``technology capability
alone'' approach to the nuclear weapons infrastructure
reconstitution requirement of the Nuclear Posture Review is
insufficient to meet national security requirements. The
conferees are troubled that the Department has not complied
with congressional direction included in section 3137 of the
National Defense Authorization Act for Fiscal Year 1996, and
continue to believe that this directed initiative is not only
prudent, but essential to maintaining nuclear weapons core
competence in order to repair and refabricate weapons at a
START I or START II stockpile level.
The conferees agree that funds authorized under this
section shall be divided approximately evenly among the four
plants. Furthermore, the funds allocated for the Savannah River
Site shall be used in part to: consolidate further the tritium
capabilities, beginning in fiscal year 1997, a year earlier
than the Department's current plans; accelerate the schedule
for producing tritium; support a more robust and aggressive
rapid reconstitution approach for plutonium pit manufacturing
by initiating a pre-conceptual design study for a replacement
pit fabrication facility; and increase core stockpile
management operation and maintenance (O&M) activities. The
funds allocated for the Y-12 Plant shall be used in part to:
accelerate the consolidation of facilities to manufacture and
disassemble secondaries; modernize production plant
infrastructure elements required for long-term operations; and
increase core stockpile management O&M activities. The funds
allocated for the Pantex Plant shall be used in part for a
consolidated pit packaging system and for increased core
stockpile management O&M activities. The funds allocated for
the Kansas City Plant shall be used in part to: upgrade current
manufacturing technologies; replace aging processing equipment;
invest in information systems upgrades to maintain
compatibility with advancements at the DOE national
laboratories; and increase core stockpile management O&M
activities.

Tritium production (sec. 3133)

The Senate amendment contained a provision (sec. 3131)
that would authorize $160.0 million for tritium production, an
increase of $60.0 million to the budget request. Increases
would be used to accelerate the Department of Energy's phased
approach to restore tritium production, including proceeding in
parallel with site preparation for new tritium production
facility.
The House bill would authorize $100.0 million for tritium
production (sec. 3101), the amount requested.
The House recedes.
The conferees note that the Department has established a
tritium production program in response to congressional
concerns about the lack of progress in this area. The conferees
consider this program critical to maintaining the nation's
nuclear deterrent capability.
The conferees believe that the tritium production program
must be accelerated to meet the requirements of the Nuclear
Weapons Stockpile Memorandum, which identified a new tritium
production date of 2005 if a reactor option is selected, or
2007 if an accelerator option is chosen. The conferees continue
to be concerned with the Department's failure to develop a
technically sound data base sufficient to select a preferred
option in fiscal year 1997, and its continuing underestimates
of funding requirements in this area. On this basis, the
conferees agree to recommend an increase of $50.0 million to
the budget request for a total fiscal year 1997 program of
$150.0 million.
The conferees direct the Department to accelerate its
phased approach to restoring the tritium production needs of
the United States, including proceeding in parallel with site
preparation for a new tritium production facility. The
conferees recognize the need to enhance ongoing accelerator
research and development and testing programs at the Los Alamos
National Laboratory, in conjunction with Savannah River Site
personnel. The conferees support these joint efforts and direct
the Department to provide the congressional defense committees
with a report on the planning and design of the accelerator.
The conferees also direct the continued test and
development of tritium targets for the light water reactor
program option by the Idaho National Engineering Laboratory,
and the initiation of planning for construction of a tritium
extraction facility that would be located at the selected site
identified in the Secretary's Record of Decision relating to
tritium production.
The conferees strongly support full consideration of all
technically feasible tritium production options, including
accelerator, existing commercial reactor, and multipurpose
reactor options; among others.

Modernization and consolidation of tritium recycling facilities (sec.
3134)

The House bill contained a provision (sec. 3132) that
referred to modernization and consolidation of tritium
recycling facilities.
The Senate amendment contained a provision (sec. 3132)
that would provide an additional $6.0 million to the budget
request to upgrade existing tritium recycling plant facilities
at the Savannah River Site.
The House recedes with an amendment that would also
direct the Secretary of Energy to modernize the Savannah River
tritium extraction facility.
The conferees direct that, of the amounts authorized to
be appropriated in section 3101, $6.0 million shall be
available for tritium recycling plant upgrades and $3.0 million
shall be available for planning and designing a tritium
extraction facility at the Savannah River Site.

Production of high explosives (sec. 3135)

The House bill contained a provision (sec. 3133) that
would direct that the manufacture and fabrication of high
explosives and energetic materials for use a components in
nuclear weapons systems be carried out at the Pantex Plant,
Amarillo, Texas. The provision would also prohibit the
expenditure of funds to move, or prepare to move, the
manufacture and fabrication of high explosives and energetic
materials for use as components in nuclear weapons systems from
the Pantex Plant to any other Department of Energy (DOE) site
or facility.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would prohibit
the obligation of expenditure of fiscal year 1997 or prior year
funds to move, or prepare to move, the manufacture and
fabrication of high explosives and energetic materials for use
as components in nuclear weapons systems from the Pantex Plant
to any other site or facility.
Nothing in this provision should be construed to limit
ongoing research, development and testing activities involving
high explosives and energetic materials at any Department of
Energy national laboratory.

