[House Report 105-736]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                      HOUSE OF REPRESENTATIVES

 2d Session                                                     105-736
_______________________________________________________________________


 
 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                               ----------

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3616





               September 22, 1998.--Ordered to be printed


 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999



105th Congress                                                   Report
                       HOUSE OF REPRESENTATIVES

 2d Session                                                     105-736
_______________________________________________________________________


                    STROM THURMOND NATIONAL DEFENSE
                         AUTHORIZATION ACT FOR
                           FISCAL YEAR 1999
                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 3616





               September 22, 1998.--Ordered to be printed



                            C O N T E N T S

                              ----------                              
                                                                   Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   367
    Summary Statement of Conference Action.......................   367
    Summary Table of Authorizations..............................   367
    Congressional Defense Committees.............................   374
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   374
Title I--Procurement.............................................   374
            Procurement Overview.................................   374
            Overview.............................................   377
            Airborne reconnaissance low..........................   380
            C-XX (medium range) aircraft.........................   380
            UH-60 Blackhawk......................................   380
            AH-64 modifications..................................   380
            CH-47 cargo helicopter modifications.................   380
            C-12 modifications...................................   381
            OH-58D Kiowa Warrior.................................   381
            Aircraft Survivability Equipment.....................   381
            Army airborne command and control system.............   381
            Overview.............................................   381
            Enhanced fiber optic guided missile..................   384
            Javelin system.......................................   384
            Multiple launch rocket system rockets................   384
            Multiple launch rocket system launcher...............   384
            Overview.............................................   385
            Bradley base sustainment.............................   388
            M240 machine gun.....................................   388
            MK-19 grenade launcher...............................   388
            Overview.............................................   388
            M830A1 120mm Tank Ammunition.........................   392
            Overview.............................................   392
            High mobility multipurpose wheeled vehicles..........   401
            Family of medium tactical vehicles...................   401
            Medium truck extended service program................   401
            High mobility multipurpose wheeled vehicle extended 
              service program....................................
            Project management support...........................   401
            System fielding support..............................   402
            Army data distribution system........................   402
            Single channel ground and airborne radio system......   402
            Area common user system modernization program........   402
            Ground based common sensor...........................   402
            Joint surveillance and target attack radar system 
              common ground system...............................   403
            Joint tactical terminal..............................   403
            Shortstop electronic protection system...............   403
            Night vision.........................................   403
            Automated data processing equipment..................   403
            Land warrior.........................................   404
            Small pusher tug.....................................   404
            Training devices, nonsystem..........................   404
            Simulation network/close combat tactical trainer.....   404
            R2000 engine flush system............................   404
            Overview.............................................   405
            AV-8B................................................   409
            F/A-18E/F............................................   409
            V-22.................................................   409
            JPATS................................................   409
            EA-6 series modifications............................   409
            F-14 Series..........................................   409
            ES-3 Series Modifications............................   410
            F-18 series modifications............................   410
            P-3C antisurface warfare improvement program.........   410
            Lightweight environmentally sealed parachute assembly   410
            E-6 modifications....................................   410
            Common ground equipment..............................   411
            Aircraft industrial facilities.......................   411
            Overview.............................................   411
            Tactical Tomahawk....................................   415
            Advanced medium range air-to-air missile.............   415
            Standard missile.....................................   415
            Penguin missile program..............................   415
            Aerial Targets.......................................   415
            Improved tactical air launched decoy.................   416
            Weapons industrial facilities........................   416
            Mk-48 torpedo advanced capability torpedo 
              modifications......................................   416
            Close-in weapon system surface mode upgrade..........   416
            Surface ship gun mount rotatable pool................   416
            Overview.............................................   416
            Shoulder launched multi-purpose assault weapon.......   420
            LHD-8 advance procurement............................   423
            Strategic sealift....................................   423
            Landing craft air cushion service life extension 
              program............................................   423
            Navy shipbuilding outfitting.........................   423
            Navy shipbuilding post delivery......................   423
            Overview.............................................   424
            Other generators.....................................   434
            AN/WSN-7 inertial navigation system and WQN-2 doppler 
              sonar velocity log.................................   434
            Pollution control equipment..........................   434
            Hull, mechanical, and electrical under $2.0 million..   435
            AN/BPS-15H surface search radar......................   435
            Submarine acoustic rapid commercial off-the-shelf 
              insertion..........................................   435
            Cooperative engagement capability....................   435
            Integration and test facility command and control 
              initiative.........................................   437
            Ship communications items............................   437
            AN/USC-42 mini-demand assigned multiple access ultra-
              high frequency satellite communications terminals..   437
            Joint engineering data management and information 
              control system.....................................   437
            Weapons range support equipment......................   437
            Aircraft launch and recovery equipment...............   438
            Engagement systems support...........................   438
            Smart ship equipment.................................   438
            Strategic missile systems equipment..................   438
            NULKA assembly qualification.........................   438
            Beamhit laser marksmanship training system (LMTS)....   439
            Overview.............................................   439
            Modification kits-tracked vehicles...................   443
            155MM lightweight towed howitzer.....................   443
            Pedestal mounted stinger.............................   443
            Items less than $2.0 million (intelligence)..........   443
            Night vision equipment...............................   444
            Communications and electronics infrastructure........   444
            Medium tactical vehicle replacement..................   444
            Light tactical vehicle replacement...................   444
            Power equipment assorted.............................   445
            Shop equipment contact maintenance...................   445
            Material handling equipment..........................   445
            Overview.............................................   445
            F-22 procurement.....................................   450
            F-16.................................................   450
            C-130J...............................................   450
            C-130H...............................................   450
            Joint Primary Aircraft Training System...............   450
            E-8C Joint Surveillance and Target Attack Radar 
              System (JSTARS)....................................   451
            B-1B.................................................   451
            B-52.................................................   451
            F-15 modifications...................................   451
            F-16 modifications...................................   452
            C-12 modifications...................................   452
            Defense Airborne Reconnaissance Program procurement..   452
            E-8 modifications....................................   454
            Passenger safety modifications.......................   454
            Pacer Coin...........................................   455
            Common support equipment.............................   455
            A-10 post production support.........................   455
            B-2A.................................................   455
            Miscellaneous production charges.....................   456
            Overview.............................................   456
            Overview.............................................   459
            Advanced Medium Range Air-to-Air Missile.............   462
            Minuteman III guidance replacement program...........   462
            AGM-65H Maverick.....................................   462
            Defense Support Program..............................   462
            Overview.............................................   462
            60K Loader...........................................   468
            Combat training ranges...............................   468
            Automated telecommunications program.................   468
            Air Force satellite control network..................   468
            Communication electronics modifications..............   468
            Overview.............................................   468
            Automated document conversion system.................   474
            SOF intelligence systems.............................   474
            Contamination avoidance..............................   474
            Overview.............................................   474
            National Guard and Reserve Equipment.................   477
            Overview.............................................   478
    Legislative Provisions Adopted...............................   480
        Subtitle A--Authorization of Appropriations..............   480
            Authorization of appropriations (secs. 101-109)......   480
            Chemical demilitarization program (sec. 107).........   480
        Subtitle B--Army Programs................................   481
            Multiyear procurement authority for Longbow Hellfire 
              missile program (sec. 111).........................   481
            Condition for award of second-source procurement 
              contract for the family of medium tactical vehicles 
              (sec. 112).........................................   481
            Armored system modernization (sec. 113)..............   482
            Reactive armor tiles (sec. 114)......................   482
            Extension of authority to carry out Armament 
              Retooling and Manufacturing Support Initiative 
              (sec. 115).........................................   483
        Subtitle C--Navy Programs................................   483
            CVN-77 nuclear aircraft carrier program (sec. 121)...   483
            Increase in amount authorized to be excluded from 
              cost limitation for Seawolf submarine program (sec. 
              122)...............................................   483
            Multiyear procurement authority for the Department of 
              the Navy (sec. 123)................................   483
            Annual General Accounting Office review of F/A-18E/F 
              program (sec. 124).................................   483
        Subtitle D--Air Force Programs...........................   484
            F-22 aircraft program (sec. 131).....................   484
            C-130J aircraft program (sec. 132)...................   484
        Subtitle E--Other Matters................................   484
            Chemical stockpile emergency preparedness program 
              (sec. 141).........................................   484
            Alternative technologies for destruction of assembled 
              chemical weapons (sec. 142)........................   485
    Legislative Provisions not Adopted...........................   486
            M1A2 system enhancement program step one.............   486
            Annual reporting of costs associated with travel of 
              members of the chemical demilitarization 
              citizenship advisory commission....................   486
            Joint surveillance target attack radar system........   486
            Limitation on replacement of engines on military 
              aircraft derived from Boeing 707 aircraft..........   487
Title II--Research, Development, Test, and Evaluation............   487
            Research, Development, Test, and Evaluation Overview.   487
            Overview.............................................   489
            Additional decreases in technology base funding......   499
            Materials Technology.................................   499
            Missile technology...................................   499
            Combat vehicle and automotive technology.............   499
            Human factors engineering technology.................   500
            Environmental quality technology.....................   500
            Command, control, and communications technology......   501
            Military engineering technology......................   501
            Medical advanced technology..........................   501
            Aviation advanced technology.........................   501
            Weapons and munitions advanced technology............   501
            Combat vehicle and automotive advanced technology....   502
            Missile and rocket advanced technology...............   502
            Joint service small arms program.....................   502
            Tactical High Energy Laser...........................   502
            Armament enhancement initiative......................   503
            Comanche.............................................   503
            Electronic warfare development.......................   503
            Follow-on to TOW.....................................   503
            Combat feeding, clothing, and equipment..............   503
            Aviation-engineering development.....................   504
            Weapons and munitions-engineering development........   504
            Landmine warfare/barrier-engineering development.....   504
            Radar development....................................   504
            Firefinder...........................................   504
            Artillery systems-engineering and manufacturing 
              development........................................   505
            Decrease to Research, Development, Test and 
              Evaluation support programs........................   505
            Army technical test instrumentation and targets......   505
            Survivability/lethality analysis.....................   505
            Department of Defense high energy laser test 
              facilities.........................................   506
            Multiple launch rocket system product improvement 
              program............................................   506
            Advanced field artillery tactical data system........   506
            Combat vehicle improvement programs..................   506
            Aircraft engine component improvement program........   506
            Force XXI warfighting rapid acquisition program......   507
            Missile/air defense product improvement program......   507
            Defense information technology test bed..............   507
            Information systems security program.................   507
            Manufacturing technology.............................   507
            Overview.............................................   508
            Marine mammal research...............................   519
            Pulse detonation engine technology...................   519
            Stainless steel double hull research.................   519
            Communications, command, control, and intelligence...   519
            Materials, electronic and computer technology........   519
            Autonomous underwater vehicle and sonar development..   520
            Micro electronic systems technology..................   520
            Air systems and weapons advanced technology..........   520
            Precision strike and air defense technology..........   520
            Advanced electric systems studies....................   520
            Power electronic building blocks and power node 
              control centers....................................   521
            Composite helicopter hangar..........................   521
            Marine Corps advanced technology demonstration.......   521
            Freeze dried blood...................................   522
            Advanced lightweight influence sweep system..........   522
            Aviation survivability...............................   522
            ASW systems development..............................   523
            Studies and experiments for combat systems 
              engineering........................................   523
            Remote minehunting system............................   523
            Future aircraft carrier transition technology........   523
            Shipboard systems component development..............   524
            SSGN study...........................................   525
            Intercooled recuperated gas turbine engine...........   525
            Environmentally safe energetic materials.............   525
            Marine Corps assault vehicles........................   526
            Marine Corps ground combat/support system............   526
            Aviation depot maintenance...........................   526
            Naval surface fire support system integration........   527
            Vertical gun for advanced ships......................   527
            Joint strike fighter.................................   527
            Nonlethal weapons and technologies of mass protection 
              program............................................   527
            Commercial off-the-shelf insertion just prior to 
              critical design review for helicopter improvement..   528
            Parametric airborne dipping sonar....................   528
            Common support aircraft..............................   528
            Electronic warfare development.......................   528
            Laboratories and field activities monitoring efforts.   529
            DDG-51 composite director room.......................   529
            Multi-purpose processor..............................   529
            Air control..........................................   529
            Submarine sonar domes................................   530
            NSSN advanced technology insertion...................   530
            Non-propulsion electronics system....................   530
            System level shock testing...........................   530
            DD-21 land attack destroyer..........................   531
            Smart propulsor product model........................   531
            NULKA antiship missile decoy system electro-magnetic 
              compatibility......................................   531
            Infrared search and track system.....................   532
            Voice instructional devices..........................   532
            Distributed surveillance system......................   532
            Battle force tactical training.......................   533
            High Speed Anti-Radiation Missile Improvement........   533
            Marine corps ground combat/supporting arms systems...   533
            Airborne reconnaissance systems......................   533
            Overview.............................................   534
            Friction welding.....................................   544
            Integrated high performance turbine engine program...   544
            Variable displacement vane pump......................   544
            High frequency active auroral research program.......   544
            Protein-based memory.................................   544
            Advanced low observable coatings.....................   545
            Night vision technology..............................   545
            Electronic combat technology.........................   545
            Ballistic Missile Technology.........................   545
            Micro-satellite technology development program.......   545
            Solar orbital transfer vehicle.......................   546
            Low cost launch technology development...............   546
            Space maneuver vehicle...............................   546
            Space control technology development.................   547
            Variable stability in-flight simulator test aircraft.   548
            Electronic warfare development.......................   548
            Evolved expendable launch vehicle program............   548
            Big Crow program office..............................   548
            Flight test safety...................................   548
            F-16 Squadrons.......................................   549
            Advanced medium range air-to-air missile.............   549
            Joint Air-To-Surface Standoff Missile................   549
            Theater Battle Management C4I........................   549
            Joint Surveillance and Target Attack Radar System....   550
            Seek Eagle...........................................   550
            Defense Airborne Reconnaissance Program research and 
              development........................................   550
            Overview.............................................   552
            University research initiative.......................   562
            Ballistic Missile Defense Organization funding and 
              programmatic guidance..............................   562
            Medical free electron laser..........................   566
            Computing systems and communications technology......   566
            Chemical-biological defense program..................   566
            Tactical technology..................................   568
            Integrated command and control technology............   568
            Materials and electronic technologies................   569
            Weapons of mass destruction technologies.............   569
            Explosives demilitarization technology...............   570
            Counterterror technical support program..............   570
            Counterproliferation support program.................   571
            Automatic target recognition.........................   571
            Generic logistics research and development technology 
              demonstrations.....................................   572
            Strategic Environmental Research and Development 
              Program............................................   572
            Advanced electronics technologies....................   572
            Maritime technology..................................   572
            Advanced concept technology demonstrations...........   573
            High performance computing modernization program.....   573
            Command, control and communications systems..........   573
            Sensor and guidance technology.......................   573
            Land warfare technology..............................   573
            Physical security....................................   574
            Continuous acquisition and life-cycle support 
              activities initiative..............................   574
            North Atlantic Treaty Organization research and 
              development........................................   574
            Humanitarian demining................................   575
            Joint robotics program-engineering development.......   575
            Defense technology analysis..........................   575
            Defense technical information services...............   575
            Special operations intelligence systems development..   575
            Live fire testing....................................   575
    Items of Special Interest....................................   576
            Advanced lightweight grenade launcher................   576
            Advanced tactical computer science and sensor 
              technology.........................................   576
            Commercial technologies for maintenance activities...   576
            Cyber Security Program...............................   577
            Defense information superiority, assurance, and 
              interoperability...................................   577
            Joint simulation system..............................   577
            Man overboard indicator technology...................   578
            Materials research...................................   578
            Military human immunodeficiency virus research.......   579
            Navy antisubmarine warfare program...................   579
            Navy land attack missile program.....................   580
            Oceanographic research information...................   581
            Optical correlation technology for automatic target 
              recognition........................................   582
            Patriot anti-cruise missile defense..................   582
            Project M............................................   582
            Software security....................................   583
    Legislative Provisions Adopted...............................
        Subtitle A--Authorization of Appropriations..............   583
            Authorization of appropriations (secs 201-202).......   583
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   583
            Management responsibility for Navy mine 
              countermeasures programs (sec. 211) 167............   583
            Future aircraft carrier transition technologies (sec. 
              212)...............................................   583
            Manufacturing technology program (sec. 213)..........   583
            Sense of Congress on the defense science and 
              technology program (sec. 214)......................   584
            Next generation internet (sec. 215)..................   585
            Crusader self-propelled artillery system program 
              (sec. 216).........................................   585
            Airborne Laser Program (sec. 217)....................   585
            Enhanced Global Positioning System program (sec. 218)   586
        Subtitle C--Ballistic Missile Defense....................   588
            Sense of Congress on national missile defense 
              coverage (sec. 231)................................   588
            Limitation on funding for the Medium Extended Air 
              Defense System (sec. 232)..........................   588
            Limitation on funding for cooperative ballistic 
              missile defense programs (sec. 233)................   588
            Sense of Congress with respect to ballistic missile 
              defense cooperation with Russia (sec. 234).........   588
            Ballistic missile defense program elements (sec. 235)   589
            Restructuring of Theater High Altitude Area Defense 
              System Acquisition Strategy (sec. 236).............   589
        Subtitle D--Other Matters................................   590
            Extension of authority to carry out certain prototype 
              projects (sec. 241)................................   590
            North Atlantic Treaty Organization alliance ground 
              surveillance concept definition (sec. 242).........   590
            NATO common funded civil budget (sec. 243)...........   590
            Executive agent for cooperative research program of 
              the Department of Defense and the Department of 
              Veterans Affairs (sec. 244)........................   591
            Review of pharmacological interventions for reversing 
              brain injury (sec. 245)............................   591
            Pilot program for revitalizing the laboratories and 
              test and evaluation centers of the Department of 
              Defense (sec. 246).................................   591
            Chemical warfare defense (sec. 247)..................   591
            Landmine alternatives (sec. 248).....................   592
    Legislative Provisions not Adopted...........................   593
            Limitation on funding for counterproliferation 
              support............................................   593
            Unmanned aerial vehicle programs.....................   595
            Persian gulf illnesses...............................   595
            Low cost launch development program..................   595
Title III--Operation and Maintenance.............................   595
            Overview.............................................   595
            Arms control implementation..........................   625
            Navy Environmental Leadership Program................   625
            Defense Threat Reduction Agency (DTRA)...............   626
            Joint Military Intelligence Program..................   627
            Domestic emergency response program..................   628
    Items of Special Interest....................................   629
            Fire support software engineering center.............   629
            Lead-based paint soil contamination at Department of 
              Defense facilities.................................   630
            State certification of underground storage tanks.....   630
    Legislative Provisions Adopted...............................   631
        Subtitle A--Authorization of Appropriations..............   631
            Authorization of appropriations (secs. 301-302)......   631
            Armed Forces Retirement Home (sec. 303)..............   631
            Transfer from the National Defense Stockpile 
              Transaction Fund (sec. 304)........................   631
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   631
            Refurbishment of M1-A1 Tanks (sec. 311)..............   631
            Operation of prepositioned fleet, National Training 
              Center, Fort Irwin, California (sec. 312)..........   631
            Berthing space at Norfolk Naval Shipyard, Virginia 
              (sec. 313).........................................   632
            NATO common-funded military budget (sec. 314)........   632
        Subtitle C--Environmental Provisions.....................   632
            Settlement of claims of foreign governments for 
              environmental cleanup of overseas sites formerly 
              used by the Department of Defense (sec. 321).......   632
            Authority to pay negotiated settlement for 
              environmental cleanup of formerly used defense 
              sites in Canada (sec. 322).........................   632
            Removal of underground storage tanks (sec. 323)......   633
            Report regarding polychlorinated biphenyls under 
              Department of Defense control overseas (sec. 324)..   633
            Modification of deadline for submittal to Congress of 
              annual reports on environmental activities (sec. 
              325)...............................................   633
            Submarine solid waste control (sec. 326).............   634
            Arctic Military Environmental Cooperation program 
              (sec. 327).........................................   634
            Sense of Congress regarding oil spill prevention 
              training for personnel on board Navy vessels (sec. 
              328)...............................................   635
        Subtitle D--Information Technology Issues................   635
            Additional information technology responsibilities of 
              chief information officers (sec. 331)..............   635
            Defense-wide electronic mall system for supply 
              purchases (sec. 332)...............................   636
            Year 2000 Compliance of Department of Defense 
              Information Technology and National Security 
              Systems............................................   636
        Subtitle E--Defense Infrastructure Support Improvement...   638
            Clarification of definition of depot-level 
              maintenance and repair (sec. 341)..................   638
            Reporting and analysis requirements before change of 
              commercial and industrial type functions to private 
              sector performance (sec. 342)......................   638
            Notification of determinations of military items as 
              being commercial items for purposes of the 
              exception to requirements regarding core logistics 
              capabilities (sec. 343)............................   639
            Oversight of development and implementation of 
              automated identification technology (sec. 344).....   639
            Contractor-operated civil engineering supply stores 
              program (sec. 345).................................   640
            Conditions on expansion of functions performed under 
              prime vendor contracts for depot-level maintenance 
              and repair (sec. 346)..............................   640
            Best commercial inventory practices for management of 
              secondary supply items (sec. 347)..................   640
            Personnel reductions in Army Materiel Command (sec. 
              348)...............................................   641
            Inventory management of in-transit items (sec. 349)..   641
            Review of Defense Automated Printing Service 
              functions (sec. 350)...............................   641
            Development of plan for establishment of core 
              logistic capabilities for maintenance and repair of 
              C-17 aircraft (sec. 351)...........................   641
        Subtitle F--Commissaries and Nonappropriated Fund 
          Instrumentalities......................................   642
            Continuation of management and funding of Defense 
              Commissary Agency through the Office of the 
              Secretary of Defense (sec. 361)....................   642
            Expansion of current eligibility of reserves for 
              commissary benefits (sec. 362).....................   642
            Costs payable to the Department of Defense and other 
              federal agencies for services provided to the 
              Defense Commissary Agency (sec. 363)...............   642
            Collection of dishonored checks presented at 
              commissary stores (sec. 364).......................   642
            Restrictions on patron access to, and purchases in, 
              overseas commissaries and exchange stores (sec. 
              365)...............................................   642
            Repeal of requirement for Air Force to sell tobacco 
              products to enlisted personnel (sec. 366)..........   643
            Prohibition on consolidation or other organizational 
              changes of Department of Defense retail system 
              (sec. 367).........................................   643
            Defense Commissary Agency telecommunications (sec. 
              368)...............................................   643
            Survey of commissary store patrons regarding 
              satisfaction with commissary store merchandise 
              (sec. 369).........................................   643
        Subtitle G--Other Matters................................   644
            Eligibility requirements for attendance at Department 
              of Defense domestic dependent elementary and 
              secondary schools (sec. 371).......................   644
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 372)   644
            Department of Defense readiness reporting system 
              (sec. 373).........................................   644
            Specific emphasis of program to investigate fraud, 
              waste, and abuse within Department of Defense (sec. 
              374)...............................................   645
            Condition for providing financial assistance for 
              support of additional duties assigned to the Army 
              National Guard (sec. 375)..........................   645
            Demonstration program to improve quality of personal 
              property shipments of members (sec. 376)...........   645
            Pilot program for acceptance and use of landing fees 
              charged for use of domestic military airfields by 
              civil aircraft (sec. 377)..........................   646
            Strategic plan for expansion of distance learning 
              initiatives (sec. 378).............................   646
            Public availability of operating agreements between 
              military installations and financial institutions 
              (sec. 379).........................................   646
    Legislative Provisions not Adopted...........................   646
            Funding for information technology and national 
              security programs..................................   646
            Requirement to maintain government owned and operated 
              core logistics capability..........................   647
            Extension of demonstration project for uniform 
              funding of morale, welfare, and recreation 
              activities.........................................   647
            Authorized use of appropriated funds for relocation 
              of Navy Exchange Service Command...................   647
            Fees for providing historical information to the 
              public.............................................   647
Title IV--Military Personnel Authorizations......................   647
    Legislative Provisions Adopted...............................   647
        Subtitle A--Active Forces................................   647
            End strengths for active forces (sec. 401)...........   647
            Revision in permanent end strength levels (sec. 402).   648
            Date for submission of annual manpower requirements 
              report (sec. 403)..................................   648
            Additional exemption from percentage limitation on 
              number of lieutenant generals and vice admirals 
              (sec. 404).........................................   648
            Extension of authority for Chairman of the Joint 
              Chiefs of Staff to designate up to 12 general and 
              flag officer positions to be excluded from general 
              and flag officer grade limitations (sec. 405)......   649
            Exception for Chief, National Guard Bureau, from 
              limitation on number of officers above major 
              general (sec. 406).................................   649
            Limitation on daily average of personnel on active 
              duty in grades E-8 and E-9 (sec. 407)..............   649
        Subtitle B--Reserve Forces...............................   649
            End strengths for selected reserve (sec. 411)........   649
            End strengths for reserves on active duty in support 
              of the reserves (sec. 412).........................   650
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   651
            Increase in number of members in certain grades 
              authorized to serve on active duty in support of 
              the reserves (sec. 414)............................   652
            Consolidation of strength authorizations for active 
              status Naval Reserve flag officers of the Navy 
              Medical Department staff corps (sec. 415)..........   652
        Subtitle C--Authorization of Appropriations..............   653
            Authorization of appropriations for military 
              personnel (sec. 421)...............................   653
    Legislative Provisions not Adopted...........................   654
            Exclusion of additional reserve component general and 
              flag officers from limitation on number of general 
              and flag officers who may serve on active duty.....   654
Title V--Military Personnel Policy...............................   655
    Legislative Provisions Adopted...............................   655
        Subtitle A--Officer Personnel Policy.....................   655
            Codification of eligibility of retired officers and 
              former officers for consideration by special 
              selection boards (sec. 501)........................   655
            Involuntary separation pay denied for officer 
              discharged for failure of selection for promotion 
              requested by the officer (sec. 502)................   655
            Streamlined selective retention process for regular 
              officers (sec. 503)................................   655
            Permanent applicability of limitations on years of 
              active naval service of Navy limited duty officers 
              in grades of commander and captain (sec. 504)......   655
            Tenure of Chief of the Air Force Nurse Corps (sec. 
              505)...............................................   656
            Grade of Air Force Assistant Surgeon General for 
              Dental Services (sec. 506).........................   656
            Review regarding allocation of Naval Reserve 
              Officers' Training Corps scholarships among 
              participating colleges and universities (sec. 507).   656
        Subtitle B--Reserve Component Matters....................   656
            Use of reserves for emergencies involving weapons of 
              mass destruction (sec. 511)........................   656
            Service required for retirement of National Guard 
              officer in higher grade (sec. 512).................   656
            Reduced time-in-grade requirement for reserve general 
              and flag officers involuntarily transferred from 
              active status (sec. 513)...........................   657
            Active status service requirement for promotion 
              consideration for Army and Air Force Reserve 
              component brigadier generals (sec. 514)............   657
            Composition of selective early retirement boards for 
              rear admirals of the Naval Reserve and major 
              generals of the Marine Corps Reserve (sec. 515)....   657
            Authority for temporary waiver for certain Army 
              Reserve officers of baccalaureate degree 
              requirement for promotion of reserve officers (sec. 
              516)...............................................   658
            Furnishing of burial flags for deceased members and 
              former members of the Selected Reserve (sec. 517)..   658
        Subtitle C--Military Education and Training..............   658
            Separate housing for male and female recruits during 
              recruit basic training (sec. 521)..................   658
            After-hours privacy for recruits during basic 
              training (sec. 522)................................   659
            Sense of the House of Representatives relating to 
              small unit assignments by gender during recruit 
              basic training (sec. 523)..........................   659
            Extension of reporting dates for Commission on 
              Military Training and Gender-Related Issues (sec. 
              524)...............................................   660
            Improved oversight of innovative readiness training 
              (sec. 525).........................................   660
        Subtitle D--Decorations, Awards, and Commendations.......   660
            Study of new decorations for injury or death in line 
              of duty (sec. 531).................................   660
            Waiver of time limitations for award of certain 
              decorations to certain persons (sec. 532)..........   661
            Commendation and commemoration of the Navy and Marine 
              Corps personnel who served in the United States 
              Navy Asiatic Fleet from 1910-1942 (sec. 533).......   661
            Appreciation for service during World War I and World 
              War II by members of the Navy assigned on board 
              merchant ships as the Naval Armed Guard Service 
              (sec. 534).........................................   661
            Sense of Congress regarding the heroism, sacrifice, 
              and service of the military forces of South Vietnam 
              and other nations, and indigenous groups in 
              connection with the United States Armed Forces 
              during the Vietnam conflict (sec. 535).............   662
            Sense of Congress the regarding the heroism, 
              sacrifice, and service of former South Vietnamese 
              commandos in connection with the United States 
              Armed Forces during the Vietnam conflict (sec. 536)   662
            Prohibition on members of armed forces entering 
              correctional facilities to present decorations to 
              persons who have committed serious violent felonies 
              (sec. 537).........................................   662
        Subtitle E--Administration of Agencies Responsible for 
          Review and Correction of Military Records..............   662
            Personnel freeze (sec. 541)..........................   662
            Professional staff (sec. 542)........................   663
            Ex parte communications (sec. 543)...................   663
            Timeliness standards (sec. 544)......................   663
            Scope of correction of military records (sec. 545)...   663
        Subtitle F--Reports......................................   663
            Report on personnel retention (sec. 551).............   663
            Report on process for selection of members for 
              service on courts-martial (sec. 552)...............   663
            Report on prisoners transferred from United States 
              Disciplinary Barracks, Fort Leavenworth, Kansas, to 
              Federal Bureau of Prisons (sec. 553)...............   664
            Review and report regarding the distribution of 
              National Guard full-time support among the states 
              (sec. 554).........................................   664
        Subtitle G--Other Matters................................   664
            Two-year extension of certain force drawdown 
              transition authorities relating to personnel 
              management and benefits (sec. 561).................   664
            Leave without pay for suspended academy cadets and 
              midshipmen (sec. 562)..............................   665
            Continued eligibility under Voluntary Separation 
              Incentive program for members who involuntarily 
              lose membership in a reserve component (sec. 563)..   665
            Reinstatement of definition of financial institution 
              in authorities for reimbursement of defense 
              personnel for Government errors in direct deposit 
              of pay (sec. 564)..................................   665
            Increase in maximum amount for College Fund program 
              (sec. 565).........................................   665
            Central Identification Laboratory, Hawaii (sec. 566).   666
            Military funeral honors for veterans (sec. 567)......   666
            Status in the Naval Reserve of cadets at the Merchant 
              Marine Academy (sec. 568)..........................   667
            Repeal of restriction on civilian employment of 
              enlisted members (sec. 569)........................   667
            Transitional compensation for abused dependent 
              children not residing with the spouse or former 
              spouse of a member convicted of dependent abuse 
              (sec. 570).........................................   668
            Pilot program for treating GED and home school 
              diploma recipients as high school graduates for 
              determinations of eligibility for enlistment in the 
              armed forces (sec. 571)............................   668
            Sense of Congress concerning New Parent Support 
              Program and military families (sec. 572)...........   668
            Advancement of Benjamin O. Davis, Junior, to grade of 
              General on the retired list of the Air Force (sec. 
              573)...............................................   669
            Sense of the House of Representatives concerning 
              adherence by civilians in military chain of command 
              to the standard of exemplary conduct required of 
              commanding officers and others in authority in the 
              Armed Forces (sec. 574)............................   669
    Legislative Provisions not Adopted...........................   669
            Posthumous commissions and warrants..................   669
            Study of revising the term of service of members of 
              the United States Court of Appeals for the Armed 
              Forces.............................................   670
            Repeal of limitations on authority to set rates and 
              waive requirement for reimbursement of expenses 
              incurred for instruction at service academies of 
              persons from foreign countries.....................   670
            Moratorium on changes of gender-related policies and 
              practices pending completion of the work of the 
              Commission on Military Training and Gender-Related 
              Issues.............................................   670
Title VI--Compensation and Other Personnel Benefits..............   670
    Legislative Provisions Adopted...............................   670
        Subtitle A--Pay and Allowances...........................   670
            Increase in basic pay for fiscal year 1999 (sec. 601)   670
            Rate of pay for cadets and midshipmen at the service 
              academies (sec. 602)...............................   671
            Basic allowance for housing outside the United States 
              (sec. 603).........................................   671
            Basic allowance for subsistence for reserves (sec. 
              604)...............................................   671
        Subtitle B--Bonuses and Special Incentive Pays...........   671
            Three-month extension of certain bonuses and special 
              pay authorities for reserve forces (sec. 611)......   671
            Three-month extension of certain bonuses and special 
              pay authorities for nurse officer candidates, 
              registered nurses, and nurse anesthetists (sec. 
              612)...............................................   672
            Three-month extension of authorities relating to 
              payment of other bonuses and special pays (sec. 
              613)...............................................   672
            Increased hazardous duty pay for aerial flight 
              crewmembers in certain pay grades (sec. 614).......   672
            Aviation career incentive pay and aviation officer 
              retention bonus (sec. 615).........................   673
            Diving duty special pay for divers having diving duty 
              as a nonprimary duty (sec. 616)....................   673
            Hardship duty pay (sec. 617).........................   673
            Selective reenlistment bonus eligibility for Reserve 
              members performing active Guard and Reserve duty 
              (sec. 618).........................................   673
            Repeal of ten percent limitation on certain selective 
              reenlistment bonuses (sec. 619)....................   673
            Increase in maximum amount authorized for Army 
              enlistment bonus (sec. 620)........................   674
            Equitable treatment of Reserves eligible for special 
              pay for duty subject to hostile fire or imminent 
              danger (sec. 621)..................................   674
            Retention incentives initiative for critically short 
              military occupational specialites (sec. 622).......   674
        Subtitle C--Travel and Transportation Allowances.........   674
            Payments for movements of household goods arranged by 
              members (sec. 631).................................   674
            Exception to maximum weight allowance for baggage and 
              household effects (sec. 632).......................   675
            Travel and transportation allowances for travel 
              performed by members in connection with rest and 
              recuperative leave from overseas stations (sec. 
              633)...............................................   675
            Storage of baggage of certain dependents (sec. 634)..   675
            Commercial travel of Reserves at Federal supply 
              schedule rates for attendance at inactive-duty 
              training assemblies (sec. 635).....................   676
        Subtitle D--Retired Pay, Survivor Benefits, and Related 
          Matters................................................   676
            Paid-up coverage under Survivor Benefit Plan (sec. 
              641)...............................................   676
            Survivor Benefit Plan open enrollment period (sec. 
              642)...............................................   676
            Effective date of court-required former spouse 
              survivor benefit plan coverage effectuated through 
              elections and deemed elections (sec. 643)..........   676
            Presentation of a United States flag to members of 
              the Armed Forces upon retirement (sec. 644)........   676
            Recovery, care, and disposition of remains of 
              medically retired member who dies during 
              hospitalization that begins while on active duty 
              (sec. 645).........................................   677
            Revision to computation of retired pay for certain 
              members (sec. 646).................................   677
            Elimination of backlog of unpaid retired pay (sec. 
              647)...............................................   677
        Subtitle E--Other Matters................................   677
            Definition of possessions of the United States for 
              pay and allowances purposes (sec. 651).............   677
            Accounting of advance payments (sec. 652)............   678
            Reimbursement of rental vehicle costs when motor 
              vehicle transported at government expense is late 
              (sec. 653).........................................   678
            Education loan repayment program for health 
              professions officers serving in Selected Reserve 
              (sec. 654).........................................   678
            Federal employees' compensation coverage for students 
              participating in certain officer candidate programs 
              (sec. 655).........................................   678
            Relationship of enlistment bonuses to eligibility to 
              receive Army college fund supplement under 
              Montgomery GI bill Educational Assistance Program 
              (sec. 656).........................................   679
            Authority to provide financial assistance for 
              education of certain defense dependents overseas 
              (sec. 657).........................................   679
            Clarifications concerning payments to certain persons 
              captured or interned by North Vietnam (sec. 658)...   679
    Legislative Provisions not Adopted...........................   679
            Voting rights of military personnel..................   679
Title VII--Health Care Provisions................................   680
    Legislative Provisions Adopted...............................   680
        Subtitle A--Health Care Services.........................   680
            Dependents' dental program (sec. 701)................   680
            Expansion of dependent eligibility under retiree 
              dental program (sec. 702)..........................   680
            Plan for redesign of military pharmacy system (sec. 
              703)...............................................   680
            Transitional authority to provide continued health 
              care coverage for certain persons unaware of loss 
              of CHAMPUS eligibility (sec. 704)..................   681
        Subtitle B--TRICARE Program..............................
            Payment of claims for provision of health care under 
              the TRICARE program for which a third party may be 
              liable (sec. 711)..................................   681
            TRICARE prime automatic enrollments and retiree 
              payment options (sec. 712).........................   681
            System for tracking data and measuring performance in 
              meeting TRICARE access standards (sec. 713)........   682
            Establishment of appeals process for claimcheck 
              denials (sec. 714).................................   682
            Reviews relating to accessibility of health care 
              under TRICARE (sec. 715)...........................   682
        Subtitle C--Health-Care Services for Medicare-Eligible 
          Department of Defense Beneficiaries (secs. 721-724)....   683
        Subtitle D--Other Changes to Existing Laws Regarding 
          Health Care Management.................................   684
            Process for waiving informed consent requirement for 
              administration of certain drugs to members of Armed 
              Forces for purposes of a particular military 
              operation (sec. 731)...............................   684
            Health benefits for abused dependents of members of 
              the armed forces (sec. 732)........................   684
            Provision of health care at military entrance 
              processing stations and elsewhere outside medical 
              treatment facilities (sec. 733)....................   684
            Professional qualifications of physicians providing 
              military health care (sec. 734)....................   684
        Subtitle E--Other Matters................................   686
            Enhanced Department of Defense organ and tissue donor 
              program (sec. 741).................................   686
            Authorization to establish a Level One Trauma 
              Training Center (sec. 742).........................   686
            Authority to establish center for study of post-
              deployment health concerns of members of the armed 
              forces (sec. 743)..................................   686
            Report on implementation of enrollment-based 
              capitation for funding for military medical 
              treatment facilities (sec. 744)....................   687
            Joint Department of Defense and Department of 
              Veterans Affairs reports relating to 
              interdepartmental cooperation in the delivery of 
              medical care (sec. 745)............................   687
            Report on research and surveillance activities 
              regarding Lyme disease and other tick-borne 
              diseases (sec. 746)................................   687
    Legislative Provisions not Adopted...........................   688
            Plan for provision of health care for military 
              retirees and their dependents comparable to health 
              care provided under TRICARE Prime..................   688
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   688
    Legislative Provisions Adopted...............................   688
        Subtitle A--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   688
            Limitation on use of price preference upon 
              achievement of contract goal for small and 
              disadvantaged businesses (sec. 801)................   688
            Distribution of assistance under the procurement 
              technical assistance cooperative agreement program 
              (sec. 802).........................................   688
            Defense commercial pricing management improvement 
              (sec. 803).........................................   688
            Modification of senior executives covered by 
              limitation on allowability of compensation for 
              certain contractor personnel (sec. 804)............   689
            Separate determinations of exceptional waivers of 
              truth in negotiation requirements for prime 
              contracts and subcontracts (sec. 805)..............   689
            Procurement of conventional ammunition (sec. 806)....   690
            Para-aramid fibers and yarns (sec. 807)..............   690
            Clarification of responsibility for submission of 
              information on prices previously charged for 
              property or services offered (sec. 808)............   691
            Amendments and study relating to procurement from 
              firms in industrial base for production of small 
              arms (sec. 809)....................................
        Subtitle B--Other Matters................................   691
            Eligibility of involuntarily downgraded employee for 
              membership in an acquisition corps (sec. 811)......   692
            Time for submission of annual report relating to Buy 
              American Act (sec. 812)............................   692
            Procurement of travel services for official and 
              unofficial travel under one contract (sec. 813)....   692
            Department of Defense purchases through other 
              agencies (sec. 814)................................   692
            Supervision of defense acquisition university 
              structure by Under Secretary of Defense for 
              Acquisition and Technology (sec. 815)..............   692
            Pilot programs for testing program manager 
              performance of product support oversight 
              responsibilities for life cycle of acquisition 
              programs (sec. 816)................................   693
            Scope of protection of certain information from 
              disclosure (sec. 817)..............................   693
            Plan for rapid transition from completion of small 
              business innovative research into defense 
              acquisition programs (sec. 818)....................   693
            Five-year authority for the Secretary of the Navy to 
              exchange certain items (sec. 819)..................   693
            Permanent authority for use of major test range and 
              test facility installations by commercial entities 
              (sec. 820).........................................   694
            Inventory exchange authorized for certain fuel 
              delivery contract (sec. 821).......................   694
    Legislative Provisions not Adopted...........................   694
            Study on increase in micro-purchase threshold........   694
            Repeal of requirement for Director of Acquisition 
              Education, Training, and Career Development to be 
              within the Office of the Under Secretary of Defense 
              for Acquisition and Technology.....................   694
Title IX--Department of Defense Organization and Management......   695
    Legislative Provisions Adopted...............................   695
        Subtitle A--Department of Defense Officers and 
          Organization...........................................   695
            Reduction in number of Assistant Secretary of Defense 
              positions (sec. 901)...............................   695
            Repeal of statutory requirement for position of 
              Assistant Secretary of Defense for Command, 
              Control, Communications and Intelligence (sec. 902)   695
            Independent task force on transformation and 
              Department of Defense organization (sec. 903)......   696
            Authority to expand the National Defense University 
              (sec. 904).........................................   696
            Center for Hemispheric Defense Studies (sec. 905)....   696
            Restructuring of administration of Fisher Houses 
              (sec. 906).........................................   696
            Management reform for research, development, test and 
              evaluation activities (sec. 907)...................   697
        Subtitle B--Department of Defense Financial Management...   697
            Improved accounting for defense contract services 
              (sec. 911).........................................   697
            Report on Department of Defense financial management 
              improvement plan (sec. 912)........................   698
            Study of feasibility of performance of Department of 
              Defense finance & accounting functions by private 
              sector sources or other Federal sources (sec. 913).   698
            Limitation on reorganization and consolidation of 
              operating locations of the Defense Finance and 
              Accounting Service (sec. 914)......................   698
            Annual report on resources allocated to support and 
              mission activities (sec. 915)......................   698
        Subtitle C--Joint Warfighting Experimentation............   699
            Findings concerning joint warfighting experimentation 
              (sec. 921).........................................   699
            Sense of Congress concerning joint warfighting 
              experimentation (sec. 922).........................   699
            Reports on joint warfighting experimentation (sec. 
              923)...............................................   699
        Subtitle D--Other Matters................................   699
            Further reductions in defense acquisition and support 
              workforce (sec. 931)...............................   699
            Limitation on operation and support funds for the 
              Office of the Secretary of Defense (sec. 932)......   700
            Clarification and simplification of responsibilities 
              of inspectors general regarding whistleblower 
              protections (sec. 933).............................   700
            Repeal of requirement relating to assignment of 
              tactical airlift mission to reserve components 
              (sec. 934).........................................   700
            Consultation with Marine Corps on major decisions 
              directly concerning Marine Corps aviation (sec. 
              935)...............................................   701
    Legislative Provisions not Adopted...........................   701
            Revision to defense directive relating to management 
              headquarters and headquarters support activities...   701
            Report on individuals employed in private sector who 
              provide services under contract for the Department 
              of Defense.........................................   701
            Reduction in Department of Defense headquarters staff   701
            Permanent requirement for quadrennial defense review.   702
            To redesignate the position of Director of Defense 
              Research and Engineering, abolish the position of 
              Assistant to the Secretary of Defense for Nuclear 
              and Chemical and Biological Defense Programs, and 
              transfer the duties of the latter position to the 
              former position....................................   702
            Military aviation accident investigations............   702
Title X--General Provisions......................................   703
    Legislative Provisions Adopted...............................   703
        Subtitle A--Financial Matters............................   703
            Transfer authority (sec. 1001).......................   703
            Incorporation of classified annex (sec. 1002)........   703
            Authorization of prior emergency supplemental 
              appropriations for fiscal year 1998 (sec. 1003)....   703
            Authorization of appropriations for Bosnia 
              peacekeeping operations for fiscal year 1999 (sec. 
              1004)..............................................   703
            Partnership for Peace information system management 
              (sec. 1005)........................................   704
            United States contribution to NATO common-funded 
              budgets in fiscal year 1999 (sec. 1006)............   705
            Liquidity of working-capital funds (sec. 1007).......   705
            Termination of authority to manage working-capital 
              funds and certain activities through the Defense 
              Business Operating Fund (sec. 1008)................   705
            Clarification of authority to retain recovered costs 
              of disposals in working-capital funds (sec. 1009)..   705
            Crediting of amounts recovered from third parties for 
              loss or damage to personal property shipped or 
              stored at government expense (sec. 1010)...........   706
        Subtitle B--Naval Vessels and Shipyards..................   706
            Revision to requirement for continued listing of two 
              Iowa-class battleships on the Naval Vessel Register 
              (sec. 1011)........................................   706
            Transfer of U.S.S. New Jersey (sec. 1012)............   706
            Homeporting of the U.S.S. Iowa in San Francisco, 
              California (sec. 1013).............................   706
            Sense of Congress concerning the naming of an LPD-17 
              vessel (sec. 1014).................................   706
            Reports on naval surface fire-support capabilities 
              (sec. 1015)........................................   706
            Long-term charter of three vessels in support of 
              submarine rescue, escort, and towing (sec. 1016)...   707
            Transfer of obsolete Army tugboat (sec. 1017)........   707
        Subtitle C--Counter Drug Activities and Other Assistance 
          for Civilian Law Enforcement...........................   707
            Program authority for Department of Defense support 
              to other agencies for counter-drug activities (sec. 
              1021)..............................................   711
            Department of Defense support of National Guard drug 
              interdiction and counter-drug activities (sec. 
              1022)..............................................   712
            Patrol Coastal Craft for Drug Interdiction by 
              Southern Command (sec. 1023).......................   712
        Subtitle D--Miscellaneous Report Requirements and Repeals   713
            Repeal of unnecessary and obsolete reporting 
              provisions (sec. 1031).............................   713
            Report regarding use of tagging system to identify 
              hydrocarbon fuels used by Department of Defense 
              (sec. 1032)........................................   713
        Subtitle E--Armed Forces Retirement Home.................   713
            Appointment of Director and Deputy Director of the 
              Naval Home (sec. 1041).............................   713
            Revision of inspection requirements relating to Armed 
              Forces Retirement Home (sec. 1042).................   714
            Clarification of land conveyance authority, Armed 
              Forces Retirement Home (sec. 1043).................   714
        Subtitle F--Matters Relating to Defense Property.........   714
            Plan for improved demilitarization of excess and 
              surplus defense property (sec. 1051)...............   714
            Transfer of F-4 Phantom II aircraft to foundation 
              (sec. 1052)........................................   715
        Subtitle G--Other Department of Defense Matters..........   715
            Pilot program on alternative notice of receipt of 
              legal process for garnishment of federal pay for 
              child support and alimony (sec. 1061)..............   715
            Training of special operations forces with friendly 
              foreign forces (sec. 1062).........................   715
            Research grants competitively awarded to service 
              academies (sec. 1063)..............................   716
            Department of Defense use of frequency spectrum (sec. 
              1064)..............................................   716
            Department of Defense aviation accident 
              investigations (sec. 1065).........................   716
            Investigation of actions relating to 174th Fighter 
              Wing of New York Air National Guard (sec. 1066)....   717
            Program to commemorate 50th anniversary of the Korean 
              War (sec. 1067)....................................   717
            Designation of America's national maritime museum 
              (sec. 1068)........................................   717
            Technical and clerical amendments (sec. 1069)........   718
        Subtitle H--Other Matters................................   718
            Act constituting presidential approval of vessel war 
              risk insurance requested by the Secretary of 
              Defense (sec. 1071)................................   718
            Extension and reauthorization of Defense Production 
              Act of 1950 (sec. 1072)............................   718
            Requirement that burial flags furnished by the 
              Secretary of Veterans Affairs be wholly produced in 
              the United States (sec. 1073)......................   718
            Sense of Congress concerning tax treatment of 
              principal residence of members of armed forces 
              while away from home on active duty (sec. 1074)....   718
            Clarification of State authority to tax compensation 
              paid to certain employees (sec. 1075)..............   719
    Legislative Provisions not Adopted...........................   719
            Outlay limitations...................................   719
            Long-term charter contracts for acquisition of 
              auxiliary vessels for the Department of Defense....   719
            Sense of the Congress regarding the establishment of 
              a counter-drug center in Panama....................   719
            Assignment of members of armed forces to assist INS 
              and Customs Service................................   720
            Facilitation of operations at Edwards Air Force Base.   720
            Operation, maintenance, and upgrade of Air Force 
              space launch facilities............................   720
            Southwest border fence...............................   720
            Increase operations and maintenance for Army National 
              Guard/reduce amounts from revised economic 
              assumptions........................................   721
            Ship scrapping pilot program.........................   721
            Report on inventory and control of military equipment   721
            Report on reduction of infrastructure costs at Brooks 
              Air Force Base, Texas..............................   721
            Sense of the Senate regarding declassification of 
              classified information of the Department of Defense 
              and the Department of Energy.......................   722
            Sense of the Senate regarding the August 1995 
              assassination attempt against President 
              Shevardnadze of Georgia............................   722
            Eliminating secret Senate holds......................   722
            Cooperation between the Department of the Army and 
              the Environmental Protection Agency in meeting the 
              Chemical Weapons Convention requirements...........   723
Title XI--Department of Defense Civilian Personnel...............   724
    Legislative Provisions Adopted...............................   724
            Defense Advanced Research Projects Agency 
              experimental personnel management program for 
              technical personnel (sec. 1101)....................   724
            Maximum pay rate comparability for faculty members of 
              the United States Air Force Institute of Technology 
              (sec. 1102)........................................   725
            Authority for release to Coast Guard of drug test 
              results of civil service mariners of the Military 
              Sealift Command (sec. 1103)........................   725
            Limitations on back pay awards (sec. 1104)...........   725
            Restoration of annual leave accumulated by civilian 
              employees at installations in the Republic of 
              Panama to be closed pursuant to the Panama Canal 
              Treaty of 1977 (sec. 1105).........................   725
            Repeal of program providing preference for employment 
              of military spouses in military child care 
              facilities (sec. 1106).............................   725
            Observance of certain holidays at duty posts outside 
              the United States (sec. 1107)......................   726
            Random drug testing of Department of Defense 
              employees (sec. 1108)..............................   726
            Department of Defense employee voluntary early 
              retirement authority (sec. 1109)...................   726
    Legislative Provisions not Adopted...........................   726
            Elimination of retained pay as basis for determining 
              locality-based adjustments.........................   726
            Four-year extension of voluntary separation incentive 
              pay authority......................................   726
Title XII--Matters Relating to Other Nations.....................   727
    Legislative Provisions Adopted...............................   727
        Subtitle A--United States Armed Forces in Bosnia and 
          Herzegovina............................................   727
            United States armed forces in Bosnia and Herzegovina 
              (secs. 1201-1205)..................................   727
        Subtitle B--Matters Relating to Contingency Operations...   728
            Report on involvement of Armed Forces in contingency 
              and ongoing operations (sec. 1211).................   728
            Submission of report on objectives of a contingency 
              operation with requests for funding for the 
              operation (sec. 1212)..............................   728
        Subtitle C--Matters Relating to NATO and Europe..........   729
            Limitation on United States share of costs of NATO 
              expansion (sec. 1221)..............................   729
            Report on military capabilities of an expanded NATO 
              alliance (sec. 1222)...............................   729
            Reports on the development of the European security 
              and defense identity (sec. 1223)...................   730
            Limitation on the assignment of United States forces 
              for certain United Nations purposes (sec. 1231)....   730
            Kyoto Protocol to the United Nations Framework 
              Convention on Climate Change (sec. 1232)...........   731
            Defense burdensharing (sec. 1233)....................   731
            Transfer of excess UH-1 Huey and AH-1 Cobra 
              helicopters to foreign countries (sec. 1234).......   732
            Transfers of naval vessels to certain foreign 
              countries (sec. 1235)..............................   732
            Repeal of the landmine moratorium (sec. 1236)........   732
            Application of authorities under the International 
              Emergency Economic Powers Act to communist Chinese 
              military companies (sec. 1237).....................   732
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   733
    Legislative Provisions Adopted...............................   733
            Cooperative Threat Reduction (CTR) program (secs. 
              1301-1309).........................................   733
Title XIV--Domestic Preparedness for Defense Against Weapons of 
  Mass Destruction...............................................   734
    Legislative Provisions Adopted...............................   734
            Defense against weapons of mass destruction (secs. 
              1401-1405).........................................   734
Title XV--Matters Relating to Arms Control, Export Controls, and 
  Counterproliferation...........................................   737
    Legislative Provisions Adopted...............................   737
        Subtitle A--Arms Control Matters.........................   737
            One-year extension of limitation on retirement or 
              dismantlement of strategic nuclear delivery systems 
              (sec. 1501)........................................   737
            Transmission of executive branch reports providing 
              Congress with classified summaries of arms control 
              developments (sec. 1502)...........................   737
            Report on adequacy of emergency communications 
              capabilities between the United States and Russia 
              (sec. 1503)........................................   737
            Russian nonstrategic nuclear weapons (sec. 1504).....   738
        Subtitle B--Satellite Export Controls....................   738
            Satellite export controls (secs. 1511-1516)..........   738
        Subtitle C--Other Export Control Matters.................   740
            Authority for export control activities of the 
              Department of Defense (sec. 1521)..................   740
            Release of export information by the Department of 
              Commerce to other agencies for the purpose of 
              national security assessment (sec. 1522)...........   741
            Nuclear export reporting requirement (sec. 1523).....   741
            Execution of objection authority within the 
              Department of Defense (sec. 1524)..................   742
        Subtitle D--Counterproliferation Matters.................   742
            One-year.............................................   742
            Sense of Congress on Nuclear Tests in South Asia 
              (sec. 1532)........................................   742
            Report on requirements for response to increased 
              missile threat in Asia-Pacific region (sec. 1533)..   743
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   743
            Overview.............................................   743
Title XXI--Army..................................................   764
            Overview.............................................   764
     Items of Special Interest...................................   765
            Improvements of Military Family Housing, Army........   765
    Legislative Provisions Adopted...............................   765
            Authorized Army construction and land acquisition 
              projects (sec. 2101)...............................   765
            Family housing (sec. 2102)...........................   765
            Improvements to military family housing units (sec. 
              2103)..............................................   765
            Authorization of appropriations, Army (sec. 2104)....   765
            Modification of authority to carry out fiscal year 
              1998 projects (sec. 2105)..........................   766
Title XXII--Navy.................................................   766
            Overview.............................................   766
    Items of Special Interest....................................   766
            Improvements of military family housing, Navy........   766
    Legislative Provisions Adopted...............................   766
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   766
            Family housing (sec. 2202)...........................   767
            Improvements to military family housing units (sec. 
              2203)..............................................   767
            Authorization of appropriations, Navy (sec. 2204)....   767
            Authorization to accept road construction project, 
              Marine Corps Base, Camp Lejeune, North Carolina 
              (sec. 2205)........................................   767
Title XXIII--Air Force...........................................   767
            Overview.............................................   767
    Items of Special Interest....................................   768
            Improvements of military family housing, Air Force...   768
    Legislative Provisions Adopted...............................   768
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   768
            Family housing (sec. 2302)...........................   768
            Improvements to military family housing units (sec. 
              2303)..............................................   768
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   768
Title XXIV--Defense Agencies.....................................   769
            Overview.............................................   769
    Legislative Provisions Adopted...............................   769
            Authorized Defense Agencies construction and land 
              acquisition projects (sec. 2401)...................   769
            Improvements to military family housing units (sec. 
              2402)..............................................   770
            Energy conservation projects (sec. 2403).............   770
            Authorization of appropriations, Defense Agencies 
              (sec. 2404)........................................   770
            Repeal of fiscal year 1997 authorization of 
              appropriations for certain military housing 
              improvement program (sec. 2405)....................   770
            Modification of authority to carry out certain fiscal 
              year 1995 projects (sec. 2406).....................   770
            Modification of authority to carry out fiscal year 
              1990 project (sec. 2407)...........................   771
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   771
            Overview.............................................   771
    Legislative Provisions Adopted...............................   771
            Authorized North Atlantic Treaty Organization (NATO) 
              construction and land acquisition projects (sec. 
              2501)..............................................   771
            Authorization of appropriations, NATO (sec. 2502)....   771
Title XXVI--Guard and Reserve Forces Facilities..................   772
            Overview.............................................   772
    Legislative Provisions Adopted...............................   772
            Authorized Guard and Reserve construction and land 
              acquisition projects (sec. 2601)...................   772
            Modification of authority to carry out fiscal year 
              1998 project (sec. 2602)...........................   772
    Legislative Provisions not Adopted...........................   773
            National Guard Military Educational Facility, Fort 
              Bragg, North Carolina..............................   773
Title XXVII--Expiration and Extension of Authorizations..........   773
    Legislative Provisions Adopted...............................   773
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   773
            Extension of authorizations of certain fiscal year 
              1996 projects (sec. 2702)..........................   773
            Extension of authorization of fiscal year 1995 
              project (sec. 2703)................................   774
            Effective date (sec. 2704)...........................   774
    Legislative Provisions not Adopted...........................   774
            Authorization of additional military construction and 
              military family housing projects...................   774
Title XXVIII--General Provisions.................................   774
    Legislative Provisions Adopted...............................   774
        Subtitle A--Military Construction and Military Family 
          Housing Changes........................................   774
            Architectural and engineering services and 
              construction design (sec. 2801)....................   774
            Expansion of Army overseas family housing lease 
              authority (sec. 2802)..............................   775
            Definition of ancillary supporting facilities under 
              the alternative authority for acquisition and 
              improvement of military housing (sec. 2803)........   775
            Purchase of build-to-lease family housing at Eielson 
              Air Force Base, Alaska (sec. 2804).................   775
            Report relating to improvement of housing for 
              unaccompanied members (sec. 2805)..................   775
        Subtitle B--Real Property and Facilities Administration..   776
            Exceptions to real property transaction reporting 
              requirements for war and certain emergency and 
              other operations (sec. 2811).......................   776
            Restoration of Department of Defense lands used by 
              another federal agency (sec. 2812).................   776
            Outdoor recreation development on military 
              installations for disabled veterans, military 
              dependents with disabilities, and other persons 
              with disabilities (sec. 2813)......................   777
            Report on leasing and other alternative uses of non-
              excess military property (sec. 2814)...............   777
            Report on implementation of utility system conveyance 
              authority (sec. 2815)..............................   777
        Subtitle C--Defense Base Closure and Realignment.........   778
            Applicability of property disposal laws to leases at 
              installations to be closed or realigned under base 
              closure laws (sec. 2821)...........................   778
            Elimination of waiver authority regarding prohibition 
              against certain conveyances of property at Naval 
              Station, Long Beach, California (sec. 2822)........   778
            Payment of stipulated penalties assessed under CERCLA 
              in connection with McClellan Air Force Base, 
              California (sec. 2823).............................   778
        Subtitle D--Land Conveyances.............................   779
        Part I--Army Conveyances.................................   779
            Modification of land conveyance, Army Reserve Center, 
              Youngstown, Ohio (sec. 2831).......................   779
            Release of interests in real property, former 
              Kennebec Arsenal, Augusta, Maine (sec. 2832).......   779
            Release waiver, or conveyance of interests in real 
              property, former Redstone Army Arsenal property, 
              Alabama (sec. 2833)................................   779
            Conveyance of utility systems, Lone Star Army 
              Ammunition Plant, Texas (sec. 2834)................   780
            Conveyance of water rights and related interests, 
              Rocky Mountain Arsenal, Colorado, for purposes of 
              acquisition of perpetual contracts for water (sec. 
              2835)..............................................   780
            Land conveyance, Army Reserve Center, Massena, New 
              York (sec. 2836)...................................   780
            Land conveyance, Army Reserve Center, Ogdensburg, New 
              York (sec. 2837)...................................   780
            Land conveyance, Army Reserve Center, Jamestown, Ohio 
              (sec. 2838)........................................   781
            Land conveyance, Army Reserve Center, Peoria, 
              Illinois (sec. 2839)...............................   781
            Land conveyance, Army Reserve Center, Bridgton, Maine 
              (sec. 2840)........................................   781
            Land conveyance, Fort Sheridan, Illinois (sec. 2841).   781
            Land conveyance, Skaneateles, New York (sec. 2842)...   782
            Land conveyance, Indiana Army Ammunition Plant, 
              Charlestown, Indiana (sec. 2843)...................   782
            Land conveyance, Volunteer Army Ammunition Plant, 
              Chattanooga, Tennessee (sec. 2844).................   783
            Land conveyance, Stewart Army Sub-Post, New Windsor, 
              New York (sec. 2845)...............................   783
        Part II--Navy Conveyances................................   783
            Conveyance of easement, Marine Corps Base, Camp 
              Pendleton, California (sec. 2851)..................   783
            Land exchange, Naval Reserve Readiness Center, 
              Portland, Maine (sec. 2852)........................   784
            Land conveyance, Naval and Marine Corps Reserve 
              facility, Youngstown, Ohio (sec. 2853).............   784
            Land conveyance, Naval Air Reserve Center, 
              Minneapolis, Minnesota (sec. 2854).................   784
        Part III--Air Force Conveyances..........................   785
            Modification of land conveyance authority, Eglin Air 
              Force Base, Florida (sec. 2861)....................   785
            Modification of land conveyance, Finley Air Force 
              Station, North Dakota (sec. 2862)..................   785
            Land conveyance, Lake Charles Air Force Station, 
              Louisiana (sec. 2863)..............................   786
            Land conveyance, Air Force Housing facility, La 
              Junta, Colorado (sec. 2864)........................   786
        Subtitle E--Other Matters................................   786
            Modification of authority relating to Department of 
              Defense laboratory revitalization demonstration 
              program (sec. 2871)................................   786
            Repeal of prohibition on joint use of Gray Army 
              Airfield, Fort Hood, Texas, with civil aviation 
              (sec. 2872)........................................   786
            Modification of demonstration project for purchase of 
              fire, security, police, public works, and utility 
              services from local government agencies (sec. 2873)   787
            Designation of building containing Navy and Marine 
              Corps Reserve Center, Augusta, Georgia (sec. 2874).   787
    Legislative Provisions Not Adopted...........................   787
            Expansion of Arlington National Cemetery.............   787
            Increase in thresholds for reporting requirements 
              relating to real property transactions.............   788
            Beach replenishment, San Diego, California...........   788
            Development of Ford Island, Hawaii...................   788
            Repairs and stabilization measures at Walter Reed 
              Army Medical Center................................   789
            Modification of limitations on general authority 
              relating to base closures and realignments.........   789
            Prohibition on closure of a base within four years 
              after a realignment of the base....................   789
            Sense of Congress on further rounds of base closures.   789
Title XXIX--Juniper Butte Range Withdrawal.......................   790
    Legislative Provisions Adopted...............................   790
            Juniper Butte Range withdrawal (secs. 2901-2919).....   790
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   790
Title XXXI--Department of Energy National Security Programs......   790
            Overview.............................................   790
    Legislative Provisions Adopted...............................   802
        Subtitle A--National Security Programs Authorizations....   802
            Weapons activities (sec. 3101).......................   802
            Defense environmental restoration and waste 
              management (sec. 3102).............................   804
            Other defense activities (sec. 3103).................   806
            Defense nuclear waste disposal (sec. 3104)...........   808
            Defense environmental management privatization (sec. 
              3105)..............................................   808
        Subtitle B--Recurring General Provisions.................   809
            Reprogramming (sec. 3121)............................   809
            Limits on general plant projects (sec. 3122).........   809
            Limits on construction projects (sec. 3123)..........   810
            Fund transfer authority (sec. 3124)..................   810
            Authority for conceptual and construction design 
              (sec. 3125)........................................   810
            Authority for emergency planning, design, and 
              construction activities (sec. 3126)................   810
            Funds available for all national security programs of 
              the Department of Energy (sec. 3127)...............   811
            Availability of funds (sec. 3128)....................   811
            Transfers of defense environmental management funds 
              (sec. 3129)........................................   811
        Subtitle C--Program Authorizations, Restrictions, and 
          Limitations............................................   812
            Permanent extension of funding prohibition relating 
              to international cooperative stockpile stewardship 
              (sec. 3131)........................................   812
            Support of ballistic missile defense activities of 
              the Department of Defense (sec. 3132)..............   812
            Nonproliferation activities (sec. 3133)..............   812
            Licensing of certain mixed oxide fuel fabrication and 
              irradiation facilities (sec. 3134).................   813
            Continuation of processing, treatment, and 
              disposition of legacy nuclear materials (sec. 3135)   813
            Authority for Department of Energy federally funded 
              research and development centers to participate in 
              merit-based technology research and development 
              programs (sec. 3136)...............................   814
            Activities of Department of Energy facilities (sec. 
              3137)..............................................   814
            Hanford overhead and service center costs (sec. 3138)   815
            Hanford waste tank cleanup program reforms (sec. 
              3139)..............................................   815
            Hanford Health Information Network (sec. 3140).......   816
            Hazardous Materials Management and Emergency Response 
              training program (sec. 3141).......................   816
            Support for public education in the vicinity of Los 
              Alamos National Laboratory, New Mexico (sec. 3142).   816
            Relocation of National Atomic Museum, Albuquerque, 
              New Mexico (sec. 3143).............................   817
            Tritium production (sec. 3144).......................   817
        Subtitle D--Other Matters................................   818
            Study and plan relating to worker and community 
              transition assistance (sec. 3151)..................   818
            Extension of authority for appointment of certain 
              scientific, engineering, and technical personnel 
              (sec. 3152)........................................   819
            Requirement for plan to modify employment system used 
              by Department of Energy in defense environmental 
              management programs (sec. 3153)....................   819
            Department of Energy nuclear materials couriers (sec. 
              3154)..............................................   819
            Increase in maximum rate of pay for scientific, 
              engineering, and technical personnel responsible 
              for safety at defense nuclear facilities (sec. 
              3155)..............................................   820
            Extension of authority of Department of Energy to pay 
              voluntary separation incentive payments (sec. 3156)   820
            Repeal of fiscal year 1998 statement of policy on 
              stockpile stewardship program (sec. 3157)..........   820
            Report on stockpile stewardship criteria (sec. 3158).   821
            Panel to assess the reliability, safety, and security 
              of the United States nuclear stockpile (sec. 3159).   821
            International cooperative information exchange (sec. 
              3160)..............................................   822
            Protection against inadvertent release of restricted 
              data and formerly restricted data (sec. 3161)......   822
            Sense of Congress regarding treatment of Formerly 
              Utilized Sites Remedial Action Program under a non-
              defense discretionary budget function (sec. 3162)..   823
            Reports relating to tritium production (sec. 3163)...   823
    Legislative Provisions not Adopted...........................   824
            Sense of the Senate regarding memoranda of 
              understanding with the State of Oregon relating to 
              Hanford............................................   825
            Sense of Congress on funding requirements for the 
              nonproliferation science and technology activities 
              of the Department of Energy........................   825
Title XXXII--Defense Nuclear Facilities Safety Board.............   826
    Legislative Provisions Adopted...............................   826
            Defense Nuclear Facilities Safety Board (sec. 3201)..   826
Title XXXIII--National Defense Stockpile.........................   826
    Legislative Provisions Adopted...............................   826
            Definitions (sec. 3301)..............................   826
            Authorized uses of stockpile funds (sec. 3302).......   826
            Authority to dispose of certain materials in the 
              national defense stockpile (sec. 3303).............   826
            Use of stockpile funds for certain environmental 
              remediation, restoration, waste management, and 
              compliance activities (sec. 3304)..................   827
Title XXXIV--Naval Petroleum Reserves............................   827
    Legislative Provisions Adopted...............................   827
            Definitions (sec. 3401)..............................   827
            Authorization of appropriations (sec. 3402)..........   827
            Disposal of Naval Petroleum Reserve Numbered 2 (sec. 
              3403)..............................................   827
            Disposal of Naval Petroleum Reserve Numbered 3 (sec. 
              3404)..............................................   828
            Disposal of Oil Shale Reserve Numbered 2 (sec. 3405).   828
            Administration (sec. 3406)...........................   828
    Legislative Provisions not Adopted...........................   828
            Price requirement on price of certain petroleum 
              during fiscal year 1999............................   828
            Treatment of State of California claim regarding 
              Naval Petroleum Reserve numbered 1.................   828
Title XXXV--Panama Canal Commission..............................   829
    Legislative Provisions Adopted...............................
            Short title; references to Panama Canal Act of 1979 
              (sec. 3501)........................................   829
            Authorization of expenditures (sec. 3502)............   829
            Purchase of vehicles (sec. 3503).....................   829
            Expenditures only in accordance with treaties (sec. 
              3504)..............................................   829
            Donations to the Commission (sec. 3505)..............   830
            Agreements for United States to provide post-transfer 
              administrative services for certain employee 
              benefits (sec. 3506)...............................   830
            Sunset of United States overseas benefits just before 
              transfer (sec. 3507)...............................   830
            Central Examining Office (sec. 3508).................   830
            Liability for vessel accidents (sec. 3509)...........   830
            Panama Canal Board of Contract Appeals (sec. 3510)...   831
            Restatement of requirement that Secretary of Defense 
              designee on Panama Canal Commission supervisory 
              board be a current officer of the Department of 
              Defense (sec. 3511)................................   831
            Technical amendments (sec. 3512).....................   831
    Legislative Provisions not Adopted...........................   832
            Placement of United States citizens in positions with 
              the United States Government.......................   832
Title XXXVI--Maritime Administration.............................   832
    Legislative Provisions Adopted...............................   832
            Authorization of appropriations for fiscal year 1999 
              (sec. 3601)........................................   832
            Authority to convey National Defense Reserve Fleet 
              vessel (sec. 3602).................................   832
            Authority to convey certain National Defense Reserve 
              Fleet vessels (sec. 3603)..........................   832
            Clearinghouse for maritime information (sec. 3604)...   832
            Conveyance of NDRF vessel ex-USS Lorain County (sec. 
              3605)..............................................   833
Title XXXVII--Increased Monitoring of Products Made With Forced 
  Labor..........................................................   833
    Legislative Provisions Adopted...............................   833
            Increased monitoring of products made with forced 
              labor (secs. 3701-3703)............................   833
Title XXXVIII--Fair Trade in Automotive Parts....................   833
    Legislative Provisions Adopted...............................   833
            Fair trade in automotive parts (secs. 3801-3805).....   833
Title XXXIX--Radio Free Asia.....................................   834
    Legislative Provisions Adopted...............................   834
            Short title (sec. 3901)..............................   834
            Authorization of appropriations for increased funding 
              for Radio Free Asia and Voice of America 
              broadcasting to China (sec. 3902)..................   834
            Reporting requirement (sec. 3903)....................   834
    Legislative Provisions not Adopted...........................   835
            Findings.............................................   835