Limitation on use of funds for certain research and development
purposes (sec. 3136)

The House bill contained a provision (sec. 3134) that
would reduce beginning in fiscal year 1997 the funding
percentage for Laboratory-Directed Research and Development
(LDRD) activities to two percent. The House provision would
prohibit expenditure of funds authorized for LDRD activities in
fiscal year 1997 until 15 days after the Secretary of Energy
issued a report on the manner in which such funds are planned
to be used.
The Senate amendment contained a provision (sec. 3134)
that would limit the use of LDRD and technology transfer
program funds appropriated or otherwise made available to the
Department in fiscal year 1997 under Section 3101 of this Act
to activities that support the national security mission of the
Department. This provision extends the limits described in
section 3141 of the National Defense Authorization Act for
Fiscal Year 1996 for another year.
The House recedes.
The conferees believe that the scientific and engineering
challenges embodied in the emerging stockpile stewardship and
stockpile management programs are sufficient to sustain the
preeminence of the laboratories in the areas of science and
engineering.
The conferees encourage the Department of Energy national
laboratories to direct a significant portion of these funds to
validating and implementing new technology for insertion in the
Navy's submarine construction program for the four transition
submarines to built between fiscal years 1998 and 2003. This
effort should be a cooperative venture among the national
laboratories, U.S. industry, and the Navy.

Prohibition on funding nuclear weapons activities with the People's
Republic of China (sec. 3137)

The House bill contained a provision (sec. 3135) that
would prohibit the obligation or expenditure of funds for any
cooperative nuclear weapons technology programs, to include
stockpile stewardship and safety programs with the People's
Republic of China (PRC). The provision would also require the
Department of Energy to report to Congress on past and planned
discussions or activities between the United States and the
PRC.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment making technical
changes and changing the date on which the report shall be
submitted.
The conferees note that it is possible that United States
national security interests might warrant cooperation on
nuclear weapons use controls. The conferees request that the
Secretary of Defense and the Secretary of Energy report on
whether having authority to undertake cooperative programs with
regard to use controls would be in the national security
interest of the United States.

International cooperative stockpile stewardship programs (sec. 3138)

The House bill contained a provision (sec. 3136) that
would prohibit the use of fiscal year 1997 and prior year funds
to conduct activities associated with international cooperative
stockpile stewardship programs, with the exception of
activities conducted with the United Kingdom and France.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would make
clear that the prohibition contained in subsection (a) does not
apply to activities carried out under the Cooperative Threat
Reduction (CTR) program as defined in this Act.

Temporary authority relating to transfers of defense environmental
management funds (sec. 3139)

The House bill contained a provision (sec. 3137) that
would direct the Secretary of Energy to grant authority to a
site manager to transfer up to $5.0 million between program
functions within his jurisdiction or to transfer a similar sum
between projects within his area of operation. A site manager
would only be authorized to conduct such a transfer one time in
a fiscal year to or from each program or project. The provision
would establish a limited expansion of the Department's current
reprogramming authority and would allow a site manager to
transfer money based on a finding that the transfer is
necessary to reduce a risk to health, safety, or the
environment, or to assure the most efficient use of site
environmental management funds.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would direct
the Secretary of Energy to report to Congress on the efficiency
of the authority and whether the Secretary believes that the
authority should be extended.

Management structure for nuclear weapons production facilities and
nuclear weapons laboratories (sec. 3140)

The House bill contained a provision (sec. 3138) that
would: impose a limitation on the delegation of authority;
require consultations with area offices of the Department of
Energy (DOE); require DOE area offices to report directly to
DOE Headquarters; require the Secretary of Energy to provide a
Defense Programs reorganization plan and report; and require
establishment of a Defense Programs Management Council.
The Senate amendment contained no similar provision.
The Senate recedes.

Accelerated schedule for isolating high-level nuclear waste at the
Defense Waste Processing Facility, Savannah River Site (sec.
3141)

The Senate amendment contained a provision (sec. 3135)
that would require the Secretary of Energy to accelerate the
schedule for the isolation of high-level nuclear waste in glass
canisters at the Savannah River Site, if acceleration would
result in long-term savings to the Federal Government and if it
would accelerate the removal and isolation of waste from long-
term storage tanks at the site.
The House bill contained no similar provision.
The House recedes.
The conferees believe that accelerating the treatment and
stabilization of high-level wastes will significantly reduce
out-year waste management costs and that the Department of
Energy should not restrict canister production capability and
capacity because of limited funds within the overall
Environmental Management budget. Therefore, the conferees
authorize an additional $15.0 million for the Department to
maximize canister production at Savannah River if the
aforementioned criteria are met.

Processing and treatment of high-level nuclear waste and spent nuclear
fuel rods (sec. 3142)

The Senate amendment contained a provision (sec. 3136)
that would authorize an additional $43.0 million above the
budget request for the Department of Energy (DOE), for the F-
canyon and H-canyon facilities. The provision would also
provide for the Implementation of the Department's plan to
address the Defense Nuclear Facility Safety Board (DNFSB)
Recommendation 94-1 concerning the processing of spent nuclear
fuel rods and other nuclear material at the Savannah River
Site. An additional $15.0 million above the budget request
would be authorized for the DOE National Spent Fuel Program to
support program planning, fuel characterization, transportation
planning, waste acceptance criteria development, and technology
development, that are necessary to move forward toward a
permanent disposition of DOE-controlled spent fuel.
The House bill contained no similar provision.
The House recedes with an amendment that would require
any funds made available under this section to the Idaho
National Engineering Laboratory to be considered as partial
fulfillment of the settlement agreement entered into by the
United States with the State of Idaho on October 17, 1995.
The conferees also incorporated portions of the Senate
amendment relating to ``Plans for Activities to Process Nuclear
Materials and Clean up Nuclear Waste at the Savannah River
Site'' (Sec. 3154). This provision would require the Secretary
of Energy to prepare a near-term plan for the treatment,
packaging, and disposal of spent nuclear fuel located at or
anticipated to be shipped to the Savannah River Site. Such a
plan would address any requirements for upgrading and improving
the F-canyon and H-canyon material processing facilities
necessary to meet DNFSB recommendations. The provision would
require the Secretary of Energy to prepare a multi-year
utilization plan for the F-canyon and H-canyon material
processing facilities.
The multi-year program plan should address how the
Department proposes to use these facilities for efficient
management, stabilization, and disposition of nuclear materials
such as surplus uranium and plutonium, domestic and foreign
spent fuel, and any other nuclear materials requiring
stabilization to be received at the Savannah River Site. The
plan should provide options for chemical processing, reduction,
and isolation of nuclear materials. The plan should also
identify how the Department proposes to ensure that any
fissionable materials that may be separated or purified in the
canyons will not be used for nuclear weapons activities.
The provision would further require the Secretary of
Energy to continue operations and maintain a high state of
readiness at the F-canyon and H-canyon facilities, as
recommended by the DNFSB.
The conferees understand that a strategic goal of the DOE
Environmental Management (EM) program is to manage or eliminate
urgent risks in the EM system. The conferees believe that DOE
created an urgent risk situation with the fiscal year 1995
consolidation decision regarding storage of DOE spent nuclear
fuel rods at the Idaho National Engineering Laboratory (non-
aluminum clad) and at the Savannah River Site (aluminum clad).
The National Defense Authorization Act for Fiscal Year 1996
required the initiation of a specific program for the
disposition of spent nuclear fuel rods. The conferees continue
to be concerned with the Department's inadequate progress in
establishing a credible program and with the under-utilization
of the Department's resources. A clearly defined plan and
commitment are necessary for the safe storage, processing, and
ultimate disposition of these materials in a permanent
repository.
The conferees agree with the DNFSB that both F-canyon and
H-canyon facilities at the Savannah River Site have an
important future role.

Projects to accelerate closure activities at defense nuclear facilities
(sec. 3143)

The House bill contained a provision (sec. 3102) to
provide additional funding to Department of Energy field sites
for the purpose of accelerating clean up and facility closure
activities.
The Senate amendment contained similar provisions in
various sections.
The conferees agree to a provision that would provide
more detailed guidance to the Department on the criteria to be
used in implementing projects to accelerate the closure or
decommissioning of defense nuclear facilities. The conferees
recommend the creation of a new initiative and authorize
additional funding for closure acceleration projects at sites
such as Rocky Flats, Hanford, Oak Ridge, Savannah River, and
Idaho, where additional funding could be used to reduce life-
cycle costs significantly through the acceleration of existing
activities, initiation of cost reducing deactivation and
decommissioning activities, and the application of enhanced
cleanup technologies.
The conferees note that the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106)
required the Secretary of Energy to accelerate the schedule for
remedial activities at sites where the accelerated schedule
will achieve meaningful, long-term cost savings to the Federal
Government and accelerate the release of land for local reuse.
In reviewing the sites selected pursuant to the last year's
program, the conferees are concerned that the additional
funding provided was used on relatively small projects and that
the long term impact on reducing life cycle costs throughout
the defense nuclear complex will be minimal.
It is for this reason that the conferees established
additional criteria to assure that the projects selected will
achieve significant long-term cost savings to the Federal
Government. The conferees believe that taxpayers must see real
progress if they are to continue to support large expenditures
in environmental management funds that have increased five-fold
in just seven years.
To assure management discipline, the Secretary would be
required to develop a plan that will: define clearly the
delineated scope of work; demonstrate that, where required,
regulatory agreements are in place with appropriate regulatory
authorities that would allow for the successful completion of
the project; and demonstrate support of State and local elected
officials.
Contracts for the performance of these projects should be
performance and incentive based and not the traditional cost
plus contracts. While the conferees believe that contractors
should bear the risk for non-performance of activities within
their control, it is important that provisions be made to
include traditional commercial force majeure and risk sharing
concepts. All projects selected under this program must be
completed within 10 years.
Finally, with respect to the selection of projects that
meet the general eligibility requirements, the Secretary is
required to select those projects that will result in the most
significant long-term costs savings to the government and the
most significant reduction of imminent risk. Multi-year
contracting authority is granted to the Secretary to carry out
projects selected under this section and funds appropriated
would remain available until expended. The clear intent is to
identify those projects that are capable of being accelerated
using currently available technology and to reward those sites
that are aggressively seeking closure or decommissioning of
existing facilities. To encourage closure, the conferees have
made it clear that the existing budget projections for sites
are not to be reduced based on the award of funding under this
section for cleanup and closure.
The conferees have included language to the effect that
nothing in this section is to be construed as modifying
applicable statutory or regulatory environmental restoration
requirements. The conferees have included initial funding for
this program as a separate line item in section 3102 of this
title.

Payment of costs of operation and maintenance of infrastructure at
Nevada Test Site (sec. 3144)

The Senate amendment contained a provision (sec. 3138)
that would permit the Department of Energy to defer charging
the Department of Defense site overhead costs for work-for-
others activities carried out at the Nevada Test Site.
The House bill contained no similar provision.
The House recedes.

Subtitle D--Other Matters

legislative provisions adopted

Report on plutonium pit production and remanufacturing plans (sec.
3151)

The House bill contained a provision (sec. 3142) that
would require the Secretary to submit to the congressional
defense committees a report on plans for achieving a capability
to produce and remanufacture plutonium pits.
The Senate amendment contained no similar provision.
The Senate recedes.