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     105-736
_______________________________________________________________________


 STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

                                _______
                                

               September 22, 1998.--Ordered to be printed

_______________________________________________________________________


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

                           CONFERENCE REPORT

                        [To accompany H.R. 3616]

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

SECTION 1. SHORT TITLE; FINDINGS.

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

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

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire Missile 
          program.
Sec. 112. Conditions for award of a second-source procurement contract 
          for the Family of Medium Tactical Vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
          Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Environmental Provisions

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

                Subtitle D--Information Technology Issues

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

         Subtitle E--Defense Infrastructure Support Improvement

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

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

                        Subtitle G--Other Matters

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

               TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                  Subtitle B--Reserve Component Matters

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

               Subtitle C--Military Education and Training

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

           Subtitle D--Decorations, Awards, and Commendations

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

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

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

                           Subtitle F--Reports

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

                        Subtitle G--Other Matters

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

           TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                    TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

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

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

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

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

                        Subtitle E--Other Matters

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

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

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

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

                        Subtitle B--Other Matters

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

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

         Subtitle B--Department of Defense Financial Management

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

              Subtitle C--Joint Warfighting Experimentation

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

                        Subtitle D--Other Matters

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

                       TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

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

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

        Subtitle D--Miscellaneous Report Requirements and Repeals

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

                Subtitle E--Armed Forces Retirement Home

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

            Subtitle F--Matters Relating to Defense Property

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

             Subtitle G--Other Department of Defense Matters

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

                        Subtitle H--Other Matters

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

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

         Subtitle B--Matters Relating to Contingency Operations

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

             Subtitle C--Matters Relating to NATO and Europe

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

                        Subtitle D--Other Matters

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

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

Sec. 1301. Specification of Cooperative Threat Reduction Programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
          activities in Russia.
Sec. 1305. Limitation on use of funds for biological weapons 
          proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by project 
          category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet weapons 
          of mass destruction programs.