Amendments relating to baseline environmental management reports (sec.
3152)

The House bill contained a provision (sec. 3143) that
would amend section 3153 of the National Defense Authorization
Act for Fiscal Year 1994 (Public Law 104-360) to authorize the
submission of the Baseline Environmental Management Report on a
biennial basis rather than an annual basis.
The Senate amendment contained no similar provision.
The Senate recedes.

Requirement to develop future use plans for environmental management
program (sec. 3153)

The House bill contained a provision (sec. 3144) that
would require the Secretary of Energy to develop and implement,
as part of the Defense Environmental Restoration and Waste
Management Program, a future land use plan at sites where the
Secretary is planning or implementing environmental restoration
activities. The provision would direct the creation of a future
use advisory board at defense nuclear facilities where the
Secretary of Energy intends to develop a future use plan and
there is no existing advisory board.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would replace
references to future use advisory boards with site specific
advisory boards.

Report on Department of Energy liability at Department Superfund sites
(sec. 3154)

The Senate amendment contained a provision (sec. 3161)
that would require the Secretary of Energy to carry out a study
of sites controlled or operated by the Department of Energy to
determine the extent, the valuation of the injury, the
destruction, or loss of natural resources under section
107(a)(4)(c) of the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C.
9607(a)(4)(c). The Secretary would then submit a report to
Congress on the results of the study.
The House bill contained no similar provision.
The House recedes with an amendment that clarifies the
scope and methodology of the study.

Requirement for annual five-year budget for the national security
programs of the Department of Energy (sec. 3155)

The Senate amendment contained a provision (sec. 3151)
that would require the Secretary of Energy to submit an annual
National Security Five-Year Budget Plan to the congressional
defense committees. The plan would be submitted no later than
the day on which the President's annual budget request is
submitted to Congress.
The House bill contained no similar provision.
The House recedes.
The Secretary shall obligate no more than ninety-five
percent of the Department's annual appropriation for Atomic
Energy Defense Activities until the plan is submitted to the
congressional defense committees. The conferees direct the
Secretary of Energy to submit the plan for fiscal years 1997-
2001 as soon as possible, but no later than September 30, 1996.

Requirements for Department of Energy weapons activities budgets for
fiscal years after fiscal year 1997 (sec. 3156)

The Senate amendment contained a provision (sec. 3152)
that would require the Department of Energy to relate the
elements of its nuclear weapons program budget submission to
the specific requirements of the Nuclear Weapons Stockpile
Memorandum and the Nuclear Posture Review. In the context of
that submission, the Secretary of Energy would be required to
provide a long-term program plan, and a near-term program plan
for the certification and stewardship of the nuclear stockpile.
The House bill contained no similar provision.
The House recedes.

Repeal of requirement relating to accounting procedures for Department
of Energy funds (sec. 3157)

The Senate amendment contained a provision (sec. 3153)
that would repeal section 3151 of the National Defense
Authorization Act for Fiscal Year 1995. In 1994, at the time
this provision was enacted, the Department of Energy did not
have adequate control of uncosted and unobligated balances in a
number of areas. In many instances, the Department could not
identify the original fiscal year for which uncosted balances
were appropriated.
The House bill contained no similar provision.
The House recedes.
The conferees note that subsequent to the enactment of
the National Defense Authorization Act for Fiscal Year 1995,
the Department succeeded in significantly reducing its uncosted
and unobligated balances. In addition, the Department has
initiated a regular reporting methodology that allows the
congressional defense committees to track unobligated and
uncosted funds appropriated for national security activities.
The conferees support the continued use of such reports as a
cost effective substitute for section 3151.

Update of report on nuclear test readiness postures (sec. 3158)

The Senate amendment contained a provision (sec. 3155)
that would require an update of the Nuclear Test Readiness
Posture Report required by the National Defense Authorization
Act for Fiscal Year 1996. That report pertains to the readiness
and maintenance of the requisite underground testing expertise
at the Nevada Test Site and at the Nuclear Weapons
Laboratories. The report would be due to the congressional
defense committees no later than February 15, 1997.
The House bill contained no similar provision.
The House recedes with an amendment to change the due
date of the report to June 1, 1997.

Reports on critical difficulties at nuclear weapons laboratories and
nuclear weapons production plants (sec. 3159)

The Senate amendment contained a provision (sec. 3156)
that would require the head of any nuclear weapons laboratory
or nuclear weapons production plant to notify the Assistant
Secretary for Defense Programs immediately if there is any
difficulty associated with the nuclear weapons complex that
would have a significant bearing on the confidence relating to
the safety, surety, or reliability of a nuclear weapon within
the nuclear stockpile. The provision would also require the
Nuclear Weapons Council to notify Congress in the event that
the Council become aware of any difficulties within the purview
of the Council.
The House bill contained no similar provision.
The House recedes.

Extension of applicability of notice- and wait-required regarding
proposed cooperation agreements (sec. 3160)

The Senate amendment contained a provision (sec. 3157)
that would extend the date by which notice is to be made to
Congress regarding the release of restricted data or formerly
restricted data pursuant to a cooperative agreement with a
foreign country by amending Section 3155(b) of the National
Defense Authorization Act for Fiscal Year 1995.
The House bill contained no similar provision.
The House recedes with an amendment to extend until
October 1, 1997, the authority of the Department of Energy and
the Department of Defense to release data, as necessary, to
further fissile material and other weapons material control and
accountability program; to support atomic weapons control and
accountability; to assist in treaty verification; and to assist
in establishing a uniform international system of
classification.

Sense of Senate relating to redesignation of Defense Environmental
Restoration and Waste Management Program (sec. 3161)

The Senate amendment contained a provision (sec. 3158)
that would express the sense of the Congress that the
Department of Energy (DOE) redesignate the Defense
Environmental Restoration and Waste Management Program (also
known as the Environmental Management Program) as the Defense
Nuclear Waste Management Program. The provision would further
direct the Department of Energy to prepare and transmit to the
congressional defense committees, no later than January 31,
1997, a report that describes any difficulties or problems that
arise as a result of the name change, including any related
costs.
The House bill contained no similar provision.
The House recedes with an amendment that would change the
provision to a sense of the Senate.

Commission on Maintaining United States Nuclear Weapons Expertise (sec.
3162)

The Senate amendment contained a provision (sec. 3159)
that would direct the Department of Energy to organize a high-
level commission to address problems associated with attracting
a new generation of nuclear weapons experts to ensure the
safety and reliability of the U.S. nuclear stockpile.
The House bill contained no similar provision.
The House recedes with an amendment that would authorize
the Secretary of Energy to appoint two members to the
commission and would require that all commission appointments
be made no later than 60 days after the date of enactment of
this section.

Sense of the Congress regarding reliability and safety of remaining
nuclear forces (sec. 3163)

The Senate amendment contained a provision (sec. 3160)
that would express concerns about maintaining confidence in the
nuclear stockpile and our Nation's commitment to ensuring the
safety, security, reliability, and performance of U.S. nuclear
forces.
The House bill contained no similar provision.
The House recedes.
The conferees remain concerned with the ability of the
Department of Defense and the Department of Energy to maintain
confidence in the safety and reliability of the strategic
nuclear weapons stockpile in the absence of underground nuclear
tests. As long as the United States continues to depend on a
deterrent nuclear force, as articulated in the Nuclear Posture
Review, it is necessary for both the Department of Defense and
the Department of Energy to maintain the following: weapons
production capabilities and capacities; adequate funding to
maintain the remaining stockpile at a state of full readiness;
ability to meet full fabrication and tritium production
requirements; capabilities for tritium recycling and pit
manufacturing; and, to replace underground nuclear testing, a
successful science-based stockpile stewardship program.

Study on worker protection at the Mound facility in (sec. 3164)

The House bill contained a provision (sec. 3145) that
would authorize, out of existing funds, $5.0 million to be used
to enhance worker health and safety at the Department of
Energy's (DOE) Mound facility near Miamisburg, Ohio.
The Senate amendment contained a similar provision (sec.
3166) that would require DOE to prepare a report on programs
and projects undertaken to protect worker health and safety at
the DOE Mound facility.
The House recedes.

Fiscal year 1998 funding for Greenville Road Improvement Project,
Livermore, California (sec. 3165)

The Senate amendment contained a provision (sec. 3162)
that would require the Secretary of Energy to include in the
fiscal year 1998 budget a request for sufficient funds to pay
the United States portion of the cost of transportation
improvements under the Greenville Road Improvement Project,
Livermore, California.
The House bill contained no similar provision.
The House recedes.

Fellowship program for development of skills critical to Department of
Energy nuclear weapons complex (sec. 3166)

The Senate amendment contained a provision (sec. 3137)
that would require the Department of Energy (DOE) to initiate a
university fellowship program for recruiting engineers and
other technical experts at nuclear weapons plants. The
Department would be authorized to use up to $5.0 million of the
amount authorized for Stockpile Management activities to carry
out the plant fellowship program.
The house bill contained no similar provision.
The House recedes.
In the National Defense Authorization Act for fiscal Year
1996, the Department was directed to initiate a university
fellowship program for recruiting the next generation of
engineers and technical experts for the modernized nuclear
weapons repair and refabrication plants. The Department was
directed to fund the program through authorized appropriations
within the stockpile management program. The Department has not
complied with this congressional direction.
Testimony before the Senate Armed Services Committee has
suggested that DOE's skilled workforce for nuclear weapons
design, fabrication, and remanufacturing is eroding, due both
to worker aging and limited near-term challenges. The conferees
do not propose a massive remanufacturing approach, but they do
expect that DOE will take the steps necessary to attract,
mentor and retain the next generation of nuclear weapons
refabrication experts. The absence of such a program could
accentuate the negative impacts of the progressing ``brain
drain,'' identified in testimony before the Senate Armed
Services Committee and could undermine long-term efforts to
repair and rebuild aging nuclear weapons in the stockpile.

Subtitle E--Defense Nuclear Environmental Cleanup and Management

legislative provisions adopted

Defense nuclear environmental cleanup and management (sec. 3171-3180)