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

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

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

                    Subtitle A--Arms Control Matters

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

                  Subtitle B--Satellite Export Controls

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

                Subtitle C--Other Export Control Matters

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

                Subtitle D--Counterproliferation Matters

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

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                             TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out fiscal year 1998 
          projects.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine 
          Corps Base, Camp Lejeune, North Carolina.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                 PROGRAM

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

             TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Modification of authority to carry out fiscal year 1998 
          project.

         TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 
          projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

            Subtitle C--Defense Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                        Subtitle E--Other Matters

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

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

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

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
          activities.
Sec. 3127. Funds available for all national security programs of the 
          Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

                        Subtitle D--Other Matters

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

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National Defense 
          Stockpile.
Sec. 3304. Use of stockpile funds for certain environmental remediation, 
          restoration, waste management, and compliance activities.

                  TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

                   TITLE XXXV--PANAMA CANAL COMMISSION

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

                  TITLE XXXVI--MARITIME ADMINISTRATION

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

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

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

              TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

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

                      TITLE XXXIX--RADIO FREE ASIA

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

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

               Subtitle A--Authorization of Appropriations

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

                        Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Longbow Hellfire Missile 
          program.
Sec. 112. Conditions for award of a second-source procurement contract 
          for the Family of Medium Tactical Vehicles.
Sec. 113. Armored system modernization.
Sec. 114. Reactive armor tiles.
Sec. 115. Extension of authority to carry out Armament Retooling and 
          Manufacturing Support Initiative.

                        Subtitle C--Navy Programs

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

                     Subtitle D--Air Force Programs

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

                        Subtitle E--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

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

SEC. 102. NAVY AND MARINE CORPS.

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

SEC. 103. AIR FORCE.

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

SEC. 104. DEFENSE-WIDE ACTIVITIES.

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

SEC. 105. RESERVE COMPONENTS.

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

SEC. 106. DEFENSE INSPECTOR GENERAL.

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

SEC. 107. CHEMICAL DEMILITARIZATION PROGRAM.

    There is hereby authorized to be appropriated for fiscal 
year 1999 the amount of $803,000,000 for--
            (1) the destruction of lethal chemical agents and 
        munitions in accordance with section 1412 of the 
        Department of Defense Authorization Act, 1986 (50 
        U.S.C. 1521); and
            (2) the destruction of chemical warfare materiel of 
        the United States that is not covered by section 1412 
        of such Act.

SEC. 108. DEFENSE HEALTH PROGRAMS.

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

SEC. 109. DEFENSE EXPORT LOAN GUARANTEE PROGRAM.

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

                       Subtitle B--Army Programs

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

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

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

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

SEC. 113. ARMORED SYSTEM MODERNIZATION.

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

SEC. 114. REACTIVE ARMOR TILES.

    (a) Limitation.--None of the funds authorized to be 
appropriated under section 101(3) or 102(b) may be obligated 
for the procurement of reactive armor tiles until 30 days after 
the date on which the Secretary of Defense submits to the 
congressional defense committees the matters specified in 
subsection (d).
    (b) Exception.--The limitation in subsection (a) does not 
apply to the obligation of any funds for the procurement of 
armor tiles for an armored vehicle for which the Secretary of 
the Army or, in the case of the Marine Corps, the Secretary of 
the Navy, had established a requirement for such tiles before 
the date of the enactment of this Act.
    (c) Study Required.--(1) The Secretary of Defense shall 
contract with an entity independent of the Department of 
Defense to conduct a study of the operational requirements of 
the Army and the Marine Corps for reactive armor tiles for 
armored vehicles and to submit to the Secretary a report on the 
results of the study.
    (2) The study shall include the following:
            (A) A detailed assessment of the operational 
        requirements of the Army and the Marine Corps for 
        reactive armor tiles for each of the armored vehicles 
        presently in use, including the requirements for each 
        vehicle in its existing configurations and in 
        configurations proposed for the vehicle.
            (B) For each armored vehicle, an analysis of the 
        costs and benefits of the procurement and installation 
        of the tiles, including a comparison of those costs and 
        benefits with the costs and benefits of any existing 
        upgrade program for the armored vehicle.
    (3) The entity carrying out the study shall request the 
views of the Secretary of the Army and the Secretary of the 
Navy.
    (d) Submission to Congressional Committees.--Not later than 
April 1, 1999, the Secretary of Defense shall submit to the 
congressional defense committees--
            (1) the report on the study submitted to the 
        Secretary by the entity carrying out the study;
            (2) the comments of the Secretary of the Army and 
        the Secretary of the Navy on the study; and
            (3) for each vehicle for which there is a 
        requirement for reactive armor tiles, as indicated by 
        the results of the study, the Secretary's 
        recommendations as to the number of vehicles to be 
        equipped with such tiles.

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

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

                       Subtitle C--Navy Programs

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

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

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

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

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

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

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

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

                     Subtitle D--Air Force Programs

SEC. 131. F-22 AIRCRAFT PROGRAM.

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

SEC. 132. C-130J AIRCRAFT PROGRAM.

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

                       Subtitle E--Other Matters

SEC. 141. CHEMICAL STOCKPILE EMERGENCY PREPAREDNESS PROGRAM.

    (a) Assistance to State and Local Governments.--Section 
1412 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 50 U.S.C. 1521), is amended by adding at 
the end of subsection (c) the following:
    ``(4)(A) In coordination with the Secretary of the Army and 
in accordance with agreements between the Secretary of the Army 
and the Director of the Federal Emergency Management Agency, 
the Director shall carry out a program to provide assistance to 
State and local governments in developing capabilities to 
respond to emergencies involving risks to the public health or 
safety within their jurisdictions that are identified by the 
Secretary as being risks resulting from--
            ``(i) the storage of lethal chemical agents and 
        munitions referred to in subsection (a) at military 
        installations in the continental United States; or
            ``(ii) the destruction of such agents and munitions 
        at facilities referred to in paragraph (1)(B).
    ``(B) No assistance may be provided under this paragraph 
after the completion of the destruction of the United States' 
stockpile of lethal chemical agents and munitions.
    ``(C) Not later than December 15 of each year, the Director 
shall transmit a report to Congress on the activities carried 
out under this paragraph during the fiscal year preceding the 
fiscal year in which the report is submitted.''.
    (b) Program Funding.--Section 1412(f) of such Act (51 
U.S.C. 1521(f)) is amended--
            (1) by striking out ``Identification of Funds.--
        Funds'' and inserting in lieu thereof ``Identification 
        of Funds.--(1) Funds''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) Amounts appropriated to the Secretary for the purpose 
of carrying out subsection (c)(4) shall be promptly made 
available to the Director of the Federal Emergency Management 
Agency.''.
    (c) Periodic Reports.--Section 1412(g) of such Act (50 
U.S.C. 1521(g)) is amended--
            (1) in paragraph (2)(B)--
                    (A) by striking out ``and'' at the end of 
                clause (v);
                    (B) by striking out the period at the end 
                of clause (vi) and inserting in lieu thereof 
                ``; and''; and
                    (C) by adding at the end the following new 
                clause:
                    ``(vii) grants to State and local 
                governments to assist those governments in 
                carrying out functions relating to emergency 
                preparedness and response in accordance with 
                subsection (c)(3).'';
            (2) by redesignating subparagraph (B) (as amended 
        by paragraph (1)) and subparagraph (C) of paragraph (2) 
        as subparagraphs (C) and (D), respectively; and
            (3) by inserting after paragraph (2)(A) the 
        following new subparagraph (B):
            ``(B) A site-by-site description of actions taken 
        to assist State and local governments (either directly 
        or throughthe Federal Emergency Management Agency) in 
carrying out functions relating to emergency preparedness and response 
in accordance with subsection (c)(3).''.

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

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

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

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Ballistic Missile Defense

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

                        Subtitle D--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 202. AMOUNT FOR BASIC AND APPLIED RESEARCH.

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

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

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

SEC. 212. FUTURE AIRCRAFT CARRIER TRANSITION TECHNOLOGIES.

    Of the funds authorized to be appropriated under section 
201(2) for Carrier System Development (program element 
0603512N), $50,000,000 shall be available only for research, 
development, test, evaluation, and incorporation into the CVN-
77 nuclear aircraft carrier program of technologies designed to 
transition to, demonstrate enhanced capabilities for, or 
mitigate cost and technical risks of, the CV(X) aircraft 
carrier program.

SEC. 213. MANUFACTURING TECHNOLOGY PROGRAM.

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

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

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

SEC. 215. NEXT GENERATION INTERNET PROGRAM.

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

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

    (a) Limitation.--Of the amount authorized to be 
appropriated for the Army pursuant to section 201(1), not more 
than $223,000,000 may be obligated for the Crusader self-
propelled artillery system program until 30 days after the date 
on which the Secretary of the Army submits the report required 
under subsection (b).
    (b) Requirement for Report.--The Secretary of the Army 
shall submit to the congressional defense committees a report 
on the Crusader self-propelled artillery system. The report 
shall include the following:
            (1) An assessment of the risks associated with the 
        current Crusader program technology.
            (2) The total requirements for the Crusader system, 
        taking into consideration revisions in force structure 
        resulting from the redesign of heavy and light 
        divisions to achieve a force structure known as the 
        Army After Next.
            (3) The potential for reducing the weight of the 
        Crusader system by as much as 50 percent.
            (4) The potential for using alternative propellants 
        for the artillery projectile for the Crusader system 
        and the effects on the overall program schedule that 
        would result from taking the actions and time necessary 
        to develop mature technologies for alternative 
        propellants.
            (5) An analysis of the costs and benefits of 
        delaying procurement of the Crusader system to avoid 
        affordability issues associated with the current 
        schedule and to allow for maturation of weight and 
        propellant technologies.
    (c) Submission of Report.--The Secretary of the Army shall 
submit the report not later than March 1, 1999.

SEC. 217. AIRBORNE LASER PROGRAM.

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

SEC. 218. ENHANCED GLOBAL POSITIONING SYSTEM PROGRAM.

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

                 Subtitle C--Ballistic Missile Defense

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

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

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

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

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

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

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

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

SEC. 235. BALLISTIC MISSILE DEFENSE PROGRAM ELEMENTS.

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

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

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

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

    (b) Repeal of Superseded Provision.--Section 251 of the 
National Defense Authorization Act for Fiscal Year 1996 (Public 
Law 104-106; 10 U.S.C. 221 note) is repealed.

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

    (a) Establishment of Competitive Contractor.--(1) The 
Secretary of Defense shall take appropriate steps to implement 
technical and price competition for the development and 
production of the interceptor missile for the Theater High-
Altitude Area Defense (THAAD) system.
    (2) The Secretary shall take such steps as necessary to 
ensure that the prime contractor (as of the date of the 
enactment of this Act) for the THAAD system provides the 
cooperation needed to establish the technical and price 
competition required in subsection (a).
    (3) The Secretary shall use the authority provided in 
section 2304(c)(2) of title 10, United States Code, to expedite 
the implementation of paragraphs (1) and (2).
    (4) Of the amount made available under section 201(4) for 
the THAAD System, $29,600,000 shall be available to establish 
the technical and price competition required in paragraph (1).
    (b) Cost Sharing Arrangement.--(1) The Secretary of Defense 
shall contractually establish with the THAAD interceptor prime 
contractor an appropriate arrangement for sharing between the 
United States and that contractor the costs for flight test 
failures of the interceptor missile for the THAAD system 
beginning with the flight test numbered 9.
    (2) For purposes of paragraph (1), the term ``THAAD 
interceptor prime contractor'' means the firm that as of May 
14, 1998, is the prime contractor for the interceptor missile 
for the Theater High-Altitude Area Defense system.
    (c) Engineering and Manufacturing Development Phase for 
Other Elements of the THAAD System.--The Secretary of Defense 
may proceed with the milestone approval process for the 
Engineering and Manufacturing Development phase for the Battle 
Management and Command, Control, and Communications (BM/
C3) element of the THAAD system and for the Ground 
Based Radar (GBR) element for that system without regard to the 
stage of development of the interceptor missile for that 
system.
    (d) Plan for Contingency Capability.--(1) The Secretary of 
Defense shall prepare a plan that would allow for deployment of 
THAAD missiles and the other elements of the THAAD system 
referred to in subsection (c) in response to theater ballistic 
missile threats that evolve before United States military 
forces are equipped with the objective configuration of those 
missiles and elements.
    (2) The Secretary shall submit a report on the plan to the 
congressional defense committees by December 15, 1998.
    (e) Limitation on Entering Engineering and Manufacturing 
Development Phase.--(1) The Secretary of Defense may not 
approve the commencement of the Engineering and Manufacturing 
Development phase for the interceptor missile for the THAAD 
system until there have been 3 successful tests of that 
missile.
    (2) For purposes of paragraph (1), a successful test of the 
interceptor missile of the THAAD system is a body-to-body 
intercept by that missile of a ballistic missile target.

                       Subtitle D--Other Matters

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

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

SEC. 242. NATO ALLIANCE GROUND SURVEILLANCE CONCEPT DEFINITION.

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

SEC. 243. NATO COMMON-FUNDED CIVIL BUDGET.

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

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

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

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

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

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

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

SEC. 247. CHEMICAL WARFARE DEFENSE.

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

SEC. 248. LANDMINE ALTERNATIVES.

    (a) Availability of Funds.--(1) Of the amounts authorized 
to be appropriated in section 201, not more than $19,200,000 
shall be available for activities relating to the 
identification, adaptation, modification, research, and 
development of existing and new technologies and concepts 
that--
            (A) would provide a combat capability that is 
        equivalent to the combat capability provided by non-
        self destructing anti-personnel landmines;
            (B) would provide a combat capability that is 
        equivalent to the combat capability provided by anti-
        personnel submunitions used in mixed anti-tank mine 
        systems; or
            (C) would provide a combat capability that is 
        equivalent to the combat capability provided by current 
        mixed mine systems.
    (2) Of the amount available under paragraph (1)--
            (A) not more than $17,200,000 shall be made 
        available for activities referred to in subparagraph 
        (A) of that paragraph for the current efforts of the 
        Army referred to as the Non-Self Destruct Alternative; 
        and
            (B) not more than $2,000,000 shall be made 
        available for activities referred to in subparagraphs 
        (B) or (C) of that paragraph that relate to anti-
        personnel submunitions used in mixed mine systems or an 
        alternative for mixed munitions.
    (b) Funding for Research Into Alternatives to Anti-
Personnel Submunitions Used in Mixed Mine Systems or an 
Alternative for Mixed Munitions.--The Secretary shall include 
with the materials submitted to Congress with the budget for 
fiscal year 2000 under section 1105 of title 31, United States 
Code, an explanation of any funds requested to support a search 
for existing and new technologies and concepts that could 
provide a combat capability equivalent to the combat capability 
provided by anti-personnel submunitions used in mixed mine 
systems or an alternative to mixed munitions.
    (c) Studies.--The Secretary of Defense shall enter into two 
contracts, each with an appropriate scientific organization--
            (1) to carry out a study on existing and new 
        technologies and concepts referred to in subsection 
        (a); and
            (2) to submit to the Secretary a report on the 
        study, including any recommendations considered 
        appropriate by the scientific organization.
    (d) Report.--Not later than April 1 of 2000 and 2001, the 
Secretary shall submit to the congressional defense committees 
a report describing the progress made in identifying 
technologies and concepts referred to in subsection (a). At the 
same time the report is submitted, the Secretary shall transmit 
to such committees copies of the reports (and recommendations, 
if any) received by the Secretary from the scientific 
organizations that carried out the studies referred to in 
subsection (c).

                  TITLE III--OPERATION AND MAINTENANCE

               Subtitle A--Authorization of Appropriations

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

     Subtitle B--Program Requirements, Restrictions, and Limitations

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

                  Subtitle C--Environmental Provisions

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

                Subtitle D--Information Technology Issues

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

         Subtitle E--Defense Infrastructure Support Improvement

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

   Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

                        Subtitle G--Other Matters

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

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

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

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal 
year 1999 for the use of the Armed Forces and other activities 
and agencies of the Department of Defense for providing capital 
for working capital and revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, 
        $1,076,571,000.
            (2) For the National Defense Sealift Fund, 
        $669,566,000.

SEC. 303. ARMED FORCES RETIREMENT HOME.

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

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

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. REFURBISHMENT OF M1-A1 TANKS.

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

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

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

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

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

SEC. 314. NATO COMMON-FUNDED MILITARY BUDGET.

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

                  Subtitle C--Environmental Provisions

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

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

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

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

SEC. 323. REMOVAL OF UNDERGROUND STORAGE TANKS.

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

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

    (a) Report Required.--(1) Not later than March 1, 1999, the 
Secretary of Defense shall submit to the committees specified 
in paragraph (2) a report on the status of foreign-manufactured 
polychlorinated biphenyl waste. The Secretary shall prepare the 
report in consultation with the Administrator of the 
Environmental Protection Agency and the Secretary of State.
    (2) The committees referred to in paragraph (1) are the 
following:
            (A) The Committee on Armed Services and the 
        Committee on Environment and Public Works of the 
        Senate.
            (B) The Committee on National Security, the 
        Committee on Commerce, and the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives.
    (b) Elements of Report.--The report under subsection (a) 
shall include the following:
            (1) The identity of each foreign country from which 
        the Secretary of Defense anticipates that the 
        Department of Defense will need to transport foreign-
        manufactured polychlorinated biphenyl waste into the 
        customs territory of the United States.
            (2) For each foreign country identified under 
        paragraph (1), an inventory of the type, 
        concentrations, and estimated quantity of foreign-
        manufactured polychlorinated biphenyl waste involved, 
        the reasons why disposal of the polychlorinated 
        biphenyl waste in the foreign country is not available, 
        the identity of other locations or facilities where 
        disposal of the polychlorinated biphenyl waste in an 
        environmentally sound manner is available, and the 
        availability of alternative technologies and mobile 
        units for polychlorinated biphenyl waste treatment or 
        disposal.
            (3) An accounting of all foreign-manufactured 
        polychlorinated biphenyl waste that exists as of the 
        date of the enactment of this Act and as of the date of 
        the report.
            (4) An estimate of the volume of foreign-
        manufactured polychlorinated biphenyl waste that is 
        likely to be generated annually in each of the next 
        five calendar years, and the basis for each such 
        estimate.
            (5) A description of any hazards to human health or 
        the environment posed by foreign-manufactured 
        polychlorinated biphenyl waste.
            (6) A description of any international or domestic 
        legal impediments that the Department has experienced 
        in disposing of foreign-manufactured polychlorinated 
        biphenyl waste in an environmentally sound manner.
            (7) A description of any efforts undertaken by the 
        Department to seek relief from legal impediments to the 
        disposal of foreign-manufactured polychlorinated 
        biphenylwaste, including the relief available pursuant 
to section 6(e) or 22 of the Toxic Substances Control Act (15 U.S.C. 
2605(e), 2621).
            (8) The identity of the possible disposal or 
        treatment facilities in the United States that would be 
        used if foreign-manufactured polychlorinated biphenyl 
        waste were transported into the customs territory of 
        the United States, and the method of disposal or 
        treatment at each such facility.
            (9) A description of Department policy and practice 
        concerning procurement or purchase of foreign-
        manufactured polychlorinated biphenyls or materials 
        containing foreign-manufactured polychlorinated 
        biphenyls.
    (c) Recommendations.--The report shall also include such 
recommendations as the Secretary of Defense, with the 
concurrence of the Administrator of the Environmental 
Protection Agency and the Secretary of State, considers 
necessary regarding changes to United States law to allow for 
the disposal, in an environmentally sound manner, of foreign-
manufactured polychlorinated biphenyl waste, together with a 
statement of whether and how such changes would be consistent 
with international law, including the Basel Convention on the 
Control of Transboundary Movements of Hazardous Wastes and 
Their Disposal and the Protocol to the Convention on Long-Range 
Transboundary Air Pollution on Persistent Organic Pollutants.
    (d) Definitions.--In this section:
            (1) The term ``polychlorinated biphenyl waste'' 
        means--
                    (A) polychlorinated biphenyls; and
                    (B) materials containing polychlorinated 
                biphenyls;
        that are ready for disposal.
            (2) The term ``foreign-manufactured polychlorinated 
        biphenyl waste'' means polychlorinated biphenyl waste 
        that is owned by the Department of Defense and situated 
        outside of the United States and that consists of--
                    (A) polychlorinated biphenyls; or
                    (B) materials containing polychlorinated 
                biphenyls;
        that were manufactured outside of the United States.

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

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

SEC. 326. SUBMARINE SOLID WASTE CONTROL.

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

SEC. 327. ARCTIC MILITARY ENVIRONMENTAL COOPERATION PROGRAM.

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

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

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

               Subtitle D--Information Technology Issues

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

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

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

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

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

    (b) Effective Date.--Section 2223 of title 10, United 
States Code, as added by subsection (a), shall take effect on 
October 1, 1998.

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

    (a) Electronic Mall System Defined.--In this section, the 
term ``electronic mall system'' means an electronic system for 
displaying, ordering, and purchasing supplies and materiel 
available from sources within the Department of Defense and 
from the private sector.
    (b) Development and Management.--(1) Using systems and 
technology available in the Department of Defense as of the 
date of the enactment of this Act, the Joint Electronic 
Commerce Program Office of the Department of Defense shall 
develop a single, defense-wide electronic mall system, which 
shall provide a single, defense-wide electronic point of entry 
and a single view, access, and ordering capability for all 
Department of Defense electronic catalogs. The Secretary of 
each military department and the head of each Defense Agency 
shall provide to the Joint Electronic Commerce Program Office 
thenecessary and requested data to ensure compliance with this 
paragraph.
    (2) The Defense Logistics Agency, under the direction of 
the Joint Electronic Commerce Program Office, shall be 
responsible for maintaining the defense-wide electronic mall 
system developed under paragraph (1).
    (c) Role of Chief Information Officer.--The Chief 
Information Officer of the Department of Defense shall be 
responsible for--
            (1) overseeing the elimination of duplication and 
        overlap among Department of Defense electronic 
        catalogs; and
            (2) ensuring that such catalogs utilize 
        technologies and formats compliant with the 
        requirements of subsection (b).
    (d) Implementation.--Within 180 days after the date of the 
enactment of this Act, the Chief Information Officer shall 
develop and provide to the congressional defense committees--
            (1) an inventory of all existing and planned 
        electronic mall systems in the Department of Defense; 
        and
            (2) a schedule for ensuring that each such system 
        is compliant with the requirements of subsection (b).

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

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

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

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

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

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

         Subtitle E--Defense Infrastructure Support Improvement

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

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

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

    (a) In General.--Section 2461 of title 10, United States 
Code, is amended--
            (1) by redesignating subsections (c) and (g) as 
        subsections (g) and (h), respectively, and transferring 
        subsection (g), as so redesignated, to appear after 
        subsection (f); and
            (2) by striking out subsections (a) and (b) and 
        inserting in lieu thereof the following new 
        subsections:
    ``(a) Reporting and Analysis Requirements as Precondition 
to Change in Performance.--A commercial or industrial type 
function of the Department of Defense that, as of October 1, 
1980, was being performed by Department of Defense civilian 
employees may not be changed to performance by the private 
sector until the Secretary of Defense fully complies with the 
reporting and analysis requirements specified in subsections 
(b) and (c).
    ``(b) Notification and Elements of Analysis.--(1) Before 
commencing to analyze a commercial or industrial type function 
described in subsection (a) for possible change to performance 
by the private sector, the Secretary of Defense shall submit to 
Congress a report containing the following:
            ``(A) The function to be analyzed for possible 
        change.
            ``(B) The location at which the function is 
        performed by Department of Defense civilian employees.
            ``(C) The number of civilian employee positions 
        potentially affected.
            ``(D) The anticipated length and cost of the 
        analysis.
            ``(E) A certification that a proposed performance 
        of the commercial or industrial type function by 
        persons who are not civilian employees of the 
        Department of Defense is not a result of a decision by 
        an official of a military department or Defense Agency 
        to impose predetermined constraints or limitations on 
        such employees in terms of man years, end strengths, 
        full-time equivalent positions, or maximum number of 
        employees.
    ``(2) The duty to prepare a report under paragraph (1) may 
be delegated. A report prepared below the major command or 
claimant level of a military department, or below the 
equivalent level in a Defense Agency, pursuant to any such 
delegation shall be reviewed at the major command, claimant 
level, or equivalent level, as the case may be, before 
submission to Congress.
    ``(3) An analysis of a commercial or industrial type 
function for possible change to performance by the private 
sector shall include the following:
            ``(A) An examination of the cost of performance of 
        the function by Department of Defense civilian 
        employees and by one or more private contractors to 
        demonstrate whether change to performance by the 
        private sector will result in savings to the Government 
        over the life of the contract, including in the 
        examination the following:
                    ``(i) The cost to the Government, estimated 
                by the Secretary of Defense (based on offers 
                received), for performance of the function by 
                the private sector.
                    ``(ii) The estimated cost to the Government 
                of Department of Defense civilian employees 
                performing the function.
                    ``(iii) In addition to the costs referred 
                to in clause (i), an estimate of all other 
                costs and expenditures that the Government 
                would incur because of the award of such a 
                contract.
            ``(B) An examination of the potential economic 
        effect of performance of the function by the private 
        sector on the following:
                    ``(i) Employees of the Department of 
                Defense who would be affected by such a change 
                in performance.
                    ``(ii) The local community and the 
                Government, if more than 75 employees of the 
                Department of Defense perform the function.
            ``(C) An examination of the effect of performance 
        of the function by the private sector on the military 
        mission associated with the performance of the 
        function.
    ``(4)(A) A representative individual or entity at a 
facility where a commercial or industrial type function is 
analyzed for possible change in performance may submit to the 
Secretary of Defense an objection to the analysis on the 
grounds that the report required by paragraph (1) has not been 
submitted or that the certification required by paragraph 
(1)(E) is not included in the report submitted as a condition 
for the analysis. The objection shall be in writing and shall 
be submitted within 90 days after the following date:
            ``(i) In the case of a failure to submit the report 
        when required, the date on which the representative 
        individual or an official of the representative entity 
        authorized to pose the objection first knew or should 
        have known of that failure.
            ``(ii) In the case of a failure to include the 
        certification in a submitted report, the date on which 
        the report was submitted to Congress.
    ``(B) If the Secretary determines that the report required 
by paragraph (1) was not submitted or that the required 
certification was not included in the submitted report, the 
commercial or industrial type function covered by the analysis 
to which objected may not be the subject of a solicitation of 
offers for, or award of, a contract until, respectively, the 
report is submitted or a report containing the certification in 
full compliance with the certification requirement is 
submitted.
    ``(c) Notification of Decision.--(1) If, as a result of the 
completion of the examinations under subsection (b)(3), a 
decision is made to change the commercial or industrial type 
function that was the subject of the analysis to performance by 
the private sector, the Secretary of Defense shall submit to 
Congress a report describing that decision. The report shall 
contain the following:
            ``(A) An indication that the examinations required 
        under subsection (b)(3) have been completed.
            ``(B) The Secretary's certification that the 
        Government calculation of the cost of performance of 
        the function by Department of Defense civilian 
        employees is based on an estimate of the most cost 
        effective manner for performance of the function by 
        Department of Defense civilian employees.
            ``(C) The Secretary's certification that the 
        examination required by subsection (b)(3)(A) as part of 
        the analysis demonstrates that the performance of the 
        function by the private sector will result in savings 
        to the Government over the life of the contract.
            ``(D) The Secretary's certification that the entire 
        analysis is available for examination.
            ``(E) A schedule for completing the change to 
        performance of the function by the private sector.
    ``(2) The change of the function to contractor performance 
may not begin until after the submission of the report required 
by this subsection.''.
    (b) Definition of Small Function for Waiver Purposes.--
Subsection (d) of section 2461 of title 10, United States Code, 
is amended by striking out ``20'' and inserting in lieu thereof 
``50''.
    (c) Conforming Amendments.--(1) Subsections (d) and (e) of 
section 2461 of title 10, United States Code, are amended by 
inserting ``and subsection (g)'' after ``Subsections (a) 
through (c)''.
    (2) Subsections (e)(2) and (f)(1) of such section are 
amended by striking out ``converted'' and inserting in lieu 
thereof ``changed''.
    (3) Subsection (f)(2) of such section is amended by 
striking out ``conversion'' and inserting in lieu thereof 
``change''.
    (d) Effective Date.--The amendments made by this section 
shall take effect on the date of the enactment of this Act, but 
the amendments shall not apply with respect to a conversion of 
a function of the Department of Defense to performance by a 
private contractor concerning which the Secretary of Defense 
provided to Congress, before the date of the enactment of this 
Act, a notification under paragraph (1) of section 2461(a) of 
title 10, United States Code, as in effect on the day before 
the date of the enactment of this Act.

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

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

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

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

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

    (a) Definitions.--In this section:
            (1) The term ``contractor-operated civil 
        engineering supply store'' means a Government-owned 
        facility that, as of the date of the enactment of this 
        Act, is operated by a contractor under the contractor-
        operated civil engineering supply store program of the 
        Department of the Air Force (known as the ``COCESS 
        program'') for the purpose of--
                    (A) maintaining inventories of civil 
                engineering supplies on behalf of a military 
                department; and
                    (B) furnishing such supplies to the 
                department as needed.
            (2) The term ``civil engineering supplies'' means 
        parts and supplies needed for the repair and 
        maintenance of military installations.
    (b) Findings.--Congress finds the following:
            (1) In 1970, the Strategic Air Command of the Air 
        Force began to use contractor-operated civil 
        engineering supply stores to improve the efficiency and 
        effectiveness of materials management and relieve the 
        Air Force from having to maintain large inventories of 
        civil engineering supplies.
            (2) Contractor-operated civil engineering supply 
        stores are designed to support the civil engineering 
        and public works efforts of the Armed Forces through 
        the provision of quality civil engineering supplies at 
        competitive prices and within a reasonable period of 
        time.
            (3) Through the use of a contractor-operated civil 
        engineering supply store, a guaranteed inventory level 
        of civil engineering supplies is maintained at a 
        military installation, which ensures that urgently 
        needed civil engineering supplies are available on 
        site.
            (4) The contractor operating the contractor-
        operated civil engineering supply store is an 
        independent business organization whose customer is a 
        military department and the Armed Forces and who is 
        subject to all the rules of private business and the 
        regulations of the Government.
            (5) The use of contractor-operated civil 
        engineering supply stores ensures the best price and 
        best buy for the Government.
            (6) Ninety-five percent of the cost savings 
        realized through the use of contractor-operated civil 
        engineering supply stores is due to savings in the cost 
        of actually procuring supplies.
            (7) In the past 30 years, private contractors have 
        never lost a cost comparison conducted pursuant to the 
        criteria set forth in Office of Management and Budget 
        Circular A-76 for the provision of civil engineering 
        supplies to the Government.
    (c) Conditions on Multi-Function Contracts.--A civil 
engineering supplies function that is performed, as of the date 
of the enactment of this Act, by a contractor-operated civil 
engineering supply store may not be combined with another 
supply function or any service function, including any base 
operating support function, for purposes of competition or 
contracting, until 60 days after the date on which the 
Secretary of Defense submits to Congress a report--
            (1) notifying Congress of the proposed combined 
        competition or contract; and
            (2) explaining why a combined competition or 
        contract is the best method by which to achieve cost 
        savings and efficiencies to the Government.
    (d) GAO Reviews.--Not later than 50 days after the date on 
which the Secretary of Defense submits a report to Congress 
under subsection (c), the Comptroller General shall review the 
report and submit to Congress a briefing regarding whether the 
cost savings and efficiencies identified in the report are 
achievable.
    (e) Relationship to Other Laws.--If a civil engineering 
supplies function covered by subsection (c) is proposed for 
combination with a supply or service function that is subject 
tothe study and reporting requirements of section 2461 of title 
10, United States Code, the Secretary of Defense may include the report 
required under subsection (c) as part of the report under such section.

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

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

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

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

SEC. 348. PERSONNEL REDUCTIONS IN ARMY MATERIEL COMMAND.

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

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

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

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

    (a) Review Required.--The Secretary of Defense shall 
provide for a review of the functions of the Defense Automated 
Printing Service in accordance with this section and shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
the matters required under subsection (f) not later than March 
31, 1999.
    (b) Performance by Independent Entity.--The Secretary of 
Defense shall select the General Accounting Office, an 
experienced entity in the private sector, or any other entity 
outside the Department of Defense to perform the review under 
this section. The Comptroller General shall perform the review 
if the Secretary selects the Comptroller General to do so.
    (c) Consultation.--Regardless of the entity selected by the 
Secretary under subsection (b) to perform the review, the 
entity shall perform the review in consultation with persons in 
the private sector who have expertise and experience in 
performingin the private sector functions similar to the 
functions performed by the Defense Automated Printing Service. If such 
a person obtains any privileged information (as defined by the 
Secretary of Defense) as a result of participating in the review, the 
person may not receive a contract, either through the Department of 
Defense or the Government Printing Office, to provide services for the 
Department of Defense similar to the functions performed by the Defense 
Automated Printing Service for a one-year period beginning on the date 
the report is submitted to the Secretary of Defense under subsection 
(e).
    (d) Elements of Review.--In performing the review under 
this section, the entity selected under subsection (b) shall 
specifically address the following:
            (1) The functions performed by the Defense 
        Automated Printing Service.
            (2) The functions of the Defense Automated Printing 
        Service that are inherently national security functions 
        and, as such, need to be performed within the 
        Department of Defense.
            (3) The functions of the Defense Automated Printing 
        Service that are appropriate for transfer to another 
        appropriate entity to perform, including a private 
        sector entity.
            (4) The appropriate management structure of the 
        Defense Automated Printing Service, the effectiveness 
        of the current structure of the Defense Automated 
        Printing Service in supporting current and future 
        customer requirements, and any plans to address any 
        deficiencies in supporting such requirements.
            (5) The current and future requirements of 
        customers of the Defense Automated Printing Service.
            (6) The best business practices that are used by 
        the Defense Automated Printing Service and other best 
        business practices that could be used by the Defense 
        Automated Printing Service.
            (7) Options for maximizing the Defense Automated 
        Printing Service structure and services to provide the 
        most cost effective service to its customers.
    (e) Report on Results of Review.--The entity performing the 
review under this section shall submit to the Secretary of 
Defense a report that sets forth the results of the review. In 
addition to specifically addressing the matters specified in 
subsection (d), the report shall also include the following:
            (1) A list of all sites where functions of the 
        Defense Automated Printing Service are performed by the 
        Defense Automated Printing Service.
            (2) The total number of the personnel employed by 
        the Defense Automated Printing Service and the 
        locations where the personnel perform the duties as 
        employees.
            (3) For each site identified under paragraph (1), 
        an assessment of each type of equipment at the site.
            (4) The types and explanation of the networking and 
        technology integration linking all of the sites 
        referred to in paragraph (1).
            (5) For each function of the Defense Automated 
        Printing Service determined to be an inherently 
        national security function under subsection (d)(2), a 
        detailed justification for the determination.
            (6) For each function of the Defense Automated 
        Printing Service determined to be appropriate for 
        transfer under subsection (d)(3), a detailed assessment 
        of the costs or savings associated with the transfer.
    (f) Review and Comments of Secretary of Defense.--(1) After 
reviewing the report submitted under subsection (e), the 
Secretary of Defense shall submit the report to Congress. The 
Secretary shall include with the report the following:
            (1) The Secretary's comments and recommendations 
        regarding the report.
            (2) A plan to transfer to another appropriate 
        entity, or contract with another appropriate entity 
        for, the performance of the functions of the Defense 
        Automated Printing Service that--
                    (A) are not identified in the review as 
                being inherently national security functions; 
                and
                    (B) the Secretary believes should be 
                transferred or contracted for performance 
                outside the Department of Defense in accordance 
                with law.
            (3) Any recommended legislation and any 
        administrative action that is necessary for 
        transferring or contracting for the performance of the 
        functions.
    (g) Extension of Requirement for Competitive Procurement of 
Services.--Section 351(a) of the National Defense Authorization 
Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 266), 
as amended by section 351(a) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 
Stat. 2490) and section 387(a)(1) of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1713), is further amended by striking out ``1998'' and 
inserting in lieu thereof ``1999''.

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

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

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

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

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

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

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

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

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

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

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

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

    (e) Clerical Amendment.--The table of sections at the 
beginning of chapter 54 of such title is amended by striking 
out the items relating to sections 1063 and 1064 and inserting 
in lieu thereof the following items:

``1063. Use of commissary stores: members of Ready Reserve with at least 
          50 creditable points.
``1063a. Use of commissary stores and MWR retail facilities: members of 
          National Guard serving in federally declared disaster.
``1064. Use of commissary stores: persons qualified for retired pay 
          under chapter 1223 but under age 60.''.