The House bill contained a series of provisions (secs.
3151-3157) that would establish cost-effective management
mechanisms and innovative technologies for the purpose of
improving the Department of Energy (DOE) Defense Environmental
Restoration and Waste Management Program. These provisions
would apply to any DOE defense nuclear facility with a fiscal
year 1996 Environmental Management (EM) budget of $350.0
million or more. The Secretary of Energy would delegate
oversight authority to the site manager and encourage the site
manager to promote deployment of innovative remediation
technologies. The House bill also would direct the Secretary to
develop and implement a program to encourage the use of
performance-based contracts, as opposed to cost-plus contracts.
The Senate amendment contained a series of similar
provisions (secs. 3171-3179) that would provide for a pilot
program at the Hanford Reservation that would demonstrate cost-
effective management mechanisms and innovative technologies to
be used in environmental restoration and remediation at other
defense nuclear facilities. Upon request by a State, the
Secretary of Energy would have the discretion to include other
defense nuclear facilities in the pilot program. The Secretary
would delegate oversight authority to the site manager and the
site manager would have the direct authority to promote the
demonstration, certification, and implementation of innovative
remediation technologies. The Senate provision also included a
congressional reporting requirement and a sunset provision.
The Senate recedes with an amendment that would adopt the
following elements for the cost-effective management and
innovative technologies demonstration program: delegation of
direct oversight authority to the site manager; automatic
applicability to DOE facilities with a fiscal year 1996 EM
budget of $350.0 million or more and applicability to other
facilities upon application by the governor of a State and
approval by the Secretary of Energy; Secretarial development
and implementation of performance-based contracts program; site
manager promotion and deployment of innovative remediation
technologies; a congressional reporting requirement; and a
program termination date.

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

legislative provisions adopted

Waste Isolation Pilot Plant Land Withdrawal Act amendments (secs. 3181-
3191)

The Senate amendment contained a series of provisions
(secs. 3181-3191) that would modify the Waste Isolation Pilot
Plant (WIPP) Land Withdrawal Act (Public Law 102-579).
Requirements of the WIPP Land Withdrawal Act associated with
the now-canceled WIPP ``test phase'' would be eliminated. The
prerequisites to opening WIPP would be clarified and the 180-
day congressional notification requirement would be reduced to
30 days. The requirement that WIPP meet land disposal
restrictions of the Solid Waste Disposal Act (42 U.S.C. 6901 et
seq.) would be eliminated. DOE would be granted greater
authority to determine whether engineered or natural barriers
are sufficient to meet compliance with applicable environmental
regulations. The Environmental Protection Agency would retain
its ability to conduct timely reviews of DOE compliance
applications. A sense of the Congress provision would encourage
the Secretary to pursue all necessary actions to begin waste
disposal operations not later than November 30, 1997. Finally,
the Department of Energy would be authorized to make a one-time
payment of $20.0 million to the State of New Mexico to begin
road upgrades necessary to begin full scale shipping operations
to WIPP. This payment would be considered an advance payment of
amounts due to the State of New Mexico pursuant to the
provisions of section 15(a) of the WIPP Land Withdrawal Act.
The House bill contained no similar provision.
The House recedes with a clarifying amendment that would
add a provision that would reduce by one the total number of
payments due to the State of New Mexico under section 15(a) of
the WIPP Land Withdrawal Act and clarify that all applicable
health and safety regulations would be met prior to
commencement of disposal operations.

legislative provisions not adopted

Report on Nuclear Weapons Stockpile Memorandum

The House bill contained a provision (sec. 3141) that
would require the President to submit to the congressional
defense committees a copy of the Nuclear Weapons Stockpile
Memorandum, and to submit reports on any future updates or
changes to the Memorandum.
The Senate amendment contained no similar provision.
The House recedes.
The conferees direct the Department of Energy to continue
to provide members of Congress and congressional staff (with
the appropriate security clearance) with access to the Nuclear
Weapons Stockpile Memorandum.

Plans for activities to process nuclear materials and clean up nuclear
waste at the Savannah River Site

The Senate amendment contained a provision (sec. 3154)
that would require the Secretary of Energy to develop a multi-
year program plan to use the H-canyon and the F-canyon
materials processing facilities for treating Department of
Energy and foreign spent nuclear fuel rods. The provision would
also require the Secretary of Energy to develop a near-term
plan on F-canyon and H-canyon utilization. The Secretary would
be required to continue operations and maintain a high state of
readiness at the F-canyon and H-canyon facilities.
The House bill contained no similar provision.
The Senate recedes.
The conferees combined the elements of this provision
with the provision regarding processing of high-level nuclear
waste and spent nuclear fuel.

Opportunity for review and comment by State of Oregon regarding certain
remedial actions at Hanford Reservation

The Senate amendment contained a provision (sec. 3163)
that would, in consultation with the signatories to the Hanford
Reservation, Washington, Tri-Party Agreement for site
remediation, require the Site Manager to provide the State of
Oregon with an opportunity to review and comment upon any
information available to the State of Washington under the
agreement. The provision also contained certain limitations
related to the State of Oregon's access to information and
participation in the site remediation process.
The House bill contained no similar provision.
The Senate recedes. The conferees determined that the
provision would establish a bad precedent regarding a state's
right to participate in remedial activities conducted at a site
within a neighboring state.

Sense of Senate on Hanford memorandum of understanding

The Senate amendment contained a provision (sec. 3164)
that would express the sense of Senate that the State of Oregon
has the authority to enter into a memorandum of understanding
with the State of Washington, or a memorandum of understanding
with the State of Washington and the Site Manager of the
Hanford Reservation, Washington, to address issues of mutual
concerns at the site.
The House bill contained no similar provision.
The Senate recedes.

Title XXXII--Defense Nuclear Facilities Safety Board

legislative provisions adopted

Title XXXIII--National Defense Stockpile

legislative provisions

Subtitle A--Authorization of Disposals and Use of Funds

legislative provisions adopted

Overview

The budget request for fiscal year 1997 contained an
authorization of $17.0 million for the Defense Nuclear
Facilities Safety Board. The House bill would authorize $17.0
million. The Senate amendment would authorize $17.0 million.
The conferees recommended an authorization of $17.0 million.
Unless noted explicitly in the statement of managers, all
changes are made without prejudice.