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

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

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

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

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

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

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

    ``(a) General Authority.--(1) The Secretary of Defense may 
establish restrictions on the ability of eligible patrons of 
commissary and exchange stores located outside of the United 
States to purchase certain merchandise items (or the quantity 
of certain merchandise items) otherwise included within an 
authorized merchandise category if the Secretary determines 
that such restrictions are necessary to prevent the resale of 
such merchandise in violation of treaty obligations of the 
United States or host nation laws (to the extent such laws are 
not inconsistent with United States laws).
    ``(2) In establishing a quantity or other restriction, the 
Secretary--
            ``(A) may not discriminate among the various 
        categories of eligible patrons of the commissary and 
        exchange system; and
            ``(B) shall ensure that the restriction is 
        consistent with the purpose of the overseas commissary 
        and exchange system to provide reasonable access for 
        eligible patrons to purchase merchandise items made in 
        the United States.
    ``(b) Controlled Item Lists.--For each location outside the 
United States that is served by the commissary system or the 
exchange system, the Secretary of Defense may maintaina list of 
controlled merchandise items, except that, after the date of the 
enactment of this section, the Secretary may not change the list to add 
a merchandise item unless, before making the change, the Secretary 
submits to Congress a notice of the proposed addition and the reasons 
for the addition of the item.
    ``(c) Annual Report.--The Secretary of Defense shall submit 
to Congress an annual report describing the host nation laws 
and the treaty obligations of the United States, and the 
conditions within host nations, that necessitate the use of 
quantity or other restrictions on purchases in commissary and 
exchange stores located outside the United States.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

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

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

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

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

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

SEC. 368. DEFENSE COMMISSARY AGENCY TELECOMMUNICATIONS.

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

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

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

                       Subtitle G--Other Matters

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

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

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

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

SEC. 373. DEPARTMENT OF DEFENSE READINESS REPORTING SYSTEM.

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

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

    ``(a) Required Readiness Reporting System.--The Secretary 
of Defense shall establish a comprehensive readiness reporting 
system for the Department of Defense. The readiness reporting 
system shall measure in an objective, accurate, and timely 
manner the capability of the armed forces to carry out--
            ``(1) the National Security Strategy prescribed by 
        the President in the most recent annual national 
        security strategy report under section 108 of the 
        National Security Act of 1947 (50 U.S.C. 404a);
            ``(2) the defense planning guidance provided by the 
        Secretary of Defense pursuant to section 113(g) of this 
        title; and
            ``(3) the National Military Strategy prescribed by 
        the Chairman of the Joint Chiefs of Staff.
    ``(b) Readiness Reporting System Characteristics.--In 
establishing the readiness reporting system, the Secretary 
shall ensure--
            ``(1) that the readiness reporting system is 
        applied uniformly throughout the Department of Defense;
            ``(2) that information in the readiness reporting 
        system is continually updated, with any change in the 
        overall readiness status of a unit, an element of the 
        training establishment, or an element of defense 
        infrastructure, that is required to be reported as part 
        of the readiness reporting system, being reported 
        within 24 hours of the event necessitating the change 
        in readiness status; and
            ``(3) that sufficient resources are provided to 
        establish and maintain the system so as to allow 
        reporting of changes in readiness status as required by 
        this section.
    ``(c) Capabilities.--The readiness reporting system shall 
measure such factors relating to readiness as the Secretary 
prescribes, except that the system shall include the capability 
to do each of the following:
            ``(1) Measure, on a monthly basis, the capability 
        of units (both as elements of their respective armed 
        force and as elements of joint forces) to conduct their 
        assigned wartime missions.
            ``(2) Measure, on a quarterly basis, the capability 
        of training establishments to provide trained and ready 
        forces for wartime missions.
            ``(3) Measure, on a quarterly basis, the capability 
        of defense installations and facilities and other 
        elements of Department of Defense infrastructure, both 
        in the United States and abroad, to provide appropriate 
        support to forces in the conduct of their wartime 
        missions.
            ``(4) Measure, on a monthly basis, critical 
        warfighting deficiencies in unit capability.
            ``(5) Measure, on a quarterly basis, critical 
        warfighting deficiencies in training establishments and 
        defense infrastructure.
            ``(6) Measure, on a monthly basis, the level of 
        current risk based upon the readiness reporting system 
        relative to the capability of forces to carry out their 
        wartime missions.
    ``(d) Quarterly and Monthly Joint Readiness Reviews.--(1) 
The Chairman of the Joint Chiefs of Staff shall--
            ``(A) on a quarterly basis, conduct a joint 
        readiness review; and
            ``(B) on a monthly basis, review any changes that 
        have been reported in readiness since the previous 
        joint readiness review.
    ``(2) The Chairman shall incorporate into both the joint 
readiness review required under paragraph (1)(A) and the 
monthly review required under paragraph (1)(B) the current 
information derived from the readiness reporting system and 
shall assess the capability of the armed forces to execute 
their wartime missions based upon their posture at the time the 
review is conducted. The Chairman shall submit to the Secretary 
of Defense the results of each review under paragraph (1), 
including the deficiencies in readiness identified during that 
review.
    ``(e) Submission to Congressional Committees.--The 
Secretary shall each month submit to the Committee on Armed 
Services and the Committee on Appropriations of the Senate and 
the Committee on National Security and the Committee on 
Appropriations of the House of Representatives a report in 
writing containing the results of the most recent joint 
readiness review or monthly review conducted under subsection 
(d), including the current information derived from the 
readiness reporting system. Each such report shall be submitted 
in unclassified form and may, as the Secretary determines 
necessary, also be submitted in classified form.
    ``(f) Regulations.--The Secretary shall prescribe 
regulations to carry out this section. In those regulations, 
the Secretary shall prescribe the units that are subject to 
reporting in the readiness reporting system, what type of 
equipment is subject to such reporting, and the elements of the 
training establishment and of defense infrastructure that are 
subject to such reporting.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 116 
the following new item:

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

    (b) Implementation.--The Secretary of Defense shall 
establish and implement the readiness reporting system required 
by section 117 of title 10, United States Code, as added by 
subsection (a), so as to ensure that the capabilities required 
by subsection (c) of that section are attained not later than 
January 15, 2000.
    (c) Implementation Plan.--Not later than March 1, 1999, the 
Secretary of Defense shall submit to Congress a report setting 
forth the Secretary's plan for implementation ofsection 117 of 
title 10, United States Code, as added by subsection (a).
    (d) Repeal of Quarterly Readiness Report Requirement.--(1) 
Effective January 15, 2000, or the date on which the first 
report of the Secretary of Defense is submitted under section 
117(e) of title 10, United States Code, as added by subsection 
(a), whichever is later, the Secretary of Defense shall cease 
to submit reports under section 482 of title 10, United States 
Code.
    (2) Effective June 1, 2001--
            (A) section 482 of title 10, United States Code, is 
        repealed; and
            (B) the table of sections at the beginning of 
        chapter 23 of such title is amended by striking out the 
        item relating to that section.

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

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

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

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

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

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

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

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

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

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

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

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

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                        Subtitle A--Active Forces

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

                       Subtitle B--Reserve Forces

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

               Subtitle C--Authorization of Appropriations

Sec. 421. Authorization of appropriations for military personnel.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

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

SEC. 402. REVISION IN PERMANENT END STRENGTH LEVELS.

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

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

    The minimum number of military technicians (dual status) as 
of the last day of fiscal year 1999 for the reserve components 
of the Army and the Air Force (notwithstanding section 129 of 
title 10, United States Code) shall be the following:
            (1) For the Army Reserve, 5,395.
            (2) For the Army National Guard of the United 
        States, 23,125.
            (3) For the Air Force Reserve, 9,761.
            (4) For the Air National Guard of the United 
        States, 22,408.

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

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

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

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

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

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

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

    Section 12004(c) of title 10, United States Code, is 
amended--
            (1) in the table in paragraph (1)--
                    (A) by striking out the item relating to 
                the Medical Corps and inserting in lieu thereof 
                the following:

    ``Medical Department staff corps..............................  9'';

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

              Subtitle C--Authorization of Appropriations

SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILITARY PERSONNEL.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

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

                  Subtitle B--Reserve Component Matters

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

               Subtitle C--Military Education and Training

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

           Subtitle D--Decorations, Awards, and Commendations

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

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

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

                           Subtitle F--Reports

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

                        Subtitle G--Other Matters

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

                  Subtitle A--Officer Personnel Policy

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

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

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

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

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

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

``1184. Removal of officer: action by Secretary upon recommendation of 
          board of inquiry.''.

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

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

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

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

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

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

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

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

                 Subtitle B--Reserve Component Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

              Subtitle C--Military Education and Training

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

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

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

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

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

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

                   ``CHAPTER 602--TRAINING GENERALLY

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

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

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

``602. Training Generally........................................6931''.

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

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

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

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

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

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

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

``Sec. 4320. Recruit basic training: privacy

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

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

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

``Sec. 6932. Recruit basic training: privacy

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

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

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

``Sec. 9320. Recruit basic training: privacy

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

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

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

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

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

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

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

SEC. 525. IMPROVED OVERSIGHT OF INNOVATIVE READINESS TRAINING.

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

           Subtitle D--Decorations, Awards, and Commendations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 541. PERSONNEL FREEZE.

    (a) Limitation.--During fiscal years 1999, 2000, and 2001, 
the Secretary of a military department may not carry out any 
reduction in the number of military and civilian personnel 
assigned to duty with the service review agency for that 
military department below the baseline number for that agency 
until--
            (1) the Secretary submits to Congress a report that 
        describes the reduction proposed to be made, provides 
        the Secretary's rationale for that reduction, and 
        specifies the number of such personnel that would be 
        assigned to duty with that agency after the reduction; 
        and
            (2) a period of 90 days has elapsed after the date 
        on which such report is submitted.
    (b) Baseline Number.--The baseline number for a service 
review agency under this section is--
            (1) for purposes of the first report with respect 
        to a service review agency under this section, the 
        number of military and civilian personnel assigned to 
        duty with that agency as of October 1, 1997; and
            (2) for purposes of any subsequent report with 
        respect to a service review agency under this section, 
        the number of such personnel specified in the most 
        recent report with respect to that agency under this 
        section.
    (c) Service Review Agency Defined.--In this section, the 
term ``service review agency'' means--
            (1) with respect to the Department of the Army, the 
        Army Review Boards Agency;
            (2) with respect to the Department of the Navy, the 
        Board for Correction of Naval Records; and
            (3) with respect to the Department of the Air 
        Force, the Air Force Review Boards Agency.

SEC. 542. PROFESSIONAL STAFF.

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

``Sec. 1555. Professional staff

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

``1555. Professional staff.''.

    (b) Effective Date.--Section 1555 of title 10, United 
States Code, as added by subsection (a), shall take effect 180 
days after the date of the enactment of this Act.

SEC. 543. EX PARTE COMMUNICATIONS.

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

``Sec. 1556. Ex parte communications prohibited

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

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

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

SEC. 544. TIMELINESS STANDARDS.

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

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

    ``(a) Ten-Month Clearance Percentage.--Of the applications 
received by a Corrections Board during a period specified in 
the following table, the percentage on which final action by 
the Corrections Board must be completed within 10 months of 
receipt (other than for those applications considered suitable 
for administrative correction) is as follows:
                    The percentage on which final
``For applications    Correction Board action
  received during--    must be completed within
                      10 months of receipt is--
    the period of fiscal years 2001 and 2002..................      50  
    the period of fiscal years 2003 and 2004..................      60  
    the period of fiscal years 2005, 2006, and 2007...........      70  
    the period of fiscal years 2008, 2009, and 2010...........      80  
    the period of any fiscal year after fiscal year 2010......     90.  
    ``(b) Clearance Deadline for All Applications.--Effective 
October 1, 2002, final action by a Corrections Board on all 
applications received by the Corrections Board (other than 
those applications considered suitable for administrative 
correction) shall be completed within 18 months of receipt.
    ``(c) Waiver Authority.--The Secretary of the military 
department concerned may exclude an individual application from 
the timeliness standards prescribed in subsections (a) and (b) 
if the Secretary determines that the application warrants a 
longer period of consideration. The authority of the Secretary 
of a military department under this subsection may not be 
delegated.
    ``(d) Failure To Meet Timeliness Standards Not To Affect 
Any Individual Application.--Failure of a Corrections Board to 
meet the applicable timeliness standard for any period of time 
under subsection (a) or (b) does not confer any presumption or 
advantage with respect to consideration by the board of any 
application.
    ``(e) Reports on Failure To Meet Timeliness Standards.--The 
Secretary of the military department concerned shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
not later than June 1 following any fiscal year during which 
the Corrections Board of that Secretary's military department 
was unable to meet the applicable timeliness standard for that 
fiscal year under subsections (a) and (b). The report shall 
specify the reasons why the standard could not be met and the 
corrective actions initiated to ensure compliance in the 
future. The report shall also specify the number of waivers 
granted under subsection (c) during that fiscal year.
    ``(f) Corrections Board Defined.--In this section, the term 
`Corrections Board' means--
            ``(1) with respect to the Department of the Army, 
        the Army Board for Correction of Military Records;
            ``(2) with respect to the Department of the Navy, 
        the Board for Correction of Naval Records; and
            ``(3) with respect to the Department of the Air 
        Force, the Air Force Board for Correction of Military 
        Records.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding after the item 
relating to section 1556, as added by section 543(a)(2), the 
following new item:

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

SEC. 545. SCOPE OF CORRECTION OF MILITARY RECORDS.

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

                          Subtitle F--Reports

SEC. 551. REPORT ON PERSONNEL RETENTION.

    (a) Report Required.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
submit to Congress a report containing information on the 
retention of members of the Armed Forces on active duty in the 
combat, combat support, and combat service support forces of 
the Army, Navy, Air Force, and Marine Corps.
    (b) Required Information.--The Secretary shall include in 
the report information on retention of members with military 
occupational specialties (or the equivalent) in combat, combat 
support, or combat service support positions in each of the 
Army, Navy, Air Force, and Marine Corps. Such information shall 
be shown by pay grade and shall be aggregated by enlisted 
grades and officers grades and shall be shown by military 
occupational specialty (or the equivalent). The report shall 
set forth separately (in numbers and as a percentage) the 
number of members separated during each such fiscal year who 
terminate service in the Armed Forces completely and the number 
who separate from active duty by transferring into a reserve 
component.
    (c) Years Covered by Report.--The report shall provide the 
information required in the report, shown on a fiscal year 
basis, for each of fiscal years 1989 through 1998.

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

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

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

    (a) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report, to be prepared by the General Counsel of the 
Department of Defense, concerning the decision of theSecretary 
of the Army in 1994 to transfer approximately 500 prisoners from the 
United States Disciplinary Barracks, Fort Leavenworth, Kansas, to the 
Federal Bureau of Prisons.
    (b) Matters To Be Included.--The Secretary shall include in 
the report the following:
            (1) A description of the basis for the selection of 
        prisoners to be transferred, particularly in light of 
        the fact that many of the prisoners transferred are 
        minimum or medium security prisoners, who are 
        considered to have the best chance for rehabilitation, 
        and whether the transfer of those prisoners indicates a 
        change in Department of Defense policy regarding the 
        rehabilitation of military prisoners.
            (2) A comparison of the historical recidivism rates 
        of prisoners released from the United States 
        Disciplinary Barracks and the Federal Bureau of 
        Prisons, together with a description of any plans of 
        the Army to track the parole and recidivism rates of 
        prisoners transferred to the Federal Bureau of Prisons 
        and whether it has tracked those factors for previous 
        transferees.
            (3) A description of the projected future flow of 
        prisoners into the new United States Disciplinary 
        Barracks being constructed at Fort Leavenworth, Kansas, 
        and whether the Secretary of the Army plans to 
        automatically send new prisoners to the Federal Bureau 
        of Prisons without serving at the United States 
        Disciplinary Barracks if that Barracks is at capacity 
        and whether the Memorandum of Understanding between the 
        Federal Bureau of Prisons and the Army covers that 
        possibility.
            (4) A description of the cost of incarcerating a 
        prisoner in the Federal Bureau of Prisons compared to 
        the United States Disciplinary Barracks and the 
        assessment of the Secretary as to the extent to which 
        the transfer of prisoners to the Federal Bureau of 
        Prisons by the Secretary of the Army is made in order 
        to shift a budgetary burden.
    (c) Monitoring.--During fiscal years 1999 through 2003, the 
Secretary of the Army shall track the parole and recidivism 
rates of prisoners transferred from the United States 
Disciplinary Barracks, Fort Leavenworth, Kansas, to the Federal 
Bureau of Prisons.

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

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

                       Subtitle G--Other Matters

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

    (a) Early Retirement Authority for Active Force Members.--
Section 4403(i) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 1293 note) is amended by striking 
out ``October 1, 1999'' and inserting in lieu thereof ``October 
1, 2001''.
    (b) SSB and VSI.--Sections 1174a(h) and 1175(d)(3) of title 
10, United States Code, are amended by striking out ``September 
30, 1999'' and inserting in lieu thereof ``September 30, 
2001''.
    (c) Selective Early Retirement Boards.--Section 638a(a) of 
such title is amended by striking out ``during the nine-year 
period beginning on October 1, 1990'' and inserting in lieu 
thereof ``during the period beginning on October 1, 1990, and 
ending on September 30, 2001''.
    (d) Time-in-Grade Requirement for Retention of Grade Upon 
Voluntary Retirement.--Section 1370(a)(2)(A) of such title is 
amended by striking out ``during the nine-year period beginning 
on October 1, 1990'' and inserting in lieu thereof ``during the 
period beginning on October 1, 1990, and ending on September 
30, 2001''.
    (e) Minimum Commissioned Service for Voluntary Retirement 
as an Officer.--Sections 3911(b), 6323(a)(2), and 8911(b) of 
such title are amended by striking out ``during the nine-year 
period beginning on October 1, 1990'' and inserting in lieu 
thereof ``during the period beginning on October 1, 1990, and 
ending on September 30, 2001''.
    (f) Travel, Transportation, and Storage Benefits.--Sections 
404(c)(1)(C), 404(f)(2)(B)(v), 406(a)(2)(B)(v), and 
406(g)(1)(C) of title 37, United States Code, and section 
503(c) of the National Defense Authorization Act for Fiscal 
Year 1991 (37 U.S.C. 406 note) are amended by striking out 
``during the nine-year period beginning on October 1, 1990'' 
and inserting in lieu thereof ``during the period beginning on 
October 1, 1990, and ending on September 30, 2001''.
    (g) Educational Leave for Public and Community Service.--
Section 4463(f) of the National Defense Authorization Act for 
Fiscal Year 1993 (10 U.S.C. 1143a note) is amended by striking 
out ``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2001''.
    (h) Transitional Health Benefits.--Section 1145 of title 
10, United States Code, is amended--
            (1) in subsections (a)(1) and (c)(1), by striking 
        out ``during the nine-year period beginning on October 
        1, 1990'' and inserting in lieu thereof ``during the 
        period beginning on October 1, 1990, and ending on 
        September 30, 2001''; and
            (2) in subsection (e), by striking out ``during the 
        five-year period beginning on October 1, 1994'' and 
        inserting in lieu thereof ``during the period beginning 
        on October 1, 1994, and ending on September 30, 2001''.
    (i) Transitional Commissary and Exchange Benefits.--Section 
1146 of such title is amended--
            (1) by striking out ``during the nine-year period 
        beginning on October 1, 1990'' and inserting in lieu 
        thereof ``during the period beginning on October 1, 
        1990, and ending on September 30, 2001''; and
            (2) by striking out ``during the five-year period 
        beginning on October 1, 1994'' and inserting in lieu 
        thereof ``during the period beginning on October 1, 
        1994, and ending on September 30, 2001''.
    (j) Transitional Use of Military Housing.--Section 1147(a) 
of such title is amended--
            (1) in paragraph (1), by striking out ``during the 
        nine-year period beginning on October 1, 1990'' and 
        inserting in lieu thereof ``during the period beginning 
        on October 1, 1990, and ending on September 30, 2001''; 
        and
            (2) in paragraph (2), by striking out ``during the 
        five-year period beginning on October 1, 1994'' and 
        inserting in lieu thereof ``during the period beginning 
        on October 1, 1994, and ending on September 30, 2001''.
    (k) Continued Enrollment of Dependents in Defense 
Dependents' Education System.--Section 1407(c)(1) of the 
Defense Dependents' Education Act of 1978 (20 U.S.C. 926(c)(1)) 
is amended by striking out ``during the nine-year period 
beginning on October 1, 1990'' and inserting in lieu thereof 
``during the period beginning on October 1, 1990, and ending on 
September 30, 2001''.
    (l) Force Reduction Transition Period Definition.--Section 
4411 of the National Defense Authorization Act for Fiscal Year 
1993 (10 U.S.C. 12681 note) is amended by striking out 
``September 30, 1999'' and inserting in lieu thereof 
``September 30, 2001''.
    (m) Temporary Special Authority for Force Reduction Period 
Retirements.--Section 4416(b)(1) of the National Defense 
Authorization Act for Fiscal Year 1993 (10 U.S.C. 12681 note) 
is amended by striking out ``October 1, 1999'' and inserting in 
lieu thereof ``October 1, 2001''.
    (n) Retired Pay for Non-Regular Service.--(1) Section 
12731(f) of title 10, United States Code, is amended by 
striking out ``September 30, 1999'' and inserting in lieu 
thereof ``September 30, 2001''.
    (2) Section 12731a of such title is amended in subsections 
(a)(1)(B) and (b) by striking out ``October 1, 1999'' and 
inserting in lieu thereof ``October 1, 2001''.
    (o) Reduction of Time-in-Grade Requirement for Retention of 
Grade Upon Voluntary Retirement.--Section 1370(d) of such title 
is amended by adding at the end the following new paragraph:
    ``(5) The Secretary of Defense may authorize the Secretary 
of a military department to reduce the three-year period 
required by paragraph (3)(A) to a period not less than two 
years in the case of retirements effective during the period 
beginning on the date of the enactment of this paragraph and 
ending on September 30, 2001. The number of reserve 
commissioned officers of an armed force in the same grade for 
whom a reduction is made during any fiscal year in the period 
of service-in-grade otherwise required under this paragraph may 
not exceed the number equal to two percent of the strength 
authorized for that fiscal year for reserve commissioned 
officers of that armed force in an active status in that 
grade.''.
    (p) Affiliation With Guard and Reserve Units; Waiver of 
Certain Limitations.--Section 1150(a) of such title is amended 
by striking out ``during the nine-year period beginning on 
October 1, 1990'' and inserting in lieu thereof ``during the 
period beginning on October 1, 1990, and ending on September 
30, 2001''.
    (q) Reserve Montgomery GI Bill.--Section 16133(b)(1)(B) of 
such title is amended by striking out ``September 30, 1999'' 
and inserting in lieu thereof ``September 30, 2001''.

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

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

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

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

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

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

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

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

SEC. 566. CENTRAL IDENTIFICATION LABORATORY, HAWAII.

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

SEC. 567. MILITARY FUNERAL HONORS FOR VETERANS.

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

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

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

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

    (c) Treatment of Performance of Honor Guard Functions by 
Reserves.--(1) Chapter 1215 of title 10, United States Code, is 
amended by adding at the end the following new section:

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

    ``Performance by a Reserve of honor guard functions at the 
funeral of a veteran may not be considered to be a period of 
drill or training otherwise required.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (d) Repeal of Limitation on Availability of Funds for Honor 
Guard Functions by National Guard.--Section 114 of title 32, 
United States Code, is amended--
            (1) by striking out ``(a)''; and
            (2) by striking out subsection (b).
    (e) Veterans Service Organization Defined.--In this 
section, the term ``veterans service organization'' means any 
organization recognized by the Secretary of Veterans Affairs 
under section 5902 of title 38, United States Code.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

                        Subtitle E--Other Matters

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

                     Subtitle A--Pay and Allowances

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

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

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

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

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

    (a) Payment of Certain Expenses Related to Overseas 
Housing.--Section 403(c) of title 37, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(3)(A) In the case of a member of the uniformed services 
authorized to receive an allowance under paragraph (1), the 
Secretary concerned may make a lump-sum payment to the member 
for required deposits and advance rent, and for expenses 
relating thereto, that are--
            ``(i) incurred by the member in occupying private 
        housing outside of the United States; and
            ``(ii) authorized or approved under regulations 
        prescribed by the Secretary concerned.
    ``(B) Expenses for which a member may be reimbursed under 
this paragraph may include losses relating to housing that are 
sustained by the member as a result of fluctuations in the 
relative value of the currencies of the United States and the 
foreign country in which the housing is located.
    ``(C) The Secretary concerned shall recoup the full amount 
of any deposit or advance rent payments made by the Secretary 
under subparagraph (A), including any gain resulting from 
currency fluctuations between the time of payment and the time 
of recoupment.''.
    (b) Conforming Amendment.--Section 405 of title 37, United 
States Code, is amended by striking out subsection (c).
    (c) Retroactive Application.--The reimbursement authority 
provided by section 403(c)(3)(B) of title 37, United States 
Code, as added by subsection (a), applies with respectto losses 
relating to housing that are sustained, on or after July 1, 1997, by a 
member of the uniformed services as a result of fluctuations in the 
relative value of the currencies of the United States and the foreign 
country in which the housing is located.

SEC. 604. BASIC ALLOWANCE FOR SUBSISTENCE FOR RESERVES.

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

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

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

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

    (a) Definition of Aviation Service.--(1) Section 301a(a)(6) 
of title 37, United States Code, is amended--
            (A) by redesignating subparagraphs (A), (B), and 
        (C) as subparagraphs (B), (C), and (D), respectively; 
        and
            (B) by inserting before subparagraph (B) (as so 
        redesignated) the following new subparagraph:
            ``(A) The term `aviation service' means service 
        performed by an officer (except a flight surgeon or 
        other medical officer) while holding an aeronautical 
        rating or designation or while in training to receive 
        an aeronautical rating or designation.''.
    (2) Section 301b(j) of such title is amended by striking 
out paragraph (1) and inserting in lieu thereof the following 
new paragraph:
            ``(1) The term `aviation service' means service 
        performed by an officer (except a flight surgeon or 
        other medical officer) while holding an aeronautical 
        rating or designation or while in training to receive 
        an aeronautical rating or designation.''.
    (b) Amount of Incentive Pay.--Subsection (b) of section 
301a of such title is amended to read as follows:
    ``(b)(1) A member who satisfies the requirements described 
in subsection (a) is entitled to monthly incentive pay as 
follows:
``Years of aviation service (including                           Monthly
  flight training) as an officer:                                   rate
    2 or less.....................................................  $125
    Over 2........................................................  $156
    Over 3........................................................  $188
    Over 4........................................................  $206
    Over 6........................................................  $650
    Over 14.......................................................  $840
    Over 22.......................................................  $585
    Over 23.......................................................  $495
    Over 24.......................................................  $385
    Over 25.......................................................  $250
    ``(2) An officer in a pay grade above O-6 is entitled, 
until the officer completes 25 years of aviation service, to be 
paid at the rates set forth in the table in paragraph (1), 
except that--
            ``(A) an officer in pay grade O-7 may not be paid 
        at a rate greater than $200 a month; and
            ``(B) an officer in pay grade O-8 or above may not 
        be paid at a rate greater than $206 a month.
    ``(3) For a warrant officer with over 22, 23, 24, or 25 
years of aviation service who is qualified under subsection 
(a), the rate prescribed in the table in paragraph (1) for 
officers with over 14 years of aviation service shall continue 
to apply to the warrant officer.''.
    (c) References to Aviation Service.--(1) Section 301a of 
such title is further amended--
            (A) in subsection (a)(4)--
                    (i) by striking out ``22 years of the 
                officer's service as an officer'' and inserting 
                in lieu thereof ``22 years of aviation service 
                of the officer''; and
                    (ii) by striking out ``25 years of service 
                as an officer (as computed under section 205 of 
                this title)'' and inserting in lieu thereof 
                ``25 years of aviation service''; and
            (B) in subsection (d), by striking out ``subsection 
        (b)(1) or (2), as the case may be, for the performance 
        of that duty by a member of corresponding years of 
        aviation or officer service, as appropriate,'' and 
        inserting in lieu thereof ``subsection (b) for the 
        performance of that duty by a member with corresponding 
        years of aviation service''.
    (2) Section 301b(b)(5) of such title is amended by striking 
out ``active duty'' and inserting in lieu thereof ``aviation 
service''.
    (d) Conforming Amendment.--Section 615 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 1787) is repealed.

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

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

SEC. 617. HARDSHIP DUTY PAY.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

            Subtitle C--Travel and Transportation Allowances

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

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

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

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

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

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

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

    (2) The item relating to such section in the table of 
sections at the beginning of chapter 7 of such title is amended 
to read as follows:

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

SEC. 634. STORAGE OF BAGGAGE OF CERTAIN DEPENDENTS.

    Section 430(b) of title 37, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) At the option of the member, in lieu of the 
transportation of baggage of a dependent child under paragraph 
(1) from the dependent's school in the continental United 
States, the Secretary concerned may pay or reimburse the member 
for costs incurred to store the baggage at or in the vicinity 
of the school during the dependent's annual trip between the 
school and the member's duty station. The amount of the payment 
or reimbursement may not exceed the cost that the Government 
would incur to transport the baggage.''.

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

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

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

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

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

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

SEC. 641. PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452 of title 10, United States Code, is amended by 
adding at the end the following new subsection:
    ``(j) Coverage Paid Up at 30 Years and Age 70.--Effective 
October 1, 2008, no reduction may be made under this section in 
the retired pay of a participant in the Plan for any month 
after the later of--
            ``(1) the 360th month for which the participant's 
        retired pay is reduced under this section; and
            ``(2) the month during which the participant 
        attains 70 years of age.''.

SEC. 642. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PERIOD.

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

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

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

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

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

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

    ``(a) Presentation of Flag.--Upon the release of a member 
of the Army from active duty for retirement, the Secretary of 
the Army shall present a United States flag to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is 
not eligible for a presentation of a flag under subsection (a) 
if the member has previously been presented a flag under this 
section or section 6141 or 8681 of this title or section 516 of 
title 14.
    ``(c) No Cost to Recipient.--The presentation of a flag 
under this section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting before the item relating to section 
3684 the following new item:

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

    (b) Navy and Marine Corps.--(1) Chapter 561 of title 10, 
United States Code, is amended by inserting after the table of 
sections the following new section:

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

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

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

    (c) Air Force.--(1) Chapter 853 of title 10, United States 
Code, is amended by inserting after the table of sections the 
following new section:

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

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

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

    (d) Coast Guard.--(1) Chapter 13 of title 14, United States 
Code, is amended by adding at the end the following new 
section:

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

    ``(a) Presentation of Flag.--Upon the release of a member 
of the Coast Guard from active duty for retirement, the 
Secretary of Transportation shall present a United States flag 
to the member.
    ``(b) Multiple Presentations Not Authorized.--A member is 
not eligible for a presentation of a flag under subsection (a) 
if the member has previously been presented a flag under this 
section or section 3681, 6141, and 8681 of title 10.
    ``(c) No Cost to Recipient.--The presentation of a flag 
under his section shall be at no cost to the recipient.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (e) Effective Date.--Sections 3681, 6141, and 8681 of title 
10, United States Code (as added by this section), and section 
516 of title 14, United States Code (as added by subsection 
(d)), shall apply with respect to releases from active duty 
described in those sections on or after October 1, 1998.

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

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

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

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

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

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

                       Subtitle E--Other Matters

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

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

SEC. 652. ACCOUNTING OF ADVANCE PAYMENTS.

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

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

    (a) Transportation in Connection With Change of Permanent 
Station.--Section 2634 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (g) as subsection 
        (h); and
            (2) by inserting after subsection (f) the following 
        new subsection:
    ``(g) If a motor vehicle of a member (or a dependent of the 
member) that is transported at the expense of the United States 
under this section does not arrive at the authorized 
destination of the vehicle by the designated delivery date, the 
Secretary concerned shall reimburse the member for expenses 
incurred after that date to rent a motor vehicle for the 
member's use, or for the use of the dependent for whom the 
delayed vehicle was transported. The amount reimbursed may not 
exceed $30 per day, and the rental period for which 
reimbursement may be provided expires after seven days or on 
the date on which the delayed vehicle arrives at the authorized 
destination (whichever occurs first).''.
    (b) Transportation in Connection With Other Moves.--Section 
406(h) of title 37, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(3) If a motor vehicle of a member (or a dependent of the 
member) that is transported at the expense of the United States 
under this subsection does not arrive at the authorized 
destination of the vehicle by the designated delivery date, the 
Secretary concerned shall reimburse the member for expenses 
incurred after that date to rent a motor vehicle for the 
dependent's use. The amount reimbursed may not exceed $30 per 
day, and the rental period for which reimbursement may be 
provided expires after seven days or on the date on which the 
delayed vehicle arrives at the authorized destination 
(whichever occurs first).''.
    (c) Transportation in Connection With Departure Allowances 
for Dependents.--Section 405a(b) of title 37, United States 
Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) If a motor vehicle of a member (or a dependent of the 
member) that is transported at the expense of the United States 
under paragraph (1) does not arrive at the authorized 
destination of the vehicle by the designated delivery date, the 
Secretary concerned shall reimburse the member for expenses 
incurred after that date to rent a motor vehicle for the 
dependent's use. The amount reimbursed may not exceed $30 per 
day, and the rental period for which reimbursement may be 
provided expires after seven days or on the date on which the 
delayed vehicle arrives at the authorized destination 
(whichever occurs first).''.
    (d) Transportation in Connection With Effects of Missing 
Persons.--Section 554 of title 37, United States Code, is 
amended--
            (1) by redesignating subsection (i) as subsection 
        (j); and
            (2) by inserting after subsection (h) the following 
        new subsection:
    ``(i) If a motor vehicle of a member (or a dependent of the 
member) that is transported at the expense of the United States 
under this section does not arrive at the authorized 
destination of the vehicle by the designated delivery date, the 
Secretary concerned shall reimburse the dependent for expenses 
incurred after that date to rent a motor vehicle for the 
dependent's use. The amount reimbursed may not exceed $30 per 
day, and the rental period for which reimbursement may be 
provided expires after seven days or on the date on which the 
delayed vehicle arrives at the authorized destination 
(whichever occurs first).''.
    (e) Application of Amendments.--(1) Reimbursement for motor 
vehicle rental expenses may not be provided under the 
amendments made by this section until after the date on which 
the Secretary of Defense submits to Congress a report 
containing a certification that the Department of Defense has 
in place and operational a system to recover the cost of 
providing such reimbursement from commercial carriers that are 
responsible for the delay in the delivery of the motor vehicles 
of members of the Armed Forces and their dependents. The 
Secretary of Defense shall prepare the report in consultation 
with the Secretary of Transportation, with respect to the Coast 
Guard.
    (2) The amendments shall apply with respect to rental 
expenses described in such amendments that are incurred on or 
after the date of the submission of the report. The report 
shall be submitted not later than six months after the date of 
the enactment of this Act and shall include, in addition to the 
certification, a description of the system to be used to 
recover from commercial carriers the costs incurred under such 
amendments.

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

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

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

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

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

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

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

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

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

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

                   TITLE VII--HEALTH CARE PROVISIONS

                    Subtitle A--Health Care Services

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

                       Subtitle B--TRICARE Program

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

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

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

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

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

                        Subtitle E--Other Matters

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

                    Subtitle A--Health Care Services

SEC. 701. DEPENDENTS' DENTAL PROGRAM.

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

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

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

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

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

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

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

                      Subtitle B--TRICARE Program

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

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

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

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

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

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

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

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

    ``(a) Automatic Enrollment of Certain Dependents.--Each 
dependent of a member of the uniformed services in grade E4 or 
below who is entitled to medical and dental care under section 
1076(a)(2)(A) of this title and resides in the catchment area 
of a facility of a uniformed service offering TRICARE Prime 
shall be automatically enrolled in TRICARE Prime at the 
facility. The Secretary concerned shall provide written notice 
of the enrollment to the member. The enrollment of a dependent 
of the member may be terminated by the member or the dependent 
at any time.
    ``(b) Automatic Renewal of Enrollments of Covered 
Beneficiaries.--(1) An enrollment of a covered beneficiary in 
TRICARE Prime shall be automatically renewed upon the 
expiration of the enrollment unless the renewal is declined.
    ``(2) Not later than 15 days before the expiration date for 
an enrollment of a covered beneficiary in TRICARE Prime, the 
Secretary concerned shall--
            ``(A) transmit a written notification of the 
        pending expiration and renewal of enrollment to the 
        covered beneficiary or, in the case of a dependent of a 
        member of the uniformed services, to the member; and
            ``(B) afford the beneficiary or member, as the case 
        may be, an opportunity to decline the renewal of 
        enrollment.
    ``(c) Payment Options for Retirees.--A member or former 
member of the uniformed services eligible for medical care and 
dental care under section 1074(b) of this title may elect to 
have any fee payable by the member or former member for an 
enrollment in TRICARE Prime withheld from the member's retired 
pay, retainer pay, or equivalent pay, as the case may be, or to 
be paid from a financial institution through electronic 
transfers of funds. The fee shall be paid in accordance with 
the election. A member may elect under this section to pay the 
fee in full at the beginning of the enrollment period or to 
make payments on a monthly or quarterly basis.
    ``(d) Regulations and Exceptions.--The Secretary of Defense 
shall prescribe regulations, including procedures, to carry out 
this section. Regulations prescribed to carry out the automatic 
enrollment requirements under this section may include such 
exceptions to the automatic enrollment procedures as the 
Secretary determines appropriate for the effective operation of 
TRICARE Prime.
    ``(e) Definitions.--In this section:
            ``(1) The term `TRICARE Prime' means the managed 
        care option of the TRICARE program.
            ``(2) The term `catchment area', with respect to a 
        facility of a uniformed service, means the service area 
        of thefacility, as designated under regulations 
prescribed by the administering Secretaries.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 1097 
the following new item:

1097a. TRICARE Prime: automatic enrollments; payment options.''.

    (b) Deadline for Implementation.--The regulations required 
under subsection (d) of section 1097a of title 10, United 
States Code (as added by subsection (a)), shall be prescribed 
to take effect not later than September 30, 1999. The section 
shall be applied under TRICARE Prime on and after the date on 
which the regulations take effect.

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

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

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

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

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

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

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

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

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

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

    ``(a) FEHBP Option Demonstration.--The Secretary of 
Defense, after consulting with the other administering 
Secretaries, shall enter into an agreement with the Office of 
Personnel Management to conduct a demonstration project (in 
this section referred to as the `demonstration project') under 
which eligible beneficiaries described in subsection (b) and 
residing within one of the areas covered by the demonstration 
project may enroll in health benefits plans offered through the 
Federal Employees Health Benefits program under chapter 89 of 
title 5. The number of eligible beneficiaries and family 
members of such beneficiaries under subsection (b)(2) who may 
be enrolled in health benefits plans during the enrollment 
period under subsection (d)(2) may not exceed 66,000.
    ``(b) Eligible Beneficiaries; Coverage.--(1) An eligible 
beneficiary under this subsection is--
            ``(A) a member or former member of the uniformed 
        services described in section 1074(b) of this title who 
        is entitled to hospital insurance benefits under part A 
        of title XVIII of the Social Security Act (42 U.S.C. 
        1395c et seq.);
            ``(B) an individual who is an unremarried former 
        spouse of a member or former member described in 
        section 1072(2)(F) or 1072(2)(G));
            ``(C) an individual who is--
                    ``(i) a dependent of a deceased member or 
                former member described in section 1076(b) or 
                1076(a)(2)(B) of this title or of a member who 
                died while on active duty for a period of more 
                than 30 days; and
                    ``(ii) a member of family as defined in 
                section 8901(5) of title 5; or
            ``(D) an individual who is--
                    ``(i) a dependent of a living member or 
                former member described in section 1076(b)(1) 
                of this title who is entitled to hospital 
                insurance benefits under part A of title XVIII 
                of the Social Security Act, regardless of the 
                member's or former member's eligibility for 
                such hospital insurance benefits; and
                    ``(ii) a member of family as defined in 
                section 8901(5) of title 5.
    ``(2) Eligible beneficiaries may enroll in a Federal 
Employees Health Benefit plan under chapter 89 of title 5 under 
this section for self-only coverage or for self and family 
coverage which includes any dependent of the member or former 
member who is a family member for purposes of such chapter.
    ``(3) A person eligible for coverage under this subsection 
shall not be required to satisfy any eligibility criteria 
specified in chapter 89 of title 5 (except as provided in 
paragraph (1)(C) or (1)(D)) as a condition for enrollment in 
health benefits plans offered through the Federal Employees 
Health Benefits program under the demonstration project.
    ``(4) For purposes of determining whether an individual is 
a member of family under paragraph (5) of section 8901 of title 
5 for purposes of paragraph (1)(C) or (1)(D), a member or 
former member described in section 1076(b) or 1076(a)(2)(B) of 
this title shall be deemed to be an employee under such 
section.
    ``(5) An eligible beneficiary who is eligible to enroll in 
the Federal Employees Health Benefits program as an employee 
under chapter 89 of title 5 is not eligible to enroll in a 
Federal Employees Health Benefits plan under this section.
    ``(c) Area of Demonstration Project.--The Secretary of 
Defense and the Director of the Office of Personnel Management 
shall jointly identify and select the geographic areas in which 
the demonstration project will be conducted. The Secretary and 
the Director shall establish at least six, but not more than 
ten, such demonstration areas. In establishing the areas, the 
Secretary and Director shall include--
            ``(1) an area that includes the catchment area of 
        one or more military medical treatment facilities;
            ``(2) an area that is not located in the catchment 
        area of a military medical treatment facility;
            ``(3) an area in which there is a Medicare 
        Subvention Demonstration project area under section 
        1896 of title XVIII of the Social Security Act (42 
        U.S.C. 1395ggg); and
            ``(4) not more than one area for each TRICARE 
        region.
    ``(d) Duration of Demonstration Project.--(1) The Secretary 
of Defense shall conduct the demonstration project during three 
contract years under the Federal Employees Health Benefits 
program.
    ``(2) Eligible beneficiaries shall, as provided under the 
agreement pursuant to subsection (a), be permitted to enroll in 
the demonstration project during an open enrollment period for 
the year 2000 (conducted in the fall of 1999). The 
demonstration project shall terminate on December 31, 2002.
    ``(e) Prohibition Against Use of MTFs and Enrollment Under 
TRICARE.--Covered beneficiaries under this chapter who are 
provided coverage under the demonstration project shall not be 
eligible to receive care at a military medical treatment 
facility or to enroll in a heath care plan under the TRICARE 
program.
    ``(f) Term of Enrollment in Project.--(1) Subject to 
paragraphs (2) and (3), the period of enrollment of an eligible 
beneficiary who enrolls in the demonstration project during the 
open enrollment period for the year 2000 shall be three years 
unless the beneficiary disenrolls before the termination of the 
project.
    ``(2) A beneficiary who elects to enroll in the project, 
and who subsequently discontinues enrollment in the project 
before the end of the period described in paragraph (1), shall 
not be eligible to reenroll in the project.
    ``(3) An eligible beneficiary enrolled in a Federal 
Employees Health Benefits plan under this section may change 
health benefits plans and coverage in the same manner as any 
other Federal Employees Health Benefits program beneficiary may 
change such plans.
    ``(g) Effect of Cancellation.--The cancellation by an 
eligible beneficiary of coverage under the Federal Employee 
Health Benefits program shall be irrevocable during the term of 
the demonstration project.
    ``(h) Separate Risk Pools; Charges.--(1) The Director of 
the Office of Personnel Management shall require health 
benefits plans under chapter 89 of title 5 that participate in 
the demonstration project to maintain a separate risk pool for 
purposes of establishing premium rates for eligible 
beneficiaries who enroll in such a plan in accordance with this 
section.
    ``(2) The Director shall determine total subscription 
charges for self only or for family coverage for eligible 
beneficiaries who enroll in a health benefits plan under 
chapter 89 of title 5 in accordance with this section. The 
subscription charges shall include premium charges paid to the 
plan and amounts described in section 8906(c) of title 5 for 
administrative expenses and contingency reserves.
    ``(i) Government Contributions.--The Secretary of Defense 
shall be responsible for the Government contribution for an 
eligible beneficiary who enrolls in a health benefits plan 
under chapter 89 of title 5 in accordance with this section, 
except that the amount of the contribution may not exceed the 
amount of the Government contribution which would be payable if 
the electing beneficiary were an employee (as defined for 
purposes of such chapter) enrolled in the same health benefits 
plan and level of benefits.
    ``(j) Report Requirements.--(1) The Secretary of Defense 
and the Director of the Office of Personnel Managementshall 
jointly submit to Congress two reports containing the information 
described in paragraph (2). The first report shall be submitted not 
later than the date that is 15 months after the date that the Secretary 
begins to implement the demonstration project. The second report shall 
be submitted not later than December 31, 2002.
    ``(2) The reports required by paragraph (1) shall include 
the following:
            ``(A) Information on the number of eligible 
        beneficiaries who elect to participate in the 
        demonstration project.
            ``(B) An analysis of the percentage of eligible 
        beneficiaries who participate in the demonstration 
        project as compared to the percentage of covered 
        beneficiaries under this chapter who elect to enroll in 
        a health care plan under such chapter.
            ``(C) Information on eligible beneficiaries who 
        elect to participate in the demonstration project and 
        did not have Medicare Part B coverage before electing 
        to participate in the project.
            ``(D) An analysis of the enrollment rates and cost 
        of health services provided to eligible beneficiaries 
        who elect to participate in the demonstration project 
        as compared with similarly situated enrollees in the 
        Federal Employees Health Benefits program under chapter 
        89 of title 5.
            ``(E) An analysis of how the demonstration project 
        affects the accessibility of health care in military 
        medical treatment facilities, and a description of any 
        unintended effects on the treatment priorities in those 
        facilities in the demonstration area.
            ``(F) An analysis of any problems experienced by 
        the Department of Defense in managing the demonstration 
        project.
            ``(G) A description of the effects of the 
        demonstration project on medical readiness and training 
        of the armed forces at military medical treatment 
        facilities located in the demonstration area, and a 
        description of the probable effects that making the 
        project permanent would have on the medical readiness 
        and training.
            ``(H) An examination of the effects that the 
        demonstration project, if made permanent, would be 
        expected to have on the overall budget of the 
        Department of Defense, the budget of the Office of 
        Personnel and Management, and the budgets of individual 
        military medical treatment facilities.
            ``(I) An analysis of whether the demonstration 
        project affects the cost to the Department of Defense 
        of prescription drugs or the accessibility, 
        availability, and cost of such drugs to eligible 
        beneficiaries.
            ``(J) Any additional information that the Secretary 
        of Defense or the Director of the Office of Personnel 
        Management consider appropriate to assist Congress in 
        determining the viability of expanding the project to 
        all Medicare-eligible members of the uniformed services 
        and their dependents.
            ``(K) Recommendations on whether eligible 
        beneficiaries--
                    ``(i) should be given more than one chance 
                to enroll in a the demonstration project under 
                this section;
                    ``(ii) should be eligible to enroll in the 
                project only during the first year following 
                the date that the eligible beneficiary becomes 
                eligible to receive hospital insurance benefits 
                under part A of title XVIII of the Social 
                Security Act; or
                    ``(iii) should be eligible to enroll in the 
                project only during the two-year period 
                following the date on which the beneficiary 
                first becomes eligible to enroll in the 
                project.
    ``(k) Comptroller General Report.--Not later than December 
31, 2002, the Comptroller General shall submit to Congress a 
report addressing the same matters required to be addressed 
under subsection (j)(2). The report shall describe any 
limitations with respect to the data contained in the report as 
a result of the size and design of the demonstration project.
    ``(l) Application of Medigap Protections to Demonstration 
Project Enrollees.--(1) Subject to paragraph (2), the 
provisions of section 1882(s)(3) (other than clauses (i) 
through (iv) of subparagraph (B)) and 1882(s)(4) of the Social 
Security Act shall apply to enrollment (and termination of 
enrollment) in the demonstration project under this section, in 
the same manner as they apply to enrollment (and termination of 
enrollment) with a Medicare+Choice organization in a 
Medicare+Choice plan.
    ``(2) In applying paragraph (1)--
            ``(A) any reference in clause (v) or (vi) of 
        section 1882(s)(3)(B) of such Act to 12 months is 
        deemed a reference to 36 months; and
            ``(B) the notification required under section 
        1882(s)(3)(D) of such Act shall be provided in a manner 
        specified by the Secretary of Defense in consultation 
        with the Director of the Office of Personnel 
        Management.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

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

    (b) Conforming Amendments.--Chapter 89 of title 5, United 
States Code, is amended--
            (1) in section 8905--
                    (A) by redesignating subsections (d) 
                through (f) as subsections (e) through (g), 
                respectively; and
                    (B) by inserting after subsection (c) the 
                following new subsection:
    ``(d) An individual whom the Secretary of Defense 
determines is an eligible beneficiary under subsection (b) of 
section 1108 of title 10 may enroll, as part of the 
demonstration project under such section, in a health benefits 
plan under this chapter in accordance with the agreement under 
subsection (a) of such section between the Secretary and the 
Office and applicable regulations under this chapter.'';
            (2) in section 8906(b)--
                    (A) in paragraph (1), by striking 
                ``paragraphs (2) and (3)'' and inserting in 
                lieu thereof ``paragraphs (2), (3), and (4)''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(4) In the case of persons who are enrolled in a health 
benefits plan as part of the demonstration project under 
section 1108 of title 10, the Government contribution shall be 
subject to the limitation set forth in subsection (i) of that 
section.'';
            (3) in section 8906(g)--
                    (A) in paragraph (1), by striking 
                ``paragraph (2)'' and inserting in lieu thereof 
                ``paragraphs (2) and (3)''; and
                    (B) by adding at the end the following new 
                paragraph:
    ``(3) The Government contribution for persons enrolled in a 
health benefits plan as part of the demonstration project under 
section 1108 of title 10 shall be paid as provided in 
subsection (i) of that section.''; and
            (4) in section 8909, by adding at the end the 
        following new subsection:
    ``(g) The fund described in subsection (a) is available to 
pay costs that the Office incurs for activities associated with 
implementation of the demonstration project under section 1108 
of title 10.''.

SEC. 722. TRICARE AS SUPPLEMENT TO MEDICARE DEMONSTRATION.

    (a) In General.--(1) The Secretary of Defense shall, after 
consultation with the other administering Secretaries, carry 
out a demonstration project in order to assess the feasibility 
and advisability of providing medical care coverage under the 
TRICARE program to the individuals described in subsection (c). 
The demonstration project shall be known as the ``TRICARE 
Senior Supplement''.
    (2) The Secretary shall commence the demonstration project 
not later than January 1, 2000, and shall terminate the 
demonstration project not later than December 31, 2002.
    (3) Under the demonstration project, the Secretary shall 
permit eligible individuals described in subsection (c) to 
enroll in the TRICARE program.
    (4) Payment for care and services received by eligible 
individuals who enroll in the TRICARE program under the 
demonstration project shall be made as follows:
            (A) First, under title XVIII of the Social Security 
        Act, but only to the extent that payment for such care 
        and services is provided for under that title.
            (B) Second, under the TRICARE program, but only to 
        the extent that payment for such care and services is 
        provided under that program and is not provided for 
        under subparagraph (A).
            (C) Third, by the eligible individual concerned, 
        but only to the extent that payment for such care and 
        services is not provided for under subparagraphs (A) or 
        (B).
    (5)(A) The Secretary shall require each eligible individual 
who enrolls in the TRICARE program under the demonstration 
project to pay an enrollment fee. The Secretary shall provide, 
to the extent feasible, the option of payment of the enrollment 
fee through electronic transfers of funds and through 
withholding of such payment from the pay of a member or former 
member of the Armed Forces, and shall provide the option that 
payment of the enrollment fee be made in full at the beginning 
of the enrollment period or that payments be made on a monthly 
or quarterly basis.
    (B) The amount of the enrollment fee charged an eligible 
individual under subparagraph (A) for self only or family 
enrollment in any year may not exceed the amount equal to 75 
percent of the total subscription charges in that year for 
self-only or family, respectively, fee-for-service coverage 
under the health benefits plan under the Federal Employees 
Health Benefits program under chapter 89 of title 5, United 
States Code, that is most similar in coverage to the TRICARE 
program.
    (6) A covered beneficiary who enrolls in TRICARE Senior 
Supplement under this subsection shall not be eligible to 
receive health care at a facility of the uniformed services 
during the period such enrollment is in effect.
    (b) Evaluation; Review.--(1) The Secretary shall provide 
for an evaluation of the demonstration project conducted under 
this subsection by an appropriate person or entity that is 
independent of the Department of Defense. The evaluation shall 
include the following:
            (A) An analysis of the costs of the demonstration 
        project to the United States and to the eligible 
        individuals who participate in such demonstration 
        project.
            (B) An assessment of the extent to which the 
        demonstration project satisfies the requirements of 
        such eligible individuals for the health care services 
        available under the demonstration project.
            (C) An assessment of the effect, if any, of the 
        demonstration project on military medical readiness.
            (D) A description of the rate of the enrollment in 
        the demonstration project of the individuals who were 
        eligible to enroll in the demonstration project.
            (E) An assessment of whether the demonstration 
        project provides the most suitable model for a program 
        to provide adequate health care services to the 
        population of individuals consisting of the eligible 
        individuals.
            (F) An evaluation of any other matters that the 
        Secretary considers appropriate.
    (2) The Comptroller General shall review the evaluation 
conducted under paragraph (1). In carrying out the review, the 
Comptroller General shall--
            (A) assess the validity of the processes used in 
        the evaluation; and
            (B) assess the validity of any findings under the 
        evaluation, including any limitations with respect to 
        the data contained in the evaluation as a result of the 
        size and design of the demonstration project.
    (3)(A) The Secretary shall submit a report on the results 
of the evaluation under paragraph (1), together with the 
evaluation, to the Committee on Armed Services of the Senate 
andthe Committee on National Security of the House of 
Representatives not later than December 31, 2002.
    (B) The Comptroller General shall submit a report on the 
results of the review under paragraph (2) to the committees 
referred to in subparagraph (A) not later than February 15, 
2003.
    (c) Eligible Individuals.--(1) An individual is eligible to 
participate under this section if the individual is a member or 
former member of the uniformed services described in section 
1074(b) of title 10, United States Code, a dependent of the 
member described in section 1076(a)(2)(B) or 1076(b) of that 
title, or a dependent of a member of the uniformed services who 
died while on active duty for a period of more than 30 days, 
who--
            (A) is 65 years of age or older;
            (B) is entitled to hospital insurance benefits 
        under part A of title XVIII of the Social Security Act 
        (42 U.S.C. 1395c et seq.);
            (C) is enrolled in the supplemental medical 
        insurance program under part B of such title XVIII (42 
        U.S.C. 1395j et seq.); and
            (D) resides in an area selected by the Secretary 
        under subsection (c).
    (c) Areas of Implementation.--(1) The Secretary shall carry 
out the demonstration project under this section in two 
separate areas selected by the Secretary.
    (2) The areas selected by the Secretary under paragraph (1) 
shall be as follows:
            (A) One area shall be an area outside the catchment 
        area of a military medical treatment facility in 
        which--
                    (i) no eligible organization has a contract 
                in effect under section 1876 of the Social 
                Security Act (42 U.S.C. 1395mm) and no 
                Medicare+Choice organization has a contract in 
                effect under part C of title XVIII of that Act 
                (42 U.S.C. 1395w-21); or
                    (ii) the aggregate number of enrollees with 
                an eligible organization with a contract in 
                effect under section 1876 of that Act or with a 
                Medicare+Choice organization with a contract in 
                effect under part C of title XVIII of that Act 
                is less than 2.5 percent of the total number of 
                individuals in the area who are entitled to 
                hospital insurance benefits under part A of 
                title XVIII of that Act.
            (B) The other area shall be an area outside the 
        catchment area of a military medical treatment facility 
        in which--
                    (i) at least one eligible organization has 
                a contract in effect under section 1876 of that 
                Act or one Medicare+Choice organization has a 
                contract in effect under part C of title XVIII 
                of that Act; and
                    (ii) the aggregate number of enrollees with 
                an eligible organization with a contract in 
                effect under section 1876 of that Act or with a 
                Medicare+Choice organization with a contract in 
                effect under part C of title XVIII of that Act 
                exceeds 10 percent of the total number of 
                individuals in the area who are entitled to 
                hospital insurance benefits under part A of 
                title XVIII of that Act.
    (d) Definitions.--In this section:
            (1) The term ``administering Secretaries'' has the 
        meaning given that term in section 1072(3) of title 10, 
        United States Code.
            (2) The term ``TRICARE program'' has the meaning 
        given that term in section 1072(7) of title 10, United 
        States Code.

SEC. 723. IMPLEMENTATION OF REDESIGN OF PHARMACY SYSTEM.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                       Subtitle E--Other Matters

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

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

``Sec. 1109. Organ and tissue donor program

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

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

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

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

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

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

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

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

    (a) Findings.--Congress makes the following findings:
            (1) The military health care system of the 
        Department of Defense and the Veterans Health 
        Administration of the Department of Veterans Affairs 
        are national institutions that collectively manage more 
        than 1,500 hospitals, clinics, and health care 
        facilities worldwide to provide services to more than 
        11,000,000 beneficiaries.
            (2) In the post-Cold War era, these institutions 
        are in a profound transition that involves challenging 
        opportunities.
            (3) During the period from 1988 to 1998, the number 
        of military medical personnel has declined by 15 
        percent and the number of military hospitals has been 
        reduced by one-third.
            (4) During the two years since 1996, the Department 
        of Veterans Affairs has revitalized its structure by 
        decentralizing authority into 22 Veterans Integrated 
        Service Networks.
            (5) In the face of increasing costs of medical 
        care, increased demands for health care services, and 
        increasing budgetary constraints, the Department of 
        Defense and the Department of Veterans Affairs have 
        embarked on a variety of dynamic and innovative 
        cooperative programs ranging from shared services to 
        joint venture operations of medical facilities.
            (6) In 1984, there was a combined total of 102 
        Department of Veterans Affairs and Department of 
        Defense facilities with sharing agreements. By 1997, 
        that number had grown to 420. During the six years from 
        fiscal year 1992 through fiscal year 1997, shared 
        services increased from slightly over 3,000 services to 
        more than 6,000 services, ranging from major medical 
        and surgical services, laundry, blood, and laboratory 
        services to unusual speciality care services.
            (7) The Department of Defense and the Department of 
        Veterans Affairs are conducting four health care joint 
        ventures in New Mexico, Nevada, Texas, and Oklahoma, 
        and are planning to conduct four more such ventures in 
        Alaska, Florida, Hawaii, and California.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense and the Department of 
        Veterans Affairs should be commended for the 
        cooperation between the two departments in the delivery 
        of medical care, of which the cooperation involved in 
        the establishment and operation of the Department of 
        Defense and the Department of Veterans Affairs 
        Executive Council is a praiseworthy example;
            (2) the Department of Defense and the Department of 
        Veterans Affairs are encouraged to continue to explore 
        new opportunities to enhance the availability and 
        delivery of medical care to beneficiaries by further 
        enhancing the cooperative efforts of the departments; 
        and
            (3) enhanced cooperation between the Department of 
        Defense and the Department of Veterans Affairs is 
        encouraged regarding--
                    (A) the general areas of access to quality 
                medical care, identification and elimination of 
                impediments to enhanced cooperation, and joint 
                research and program development; and
                    (B) the specific areas in which there is 
                significant potential to achieve progress in 
                cooperation in a short term, including 
                computerization of patient records systems, 
                participation of the Department of Veterans 
                Affairs in the TRICARE program, pharmaceutical 
                programs, and joint physical examinations.
    (c) Joint Survey of Populations Served.--(1) The Secretary 
of Defense and the Secretary of Veterans Affairs shall jointly 
conduct a survey of their respective medical care beneficiary 
populations to identify, by category of beneficiary (defined as 
the Secretaries consider appropriate), the expectations of, 
requirements for, and behavior patterns of the beneficiaries 
with respect to medical care. The two Secretaries shall develop 
the protocol for the survey jointly, but shall obtain the 
services of an entity independent of the Department of Defense 
and the Department of Veterans Affairs to carry out the survey.
    (2) The survey shall include the following:
            (A) Demographic characteristics, economic 
        characteristics, and geographic location of beneficiary 
        populations with regard to catchment or service areas.
            (B) The types and frequency of care required by 
        veterans, retirees, and dependents within catchment or 
        service areas of Department of Defense and Department 
        of Veterans Affairs medical facilities and outside 
        those areas.
            (C) The numbers of, characteristics of, and types 
        of medical care needed by the veterans, retirees, and 
        dependents who, though eligible for medical care in 
        Department of Defense or Department of Veterans Affairs 
        treatment facilities or through other federally funded 
        medical programs, choose not to seek medical care from 
        those facilities or under those programs, and the 
        reasons for that choice.
            (D) The obstacles or disincentives for seeking 
        medical care from such facilities or under such 
        programs that are perceived by veterans, retirees, and 
        dependents.
            (E) Any other matters that the Secretary of Defense 
        and the Secretary of Veterans Affairs consider 
        appropriate for the survey.
    (3) The Secretary of Defense or the Secretary of Veterans 
Affairs may waive the survey requirements under this subsection 
with respect to information that can be better obtained from a 
source other than the survey.
    (4) The Secretary of Defense and the Secretary of Veterans 
Affairs shall submit a report on the results of the survey to 
the appropriate committees of Congress. The report shall 
contain the matters described in paragraph (2) and any 
proposals for legislation that the Secretaries recommend for 
enhancing Department of Defense and Department of Veterans 
Affairs cooperative efforts with respect to the delivery of 
medical care.
    (d) Review of Law and Policies.--(1) The Secretary of 
Defense and the Secretary of Veterans Affairs shall jointly 
conduct a review to identify impediments to cooperation between 
the Department of Defense and the Department of Veterans 
Affairs regarding the delivery of medical care. The matters 
reviewed shall include the following:
            (A) All laws, policies, and regulations, and any 
        attitudes of beneficiaries of the health care systems 
        of the two departments, that have the effect of 
        preventing the establishment, or limiting the 
        effectiveness, of cooperative health care programs of 
        the departments.
            (B) The requirements and practices involved in the 
        credentialling and licensure of health care providers.
            (C) The perceptions of beneficiaries in a variety 
        of categories (defined as the Secretaries consider 
        appropriate) regarding the various Federal health care 
        systems available for their use.
            (D) The types and frequency of medical services 
        furnished by the Department of Defense and the 
        Departmentof Veterans Affairs through cooperative 
arrangements to each category of beneficiary (including active-duty 
members, retirees, dependents, veterans in the health-care eligibility 
categories referred to as Category A and Category C, and persons 
authorized to receive medical care under section 1713 of title 38, 
United States Code) of the other department.
            (E) The extent to which health care facilities of 
        the Department of Defense and Department of Veterans 
        Affairs have sufficient capacity, or could jointly or 
        individually create sufficient capacity, to provide 
        services to beneficiaries of the other department 
        without diminution of access or services to their 
        primary beneficiaries.
            (F) The extent to which the recruitment of scarce 
        medical specialists and allied health personnel by the 
        Department of Defense and the Department of Veterans 
        Affairs could be enhanced through cooperative 
        arrangements for providing health care services.
            (G) The obstacles and disincentives to providing 
        health care services through cooperative arrangements 
        between the Department of Defense and the Department of 
        Veterans Affairs.
    (2) The Secretaries shall jointly submit a report on the 
results of the review to the appropriate committees of 
Congress. The report shall include any proposals for 
legislation that the Secretaries recommend for eliminating or 
reducing impediments to interdepartmental cooperation that are 
identified during the review.
    (e) Participation in TRICARE.--(1) The Secretary of Defense 
shall review the TRICARE program to identify opportunities for 
increased participation by the Department of Veterans Affairs 
in that program. The ongoing collaboration between Department 
of Defense officials and Department of Veterans Affairs 
officials regarding increased participation shall be included 
among the matters reviewed.
    (2) The Secretary of Defense and the Secretary of Veterans 
Affairs shall jointly submit to the appropriate committees of 
Congress a semiannual report on the status of the review under 
this subsection and on efforts to increase the participation of 
the Department of Veterans Affairs in the TRICARE program. No 
report is required under this paragraph after the submission of 
a semiannual report in which the Secretaries declare that the 
Department of Veterans Affairs is participating in the TRICARE 
program to the extent that can reasonably be expected to be 
attained.
    (f) Pharmaceutical Benefits and Programs.--(1) The 
Department of Defense--Department of Veterans Affairs Federal 
Pharmacy Executive Steering Committee shall--
            (A) undertake a comprehensive examination of 
        existing pharmaceutical benefits and programs for 
        beneficiaries of Department of Defense medical care 
        programs, including matters relating to the purchasing, 
        distribution, and dispensing of pharmaceuticals and the 
        management of mail order pharmaceuticals programs; and
            (B) review the existing methods for contracting for 
        and distributing medical supplies and services.
    (2) The committee shall submit a report on the results of 
the examination to the appropriate committees of Congress.
    (g) Standardization of Physical Examinations for 
Disability.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall jointly submit to the appropriate 
committees of Congress a report on the status of the efforts of 
the Department of Defense and the Department of Veterans 
Affairs to standardize physical examinations administered by 
the two departments for the purpose of determining or rating 
disabilities.
    (h) Appropriate Committees of Congress Defined.--For the 
purposes of this section, the appropriate committees of 
Congress are as follows:
            (1) The Committee on Armed Services and the 
        Committee on Veterans' Affairs of the Senate.
            (2) The Committee on National Security and the 
        Committee on Veterans' Affairs of the House of 
        Representatives.
    (i) Deadlines for Submission of Reports.--(1) The report 
required by subsection (c)(3) shall be submitted not later than 
January 1, 2000.
    (2) The report required by subsection (d)(2) shall be 
submitted not later than March 1, 1999.
    (3) The semiannual report required by subsection (e)(2) 
shall be submitted not later than March 1 and September 1 of 
each year.
    (4) The report on the examination required under subsection 
(f) shall be submitted not later than 60 days after the 
completion of the examination.
    (5) The report required by subsection (g) shall be 
submitted not later than March 1, 1999.

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

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

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

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

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

                        Subtitle B--Other Matters

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

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

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

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

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

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

SEC. 803. DEFENSE COMMERCIAL PRICING MANAGEMENT IMPROVEMENT.

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

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

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

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

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

SEC. 806. PROCUREMENT OF CONVENTIONAL AMMUNITION.

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

SEC. 807. PARA-ARAMID FIBERS AND YARNS.

    (a) Authority.--The Secretary of Defense may procure 
articles containing para-aramid fibers and yarns manufactured 
in a foreign country referred to in subsection (d) if the 
Secretary determines that--
            (1) procuring articles that contain only para-
        aramid fibers and yarns manufactured from suppliers 
        within the national technology and industrial base 
        would result in sole-source contracts or subcontracts 
        for the supply of such para-aramid fibers and yarns; 
        and
            (2) such sole-source contracts or subcontracts 
        would not be in the best interests of the Government or 
        consistent with the objectives of section 2304 of title 
        10, United States Code.
    (b) Submission to Congress.--Not later than 30 days after 
making a determination under subsection (a), the Secretary 
shall submit to Congress a copy of the determination.
    (c) Applicability to Subcontracts.--The authority under 
subsection (a) applies with respect to subcontracts under 
Department of Defense contracts as well as to such contracts.
    (d) Foreign Countries Covered.--The authority under 
subsection (a) applies with respect to a foreign country that--
            (1) is a party to a defense memorandum of 
        understanding entered into under section 2531 of this 
        title; and
            (2) permits United States firms that manufacture 
        para-aramid fibers and yarns to compete with foreign 
        firms for the sale of para-aramid fibers and yarns in 
        that country, as determined by the Secretary of 
        Defense.
    (e) Definition.--In this section, the term ``national 
technology and industrial base'' has the meaning given that 
term in section 2500 of title 10, United States Code.

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

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

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

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

                       Subtitle B--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

       TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Department of Defense Officers and Organization

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

         Subtitle B--Department of Defense Financial Management

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

              Subtitle C--Joint Warfighting Experimentation

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

                        Subtitle D--Other Matters

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

      Subtitle A--Department of Defense Officers and Organization

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

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

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

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

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

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

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

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

SEC. 905. CENTER FOR HEMISPHERIC DEFENSE STUDIES.

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

SEC. 906. RESTRUCTURING OF ADMINISTRATION OF FISHER HOUSES.

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

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

    ``(a) Fisher Houses and Suites Defined.--In this section:
            ``(1) The term `Fisher House' means a housing 
        facility that--
                    ``(A) is located in proximity to a health 
                care facility of the Army, the Air Force, or 
                the Navy;
                    ``(B) is available for residential use on a 
                temporary basis by patients of that health care 
                facility, members of the families of such 
                patients, and others providing the equivalent 
                of familial support for such patients; and
                    ``(C) is constructed and donated by--
                            ``(i) the Zachary and Elizabeth M. 
                        Fisher Armed Services Foundation; or
                            ``(ii) another source, if the 
                        Secretary of the military department 
                        concerned designates the housing 
                        facility as a Fisher House.
            ``(2) The term `Fisher Suite' means one or more 
        rooms that--
                    ``(A) meet the requirements of 
                subparagraphs (A) and (B) of paragraph (1);
                    ``(B) are constructed, altered, or repaired 
                and donated by a source described in 
                subparagraph (C) of that paragraph; and
                    ``(C) are designated by the Secretary of 
                the military department concerned as a Fisher 
                Suite.
    ``(b) Nonappropriated Fund Instrumentality.--The Secretary 
of each military department shall administer all Fisher Houses 
and Fisher Suites associated with health care facilities of 
that military department as a nonappropriated fund 
instrumentality of the United States.
    ``(c) Governance.--The Secretary of each military 
department shall establish a system for the governance of the 
nonappropriated fund instrumentality required by subsection (b) 
for that military department.
    ``(d) Central Fund.--The Secretary of each military 
department shall establish a single fund as the source of 
funding for the operation, maintenance, and improvement of all 
Fisher Houses and Fisher Suites of the nonappropriated fund 
instrumentality required by subsection (b) for that military 
department.
    ``(e) Acceptance of Contributions; Imposition of Fees.--(1) 
The Secretary of a military department may--
            ``(A) accept money, property, and services donated 
        for the support of a Fisher House or Fisher Suite 
        associated with health care facilities of that military 
        department; and
            ``(B) may impose fees relating to the use of such 
        Fisher Houses and Fisher Suites.
    ``(2) All monetary donations, and the proceeds of the 
disposal of any other donated property, accepted by the 
Secretary of a military department under this subsection shall 
be credited to the fund established under subsection (d) for 
the Fisher Houses and Fisher Suites associated with health care 
facilities of that military department and shall be available 
to that Secretary to support all such Fisher Houses and Fisher 
Suites.
    ``(f) Annual Report.--Not later than January 15 of each 
year, the Secretary of each military department shall submit to 
Congress a report describing the operation of Fisher Houses and 
Fisher Suites associated with health care facilities of that 
military department. The report shall include, at a minimum, 
the following:
            ``(1) The amount in the fund established by that 
        Secretary under subsection (d) as of October 1 of the 
        previous year.
            ``(2) The operation of the fund during the 
        preceding fiscal year, including--
                    ``(A) all gifts, fees, and interest 
                credited to the fund; and
                    ``(B) all disbursements from the fund.
            ``(3) The budget for the operation of the Fisher 
        Houses and Fisher Suites for the fiscal year in which 
        the report is submitted.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2492 
(as added by section 365) the following new item:
``2493. Fisher Houses: administration as nonappropriated fund 
          instrumentality.''.
    (b) Establishment of Funds.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of each 
military department shall--
            (1) establish the fund required under section 
        2493(d) of title 10, United States Code (as added by 
        subsection (a)); and
            (2) close the Fisher House Trust Fund established 
        for that department under section 2221 of such title 
        and transfer the amounts in the closed fund to the 
        newly established fund.
    (c) Funding Transition.--(1) Of the amount authorized to be 
appropriated pursuant to section 301(2) for operation and 
maintenance for the Navy, the Secretary of the Navy shall 
transfer to the fund established by that Secretary under 
section 2493(d) of title 10, United States Code (as added by 
subsection (a)), such amount as that Secretary considers 
appropriate for establishing in the fund a corpus sufficient 
for operating Fisher Houses and Fisher Suites associated with 
health care facilities of the Department of the Navy.
    (2) Of the amount authorized to be appropriated pursuant to 
section 301(4) for operation and maintenance for the Air Force, 
the Secretary of the Air Force shall transfer to the fund 
established by that Secretary under section 2493(d) of title 
10, United States Code (as added by subsection (a)), such 
amount as that Secretary considers appropriate for establishing 
in the fund a corpus sufficient for operating Fisher Houses and 
Fisher Suites associated with health care facilities of the 
Department of the Air Force.
    (d) Reporting Requirements.--The Secretary of each military 
department, upon completing the actions required of the 
Secretary under subsections (b) and (c), shall submit to 
Congress a report containing--
            (1) the certification of that Secretary that those 
        actions have been completed; and
            (2) a statement of the amount deposited in the fund 
        established by that Secretary under section 2493(d) of 
        title 10, United States Code (as added by subsection 
        (a)).
    (e) Availability of Transferred Amounts.--Amounts 
transferred under subsection (b) or (c) to a fund established 
under section 2493(d) of title 10, United States Code(as added 
by subsection (a)), shall be available without fiscal year limitation 
for the purposes for which the fund is established and shall be 
administered as nonappropriated funds.
    (f) Conforming Repeals.--(1) Section 2221 of title 10, 
United States Code, and the item relating to that section in 
the table of sections at the beginning of chapter 131 of such 
title, are repealed.
    (2) Section 1321(a) of title 31, United States Code, is 
amended by striking out paragraphs (92), (93), and (94).
    (3) The amendments made by this subsection shall take 
effect 90 days after the date of the enactment of this Act.