Stockpile definitions (sec. 3301)

The House bill contained a provision (sec. 3301) that
would define the National Defense Stockpile and the National
Defense Stockpile Transaction Fund.
The Senate amendment contained no similar provision.
The Senate recedes.

Authorized uses of stockpile funds (sec. 3302)

The House bill contained a provision (sec. 3302) that
would authorize the National Defense Stockpile Manager to
obligate up to $60.0 million of the funds in the National
Defense Stockpile Transaction Fund for the operation of the
National Defense Stockpile.
The Senate amendment contained an identical provision.
The conference agreement includes this provision.

Additional authority to dispose of materials in National Defense
Stockpile (sec. 3303)

The Senate amendment contained a provision (sec. 3303)
that would authorize the Secretary of Defense to dispose of
specific materials in the National Defense Stockpile in order
to offset the lost revenues resulting from the amendments made
by subsection (a) of section 4303 of the National Defense
Authorization Act for Fiscal Year 1996 (Public Law 104-106).
The House bill contained no similar provision.
The House recedes with an amendment that would change the
materials authorized for disposal and use the revenues to
offset those lost due to amendments made by subsection (a) of
section 4303 of the National Defense Authorization Act for
Fiscal Year 1996 and other direct spending provisions in this
bill.

Subtitle B--Programmatic Change

legislative provisions adopted

Biennial report on stockpile requirements (sec. 3311)

The House bill contained a provision (sec. 3311) that
would amend the Strategic and Critical Materials Stock Piling
Act, section 3203 of the National Defense Authorization Act for
Fiscal Year 1988 (Public Law 100-180), concerning the
requirements addressed in the report provided to Congress every
other year by the Department of Defense (DOD).
The Senate amendment contained no similar provision.
The Senate recedes with an amendment that would require
the report to identify the amount of materials that would be
necessary to replace the materiel and equipment that would be
required after a military conflict.

Notification requirements (sec. 3312)

The House bill contained a provision (sec. 3312) that
would update several sections of the Strategic and Critical
Materials Stock Piling Act, section 3203 of the National
Defense Authorization Act for Fiscal Year 1988 (Public Law 100-
180), to standardize reporting requirements throughout the act.
The provision would establish that all legislative reporting
waiting periods are to be 45 days.
The Senate amendment contained no similar provision.
The Senate recedes.

Importation of strategic and critical materials (sec. 3313)

The House bill contained an amendment (sec. 3313) that
would amend the Strategic and Critical Materials Stock Piling
Act, section 3203 of the National Defense Authorization Act for
Fiscal Year 1988 (Public Law 100-180), to remove reference to
``communist-dominated country or area.''
The Senate amendment contained no similar provision.
The Senate recedes.

legislative provisions not adopted

Disposal of certain materials in National Defense Stockpile

The Senate amendment contained a provision (sec. 3302)
that would authorize the Secretary of Defense to dispose of
specific materials currently in the National Defense Stockpile.
The House bill contained no similar provision.
The Senate recedes.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

legislative provisions adopted

Authorization of appropriations (sec. 3401)

The House bill contained a provision (sec. 3401) that
would authorize the appropriation of $149.5 million for fiscal
year 1997 for the Department of Energy for the operation of the
Naval Petroleum Reserves.
The Senate amendment contained a similar provision (sec.
3401).
The Senate recedes.

Price requirement on sale of certain petroleum during fiscal year 1997
(sec. 3402)

The House bill contained a provision (sec. 3402) that
would require the Secretary of Energy to sell petroleum
produced for the Naval Petroleum Reserves at not less than 90
percent of the price of comparable oil.
The Senate amendment contained no similar provision.
The Senate recedes.

TITLE XXXV--PANAMA CANAL COMMISSION

legislative provisions

legislative provisions adopted

Panama Canal Commission (secs. 3501-3549)

The House bill contained several provisions (secs. 3501-
3504) that would authorize expenditure of funds by the Panama
Canal Commission to cover its operating, maintenance,
administrative, and capital improvement expenses, and to
purchase vehicles built in the United States.
The Senate amendment contained similar provisions (secs.
3501-3504).
The Senate recedes with respect to the House provisions
authorizing expenditure of funds to cover expenses (secs. 3501,
3502, and 3504). The House recedes with respect to the Senate
provision (sec. 3503) that would authorize the purchase of
vehicles without the requirement that they be built in the
United States. The conferees note, however, that the Commission
has in the past purchased only vehicles built in the United
States and encourage the continuation of that practice.
The House bill also included provisions (secs. 3521-
3550), not in the Senate amendment, that would give the
Commission greater autonomy to facilitate the transition of the
Canal to Panamanian control in December 1999. Most of these
provisions would expand the Commission's discretion in
tailoring government employee regulations to the unique needs
of Commission personnel.
The Senate recedes with respect to these House
provisions, with an amendment that would give the Commission
the authority to contract with Panamanian carriers for the
official travel of its Panamanian employees (sec. 3528) and an
amendment that specifies that U.S. Government agencies in
Panama may elect to discontinue the applicability of provisions
of the Panama Canal Employment System, a system which is
changing to reflect the transition to Panamanian control, to
their civilian employees (sec. 3530).
From the Committee on National Security, for
consideration of the House bill and the Senate
amendment, and modifications committed to
conference:
Floyd Spence,
Bob Stump,
Duncan Hunter,
John R. Kasich,
Herbert H. Bateman,
James V. Hansen,
Curt Weldon,
Joel Hefley,
Jim Saxton,
Randy ``Duke'' Cunningham,
Steve Buyer,
Peter G. Torkildsen,
Tillie K. Fowler,
John M. McHugh,
J.C. Watts, Jr.,
John N. Hostettler,
Saxby Chambliss,
Van Hilleary,
Doc Hastings,
G.V. Montgomery,
Ike Skelton,
John M. Spratt, Jr.,
Solomon P. Ortiz,
Owen Pickett,
Glen Browder,
Gene Taylor,
Frank Tejeda,
Paul McHale,
Patrick J. Kennedy,
Rosa L. DeLauro,
As additional conferees from the Permanent
Select Committee on Intelligence, for
consideration of matters within the
jurisdiction of that committee under clause 2
of rule XLVIII:
Larry Combest,
Jerry Lewis,
Norm Dicks,
As additional conferees from the Committee on
Banking and Financial Services, for
consideration of sections 1085 and 1089 of the
Senate amendment, and modifications committed
to conference:
Michael N. Castle,
Spencer Bachus,
Henry Gonzalez,
As additional conferees from the Committee on
Commerce, for consideration of sections 601,
741, 742, 2863, 3154, and 3402 of the House
bill, and sections 345-47, 561, 562, 601, 1080,
2827, 3174, 3175, and 3181-91 of the Senate
amendment, and modifications committed to
conference:
Thomas Bliley,
Michael Bilirakis,
Provided that Mr. Richardson is appointed in
lieu of Mr. Dingell and Mr. Schaefer is
appointed in lieu of Mr. Bilirakis for
consideration of sections 3181-91 of the Senate
amendment:
Dan Schaefer,
Provided that Mr. Oxley is appointed in lieu of
Mr. Bilirakis for the consideration of section
3154 of the House bill, and sections 345-47,
3174, and 3175 of the Senate amendment:
Michael G. Oxley,
Provided that Mr. Schaefer is appointed in lieu
of Mr. Bilirakis for the consideration of
sections 2863 and 3402 of the House bill, and
section 2827 of the Senate amendment:
Dan Schaefer,
As additional conferees from the Committee on
Government Reform and Oversight, for
consideration of sections 332-36, 362, 366,
807, 821-25, 1047, 3523-39, 3542, and 3548 of
the House bill, and sections 636, 809(b), 921,
924, 925, 1081, 1082, 1101, 1102, 1104, 1105,
1109-34, 1401-34, and 2826 of the Senate
amendment, and modifications committed to
conference:
W.F. Clinger,
Provided that Mr. Horn is appointed in lieu of
Mr. Mica for consideration of sections 362,
366, 807, and 821-25 of the House bill, and
sections 809(b), 1081, 1401-34, and 2826 of the
Senate amendment:
Stephen Horn,
Provided that Mr. Zeliff is appointed in lieu
of Mr. Mica for consideration of section 1082
of the Senate amendment:
Bill Zeliff,
As additional conferees from the Committee on
International Relations, for consideration of
sections 233-34, 237, 1041, 1043, 1052, 1101-
05, 1301, 1307, and 1501-53 of the House bill,
and sections 234, 1005, 1021, 1031, 1041-43,
1045, 1323, 1332-35, 1337, 1341-44, and 1352-54
of the Senate amendment, and modifications
committed to conference:
Benjamin A. Gilman,
Doug Bereuter,
As additional conferees from the Committee on
the Judiciary, for consideration of sections
537, 543, 1066, 1080, 1088, 1201-16, and 1313
of the Senate amendment, and modifications
committed to conference:
Henry Hyde,
Bill McCollum,
John Conyers Jr.,
Provided that Mr. Moorhead is appointed in lieu
of Mr. McCollum for consideration of sections
537 and 1080 of the Senate amendment:
Carlos J. Moorhead,
Provided that Mr. Smith of Texas is appointed
in lieu of Mr. McCollum for consideration of
sections 1066 and 1201-16 of the Senate
amendment:
Lamar Smith,
As additional conferees from the Committee on
Resources, for consideration of sections 247,
601, 2821, 1401-14, 2901-13, and 2921-31 of the
House bill, and sections 251-52, 351, 601,
1074, 2821, 2836, and 2837 of the Senate
amendment, and modifications committed to
conference:
James V. Hansen,
Jim Saxton,
As additional conferees from the Committee on
Science, for consideration of sections 203,
211, 245, and 247 of the House bill, and
sections 211, 251-52, and 1044 of the Senate
amendment, and modifications committed to
conference:
Robert S. Walker,
James Sensenbrenner Jr.,
Jane Harman,
As additional conferees from the Committee on
Transportation and Infrastructure, for
consideration of sections 324, 327, 501, and
601 of the House bill, and sections 345-48,
536, 601, 641, 1004, 1009, 1010, 1311, 1314,
and 3162 of the Senate amendment, and
modifications committed to conference:
Bud Shuster,
As additional conferees from the Committee on
Veterans' Affairs, for consideration of
sections 556, 638, and 2821 of the House bill,
and sections 538 and 2828 of the Senate
amendment, and modifications committed to
conference:
Bob Stump,
Christopher H. Smith,
G.V. Montgomery,
Managers on the Part of the House.

Strom Thurmond,
John Warner,
Bill Cohen,
John McCain,
Dan Coats,
Bob Smith,
Dirk Kempthorne,
Jim Inhofe,
Rick Santorum,
Sheila Frahm,
Sam Nunn,
Robert C. Byrd,
Chuck Robb,
J. Lieberman,
Richard H. Bryan,
Managers on the Part of the Senate.