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

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

         Subtitle B--Department of Defense Financial Management

SEC. 911. IMPROVED ACCOUNTING FOR DEFENSE CONTRACT SERVICES.

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

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

    ``(a) Limitation on Reporting in Miscellaneous Services 
Object Class.--The Secretary of Defense shall ensure that, in 
reporting to the Office of Management and Budget (pursuant to 
OMB Circular A-11 (relating to preparation and submission of 
budget estimates)) obligations of the Department of Defense for 
any period of time for contract services, no more than 15 
percent of the total amount of obligations so reported is 
reported in the miscellaneous services object class.
    ``(b) Definition of Reporting Categories for Advisory and 
Assistance Services.--In carrying out section 1105(g) of title 
31 for the Department of Defense (and in determining what 
services are to be reported to the Office of Management and 
Budget in the advisory and assistance services object class), 
the Secretary of Defense shall apply to the terms used for the 
definition of `advisory and assistance services' in paragraph 
(2)(A) of that section the following meanings (subject to the 
authorized exemptions):
            ``(1) Management and professional support 
        services.--The term `management and professional 
        support services' (used in clause (i) of section 
        1105(g)(2)(A) of title 31) means services that provide 
        engineering or technical support, assistance, advice, 
        or training for the efficient and effective management 
        and operation of organizations, activities, or systems. 
        Those services--
                    ``(A) are closely related to the basic 
                responsibilities and mission of the using 
                organization; and
                    ``(B) include efforts that support or 
                contribute to improved organization or program 
                management, logistics management, project 
                monitoring and reporting, data collection, 
                budgeting, accounting, auditing, and 
                administrative or technical support for 
                conferences and training programs.
            ``(2) Studies, analyses, and evaluations.--The term 
        `studies, analyses, and evaluations' (used in clause 
        (ii) of section 1105(g)(2)(A) of title 31) means 
        services that provide organized, analytic assessments 
        to understand or evaluate complex issues to improve 
        policy development, decisionmaking, management, or 
        administration and that result in documents containing 
        data or leading to conclusions or recommendations. 
        Those services may include databases, models, 
        methodologies, and related software created in support 
        of a study, analysis, or evaluation.
            ``(3) Engineering and technical services.--The term 
        `engineering and technical services' (used in clause 
        (iii) of section 1105(g)(2)(A) of title 31) means 
        services that take the form of advice, assistance, 
        training, or hands-on training necessary to maintain 
        and operate fielded weapon systems, equipment, and 
        components (including software when applicable) at 
        design or required levels of effectiveness.
    ``(c) Proper Classification of Advisory and Assistance 
Services.--Before the submission to the Office of Management 
and Budget of the proposed Department of Defense budget for 
inclusion in the President's budget for a fiscal year pursuant 
to section 1105 of title 31, the Secretary of Defense, acting 
through the Under Secretary of Defense (Comptroller), shall 
conduct a review of Department of Defense services expected to 
be performed as contract services during the fiscal year for 
which that budget is to be submitted in order to ensure that 
those services that are advisory and assistance services (as 
defined in accordance with subsection (b)) are in fact properly 
classified, in accordance with that subsection, in the advisory 
and assistance services object class.
    ``(d) Report to Congress.--The Secretary shall submit to 
Congress each year, not later than 30 days after the date on 
which the budget for the next fiscal year is submitted pursuant 
to section 1105 of title 31, a report containing the 
information derived from the review under subsection (c).
    ``(e) Assessment by Comptroller General.--(1) The 
Comptroller General shall conduct a review of the report of the 
Secretary of Defense under subsection (d) each year and shall--
            ``(A) assess the methodology used by the Secretary 
        in obtaining the information submitted to Congress in 
        that report; and
            ``(B) assess the information submitted to Congress 
        in that report.
    ``(2) Not later than 120 days after the date on which the 
Secretary submits to Congress the report required under 
subsection (d) for any year, the Comptroller General shall 
submit to Congress the Comptroller General's report containing 
the results of the review for that year under paragraph (1).
    ``(f) Definitions.--In this section:
            ``(1) The term `contract services' means all 
        services that are reported to the Office of Management 
        and Budget pursuant to OMB Circular A-11 (relating to 
        preparation and submission of budget estimates) in 
        budget object classes that are designated in the Object 
        Class 25 series.
            ``(2) The term `advisory and assistance services 
        object class' means those contract services 
        constituting the budget object class that is 
        denominated `Advisory and Assistance Service and 
        designated (as the date of the enactment of this 
        section) as Object Class 25.1 (or any similar object 
        class established after the date of the enactment of 
        this section for the reporting of obligations for 
        advisory and assistance contract services).
            ``(3) The term `miscellaneous services object 
        class' means those contract services constituting the 
        budget object class that is denominated `Other Services 
        (services not otherwise specified in the 25 series)' 
        and designated (as the date of the enactment of this 
        section) as Object Class 25.2 (or any similar object 
        class established after the date of the enactment of 
        this section for the reporting of obligations for 
        miscellaneous or unspecified contract services).
            ``(4) The term `authorized exemptions' means those 
        exemptions authorized (as of the date of the enactment 
        of this section) under Department of Defense Directive 
        4205.2, captioned `Acquiring and Managing Contracted 
        Advisory and Assistance Services (CAAS)' and issued by 
        the Under Secretary of Defense for Acquisition and 
        Technology on February 10, 1992, such exemptions being 
        set forth in Enclosure 3 to that directive (captioned 
        `CAAS Exemptions').''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 2211 
the following new item:
``2212. Obligations for contract services: reporting in budget object 
          classes.''.
    (b) Transition.--For the budget for fiscal year 2000, and 
the reporting of information to the Office of Management and 
Budget in connection with the preparation of that budget, 
section 2212 of title 10, United States Code, as added by 
subsection (a), shall be applied by substituting ``30 percent'' 
in subsection (a) for ``15 percent''.
    (c) Initial Classification of Advisory and Assistance 
Services.--Not later than February 1, 1999, the Secretary of 
Defense, acting through the Under Secretary of Defense 
(Comptroller), shall conduct a review of Department of Defense 
services performed or expected to be performed as contract 
services during fiscal year 1999 in order to ensure that those 
services that are advisory and assistance services (as defined 
in accordance with subsection (b) of section 2212 of title 10, 
United States Code, as added by subsection (a)) are in fact 
properly classified, in accordance with that subsection, in the 
advisory and assistance services object class (as defined in 
subsection (f)(2) of that section).
    (d) Fiscal Year 1999 Reduction.--The total amount that may 
be obligated by the Secretary of Defense for contracted 
advisory and assistance services from amounts appropriated for 
fiscal year 1999 is the amount programmed for those services 
resulting from the review referred to in subsection (c) reduced 
by $240,000,000.

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

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

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

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

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

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

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

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

             Subtitle C--Joint Warfighting Experimentation

SEC. 921. FINDINGS CONCERNING JOINT WARFIGHTING EXPERIMENTATION.

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

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

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

SEC. 923. REPORTS ON JOINT WARFIGHTING EXPERIMENTATION.

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

``Sec. 485. Joint warfighting experimentation

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

``485. Joint warfighting experimentation.''.

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

                       Subtitle D--Other Matters

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

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

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

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

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

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

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

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

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

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

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

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

                      TITLE X--GENERAL PROVISIONS

                      Subtitle A--Financial Matters

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

                 Subtitle B--Naval Vessels and Shipyards

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

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

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

        Subtitle D--Miscellaneous Report Requirements and Repeals

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

                Subtitle E--Armed Forces Retirement Home

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

            Subtitle F--Matters Relating to Defense Property

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

             Subtitle G--Other Department of Defense Matters

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

                        Subtitle H--Other Matters

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

                     Subtitle A--Financial Matters

SEC. 1001. TRANSFER AUTHORITY.

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

SEC. 1002. INCORPORATION OF CLASSIFIED ANNEX.

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

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

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

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

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

SEC. 1005. PARTNERSHIP FOR PEACE INFORMATION SYSTEM MANAGEMENT.

    Funds authorized to be appropriated under titles II and III 
of this Act shall be available for the Partnership for Peace 
Information Management System as follows:
            (1) Of the amount authorized to be appropriated 
        under section 201(4) for Defense-wide activities, 
        $2,000,000.
            (2) Of the amount authorized to be appropriated 
        under section 301(5) for Defense-wide activities, 
        $3,000,000.

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

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

SEC. 1007. LIQUIDITY OF WORKING-CAPITAL FUNDS.

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

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

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

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

    Section 2210(a) of title 10, United States Code, is amended 
to read as follows:
    ``(a)(1) A working-capital fund established pursuant to 
section 2208 of this title may retain so much of the proceeds 
of disposals of property referred to in paragraph (2) as is 
necessary to recover the expenses incurred by the fund in 
disposing of such property. Proceeds from the sale or disposal 
of such property in excess of amounts necessary to recover the 
expenses may be credited to current applicable appropriations 
of the Department of Defense.
    ``(2) Paragraph (1) applies to disposals of supplies, 
material, equipment, and other personal property that were not 
financed by stock funds established under section 2208 of this 
title.''.

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

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

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

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

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

    (b) Effective Date.--Section 2739 of title 10, United 
States Code, as added by subsection (a), applies with respect 
to amounts collected by a military department on or after the 
date of the enactment of this Act.

                Subtitle B--Naval Vessels and Shipyards

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

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

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

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

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

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

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

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

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

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

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

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

SEC. 1017. TRANSFER OF OBSOLETE ARMY TUGBOAT.

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

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

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

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

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

    (a) Procurement of Equipment.--Subsection (a)(3) of section 
112 of title 32, United States Code, is amended--
            (1) by striking out ``and leasing of equipment'' 
        and inserting in lieu thereof ``and equipment, and the 
        leasing of equipment,''; and
            (2) by adding at the end the following new 
        sentence: ``However, the use of such funds for the 
        procurement of equipment may not exceed $5,000 per 
        purchase order, unless approval for procurement of 
        equipment in excess of that amount is granted in 
        advance by the Secretary of Defense.''.
    (b) Training and Readiness.--Subsection (b)(2) of such 
section is amended to read as follows:
    ``(2)(A) A member of the National Guard serving on full-
time National Guard duty under orders authorized under 
paragraph (1) shall participate in the training required under 
section 502(a) of this title in addition to the duty performed 
for the purpose authorized under that paragraph. The pay, 
allowances, and other benefits of the member while 
participating in the training shall be the same as those to 
which the member is entitled while performing duty for the 
purpose of carrying out drug interdiction and counter-drug 
activities. The member is not entitled to additional pay, 
allowances, or other benefits for participation in training 
required under section 502(a)(1) of this title.
    ``(B) Appropriations available for the Department of 
Defense for drug interdiction and counter-drug activities may 
be used for paying costs associated with a member's 
participation in training described in subparagraph (A). The 
appropriation shall be reimbursed in full, out of 
appropriations available for paying those costs, for the 
amounts paid. Appropriations available for paying those costs 
shall be available for making the reimbursements.
    ``(C) To ensure that the use of units and personnel of the 
National Guard of a State pursuant to a State drug interdiction 
and counter-drug activities plan does not degrade the training 
and readiness of such units and personnel, the following 
requirements shall apply in determining the drug interdiction 
and counter-drug activities that units and personnel of the 
National Guard of a State may perform:
            ``(i) The performance of the activities may not 
        adversely affect the quality of that training or 
        otherwise interfere with the ability of a member or 
        unit of the National Guard to perform the military 
        functions of the member or unit.
            ``(ii) National Guard personnel will not degrade 
        their military skills as a result of performing the 
        activities.
            ``(iii) The performance of the activities will not 
        result in a significant increase in the cost of 
        training.
            ``(iv) In the case of drug interdiction and 
        counter-drug activities performed by a unit organized 
        to serve as a unit, the activities will support valid 
        unit training requirements.''.
    (c) Assistance to Youth and Charitable Organizations.--
Subsection (b)(3) of such section is amended to read as 
follows:
    ``(3) A unit or member of the National Guard of a State may 
be used, pursuant to a State drug interdiction and counter-drug 
activities plan approved by the Secretary of Defense under this 
section, to provide services or other assistance (other than 
air transportation) to an organization eligible to receive 
services under section 508 of this title if--
            ``(A) the State drug interdiction and counter-drug 
        activities plan specifically recognizes the 
        organization as being eligible to receive the services 
        or assistance;
            ``(B) in the case of services, the performance of 
        the services meets the requirements of paragraphs (1) 
        and (2) of subsection (a) of section 508 of this title; 
        and
            ``(C) the services or assistance is authorized 
        under subsection (b) or (c) of such section or in the 
        State drug interdiction and counter-drug activities 
        plan''.
    (d) Definition of Drug Interdiction and Counter-drug 
Activities.--Subsection (i)(1) of such section is amended by 
inserting after ``drug interdiction and counter-drug law 
enforcement activities'' the following: ``, including drug 
demand reduction activities,''.
    (e) Conforming Amendments.--Subsection (a) of such section 
is further amended--
            (1) by striking out ``for--'' and inserting in lieu 
        thereof ``for the following:'';
            (2) by striking out ``the'' at the beginning of 
        paragraphs (1), (2), and (3) and inserting in lieu 
        thereof ``The'';
            (3) in paragraph (1), by striking out the semicolon 
        at the end and inserting in lieu thereof a period; and
            (4) in paragraph (2), by striking out ``; and'' and 
        inserting in lieu thereof a period.

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

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

       Subtitle D--Miscellaneous Report Requirements and Repeals

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

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

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

    (a) Report Required.--Not later than March 30, 1999, the 
Secretary of Defense shall submit to Congress a report 
evaluating the following:
            (1) The feasibility of tagging hydrocarbon fuels 
        used by the Department of Defense for the purposes of 
        analyzing and identifying such fuels.
            (2) The deterrent effect of such tagging on the 
        theft and misuse of fuels purchased by the Department.
            (3) The extent to which such tagging would assist 
        in determining the source of surface and underground 
        pollution in locations having separate fuel storage 
        facilities of the Department and of civilian companies.
    (b) System Elements.--In preparing the report, the 
Secretary shall ensure that any tagging system for the 
Department of Defense considered by the Secretary satisfies the 
following requirements:
            (1) The tagging system would not harm the 
        environment.
            (2) Each chemical that would be used in the tagging 
        system is--
                    (A) approved for use under the Toxic 
                Substances Control Act (15 U.S.C. 2601 et 
                seq.); and
                    (B) substantially similar to the fuel to 
                which added, as determined in accordance with 
                criteria established by the Environmental 
                Protection Agency for the introduction of 
                additives into hydrocarbon fuels.
            (3) The tagging system would permit a determination 
        if a tag is present and a determination if the 
        concentration of a tag has changed in order to 
        facilitate identification of tagged fuels and detection 
        of dilution of tagged fuels.
            (4) The tagging system would not impair or degrade 
        the suitability of tagged fuels for their intended use.
    (c) Recommendations.--The report shall include any 
recommendations for legislation relating to the tagging of 
hydrocarbon fuels by the Department of Defense that the 
Secretary considers appropriate.

                Subtitle E--Armed Forces Retirement Home

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

    (a) Appointment and Qualifications of Director and Deputy 
Director.--Subsection (a) of section 1517 of the Armed Forces 
Retirement Home Act of 1991 (24 U.S.C. 417) is amended--
            (1) in paragraph (2)--
                    (A) by striking out ``Each Director'' and 
                inserting in lieu thereof ``The Director of the 
                United States Soldiers' and Airmen's Home''; 
                and
                    (B) by striking out subparagraph (B) and 
                inserting in lieu thereof the following:
            ``(B) meet the requirements of paragraph (4).'';
            (2) by redesignating paragraph (3) as paragraph 
        (5); and
            (3) by inserting after paragraph (2) the following 
        new paragraphs (3) and (4):
    ``(3) The Director, and any Deputy Director, of the Naval 
Home shall be appointed by the Secretary of Defense from among 
persons recommended by the Secretaries of the military 
departments who--
            ``(A) in the case of the position of Director, are 
        commissioned officers of the Armed Forces serving on 
        active duty in a pay grade above O-5;
            ``(B) in the case of the position of Deputy 
        Director, are commissioned officers of the Armed Forces 
        serving on active duty in a pay grade above O-4; and
            ``(C) meet the requirements of paragraph (4).
    ``(4) Each Director shall have appropriate leadership and 
management skills, an appreciation and understanding of the 
culture and norms associated with military service, and 
significant military background.''.
    (b) Term of Director and Deputy Director.--Subsection (c) 
of such section is amended--
            (1) by striking out ``(c) Term of Director.--'' and 
        all that follows through ``A Director'' in the second 
        sentence and inserting in lieu thereof ``(c) Terms of 
        Directors.--(1) The term of office of the Director of 
        the United States Soldiers' and Airmen's Home shall be 
        five years. The Director''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(2) The Director and the Deputy Director of the Naval 
Home shall serve at the pleasure of the Secretary of 
Defense.''.
    (c) Definitions.--Such section is further amended by adding 
at the end the following new subsection:
    ``(g) Definitions.--In this section:
            ``(1) The term `United States Soldiers' and 
        Airmen's Home' means the separate facility of the 
        Retirement Home that is known as the United States 
        Soldiers' and Airmen's Home.
            ``(2) The term `Naval Home' means the separate 
        facility of the Retirement Home that is known as the 
        Naval Home.''.
    (d) Effective Date.--The amendments made by this section 
shall take effect on October 1, 1998.

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

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

``SEC. 1518. INSPECTION OF RETIREMENT HOME.

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

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

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

            Subtitle F--Matters Relating to Defense Property

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

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

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

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

            Subtitle G--Other Department of Defense Matters

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

    (a) Program Required.--The Secretary of Defense shall 
conduct a pilot program on alternative notice procedures for 
withholding or garnishment of pay for the payment of child 
support and alimony under section 459 of the Social Security 
Act (42 U.S.C. 659).
    (b) Purpose.--The purpose of the pilot program is to test 
the efficacy of providing notice in accordance with subsection 
(c) to the person whose pay is to be withheld or garnished.
    (c) Authorization of Alternative To Providing Copy of 
Notice or Service Received by the Secretary.--(1) Under the 
pilot program, whenever the Secretary of Defense (acting 
through the DOD section 459 agent) provides a section 459 
notice to an individual, the Secretary may include as part of 
that notice the information specified in subsection (e) in lieu 
of sending with that notice a copy (otherwise required pursuant 
to the parenthetical phrase in section 459(c)(2)(A) of the 
Social Security Act) of the notice or service received by the 
DOD section 459 agent with respect to that individual's child 
support or alimony payment obligations.
    (2) Under the pilot program, whenever the Secretary of 
Defense (acting through the DOD section 5520a agent) provides a 
section 5520a notice to an individual, the Secretary may 
include as part of that notice the information specified in 
subsection (e) in lieu of sending with that notice a copy 
(otherwise required pursuant to the second parenthetical phrase 
in section 5520a(c) of the title 5, United States Code) of the 
legal process received by the DOD section 5520a agent with 
respect to that individual.
    (d) Definitions.--For purposes of this section:
            (1) DOD section 459 agent.--The term ``DOD section 
        459 agent'' means the agent or agents designated by the 
        Secretary of Defense under subsection (c)(1)(A) of 
        section 459 of the Social Security Act (42 U.S.C. 659) 
        to receive orders and accept service of process in 
        matters related to child support or alimony.
            (2) Section 459 notice.--The term ``section 459 
        notice'' means, with respect to the Department of 
        Defense, the notice required by subsection (c)(2)(A) of 
        section 459 of the Social Security Act (42 U.S.C. 659) 
        to be sent to an individual in writing upon the receipt 
        by the DOD section 459 agent of notice or service with 
        respect to the individual's child support or alimony 
        payment obligations.
            (3) DOD section 5520a agent.--The term ``DOD 
        section 5520a agent'' means a person who is designated 
        by law or regulation to accept service of process to 
        which the Department of Defense is subject under 
        section 5520a of title 5, United States Code (including 
        the regulations promulgated under subsection (k) of 
        that section).
            (4) Section 5520a notice.--The term ``section 5520a 
        notice'' means, with respect to the Department of 
        Defense, the notice required by subsection (c) of 
        section 5520a of title 5, United States Code, to be 
        sent in writing to an employee (or, pursuant to the 
        regulations promulgated under subsection (k) of that 
        section, to a member of the Armed Forces) upon the 
        receipt by the DOD section 5520a agent of legal process 
        covered by that section.
    (e) Alternative Requirements.--The information referred to 
in subsection (c) that is to be included as part of a section 
459 notice or section 5520a notice sent to an individual (in 
lieu of sending with that notice a copy of the notice or 
service received by the DOD section 459 agent or the DOD 
section 5520a agent) is the following:
            (1) A description of the pertinent court order, 
        notice to withhold, or other order, process, or 
        interrogatory received by the DOD section 459 agent or 
        the DOD section 5520a agent.
            (2) The identity of the court or judicial forum 
        involved and (in the case of a notice or process 
        concerning the ordering of a support or alimony 
        obligation) the case number, the amount of the 
        obligation, and the name of the beneficiary.
            (3) Information on how the individual may obtain 
        from the Department of Defense a copy of the notice, 
        service, or legal process, including an address and 
        telephone number that the individual may be contact for 
        the purpose of obtaining such a copy.
    (f) Period of Pilot Program.--The Secretary shall commence 
the pilot program not later than 90 days after thedate of the 
enactment of this Act. The pilot program shall terminate on September 
30, 2001.
    (g) Report.--Not later than January 1, 2001, the Secretary 
shall submit to Congress a report describing the experience of 
the Department of Defense under the authority provided by this 
section. The report shall include the following:
            (1) The number of section 459 notices provided by 
        the DOD section 459 agent during the period the 
        authority provided by this section was in effect.
            (2) The number of individuals who requested the DOD 
        section 459 agent to provide to them a copy of the 
        actual notice or service.
            (3) Any complaint the Secretary received by reason 
        of not having provided the actual notice or service in 
        the section 459 notice.
            (4) The number of section 5520a notices provided by 
        the DOD section 5520a agent during the period the 
        authority provided by this section was in effect.
            (5) The number of individuals who requested the DOD 
        section 5520a agent to provide to them a copy of the 
        actual legal process.
            (6) Any complaint the Secretary received by reason 
        of not having provided the actual legal process in the 
        section 5520a notice.

SEC. 1062. TRAINING OF SPECIAL OPERATIONS FORCES WITH FRIENDLY FOREIGN 
                    FORCES.

    (a) Requirement for Prior Approval of Secretary of 
Defense.--Subsection (c) of section 2011 of title 10, United 
States Code, is amended by inserting after the first sentence 
the following new sentence: ``The regulations shall require 
that training activities may be carried out under this section 
only with the prior approval of the Secretary of Defense.''.
    (b) Elements of Annual Report.--Subsection (e) of such 
section is amended by adding at the end the following new 
paragraphs:
            ``(5) A summary of the expenditures under this 
        section resulting from the training for which expenses 
        were paid under this section.
            ``(6) A discussion of the unique military training 
        benefit to United States special operations forces 
        derived from the training activities for which expenses 
        were paid under this section.''.

SEC. 1063. RESEARCH GRANTS COMPETITIVELY AWARDED TO SERVICE ACADEMIES.

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

``Sec. 4358. Grants for faculty research for scientific, literary, and 
                    educational purposes: acceptance; authorized 
                    grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the 
Army may authorize the Superintendent of the Academy to accept 
qualifying research grants under this section. Any such grant 
may only be accepted if the work under the grant is to be 
carried out by a professor or instructor of the Academy for a 
scientific, literary, or educational purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under 
this section is a grant that is awarded on a competitive basis 
by an entity referred to in subsection (c) for a research 
project with a scientific, literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant 
may be accepted under this section only from a corporation, 
fund, foundation, educational institution, or similar entity 
that is organized and operated primarily for scientific, 
literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall 
establish an account for administering funds received as 
research grants under this section. The Superintendent shall 
use the funds in the account in accordance with applicable 
regulations and the terms and conditions of the grants 
received.
    ``(e) Related Expenses.--Subject to such limitations as may 
be provided in appropriations Acts, appropriations availablefor 
the Academy may be used to pay expenses incurred by the Academy in 
applying for, and otherwise pursuing, award of a qualifying research 
grant.
    ``(f) Regulations.--The Secretary of the Army shall 
prescribe regulations for the administration of this 
section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``4358. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

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

``Sec. 6977. Grants for faculty research for scientific, literary, and 
                    educational purposes: acceptance; authorized 
                    grantees

    ``(a) Acceptance of Research Grants.--The Secretary of the 
Navy may authorize the Superintendent of the Academy to accept 
qualifying research grants under this section. Any such grant 
may only be accepted if the work under the grant is to be 
carried out by a professor or instructor of the Academy for a 
scientific, literary, or educational purpose.
    ``(b) Qualifying Grants.--A qualifying research grant under 
this section is a grant that is awarded on a competitive basis 
by an entity referred to in subsection (c) for a research 
project with a scientific, literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant 
may be accepted under this section only from a corporation, 
fund, foundation, educational institution, or similar entity 
that is organized and operated primarily for scientific, 
literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall 
establish an account for administering funds received as 
research grants under this section. The Superintendent shall 
use the funds in the account in accordance with applicable 
regulations and the terms and conditions of the grants 
received.
    ``(e) Related Expenses.--Subject to such limitations as may 
be provided in appropriations Acts, appropriations available 
for the Academy may be used to pay expenses incurred by the 
Academy in applying for, and otherwise pursuing, award of a 
qualifying research grant.
    ``(f) Regulations.--The Secretary of the Navy shall 
prescribe regulations for the administration of this 
section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``6977. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

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

Sec. 9357. Grants for faculty research for scientific, literary, and 
                    educational purposes: acceptance; authorized 
                    grantees

    ``(a)Acceptance of Research Grants.--The Secretary of the 
AIr Force may authorize the Superintendent of the Academy to 
accept qualifying research grants under this section. Any such 
grant may only be accepted if the work under the grant is to be 
carried out by a professor or instructor of the Academy for a 
scientific, literary, or educational purpose.
    ``(b) Qualifying Grants.-- A qualifying research grant 
under this section is a grant that is awarded on competitive 
basis by an entity referred to in subsection (c) for a research 
project with a scientific, literary, or educational purpose.
    ``(c) Entities From Which Grants May be Accepted.--A grant 
may be accepted under this section only from a corporation, 
fund, foundation, educational institution, or similar entity 
that is organized and operated primarily or scientific, 
literary, or educational purposes.
    ``(d) Administration of Grant Funds.--The Secretary shall 
establish an account for administering funds received as 
research grant under this section. The Superintendent shall use 
the funds in the account in accordance with applicable 
regulations and the terms and conditions of the grants 
received.
    ``(e) Related Expenses.--Subject to such limitations as may 
be provided in appropriations Acts, appropriations available 
for the Academy may be used to pay expenses incurred by the 
Academy in applying for, and otherwise pursuing, award of a 
qualifying research grant.
    ``(f) Regulaitons.--The Secretary of the Air Force shall 
prescribe regulations for the administration of this 
section.''.
    (2) The table of sections at the beginning of such chapter 
is amended by adding at the end the following new item:

``9357. Grants for faculty research for scientific, literary, and 
          educational purposes: acceptance; authorized grantees.''.

SEC. 1064. DEPARTMENT OF DEFENSE USE OF FREQUENCY SPECTRUM.

    (a) Finding.--Congress finds that the report submitted to 
Congress by the Secretary of Defense on April 2, 1998, 
regarding the reallocation of the frequency spectrum used or 
dedicated to the Department of Defense and the intelligence 
community does not include a discussion of the costs to the 
Department of Defense that are associated with past and 
potential future reallocations of the frequency spectrum, 
although such a discussion was to be included in the report as 
directed in connection with the enactment of the National 
Defense Authorization Act for Fiscal Year 1998.
    (b) Additional Report.--The Secretary of Defense shall, not 
later than October 31, 1998, submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report that discusses the 
costs referred to in subsection (a).
    (c) Relocation of Federal Frequencies.--Section 113(g)(1) 
of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 923(g)(1)) is 
amended--
            (1) by striking out ``(1) In general.--In order'' 
        and inserting in lieu thereof the following:
            ``(1) In general.--
                    ``(A) Authority of federal entities to 
                accept compensation.--In order'';
            (2) in subparagraph (A), as so designated, by 
        striking out the second, third, and fourth sentences 
        and insertingin lieu thereof the following: ``Any such 
Federal entity which proposes to so relocate shall notify the NTIA, 
which in turn shall notify the Commission, before the auction concerned 
of the marginal costs anticipated to be associated with such relocation 
or with modifications necessary to accommodate prospective licensees. 
The Commission in turn shall notify potential bidders of the estimated 
relocation or modification costs based on the geographic area covered 
by the proposed licenses before the auction.''; and
            (3) by adding at the end the following:
                    ``(B) Requirement to compensate federal 
                entities.--Any person on whose behalf a Federal 
                entity incurs costs under subparagraph (A) 
                shall compensate the Federal entity in advance 
                for such costs. Such compensation may take the 
                form of a cash payment or in-kind compensation.
                    ``(C) Disposition of payments.--
                            ``(i) Payment by electronic funds 
                        transfer.--A person making a cash 
                        payment under this paragraph shall make 
                        the cash payment by depositing the 
                        amount of the payment by electronic 
                        funds transfer in the account of the 
                        Federal entity concerned in the 
                        Treasury of the United States or in 
                        another account as authorized by law.
                            ``(ii) Availability.--Subject to 
                        the provisions of authorization Acts 
                        and appropriations Acts, amounts 
                        deposited under this subparagraph shall 
                        be available to the Federal entity 
                        concerned to pay directly the costs of 
                        relocation under this paragraph, to 
                        repay or make advances to 
                        appropriations or funds which do or 
                        will initially bear all or part of such 
                        costs, or to refund excess sums when 
                        necessary.
                    ``(D) Application to certain other 
                relocations.--The provisions of this paragraph 
                also apply to any Federal entity that operates 
                a Federal Government station assigned to used 
                electromagnetic spectrum identified for 
                reallocation under subsection (a) if before 
                August 5, 1997, the Commission has not 
                identified that spectrum for service or 
                assigned licenses or otherwise authorized 
                service for that spectrum.
                    ``(E) Implementation procedures.--The NTIA 
                and the Commission shall develop procedures for 
                the implementation of this paragraph, which 
                procedures shall include a process for 
                resolving any differences that arise between 
                the Federal Government and commercial licensees 
                regarding estimates of relocation or 
                modification costs under this paragraph.
                    ``(F) Inapplicability to certain 
                relocations.--With the exception of the band of 
                frequencies located at 1710-1755 megahertz, the 
                provisions of this paragraph shall not apply to 
                Federal spectrum identified for reallocation in 
                the first reallocation report submitted to the 
                President and Congress under subsection (a).''.
    (d) Reports on Costs of Relocations.--The head of each 
department or agency of the Federal Government shall include in 
the annual budget submission of such department or agency to 
the Director of the Office of Management and Budget a report 
assessing the costs to be incurred by such department or agency 
as a result of any frequency relocations of such department or 
agency that are anticipated under section 113 of the National 
Telecommunications Information Administration Organization Act 
(47 U.S.C. 923) as of the date of such report.

SEC. 1065. DEPARTMENT OF DEFENSE AVIATION ACCIDENT INVESTIGATIONS.

    (a) Report Required.--Not later than March 31, 1999, the 
Secretary of Defense shall submit to Congress a report on the 
roles of the Office of the Secretary of Defense and of the 
Joint Staff in the investigation of Department of Defense 
aviation accidents.
    (b) Content of Report.--The report shall include the 
following:
            (1) An assessment of whether the Office of the 
        Secretary of Defense and the Joint Staff should have 
        more direct involvement in the investigation of 
        military aviation accidents.
            (2) The advisability of the Office of the Secretary 
        of Defense, the Joint Staff, or another Department of 
        Defense entity independent of the military departments 
        supervising the conduct of aviation accident 
        investigations.
            (3) An assessment of the minimum training and 
        experience required for aviation accident investigation 
        board presidents and board members.
            (4) An assessment whether or not the procedures for 
        sharing the results of military aviation accident 
        investigations among the military departments should be 
        improved.
            (5) An assessment of the advisability of 
        centralized training and instruction for military 
        aircraft accident investigators.
    (c) Uniform Regulations for Provision of Accident 
Investigation Update Information.--The Secretary of Defense 
shall prescribe regulations, which shall be applied uniformly 
across the Department of Defense, establishing procedures by 
which the military departments shall provide to the family 
members of any person involved in a military aviation accident 
periodic update reports on the conduct and progress of 
investigations into the accident.

SEC. 1066. INVESTIGATION OF ACTIONS RELATING TO 174TH FIGHTER WING OF 
                    NEW YORK AIR NATIONAL GUARD.

    (a) Investigation.--The Inspector General of the Department 
of Defense shall conduct a new investigation into the 
circumstances that led to the December 1, 1995, grounding of 
the 174th Fighter Wing of the New York Air National Guard. The 
investigation shall review those circumstances, examine the 
administrative and disciplinary actions taken against members 
of that wing, and determine whether those administrative and 
disciplinary measures were appropriate.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Inspector General shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
describing the results of the investigation under subsection 
(a).

SEC. 1067. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE KOREAN WAR.

    (a) Limitation on Expenditures.--Subsection (f) of section 
1083 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 1918; 10 U.S.C. 113 note) is 
amended to read as follows:
    ``(f) Limitation on Expenditures.--The total amount 
expended by the Department of Defense to carry out the 
commemorative program for fiscal year 1999 may not exceed 
$1,820,000.''.
    (b) Redesignation of Commemoration Account.--The account in 
the Treasury known as the ``Department of Defense Korean 
Conflict Commemoration Account'' is redesignated as the 
``Department of Defense Korean War Commemoration Account''.
    (c) Other References to Korean War.--Such section is 
further amended--
            (1) in the section heading, by striking out 
        ``korean conflict'' and inserting in lieu thereof 
        ``korean war'';
            (2) by striking out ``Korean conflict'' each place 
        it appears and inserting in lieu thereof ``Korean 
        War'';
            (3) in subsection (c), by striking out ``names `The 
        Department of Defense Korean Conflict Commemoration','' 
        and inserting in lieu thereof ``name the `Department of 
        Defense Korean War Commemoration',''; and
            (4) in subsection (d)(1), by striking out ``Korean 
        Conflict'' and inserting in lieu thereof ``Korean 
        War''.
    (d) Cross References.--Any reference to the Department of 
Defense Korean Conflict Commemoration or the Department of 
Defense Korean Conflict Commemoration Accountin any law, 
regulation, document, record, or other paper of the United States shall 
be considered to be a reference to the Department of Defense Korean War 
Commemoration or the Department of Defense Korean War Commemoration 
Account, respectively.

SEC. 1068. DESIGNATION OF AMERICA'S NATIONAL MARITIME MUSEUM.

    (a) In General.--America's National Maritime Museum is 
comprised of those museums designated by law to be museums of 
America's National Maritime Museum on the basis that they--
            (1) house a collection of maritime artifacts 
        clearly representing the Nation's maritime heritage; 
        and
            (2) provide outreach programs to educate the public 
        about the Nation's maritime heritage.
    (b) Initial Designation of Museums.--The following museums 
(meeting the criteria specified in subsection (a)) are hereby 
designated as museums of America's National Maritime Museum:
            (1) The Mariners' Museum, located at 100 Museum 
        Drive, Newport News, Virginia.
            (2) The South Street Seaport Museum, located at 207 
        Front Street, New York, New York.
    (c) Future Designation of Other Museums Not Precluded.--The 
designation of the museums referred to in subsection (b) as 
museums of America's National Maritime Museum does not preclude 
the designation by law after the date of the enactment of this 
Act of any other museum that meets the criteria specified in 
subsection (a) as a museum of America's National Maritime 
Museum.
    (d) Reference to Museums.--Any reference in any law, map, 
regulation, document, paper, or other record of the United 
States to a museum designated by law to be a museum of 
America's National Maritime Museum shall be deemed to be a 
reference to that museum as a museum of America's National 
Maritime Museum.

SEC. 1069. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States 
Code, is amended as follows:
            (1) The item relating to section 484 in the table 
        of sections at the beginning of chapter 23 is amended 
        to read as follows:

``484. Annual report on aircraft inventory.''.

            (2) Section 517(a) is amended by striking out 
        ``Except as provided in section 307 of title 37, the'' 
        and inserting in lieu thereof ``The''.
            (3) The item relating to section 2302c in the table 
        of sections at the beginning of chapter 137 is amended 
        to read as follows:

``2302c. Implementation of electronic commerce capability.''.

            (4) The table of subchapters at the beginning of 
        chapter 148 is amended--
                    (A) by striking out ``2491'' in the item 
                relating to subchapter I and inserting in lieu 
                thereof ``2500''; and
                    (B) by striking out the item relating to 
                subchapter IV and inserting in lieu thereof the 
                following:

``IV. Manufacturing Technology................................   2521''.

            (5) The subchapter heading for subchapter IV of 
        chapter 148 is amended to read as follows:

              ``SUBCHAPTER IV--MANUFACTURING TECHNOLOGY''

            (6) Section 7045(c) is amended by striking out 
        ``the'' after ``are subject to''.
            (7) Section 7572(b) is repealed.
            (8) Section 12683(b)(2) is amended by striking out 
        ``; or'' at the end and inserting in lieu thereof a 
        period.
    (b) Public Law 105-85.--Effective as of November 18, 1997, 
and as if included therein as enacted, the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85) is 
amended as follows:
            (1) Section 389(g) (111 Stat. 1715) is amended by 
        striking out ``Secretary of Defense'' and inserting in 
        lieu thereof ``Comptroller General''.
            (2) Section 1006(a) (111 Stat. 1869) is amended by 
        striking out ``or'' in the quoted matter and inserting 
        in lieu thereof ``and''.
            (3) Section 3133(b)(3) (111 Stat. 2036) is amended 
        by striking out ``III'' and inserting in lieu thereof 
        ``XIV''.
    (c)  Defense Against Weapons of Mass Destruction Act of 
1996.--The Defense Against Weapons of Mass Destruction Act of 
1996 (title XIV of Public Law 104-201) is amended as follows:
            (1) Section 1423(b)(4) (50 U.S.C. 2332(b)(4); 110 
        Stat. 2726) is amended by striking out ``(22 U.S.C. 
        2156a(c))'' and inserting in lieu thereof ``(42 U.S.C. 
        2139a(c))''.
            (2) Section 1441(b)(2) (50 U.S.C. 2351(b)(2); 110 
        Stat. 2727) is amended by striking out ``established 
        under section 1342'' and inserting in lieu thereof ``of 
        the National Security Council''.
            (3) Section 1444 (50 U.S.C. 2354; 110 Stat. 2730) 
        is amended by striking out ``1341'' and ``1342'' and 
        inserting in lieu thereof ``1441'' and ``1442'', 
        respectively.
            (4) Section 1453(1) (50 U.S.C. 2363(1); 110 Stat. 
        2730) is amended by striking out ``the National Defense 
        Authorization Act for Fiscal Years 1993 and 1994'' and 
        inserting in lieu thereof ``title XIV of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public 
        Law 102-484; 22 U.S.C. 5901 et seq.)''.
    (d) Other Acts.--
            (1) Section 18(c)(1) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 416(c)(1)) is amended 
        by striking out the period at the end of subparagraph 
        (A) and inserting in lieu thereof a semicolon.
            (2) Section 3(c)(2) of Public Law 101-533 (22 
        U.S.C. 3142(c)(2)) is amended by striking out 
        ``included in the most recent plan submitted to the 
        Congress under section 2506 of title 10'' and inserting 
        in lieu thereof ``identified in the most recent 
        assessment prepared under section 2505 of title 10''.
    (e) Coordination With Other Amendments.--For purposes of 
applying amendments made by provisions of this Act other than 
provisions of this section, this section shall be treated as 
having been enacted immediately before the other provisions of 
this Act.

                       Subtitle H--Other Matters

SEC. 1071. ACT CONSTITUTING PRESIDENTIAL APPROVAL OF VESSEL WAR RISK 
                    INSURANCE REQUESTED BY THE SECRETARY OF DEFENSE.

    (a) In General.--Section 1205(b) of the Merchant Marine 
Act, 1936 (46 U.S.C. App. 1285(b)), is amended by adding at the 
end the following new sentence: ``The signature of the 
President (or of an official designated by the President) on 
the agreement shall be treated as an expression of the approval 
required under section 1202(a) to provide the insurance.''.
    (b) Effective Date.--The amendment made by subsection (a) 
shall apply only to a signature of the President (or of an 
official designated by the President) on or after the date of 
the enactment of this Act.

SEC. 1072. EXTENSION AND REAUTHORIZATION OF DEFENSE PRODUCTION ACT OF 
                    1950.

    (a) Extension of Termination Date.--Section 717(a) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2166(a)) is 
amended by striking ``September 30, 1998'' and inserting 
``September 30, 1999''.
    (b) Extension of Authorization.--Section 711(b) of the 
Defense Production Act of 1950 (50 U.S.C. App. 2161(b)) is 
amended by striking ``and 1998'' and inserting ``1998, and 
1999''.

SEC. 1073. REQUIREMENT THAT BURIAL FLAGS FURNISHED BY THE SECRETARY OF 
                    VETERANS AFFAIRS BE WHOLLY PRODUCED IN THE UNITED 
                    STATES.

    (a) Requirement.--Section 2301 of title 38, United States 
Code, as amended by section 517, is further amended by adding 
at the end the following new subsection:
    ``(g)(1) The Secretary may not procure any flag for the 
purposes of this section that is not wholly produced in the 
United States.
    ``(2)(A) The Secretary may waive the requirement of 
paragraph (1) if the Secretary determines--
            ``(i) that the requirement cannot be reasonably 
        met; or
            ``(ii) that compliance with the requirement would 
        not be in the national interest of the United States.
    ``(B) The Secretary shall submit to Congress in writing 
notice of a determination under subparagraph (A) not later than 
30 days after the date on which such determination is made.
    ``(3) For the purpose of paragraph (1), a flag shall be 
considered to be wholly produced in the United States only if--
            ``(A) the materials and components of the flag are 
        entirely grown, manufactured, or created in the United 
        States;
            ``(B) the processing (including spinning, weaving, 
        dyeing, and finishing) of such materials and components 
        is entirely performed in the United States; and
            ``(C) the manufacture and assembling of such 
        materials and components into the flag is entirely 
        performed in the United States.''.
    (b) Effective Date.--Subsection (g) of section 2301 of 
title 38, United States Code, as added by subsection (a), shall 
apply to flags procured by the Secretary of Veterans Affairs 
for the purposes of section 2301 of title 38, United States 
Code, after the end of the 30-day period beginning on the date 
of the enactment of this Act.

SEC. 1074. SENSE OF CONGRESS CONCERNING TAX TREATMENT OF PRINCIPAL 
                    RESIDENCE OF MEMBERS OF ARMED FORCES WHILE AWAY 
                    FROM HOME ON ACTIVE DUTY.

    It is the sense of Congress that a member of the Armed 
Forces should be treated for purposes of section 121 of the 
Internal Revenue Code of 1986 as using property as a principal 
residence during any continuous period that the member is 
serving on active duty for 180 days or more with the Armed 
Forces, but only if the member used the property as a principal 
residence for any period during or immediately before that 
period of active duty.

SEC. 1075. CLARIFICATION OF STATE AUTHORITY TO TAX COMPENSATION PAID TO 
                    CERTAIN EMPLOYEES.

    (a) Limitation on State Authority To Tax Compensation Paid 
to Individuals Performing Services at Fort Campbell, 
Kentucky.--
            (1) In general.--Chapter 4 of title 4, United 
        States Code, is amended by adding at the end the 
        following:

``Sec. 115. Limitation on State authority to tax compensation paid to 
                    individuals performing services at Fort Campbell, 
                    Kentucky

    ``Pay and compensation paid to an individual for personal 
services at Fort Campbell, Kentucky, shall be subject to 
taxation by the State or any political subdivision thereof of 
which such employee is a resident.''.
            (2) Conforming amendment.--The table of sections 
        for chapter 4 of title 4, United States Code, is 
        amended by adding at the end the following:

``115. Limitation on State authority to tax compensation paid to 
          individuals performing services at Fort Campbell, Kentucky.''.

            (3) Effective date.--The amendments made by this 
        subsection shall apply to pay and compensation paid 
        after the date of the enactment of this Act.
    (b) Clarification of State Authority To Tax Compensation 
Paid to Certain Federal Employees.--
            (1) In general.--Section 111 of title 4, United 
        States Code, is amended--
                    (A) by inserting ``(a) General Rule.--'' 
                before ``The United States'' the first place it 
                appears; and
                    (B) by adding at the end the following:
    ``(b) Treatment of Certain Federal Employees Employed at 
Federal Hydroelectric Facilities Located on the Columbia 
River.--Pay or compensation paid by theUnited States for 
personal services as an employee of the United States at a 
hydroelectric facility--
            ``(1) which is owned by the United States;
            ``(2) which is located on the Columbia River; and
            ``(3) portions of which are within the States of 
        Oregon and Washington,

shall be subject to taxation by the State or any political 
subdivision thereof of which such employee is a resident.
    ``(c) Treatment of Certain Federal Employees Employed at 
Federal Hydroelectric Facilities Located on the Missouri 
River.--Pay or compensation paid by the United States for 
personal services as an employee of the United States at a 
hydroelectric facility--
            ``(1) which is owned by the United States;
            ``(2) which is located on the Missouri River; and
            ``(3) portions of which are within the States of 
        South Dakota and Nebraska,

shall be subject to taxation by the State or any political 
subdivision thereof of which such employee is a resident.''.
            (2) Effective date.--The amendment made by this 
        subsection shall apply to pay and compensation paid 
        after the date of the enactment of this Act.

           TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

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

SEC. 1101. DEFENSE ADVANCED RESEARCH PROJECTS AGENCY EXPERIMENTAL 
                    PERSONNEL MANAGEMENT PROGRAM FOR TECHNICAL 
                    PERSONNEL.

    (a) Program Authorized.--During the five-year period 
beginning on the date of the enactment of this Act, the 
Secretary of Defense may carry out a program of experimental 
use of the special personnel management authority provided in 
subsection (b) in order to facilitate recruitment of eminent 
experts in science or engineering for research and development 
projects administered by the Defense Advanced Research Projects 
Agency.
    (b) Special Personnel Management Authority.--Under the 
program, the Secretary may--
            (1) appoint scientists and engineers from outside 
        the civil service and uniformed services (as such terms 
        are defined in section 2101 of title 5, United States 
        Code) to not more than 20 scientific and engineering 
        positions in the Defense Advanced Research Projects 
        Agency without regard to any provision of title 5, 
        United States Code, governing the appointment of 
        employees in the civil service;
            (2) prescribe the rates of basic pay for positions 
        to which employees are appointed under paragraph (1) at 
        rates not in excess of the maximum rate of basic pay 
        authorized for senior-level positions under section 
        5376 of title 5, United States Code, notwithstanding 
        any provision of such title governing the rates of pay 
        or classification of employees in the executive branch; 
        and
            (3) pay any employee appointed under paragraph (1) 
        payments in addition to basic pay within the limit 
        applicable to the employee under subsection (d)(1).
    (c) Limitation on Term of Appointment.--(1) Except as 
provided in paragraph (2), the service of an employee under an 
appointment under subsection (b)(1) may not exceed four years.
    (2) The Secretary may, in the case of a particular 
employee, extend the period to which service is limited under 
paragraph (1) by up to two years if the Secretary determines 
that such action is necessary to promote the efficiency of the 
Defense Advanced Research Projects Agency.
    (d) Limitations on Additional Payments.--(1) The total 
amount of the additional payments paid to an employee under 
subsection (b)(3) for any 12-month period may not exceed the 
least of the following amounts:
            (A) $25,000.
            (B) The amount equal to 25 percent of the 
        employee's annual rate of basic pay.
            (C) The amount of the limitation that is applicable 
        for a calendar year under section 5307(a)(1) of title 
        5, United States Code.
    (2) An employee appointed under subsection (b)(1) is not 
eligible for any bonus, monetary award, or other monetary 
incentive for service except for payments authorized under 
subsection (b)(3).
    (e) Period of Program.--(1) The program authorized under 
this section shall terminate at the end of the five-year period 
referred to in subsection (a).
    (2) After the termination of the program--
            (A) no appointment may be made under paragraph (1) 
        of subsection (b);
            (B) a rate of basic pay prescribed under paragraph 
        (2) of that subsection may not take effect for a 
        position; and
            (C) no period of service may be extended under 
        subsection (c)(1).
    (f) Savings Provisions.--In the case of an employee who, on 
the day before the termination of the program, is serving in a 
position pursuant to an appointment under subsection (b)(1)--
            (1) the termination of the program does not 
        terminate the employee's employment in that position 
        before the expiration of the lesser of--
                    (A) the period for which the employee was 
                appointed; or
                    (B) the period to which the employee's 
                service is limited under subsection (c), 
                including any extension made under paragraph 
                (2) of that subsection before the termination 
                of the program; and
            (2) the rate of basic pay prescribed for the 
        position under subsection (b)(2) may not be reduced for 
        so long (within the period applicable to the employee 
        under paragraph (1)) as the employee continues to serve 
        in the position without a break in service.
    (g) Annual Report.--(1) Not later than October 15 of each 
year, beginning in 1999 and ending in 2004, the Secretary of 
Defense shall submit a report on the program to the Committee 
on Armed Services of the Senate and the Committee on National 
Security of the House of Representatives. The report submitted 
in a year shall cover the 12-month period ending on the day 
before the anniversary, in that year, of the date of the 
enactment of this Act.
    (2) The annual report shall contain, for the period covered 
by the report, the following:
            (A) A detailed discussion of the exercise of 
        authority under this section.
            (B) The sources from which individuals appointed 
        under subsection (b)(1) were recruited.
            (C) The methodology used for identifying and 
        selecting such individuals.
            (D) Any additional information that the Secretary 
        considers helpful for assessing the utility of the 
        authority under this section.

SEC. 1102. MAXIMUM PAY RATE COMPARABILITY FOR FACULTY MEMBERS OF THE 
                    UNITED STATES AIR FORCE INSTITUTE OF TECHNOLOGY.

    Section 9314(b)(2)(B) of title 10, United States Code, is 
amended by striking out ``section 5306(e)'' and inserting in 
lieu thereof ``section 5373''.

SEC. 1103. AUTHORITY FOR RELEASE TO COAST GUARD OF DRUG TEST RESULTS OF 
                    CIVIL SERVICE MARINERS OF THE MILITARY SEALIFT 
                    COMMAND.

    (a) In General.--Chapter 643 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 7479. Civil service mariners of Military Sealift Command: 
                    release of drug test results to Coast Guard

    ``(a) Release of Drug Test Results to Coast Guard.--The 
Secretary of the Navy may release to the Commandant of the 
Coast Guard the results of a drug test of any employee of the 
Department of the Navy who is employed in any capacity on board 
a vessel of the Military Sealift Command. Any such release 
shall be in accordance with the standards and procedures 
applicable to the disclosure and reporting to the Coast Guard 
of drug tests results and drug test records of individuals 
employed on vessels documented under the laws of the United 
States.
    ``(b) Waiver.--The results of a drug test of an employee 
may be released under subsection (a) without the prior written 
consent of the employee that is otherwise required under 
section 503(e) of the Supplemental Appropriations Act, 1987 (5 
U.S.C. 7301 note).''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:

``7479. Civil service mariners of Military Sealift Command: release of 
          drug test results to Coast Guard.''.

SEC. 1104. LIMITATIONS ON BACK PAY AWARDS.

    (a) In General.--Section 5596(b) of title 5, United States 
Code, is amended--
            (1) by redesignating paragraph (4) as paragraph 
        (5); and
            (2) by inserting after paragraph (3) the following 
        new paragraph:
    ``(4) The pay, allowances, or differentials granted under 
this section for the period for which an unjustified or 
unwarranted personnel action was in effect shall not exceed 
that authorized by the applicable law, rule, regulations, or 
collective bargaining agreement under which the unjustified or 
unwarranted personnel action is found, except that in no case 
may pay, allowances, or differentials be granted under this 
section for a period beginning more than 6 years before the 
date of the filing of a timely appeal or, absent such filing, 
the date of the administrative determination.''.
    (b) Conforming Amendment.--Section 7121 of title 5, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(h) Settlements and awards under this chapter shall be 
subject to the limitations in section 5596(b)(4) of this 
title.''.

SEC. 1105. RESTORATION OF ANNUAL LEAVE ACCUMULATED BY CIVILIAN 
                    EMPLOYEES AT INSTALLATIONS IN THE REPUBLIC OF 
                    PANAMA TO BE CLOSED PURSUANT TO THE PANAMA CANAL 
                    TREATY OF 1977.

    Section 6304(d)(3)(A) of title 5, United States Code, is 
amended by inserting ``the closure of an installation of the 
Department of Defense in the Republic of Panama in accordance 
with the Panama Canal Treaty of 1977,'' after ``2687 note) 
during any period,''.

SEC. 1106. REPEAL OF PROGRAM PROVIDING PREFERENCE FOR EMPLOYMENT OF 
                    MILITARY SPOUSES IN MILITARY CHILD CARE FACILITIES.

    Section 1792 of title 10, United States Code, is amended--
            (1) by striking out subsection (d); and
            (2) by redesignating subsection (e) as subsection 
        (d).

SEC. 1107. OBSERVANCE OF CERTAIN HOLIDAYS AT DUTY POSTS OUTSIDE THE 
                    UNITED STATES.

    Section 6103(b) of title 5, United States Code, is amended 
by inserting after paragraph (2) the following new paragraph:
            ``(3) Instead of a holiday that is designated under 
        subsection (a) to occur on a Monday, for an employee at 
        a duty post outside the United States whose basic 
        workweek is other than Monday through Friday, and for 
        whom Monday is a regularly scheduled workday, the legal 
        public holiday is the first workday of the workweek in 
        which the Monday designated for the observance of such 
        holiday under subsection (a) occurs.''.

SEC. 1108. CONTINUATION OF RANDOM DRUG TESTING PROGRAM FOR CERTAIN 
                    DEPARTMENT OF DEFENSE EMPLOYEES.

    (a) Continuation of Existing Program.--The Secretary of 
Defense shall continue to actively carry out the drug testing 
program, originally required by section 3(a) of Executive Order 
12564 (51 Fed. Reg. 32889; September 15, 1986), involving 
civilian employees of the Department of Defense who are 
considered to be employees in sensitive positions. The 
Secretary shall comply with the drug testing procedures 
prescribed pursuant to section 4 of the Executive Order.
    (b) Testing Upon Reasonable Suspicion of Illegal Drug 
Use.--The Secretary of Defense shall ensure that the drug 
testing program referred to in subsection (a) authorizes the 
testing of a civilian employee of the Department of Defense for 
illegal drug use when there is a reasonable suspicion that the 
employee uses illegal drugs.
    (c) Notification to Applicants.--The Secretary of Defense 
shall notify persons who apply for employment with the 
Department of Defense that, as a condition of employment by the 
Department, the person may be required to submit to drug 
testing under the drug testing program required by Executive 
Order 12564 (51 Fed. Reg. 32889; September 15, 1986) pursuant 
to the terms of the Executive Order.
    (d) Definitions.--In this section, the terms ``illegal 
drugs'' and ``employee in a sensitive position'' have the 
meanings given such terms in section 7 of Executive Order 12564 
(51 Fed. Reg. 32889; September 15, 1986).

SEC. 1109. DEPARTMENT OF DEFENSE EMPLOYEE VOLUNTARY EARLY RETIREMENT 
                    AUTHORITY.

    (a) Civil Service Retirement System.--Section 8336 of title 
5, United States Code, is amended--
            (1) in subsection (d)(2), by inserting ``except in 
        the case of an employee described in subsection 
        (o)(1),'' after ``(2)''; and
            (2) by adding at the end the following:
    ``(o)(1) An employee of the Department of Defense who is 
separated from the service under conditions described in 
paragraph (2) after completing 25 years of service or after 
becoming 50 years of age and completing 20 years of service is 
entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the 
        Department of Defense for more than 30 days before the 
        date on which the Secretary concerned requests the 
        determinations required under in subparagraph (D)(i);
            ``(B) is serving under an appointment that is not 
        limited by time;
            ``(C) has not received a decision notice of 
        involuntary separation for misconduct or unacceptable 
        performance that is pending decision; and
            ``(D) is separated from the service voluntarily 
        during a period in which--
                    ``(i) the Department of Defense or the 
                military department or subordinate organization 
                within the Department of Defense or military 
                department in which the employee is serving is 
                undergoing a major reorganization, a major 
                reduction in force, or a major transfer of 
                function, and employees comprising a 
                significant percentage of the employees serving 
                in that department or organization are to be 
                separated or subject to an immediate reduction 
                in the rate of basic pay (without regard to 
                subchapter VI of chapter 53, or comparable 
                provisions of law), as determined by the Office 
                of Personnel Management (under regulations 
                prescribed by the Office) upon the request of 
                the Secretary concerned; and
                    ``(ii) the employee is within the scope of 
                an offer of voluntary early retirement (as 
                defined by organizational unit, occupational 
                series or level, geographical location, any 
                other similar factor that the Office of 
                Personnel Management determines appropriate, or 
                any combination of such definitions of scope), 
                as determined by the Secretary concerned under 
                regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' 
means--
            ``(A) the Secretary of Defense, with respect to an 
        employee of the Department of Defense not employed in a 
        position in a military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy; and
            ``(D) the Secretary of the Air Force, with respect 
        to an employee of the Department of the Air Force.''.
    (b) Federal Employees' Retirement System.--Section 8414 of 
such title is amended--
            (1) in subsection (b)(1)(B), by inserting ``except 
        in the case of an employee described in subsection 
        (d)(1),'' after ``(B)''; and
            (2) by adding at the end the following:
    ``(d)(1) An employee of the Department of Defense who is 
separated from the service under conditions described in 
paragraph (2) after completing 25 years of service or after 
becoming 50 years of age and completing 20 years of service is 
entitled to an annuity.
    ``(2) Paragraph (1) applies to an employee who--
            ``(A) has been employed continuously by the 
        Department of Defense for more than 30 days before the 
        date on which the Secretary concerned requests the 
        determinations required under subparagraph (D)(i);
            ``(B) is serving under an appointment that is not 
        limited by time;
            ``(C) has not received a decision notice of 
        involuntary separation for misconduct or unacceptable 
        performance that is pending decision; and
            ``(D) is separated from the service voluntarily 
        during a period in which--
                    ``(i) the Department of Defense or the 
                military department or subordinate organization 
                within the Department of Defense or military 
                department in which the employee is serving is 
                undergoing a major reorganization, a major 
                reduction in force, or a major transfer of 
                function, and employees comprising a 
                significant percentage of the employees serving 
                in that department or organization are to be 
                separated or subject to an immediate reduction 
                in the rate of basic pay (without regard to 
                subchapter VI of chapter 53, or comparable 
                provisions of law), as determined by the Office 
                of Personnel Management (under regulations 
                prescribed by the Office) upon the request of 
                the Secretary concerned; and
                    ``(ii) the employee is within the scope of 
                an offer of voluntary early retirement (as 
                defined by organizationalunit, occupational 
series or level, geographical location, any other similar factor that 
the Office of Personnel Management determines appropriate, or any 
combination of such definitions of scope), as determined by the 
Secretary concerned under regulations prescribed by the Office.
    ``(3) In this subsection, the term `Secretary concerned' 
means--
            ``(A) the Secretary of Defense, with respect to an 
        employee of the Department of Defense not employed in a 
        position in a military department;
            ``(B) the Secretary of the Army, with respect to an 
        employee of the Department of the Army;
            ``(C) the Secretary of the Navy, with respect to an 
        employee of the Department of the Navy; and
            ``(D) the Secretary of the Air Force, with respect 
        to an employee of the Department of the Air Force.''.
    (c) Conforming Amendments.--(1) Section 8339(h) of such 
title is amended by striking out ``or (j)'' in the first 
sentence and inserting in lieu thereof ``(j), or (o)''.
    (2) Section 8464(a)(1)(A)(i) of such title is amended by 
striking out ``or (b)(1)(B)'' and inserting in lieu thereof ``, 
(b)(1)(B), or (d)''.
    (d) Effective Date; Applicability.--The amendments made by 
this section--
            (1) shall take effect on October 1, 2000; and
            (2) shall apply with respect to an approval for 
        voluntary early retirement made on or after that date.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

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

         Subtitle B--Matters Relating to Contingency Operations

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

             Subtitle C--Matters Relating to NATO and Europe

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

                        Subtitle D--Other Matters

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

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

SEC. 1201. FINDINGS.

    Congress makes the following findings:
            (1) The contributions of the people of the United 
        States and other nations have, in large measure, 
        resulted in the suspension of fighting and alleviated 
        the suffering of the people of Bosnia and Herzegovina 
        since December 1995.
            (2) The United States has expended approximately 
        $9,500,000,000 between 1992 and mid-1998 just in 
        supportof the United States military operations in 
Bosnia to achieve those results.
            (3) Efforts to restore the economy and political 
        structure in Bosnia and Herzegovina have achieved some 
        success in accordance with the Dayton Accords.
            (4) On March 3, 1998, the President certified to 
        Congress (A) that the continued presence of United 
        States forces in Bosnia and Herzegovina after June 30, 
        1998, was required in order to meet the national 
        security interests of the United States, and (B) that 
        United States Armed Forces will not serve as, or be 
        used as, civil police in Bosnia and Herzegovina.
            (5) With that certification, the President 
        submitted to Congress a report stating that the goal of 
        the military presence in Bosnia and Herzegovina is to 
        establish the conditions under which implementation of 
        the Dayton Accords can continue without the support of 
        a major NATO-led military force and setting forth the 
        criteria for determining when that goal has been 
        accomplished.
            (6) Since the administration has not specified how 
        long achievement of that goal is expected to take, the 
        mission of United States ground combat forces in Bosnia 
        and Herzegovina is essentially of indefinite duration.
            (7) The NATO operations plan for the Stabilization 
        Force (Operations Plan 10407, which went into effect on 
        June 20, 1998, after approval by allied foreign 
        ministers) incorporates all of the benchmarks set forth 
        in the report referred to in paragraph (5) and states 
        that the Stabilization Force will develop detailed 
        criteria for assessing progress in achieving those 
        benchmarks in close coordination with key international 
        organizations participating in civilian implementation 
        of the Dayton Accords.
            (8) The military representatives of NATO member 
        nations have been tasked by the North Atlantic Council 
        to provide estimates of the time likely to be required 
        for implementation of the Dayton Accords.
            (9) NATO has decided to conduct formal reviews when 
        appropriate (but at intervals of not more than six 
        months) to assess the security situation and the 
        progress being made in the implementation of the civil 
        aspects of the Dayton Accords. Those reviews will 
        enable the Alliance to make decisions as to reductions 
        in the size or the Stabilization Force, leading to its 
        eventual full withdrawal.
            (10) NATO has approved the creation of a 
        multinational specialized unit of gendarmes or 
        paramilitary police composed of European security 
        forces to help promote public security in Bosnia and 
        Herzegovina as a part of the post-June 1998 mission for 
        the Stabilization Force.
            (11) The limit established for spending by the 
        United States for the defense discretionary budget 
        category for fiscal year 1998 in the Balanced Budget 
        and Emergency Deficit Control Act of 1985 does not take 
        into account the continued deployment of United States 
        forces in Bosnia and Herzegovina after June 30, 1998, 
        leading to the request by the President for emergency 
        supplemental appropriations for the Bosnia and 
        Herzegovina mission through September 30, 1998.
            (12) Amounts for Department of Defense operations 
        in Bosnia and Herzegovina during fiscal year 1999 were 
        not included in the budget of the President for fiscal 
        year 1999, as submitted to Congress on February 2, 
        1998.
            (13) The President requested $1,858,600,000 in 
        emergency appropriations in his March 4, 1998, 
        amendment to the fiscal year 1999 budget to cover the 
        shortfall in funding in fiscal year 1999 for the costs 
        of extending the mission in Bosnia.

SEC. 1202. SENSE OF CONGRESS.

    (a) Sense of Congress Concerning United States Forces and 
Accomplishment of Tasks in Bosnia and Herzegovina.--It is the 
sense of Congress that--
            (1) United States ground combat forces should not 
        remain in Bosnia and Herzegovina indefinitely in view 
        of theworldwide commitments of the Armed Forces of the 
United States;
            (2) the President should work with NATO allies and 
        the other nations whose military forces are 
        participating in the NATO-led Stabilization Force to 
        withdraw United States ground combat forces from Bosnia 
        and Herzegovina within a reasonable period of time, 
        consistent with the safety of those forces and the 
        accomplishment of the Stabilization Force's military 
        tasks;
            (3) a NATO-led force without the participation of 
        United States ground combat forces in Bosnia and 
        Herzegovina might be suitable for a follow-on force for 
        Bosnia and Herzegovina if the European Security and 
        Defense Identity is not sufficiently developed or is 
        otherwise considered inappropriate for such a mission; 
        and
            (4) the United States may decide to provide 
        appropriate support to a Western European Union-led or 
        NATO-led follow-on force for Bosnia and Herzegovina, 
        including command and control, intelligence, logistics, 
        and, if necessary, a ready reserve force in the region.
    (b) Sense of Congress Concerning Presidential Actions.--It 
is the sense of Congress that the President--
            (1) should inform the European NATO allies of the 
        expression of the sense of Congress in subsection (a) 
        and should strongly urge them to undertake preparations 
        for establishing a Western European Union-led or a 
        NATO-led force as a follow-on force to the 
        Stabilization Force if needed to maintain peace and 
        stability in Bosnia and Herzegovina; and
            (2) should consult closely with the congressional 
        leadership and the congressional defense committees 
        with respect to the progress being made toward 
        achieving a sustainable peace in Bosnia and Herzegovina 
        and the progress being made toward a reduction and 
        ultimate withdrawal of United States ground combat 
        forces from Bosnia and Herzegovina.
    (c) Sense of Congress Concerning Defense Budget.--It is the 
sense of Congress that--
            (1) the President should include in the budget for 
        the Department of Defense that the President submits to 
        Congress under section 1105(a) of title 31, United 
        States Code, for each fiscal year sufficient amounts to 
        pay for any proposed continuation of the participation 
        of United States forces in NATO operations in Bosnia 
        and Herzegovina during that fiscal year; and
            (2) amounts included in the budget for the purpose 
        stated in paragraph (1) should be over and above the 
        defense discretionary estimates as identified in the 
        Bipartisan Budget Agreement of May 16, 1997 and the 
        fiscal year 1998 concurrent budget resolution and not 
        be transferred from amounts in the budget of any other 
        agency of the executive branch, but instead should be 
        an overall increase in the budget for the Department of 
        Defense and the discretionary spending limits in the 
        Balanced Budget Act of 1997.

SEC. 1203. PRESIDENTIAL REPORTS.

    (a) Required Reports.--The President shall ensure that the 
semiannual reports required by section 7(b) of the general 
provisions of chapter I of the 1998 Supplemental Appropriations 
and Rescissions Act (Public Law 105-174; 112 Stat. 64) are 
submitted to Congress in a timely manner as long as United 
States ground combat forces continue to participate in the 
Stabilization Force (SFOR). In addition, whenever the President 
submits to Congress a request for funds for continued 
operations of United States forces in Bosnia and Herzegovina, 
the President shall submit a supplemental report providing 
information to update Congress on developments since the last 
semiannual report.
    (b) Required Information.--In addition to the information 
required by the section referred to in subsection (a) to be 
included in a report under that section, each report under that 
section or under subsection (a) shall include the following:
            (1) The expected duration of the deployment of 
        United States ground combat forces in Bosnia and 
        Herzegovina in support of implementation of the 
        benchmarks set forth in the President's report of March 
        3, 1998 (referred to in section 1201(5)) for achieving 
        a sustainable peace process.
            (2) The percentage of those benchmarks that have 
        been completed as of the date of the report, the 
        percentage that are expected to be completed within the 
        next reporting period, and the expected time for 
        completion of the remaining tasks.
            (3) The status of the NATO force of gendarmes or 
        paramilitary police, including the mission of the 
        force, the composition of the force, and the extent, if 
        any, to which members of the Armed Forces of the United 
        States are participating (or are to participate) in the 
        force.
            (4) The military and nonmilitary missions that the 
        President has directed for United States forces in 
        Bosnia and Herzegovina, including a specific discussion 
        of--
                    (A) the mission of those forces, if any, in 
                connection with the pursuit and apprehension of 
                war criminals;
                    (B) the mission of those forces, if any, in 
                connection with civilian police functions;
                    (C) the mission of those forces, if any, in 
                connection with the resettlement of refugees; 
                and
                    (D) the missions undertaken by those 
                forces, if any, in support of international and 
                local civilian authorities.
            (5) An assessment of the risk for the United States 
        forces in Bosnia and Herzegovina, including, for each 
        mission identified pursuant to paragraph (4), the 
        assessment of the Chairman of the Joint Chiefs of Staff 
        regarding the nature and level of risk of the mission 
        for the safety and well-being of United States military 
        personnel.
            (6) An assessment of the cost to the United States, 
        by fiscal year, of carrying out the missions identified 
        pursuant to paragraph (4) and a detailed projection of 
        any additional funding that will be required by the 
        Department of Defense to meet mission requirements for 
        those operations for the remainder of the fiscal year.
            (7) A joint assessment by the Secretary of Defense 
        and the Secretary of State of the status of planning 
        for--
                    (A) the assumption of all remaining 
                military missions inside Bosnia and Herzegovina 
                by European military and paramilitary forces; 
                and
                    (B) the establishment and support of a 
                forward-based United States rapid response 
                force outside of Bosnia and Herzegovina that 
                would be capable of deploying rapidly to defeat 
                military threats to a European follow-on force 
                inside Bosnia and Herzegovina and of providing 
                whatever logistical, intelligence, and air 
                support is needed to ensure that a European 
                follow-on force is fully capable of 
                accomplishing its missions under the Dayton 
                Accords.

SEC. 1204. SECRETARY OF DEFENSE REPORTS ON OPERATIONS IN BOSNIA AND 
                    HERZEGOVINA.

    (a) Report on Effects on Capabilities of United States 
Military Forces.--Not later than December 15, 1998, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the effects of military operations in 
Bosnia and Herzegovina and the Balkans region on the 
capabilities of United States military forces. The report 
shall, in particular, describe the effects of those operations 
on the capability of United States military forces to conduct 
successfully two nearly simultaneous major theater wars as 
specified in current Defense Planning Guidance and in 
accordance with the deployment timelines called for in the war 
plans of the commanders of the unified combatant commands.
    (b) Additional Reports.--Whenever the number of United 
States ground combat forces in Bosnia and Herzegovina increases 
or decreases by 20 percent or more compared to the number of 
such forces as of the most recent previous report under this 
section, the Secretary shall submit an additional report as 
specified in subsection (a). Any such additional reportshall be 
submitted within 30 days of the date on which the requirement to submit 
the report becomes effective under the preceding sentence.
    (c) Matters To Be Included.--The Secretary shall include in 
each report under this section information with respect to the 
effects of military operations in Bosnia and Herzegovina and 
the Balkans region on the capabilities of United States 
military forces to conduct successfully two nearly simultaneous 
major theater wars as specified in current Defense Planning 
Guidance and in accordance with the deployment timelines called 
for in the war plans of the commanders of the unified combatant 
commands. Such information shall include information on the 
effects of those operations on anticipated deployment plans for 
major theater wars in Southwest Asia or on the Korean 
peninsula, including the following:
            (1) Deficiencies or delays in deployment of 
        strategic lift, logistics support and infrastructure, 
        ammunition (including precision guided munitions), 
        support forces, intelligence assets, follow-on forces 
        used for planned counteroffensives, and similar forces.
            (2) Additional planned reserve component 
        mobilization, including specific units to be ordered to 
        active duty and required dates for activation of 
        presidential call-up authority.
            (3) Specific plans and timelines for redeployment 
        of United States forces from Bosnia and Herzegovina, 
        the Balkans region, or supporting forces in the region, 
        to both the first and second major theater war.
            (4) Preventative actions or deployments involving 
        United States forces in Bosnia and Herzegovina and the 
        Balkans region that would be taken in the event of a 
        single theater war to deter the outbreak of a second 
        theater war.
            (5) Specific plans and timelines to replace forces 
        deployed to Bosnia and Herzegovina, the Balkans region, 
        or the surrounding region to maintain United States 
        military presence.
            (6) An assessment, undertaken in consultation with 
        the Chairman of the Joint Chiefs of Staff and the 
        commanders of the unified combatant commands, of the 
        level of increased risk to successful conduct of the 
        major theater wars and the maintenance of security and 
        stability in Bosnia and Herzegovina and the Balkans 
        region, by the requirement to redeploy forces from 
        Bosnia and the Balkans in the event of a major theater 
        war.

SEC. 1205. DEFINITIONS.

    As used in this subtitle:
            (1) Dayton peace accords.--The term ``Dayton Peace 
        Accords'' means the General Framework Agreement for 
        Peace in Bosnia and Herzegovina, initialed by the 
        parties in Dayton, Ohio, on November 21, 1995, and 
        signed in Paris on December 14, 1995.
            (2) Stabilization force.--The term ``Stabilization 
        Force'' means the NATO-led force in Bosnia and 
        Herzegovina and other countries in the region (referred 
        to as ``SFOR''), authorized under United Nations 
        Security Council Resolution 1088 (December 12, 1996).
            (3) NATO.--The term ``NATO'' means the North 
        Atlantic Treaty Organization.

         Subtitle B--Matters Relating to Contingency Operations

SEC. 1211. REPORT ON INVOLVEMENT OF ARMED FORCES IN CONTINGENCY AND 
                    ONGOING OPERATIONS.

    (a) Report Required.--Not later than January 31, 1999, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report on the involvement of 
the Armed Forces in major contingency operations and major 
ongoing operations since the end of the Persian Gulf War. The 
report shall include the following:
            (1) A discussion of the effects of the involvement 
        of the Armed Forces in those operations on retention of 
        personnelin the Armed Forces, shown in the aggregate 
and separately for officers and enlisted personnel.
            (2) The extent to which the use of combat support 
        and combat service support personnel and equipment of 
        the Armed Forces in those operations has resulted in 
        shortages of Armed Forces personnel and equipment in 
        other regions of the world.
            (3) The accounts from which funds have been drawn 
        to pay for those operations and the specific programs 
        for which those funds were available until diverted to 
        pay for those operations.
            (4) For each such operation--
                    (A) a statement of the vital interests of 
                the United States that are involved in the 
                operation or, if none, the interests of the 
                United States that are involved in the 
                operation and a characterization of those 
                interests;
                    (B) a statement of what clear and distinct 
                objectives guide the activities of United 
                States forces in the operation; and
                    (C) a statement of what the President has 
                identified on the basis of those objectives as 
                the date, or the set of conditions, that 
                defines the end of the operation.
    (b) Form of Report.--The report shall be submitted in 
unclassified form, but may also be submitted in a classified 
form if necessary.
    (c) Major Operation Defined.--For the purposes of this 
section, a contingency operation or an ongoing operation is a 
major contingency operation or a major ongoing operation, 
respectively, if the operation involves the deployment of more 
than 500 members of the Armed Forces.

SEC. 1212. SUBMISSION OF REPORT ON OBJECTIVES OF A CONTINGENCY 
                    OPERATION WITH REQUESTS FOR FUNDING FOR THE 
                    OPERATION.

    (a) Findings.--Congress makes the following findings:
            (1) On May 3, 1994, the President issued 
        Presidential Decision Directive 25 declaring that 
        American participation in United Nations and other 
        peace operations would depend in part on whether the 
        role of United States forces is tied to clear 
        objectives and an endpoint for United States 
        participation can be identified.
            (2) Between that date and mid-1998, the President 
        and other executive branch officials have obligated or 
        requested appropriations of approximately 
        $9,400,000,000 for military-related operations 
        throughout Bosnia and Herzegovina without providing to 
        Congress, in conjunction with the budget submission for 
        any fiscal year, a strategic plan for such operations 
        under the criteria set forth in that Presidential 
        Decision Directive.
            (3) Between November 27, 1995, and mid-1998 the 
        President has established three deadlines, since 
        elapsed, for the termination of United States military-
        related operations throughout Bosnia and Herzegovina.
            (4) On December 17, 1997, the President announced 
        that United States ground combat forces would remain in 
        Bosnia and Herzegovina for an unknown period of time.
            (5) Approximately 47,880 United States military 
        personnel (excluding personnel serving in units 
        assigned to the Republic of Korea) have participated in 
        14 international contingency operations between fiscal 
        years 1991 and 1998.
            (6) The 1998 posture statements of the Navy and Air 
        Force included declarations that the pace of military 
        operations over fiscal year 1997 adversely affected the 
        readiness of non-deployed forces, personnel retention 
        rates, and spare parts inventories of the Navy and Air 
        Force.
    (b) Information To Be Reported With Funding Requests.--
Section 113 of title 10, United States Code, is amended by 
adding after subsection (l), as added by section 915, the 
following new subsection:
    ``(m) Information To Accompany Funding Request for 
Contingency Operation.--Whenever the President submits to 
Congress a request for appropriations for costs associated with 
a contingency operation that involves, or likely will involve, 
the deployment of more than 500 members of the armed forces, 
the Secretary of Defense shall submit to Congressa report on 
the objectives of the operation. The report shall include a discussion 
of the following:
            ``(1) What clear and distinct objectives guide the 
        activities of United States forces in the operation.
            ``(2) What the President has identified on the 
        basis of those objectives as the date, or the set of 
        conditions, that defines the endpoint of the 
        operation.''.

            Subtitle C--Matters Relating to NATO and Europe

SEC. 1221. LIMITATION ON UNITED STATES SHARE OF COSTS OF NATO 
                    EXPANSION.

    (a) Limitation.--The United States share of defined NATO 
expansion costs may not exceed the lesser of--
            (1) the amount equal to 25 percent of those costs; 
        or
            (2) $2,000,000,000.
    (b) Defined NATO Expansion Costs.--For purposes of 
subsection (a), the term ``defined NATO expansion costs'' means 
the commonly funded costs of the North Atlantic Treaty 
Organization (NATO) during fiscal years 1999 through 2011 for 
enlargement of NATO due to the admission to NATO of Poland, 
Hungary, and the Czech Republic.

SEC. 1222. REPORT ON MILITARY CAPABILITIES OF AN EXPANDED NATO 
                    ALLIANCE.

    (a) Report.--The Secretary of Defense shall prepare a 
report, in both classified and unclassified form, on the 
planned future military capabilities of the North Atlantic 
Treaty Organization (NATO) with the anticipated accession of 
Poland, the Czech Republic, and Hungary to the NATO alliance. 
The report shall set forth the following:
            (1) An assessment of the tactical, operational, and 
        strategic military requirements, including 
        interoperability, reinforcement, and force 
        modernization issues, as well as strategic and 
        territorial issues, that are raised by the inclusion of 
        Poland, the Czech Republic, and Hungary in the NATO 
        alliance.
            (2) The minimum military requirements to be 
        satisfied by those countries before accession to the 
        NATO alliance in April 1999.
            (3) The improvements to common alliance military 
        assets that are necessary as a result of expanding the 
        NATO alliance to include those nations.
            (4) The improvements to national capabilities of 
        current NATO members that would be necessitated by the 
        inclusion of those nations in the alliance.
            (5) The necessary improvements to national 
        capabilities of the military forces of those new member 
        nations.
            (6) Any additional necessary improvements to common 
        alliance military assets of the military forces of 
        those new members for which funds are not planned to be 
        included in the NATO budget.
            (7) The additional requirements, related to NATO 
        expansion, that the United States would agree to assist 
        each new member nation to meet on a bilateral basis.
    (b) Matters To Be Included.--The report shall include the 
following:
            (1) An assessment of the tactical and operational 
        capabilities of the military forces of Poland, the 
        Czech Republic, and Hungary.
            (2) An assessment of the ability of each such new 
        member nation to meet the minimum military requirements 
        upon accession to the NATO alliance in April 1999, and 
        the ability of that nation to provide logistical, 
        command and control, and other vital infrastructure 
        required for alliance defense (as specified in Article 
        V of the NATO Charter), including a description in 
        general terms of alliance plans for reinforcing each 
        new NATO member nation during a crisis or war and 
        detailing means for deploying both United States and 
        other NATO forces from current member states and from 
        the continental United States or other United States 
        bases worldwide and, in particular, describing plans 
        for ground reinforcement of Hungary.
            (3) An assessment of the ability of the current and 
        new alliance members to deploy and sustain combat 
        forces in alliance defense missions conducted in the 
        territory of any of the new member nations, as 
        specified in Article V of the NATO Charter.
            (4) A description of projected defense programs 
        through 2009 (shown on an annual basis and 
        cumulatively) of each current and new alliance member 
        nation--
                    (A) including planned investments in 
                capabilities pursuant to Article V to ensure 
                that--
                            (i) the nation's military force 
                        structure, defense planning, command 
                        structures, and force goals promote 
                        NATO's capacity to project power when 
                        the security of a NATO member is 
                        threatened; and
                            (ii) NATO members possess national 
                        military capabilities to rapidly deploy 
                        forces over long distances, sustain 
                        operations for extended periods, and 
                        operate jointly with the United States 
                        in high intensity conflicts as well as 
                        potential alliance contingency 
                        operations;
                    (B) showing both planned national efforts 
                as well as planned alliance common efforts; and
                    (C) describing any deficiencies in 
                investments by current or new alliance member 
                nations.
            (5) A detailed comparison and description of the 
        differences in scope, methodology, and assessments of 
        common alliance or national responsibilities, or any 
        other factor related to alliance capabilities between 
        (A) the report on alliance expansion costs prepared by 
        the Department of Defense (in the report submitted to 
        Congress in February 1998 entitled ``Report to the 
        Congress on the Military Requirements and Costs of NATO 
        Enlargement''), and (B) the report on alliance 
        expansion costs prepared by NATO collectively and 
        referred to as the ``NATO estimate'', issued at 
        Brussels in November 1997.
            (6) Any other factor that, in the judgment of the 
        Secretary of Defense, bears upon the strategic, 
        operational, or tactical military capabilities of an 
        expanded NATO alliance.
    (c) Submission of Report.--The report shall be submitted to 
Congress not later than March 15, 1999.

SEC. 1223. REPORTS ON THE DEVELOPMENT OF THE EUROPEAN SECURITY AND 
                    DEFENSE IDENTITY.

    (a) Requirement for Reports.--The Secretary of Defense 
shall submit to the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives in accordance with this section reports on the 
development of the European Security and Defense Identity 
(ESDI) within the NATO Alliance that would enable the Western 
European Union (WEU), with the consent of the NATO Alliance, to 
assume the political control and strategic direction of NATO 
assets and capabilities made available by the Alliance.
    (b) Reports To Be Submitted.--The reports required to be 
submitted under subsection (a) are as follows:
            (1) An initial report, submitted not later than 
        December 15, 1998, that contains a discussion of the 
        actions taken, and the plans for future actions, to 
        build the European Security and Defense Identity, 
        together with the matters required under subsection 
        (c).
            (2) A semiannual report on the progress made toward 
        establishing the European Security and Defense 
        Identity, submitted not later than June 15 and December 
        15 of each year after 1998.
    (c) Content of Reports.--The Secretary shall include in 
each report under this section the following:
            (1) A discussion of the arrangements between NATO 
        and the Western European Union for the release, 
        transfer, monitoring, return, and recall of NATO assets 
        and capabilities.
            (2) A discussion of the development of such 
        planning and other capabilities by the Western European 
        Union that are necessary to provide political control 
        and strategic direction of NATO assets and 
        capabilities.
            (3) A discussion of the development of terms of 
        reference for the Deputy Supreme Allied Commander, 
        Europe, with respect to the European Security and 
        Defense Identity.
            (4) A discussion of the arrangements for the 
        assignment or appointment of NATO officers to serve in 
        two positions concurrently (commonly referred to as 
        ``dual-hatting'').
            (5) A discussion of the development of the Combined 
        Joint Task Force (CJTF) concept, including lessons-
        learned from the NATO-led Stabilization Force in 
        Bosnia.
            (6) Identification within the NATO Alliance of the 
        types of separable but not separate capabilities, 
        assets, and support assets for Western European Union-
        led operations.
            (7) Identification of separable but not separate 
        headquarters, headquarters elements, and command 
        positions for command and conduct of Western European 
        Union-led operations.
            (8) The conduct by NATO, at the request of and in 
        coordination with the Western European Union, of 
        military planning and exercises for illustrative 
        missions.
            (9) A discussion of the arrangements between NATO 
        and the Western European Union for the sharing of 
        information, including intelligence.
            (10) Such other information as the Secretary 
        considers useful for a complete understanding of the 
        establishment of the European Security and Defense 
        Identity within the NATO Alliance.
    (d) Termination of Reporting Requirement.--The requirement 
to submit reports under subsection (b)(2) terminates upon the 
submission by the Secretary under that subsection of a report 
in which the Secretary states that the European Security and 
Defense Identity has been fully established.

                       Subtitle D--Other Matters

SEC. 1231. LIMITATION ON ASSIGNMENT OF UNITED STATES FORCES FOR CERTAIN 
                    UNITED NATIONS PURPOSES.

    (a) Limitation on Participation in United Nations Rapidly 
Deployable Mission Headquarters.--If members of the Armed 
Forces are assigned during fiscal year 1999 to the United 
Nations Rapidly Deployable Mission Headquarters, the number of 
members so assigned may not exceed eight at any time during 
that year.
    (b) Prohibition.--No funds available to the Department of 
Defense may be used--
            (1) for a monetary contribution to the United 
        Nations for the establishment of a standing 
        international force under the United Nations; or
            (2) to assign or detail any member of the Armed 
        Forces to duty with a United Nations Stand By Force.

SEC. 1232. PROHIBITION ON RESTRICTION OF ARMED FORCES UNDER KYOTO 
                    PROTOCOL TO THE UNITED NATIONS FRAMEWORK CONVENTION 
                    ON CLIMATE CHANGE.

    (a) In General.--Notwithstanding any other provision of 
law, no provision of the Kyoto Protocol to the United Nations 
Framework Convention on Climate Change, or any regulation 
issued pursuant to such protocol, shall restrict the training 
or operations of the United States Armed Forces or limit the 
military equipment procured by the United States Armed Forces.
    (b) Waiver.--A provision of law may not be construed as 
modifying or superseding the provisions of subsection (a) 
unless that provision of law--
            (1) specifically refers to this section; and
            (2) specifically states that such provision of law 
        modifies or supersedes the provisions of this section.
    (c) Matters Not Affected.--Nothing in this section shall be 
construed to preclude the Department of Defense from 
implementing any measure to achieve efficiencies or for any 
other reason independent of the Kyoto Protocol.

SEC. 1233. DEFENSE BURDENSHARING.

    (a) Revised Goals for Efforts To Increase Allied 
Burdensharing.--Effective October 1, 1998, subsection (a) of 
section 1221 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1935; 22 U.S.C. 
1928 note) is amended--
            (1) in paragraph (2), by striking out ``September 
        30, 1998'' and inserting in lieu thereof ``September 
        30, 1999'';
            (2) in paragraph (3)--
                    (A) by striking out ``economic'' and all 
                that follows through ``rights'' and inserting 
                in lieu thereof ``governmental accountability 
                and transparency, economic stabilization and 
                development, defense economic conversion, 
                respect for the rule of law and internationally 
                recognized human rights, and humanitarian 
                relief efforts)''; and
                    (B) by striking out ``at least to a level 
                commensurate to that of the United States by 
                September 30, 1998'' and inserting in lieu 
                thereof ``to provide such foreign assistance at 
                an annual rate that is not less than one 
                percent of its gross domestic product, by 
                September 30, 1999''; and
            (3) in paragraph (4)--
                    (A) by striking out ``amount of'';
                    (B) by striking out ``, or would be 
                prepared to contribute,'' and inserting in lieu 
                thereof ``or has pledged to contribute''; and
                    (C) by inserting before the period at the 
                end the following: ``by 10 percent by September 
                30, 1999''.
    (b) Revised Requirement for Report on Progress in 
Increasing Allied Burdensharing.--Subsection (c) of such 
section is amended--
            (1) by striking out ``March 1, 1998'' in the matter 
        preceding paragraph (1) and inserting in lieu thereof 
        ``March 1, 1999''; and
            (2) in paragraph (3), by striking out ``March 1, 
        1996'' and all that follows through the semicolon and 
        inserting in lieu thereof ``October 1, 1996, and ending 
        on September 30, 1997, and during the period beginning 
        on October 1, 1997, and ending on September 30, 1998, 
        or, in the case of any nation for which the data for 
        such periods is inadequate, the difference between the 
        amounts for the latest periods for which adequate data 
        is available;''.
    (c) Extension of Deadline for Report Regarding National 
Security Bases for Forward Deployment and Burdensharing 
Relationships.--Subsection (d)(2) of such section is amended by 
striking out ``March 1, 1998'' and inserting in lieu thereof 
``March 1, 1999''.

SEC. 1234. TRANSFER OF EXCESS UH-1 HUEY AND AH-1 COBRA HELICOPTERS TO 
                    FOREIGN COUNTRIES.

    (a) In General.--Chapter 153 of title 10, United States 
Code, is amended by adding at the end the following new 
section:

``Sec. 2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements 
                    for transfer to foreign countries

    ``(a) Requirements.--(1) Before an excess UH-1 Huey 
helicopter or AH-1 Cobra helicopter is transferred on a grant 
or sales basis to a foreign country for the purpose of flight 
operations by that country, the Secretary of Defense shall make 
all reasonable efforts to ensure that the helicopter receives, 
to the extent necessary, maintenance and repair equivalent to 
the depot-level maintenance and repair (as defined in section 
2460 of this title) that the helicopter would need were the 
helicopter to remain in operational use with the armed forces. 
Any such maintenance and repair work shall be performed at no 
cost to the Department of Defense.
    ``(2) The Secretary shall make all reasonable efforts to 
ensure that maintenance and repair work described in paragraph 
(1) is performed in the United States.
    ``(b) Exception.--Subsection (a) does not apply with 
respect to salvage helicopters provided to the foreign country 
solely as a source for spare parts.''.
    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is amended by adding at the end the 
following new item:
``2581. Excess UH-1 Huey and AH-1 Cobra helicopters: requirements for 
          transfer to foreign countries.''.

SEC. 1235. TRANSFERS OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES.

    (a) Transfers by Grant.--The Secretary of the Navy is 
authorized to transfer vessels to foreign countries on a grant 
basis under section 516 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2321j) as follows:
            (1) To the Government of Argentina, the NEWPORT 
        class tank landing ship NEWPORT (LST 1179).
            (2) To the Government of Greece--
                    (A) the KNOX class frigate HEPBURN (FF 
                1055); and
                    (B) the ADAMS class guided missile 
                destroyers STRAUSS (DDG 16), SEMMS (DDG 18), 
                and WADDELL (DDG 24).
            (3) To the Government of Portugal, the STALWART 
        class ocean surveillance ship ASSURANCE (T-AGOS 5).
            (4) To the Government of Turkey, the KNOX class 
        frigates PAUL (FF 1080), MILLER (FF 1091), and W.S. 
        SIMMS (FF 1059).
    (b) Transfers by Sale.--The Secretary of the Navy is 
authorized to transfer vessels to foreign countries on a sales 
basis under section 21 of the Arms Export Control Act (22 
U.S.C. 2761) as follows:
            (1) To the Government of Brazil, the NEWPORT class 
        tank landing ships CAYUGA (LST 1186) and PEORIA (LST 
        1183).
            (2) To the Government of Chile--
                    (A) the NEWPORT class tank landing ship SAN 
                BERNARDINO (LST 1189); and
                    (B) the auxiliary repair dry dock WATERFORD 
                (ARD 5).
            (3) To the Government of Greece--
                    (A) the OAK RIDGE class medium dry dock 
                ALAMAGORDO (ARDM 2); and
                    (B) the KNOX class frigates VREELAND (FF 
                1068) and TRIPPE (FF 1075).
            (4) To the Government of Mexico--
                    (A) the auxiliary repair dock SAN ONOFRE 
                (ARD 30); and
                    (B) the KNOX class frigate PHARRIS (FF 
                1094).
            (5) To the Government of the Philippines, the 
        STALWART class ocean surveillance ship TRIUMPH (T-AGOS 
        4).
            (6) To the Government of Spain, the NEWPORT class 
        tank landing ships HARLAN COUNTY (LST 1196) and 
        BARNSTABLE COUNTY (LST 1197).
            (7) To the Taipai Economic and Cultural 
        Representative Office in the United States (the Taiwan 
        instrumentality that is designated pursuant to section 
        10(a) of the Taiwan Relations Act)--
                    (A) the KNOX class frigates PEARY (FF 
                1073), JOSEPH HEWES (FF 1078), COOK (FF 1083), 
                BREWTON (FF 1086), KIRK (FF 1987), and BARBEY 
                (FF 1088);
                    (B) the NEWPORT class tank landing ships 
                MANITOWOC (LST 1180) and SUMTER (LST 1181);
                    (C) the floating dry dock COMPETENT (AFDM 
                6); and
                    (D) the ANCHORAGE class dock landing ship 
                PENSACOLA (LSD 38).
            (8) To the Government of Turkey--
                    (A) the OLIVER HAZARD PERRY class guided 
                missile frigates MAHLON S. TISDALE (FFG 27), 
                REID (FFG 30), and DUNCAN (FFG 10); and
                    (B) the KNOX class frigates REASONER (FF 
                1063), FANNING (FF 1076), BOWEN (FF 1079), 
                MCCANDLESS (FF 1084), DONALD BEARY (FF1085), 
AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).
            (9) To the Government of Venezuela, the medium 
        auxiliary floating dry dock bearing hull number AFDM 2.
    (c) Transfers on a Combined Lease-Sale Basis.--The 
Secretary of the Navy is authorized to transfer vessels to 
foreign countries on a combined lease-sale basis under sections 
61 and 21 of the Arms Export Control Act (22 U.S.C. 2796, 2761) 
and in accordance with subsection (d) as follows:
            (1) To the Government of Brazil, the CIMARRON class 
        oiler MERRIMACK (AO 179).
            (2) To the Government of Greece, the KIDD class 
        guided missile destroyers KIDD (DDG 993), CALLAGHAN 
        (DDG 994), SCOTT (DDG 995), and CHANDLER (DDG 996).
    (d) Conditions Relating To Combined Lease-Sale Transfers.--
A transfer of a vessel on a combined lease-sale basis 
authorized by subsection (c) shall be made in accordance with 
the following requirements:
            (1) The Secretary may initially transfer the vessel 
        by lease, with lease payments suspended for the term of 
        the lease, if the country entering into the lease for 
        the vessel simultaneously enters into a foreign 
        military sales agreement for the transfer of title to 
        the vessel.
            (2) The Secretary may not deliver to the purchasing 
        country title to the vessel until the purchase price of 
        the vessel under such a foreign military sales 
        agreement is paid in full.
            (3) Upon payment of the purchase price in full 
        under such a sales agreement and delivery of title to 
        the recipient country, the Secretary shall terminate 
        the lease.
            (4) If the purchasing country fails to make full 
        payment of the purchase price in accordance with the 
        sales agreement by the date required under the sales 
        agreement--
                    (A) the sales agreement shall be 
                immediately terminated;
                    (B) the suspension of lease payments under 
                the lease shall be vacated; and
                    (C) the United States shall be entitled to 
                retain all funds received on or before the date 
                of the termination under the sales agreement, 
                up to the amount of the lease payments due and 
                payable under the lease and all other costs 
                required by the lease to be paid to that date.
            (5) If a sales agreement is terminated pursuant to 
        paragraph (4), the United States shall not be required 
        to pay any interest to the recipient country on any 
        amount paid to the United States by the recipient 
        country under the sales agreement and not retained by 
        the United States under the lease.
    (e) Requirement for Provision in Advance in an 
Appropriations Act.--Authority to transfer vessels on a sale 
basis under subsection (b) or a combined lease-sale basis under 
subsection (c) is effective only to the extent that authority 
to effectuate such transfers, together with appropriations to 
cover the associated cost (as defined in section 502 of the 
Congressional Budget of 1974 (2 U.S.C. 661a)), are provided in 
advance in an appropriations Act.
    (f) Authorization of Appropriations for Certain Costs of 
Transfers.--There is established in the Treasury of the United 
States a special account to be known as the Defense Vessels 
Transfer Program Account. There is hereby authorized to be 
appropriated into that account such sums as may be necessary 
for the costs (as defined in section 502 of the Congressional 
Budget Act of 1974 (2 U.S.C. 661a)) of the lease-sale transfers 
authorized by subsection (c). Funds in that account are 
available only for the purpose of covering those costs.
    (g) Notification of Congress.--Not later than 30 days after 
the date of the enactment of this Act, the Secretary of the 
Navy shall submit to Congress, for each naval vessel that is to 
be transferred under this section before January 1, 1999, the 
notifications required under section 516 of the Foreign 
AssistanceAct of 1961 (22 U.S.C. 2321j) and section 525 of the 
Foreign Operations, Export Financing, and Related Programs 
Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
    (h) Grants not Counted in Annual Total of Transferred 
Excess Defense Articles.--The value of a vessel transferred to 
another country on a grant basis under section 516 of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2321j) pursuant to 
authority provided by subsection (a) shall not be counted for 
the purposes of subsection (g) of that section in the aggregate 
value of excess defense articles transferred to countries under 
that section in any fiscal year.
    (i) Costs of Transfers.--Any expense incurred by the United 
States in connection with a transfer authorized by this section 
shall be charged to the recipient (notwithstanding section 
516(e)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2321j(e)(1)) in the case of a transfer authorized to be made on 
a grant basis under subsection (a)).
    (j) Repair and Refurbishment in United States Shipyards.--
To the maximum extent practicable, the Secretary of the Navy 
shall require, as a condition of the transfer of a vessel under 
this section, that the country to which the vessel is 
transferred have such repair or refurbishment of the vessel as 
is needed, before the vessel joins the naval forces of that 
country, performed at a shipyard located in the United States, 
including a United States Navy shipyard.
    (k) Expiration of Authority.--The authority to transfer a 
vessel under this section shall expire at the end of the two-
year period beginning on the date of the enactment of this Act.

SEC. 1236. REPEAL OF LANDMINE MORATORIUM.

    Section 580 of the Foreign Operations Appropriations Act, 
1996 (Public Law 104-107; 110 Sat 751), is repealed.

SEC. 1237. APPLICATION OF AUTHORITIES UNDER THE INTERNATIONAL EMERGENCY 
                    ECONOMIC POWERS ACT TO COMMUNIST CHINESE MILITARY 
                    COMPANIES.

    (a) Presidential Authority.--
            (1) In general.--The President may exercise IEEPA 
        authorities (other than authorities relating to 
        importation) without regard to section 202 of the 
        International Emergency Economic Powers Act (50 U.S.C. 
        1701) in the case of any commercial activity in the 
        United States by a person that is on the list published 
        under subsection (b).
            (2) Penalties.--The penalties set forth in section 
        206 of the International Emergency Economic Powers Act 
        (50 U.S.C. 1705) apply to violations of any license, 
        order, or regulation issued under paragraph (1).
            (3) Ieepa authorities.--For purposes of paragraph 
        (1), the term ``IEEPA authorities'' means the 
        authorities set forth in section 203(a) of the 
        International Emergency Economic Powers Act (50 U.S.C. 
        1702(a)).
    (b) Determination and Publication of Communist Chinese 
Military Companies Operating in United States.--
            (1) Initial determination and publication.--Not 
        later than 90 days after the date of the enactment of 
        this Act, the Secretary of Defense shall make a 
        determination of those persons operating directly or 
        indirectly in the United States or any of its 
        territories and possessions that are Communist Chinese 
        military companies and shall publish a list of those 
        persons in the Federal Register.
            (2) Revisions to list.--The Secretary of Defense 
        shall make additions or deletions to the list published 
        under paragraph (1) on an ongoing basis based on the 
        latest information available.
            (3) Consultation.--The Secretary of Defense shall 
        consult with the following officers in carrying out 
        paragraphs (1) and (2):
                    (A) The Attorney General.
                    (B) The Director of Central Intelligence.
                    (C) The Director of the Federal Bureau of 
                Investigation.
            (4) Communist chinese military company.--For 
        purposes of making the determination required by 
        paragraph (1) and of carrying out paragraph (2), the 
        term ``Communist Chinese military company'' means--
                    (A) any person identified in the Defense 
                Intelligence Agency publication numbered VP-
                1920-271-90, dated September 1990, or PC-1921-
                57-95, dated October 1995, and any update of 
                those publications for the purposes of this 
                section; and
                    (B) any other person that--
                            (i) is owned or controlled by the 
                        People's Liberation Army; and
                            (ii) is engaged in providing 
                        commercial services, manufacturing, 
                        producing, or exporting.
    (c) People's Liberation Army.--For purposes of this 
section, the term ``People's Liberation Army'' means the land, 
naval, and air military services, the police, and the 
intelligence services of the Communist Government of the 
People's Republic of China, and any member of any such service 
or of such police.

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

Sec. 1301. Specification of Cooperative Threat Reduction Programs and 
          funds.
Sec. 1302. Funding allocations.
Sec. 1303. Prohibition on use of funds for specified purposes.
Sec. 1304. Limitation on use of funds for chemical weapons destruction 
          activities in Russia.
Sec. 1305. Limitation on use of funds for biological weapons 
          proliferation prevention activities in Russia.
Sec. 1306. Cooperative counter proliferation program.
Sec. 1307. Requirement to submit summary of amounts requested by project 
          category.
Sec. 1308. Report on biological weapons programs in Russia.
Sec. 1309. Report on individuals with expertise in former Soviet weapons 
          of mass destruction programs.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
                    FUNDS.

    (a) Specification of CTR Programs.--(1) For purposes of 
section 301 and other provisions of this Act, Cooperative 
Threat Reduction programs are the programs specified in section 
1501(b) of the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201; 110 Stat. 2731; 50 U.S.C. 2362 
note) (as amended by paragraph (2)).
    (2) Section 1501(b)(3) of such Act is amended by inserting 
``materials,'' after ``components,''.
    (b) Fiscal Year 1999 Cooperative Threat Reduction Funds 
Defined.--As used in this title, the term ``fiscal year 1999 
Cooperative Threat Reduction funds'' means the funds 
appropriated pursuant to the authorization of appropriations in 
section 301 for Cooperative Threat Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to 
the authorization of appropriations in section 301 for 
Cooperative Threat Reduction programs shall be available for 
obligation for three fiscal years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the amounts 
authorized to be appropriated to the Department of Defense for 
fiscal year 1999 in section 301(23), $440,400,000 shall 
beavailable to carry out Cooperative Threat Reduction programs, of 
which not more than the following amounts may be obligated for the 
purposes specified:
            (1) For strategic offensive arms elimination in 
        Russia, $142,400,000.
            (2) For strategic nuclear arms elimination in 
        Ukraine, $47,500,000.
            (3) For activities to support warhead dismantlement 
        processing in Russia, $9,400,000.
            (4) For activities associated with chemical weapons 
        destruction in Russia, $88,400,000.
            (5) For weapons transportation security in Russia, 
        $10,300,000.
            (6) For planning, design, and construction of a 
        storage facility for Russian fissile material, 
        $60,900,000.
            (7) For weapons storage security in Russia, 
        $41,700,000.
            (8) For development of a cooperative program with 
        the Government of Russia to eliminate the production of 
        weapons grade plutonium at Russian reactors, 
        $29,800,000.
            (9) For biological weapons proliferation prevention 
        activities in Russia, $2,000,000.
            (10) For activities designated as Other 
        Assessments/Administrative Support $8,000,000.
    (b) Limited Authority To Vary Individual Amounts.--(1) If 
the Secretary of Defense determines that it is necessary to do 
so in the national interest, the Secretary may, subject to 
paragraphs (2) and (3), obligate amounts for the purposes 
stated in any of the paragraphs of subsection (a) in excess of 
the amount specified for those purposes in that paragraph. 
However, the total amount obligated for the purposes stated in 
the paragraphs in subsection (a) may not by reason of the use 
of the authority provided in the preceding sentence exceed the 
sum of the amounts specified in those paragraphs.
    (2) An obligation for the purposes stated in any of the 
paragraphs in subsection (a) in excess of the amount specified 
in that paragraph may be made using the authority provided in 
paragraph (1) only after--
            (A) the Secretary submits to Congress notification 
        of the intent to do so together with a complete 
        discussion of the justification for doing so; and
            (B) 15 days have elapsed following the date of the 
        notification.
    (3) The Secretary may not, under the authority provided in 
paragraph (1), obligate amounts appropriated for the purposes 
stated in any of paragraphs (3) through (10) of subsection (a) 
in excess of 115 percent of the amount stated in those 
paragraphs.

SEC. 1303. PROHIBITION ON USE OF FUNDS FOR SPECIFIED PURPOSES.

    (a) In General.--No fiscal year 1999 Cooperative Threat 
Reduction funds, and no funds appropriated for Cooperative 
Threat Reduction programs for any prior fiscal year and 
remaining available for obligation, may be obligated or 
expended for any of the following purposes:
            (1) Conducting with Russia any peacekeeping 
        exercise or other peacekeeping-related activity.
            (2) Provision of housing.
            (3) Provision of assistance to promote 
        environmental restoration.
            (4) Provision of assistance to promote job 
        retraining.
    (b) Limitation With Respect to Defense Conversion 
Assistance.--None of the funds appropriated pursuant to this 
Act may be obligated or expended for the provision of 
assistance to Russia or any other state of the former Soviet 
Union to promote defense conversion.

SEC. 1304. LIMITATION ON USE OF FUNDS FOR CHEMICAL WEAPONS DESTRUCTION 
                    ACTIVITIES IN RUSSIA.

    (a) Limitation.--Subject to the limitation in section 
1405(b) of the National Defense Authorization Act for Fiscal 
Year 1998 (Public Law 105-85; 111 Stat. 1961), no funds 
authorized to be appropriated for Cooperative Threat 
Reductionprograms under this Act or any other Act may be obligated or 
expended for chemical weapons destruction activities in Russia 
(including activities for the planning, design, or construction of a 
chemical weapons destruction facility or for the dismantlement of an 
existing chemical weapons production facility) until the President 
submits to Congress a written certification described in subsection 
(b).
    (b) Presidential Certification.--A certification under this 
subsection is either of the following certifications by the 
President:
            (1) A certification that--
                    (A) Russia is making reasonable progress 
                toward the implementation of the Bilateral 
                Destruction Agreement;
                    (B) the United States and Russia have made 
                substantial progress toward the resolution, to 
                the satisfaction of the United States, of 
                outstanding compliance issues under the Wyoming 
                Memorandum of Understanding and the Bilateral 
                Destruction Agreement; and
                    (C) Russia has fully and accurately 
                declared all information regarding its unitary 
                and binary chemical weapons, chemical weapons 
                facilities, and other facilities associated 
                with chemical weapons.
            (2) A certification that the national security 
        interests of the United States could be undermined by a 
        policy of the United States not to carry out chemical 
        weapons destruction activities under Cooperative Threat 
        Reduction programs for which funds are authorized to be 
        appropriated under this Act or any other Act for fiscal 
        year 1999.
    (b) Definitions.--In this section:
            (1) The term ``Bilateral Destruction Agreement'' 
        means the Agreement Between the United States of 
        America and the Union of Soviet Socialist Republics on 
        Destruction and Non-production of Chemical Weapons and 
        on Measures to Facilitate the Multilateral Convention 
        on Banning Chemical Weapons signed on June 1, 1990.
            (2) The term ``Wyoming Memorandum of 
        Understanding'' means the Memorandum of Understanding 
        Between the Government of the United States of America 
        and the Government of the Union of Soviet Socialist 
        Republics Regarding a Bilateral Verification Experiment 
        and Data Exchange Related to Prohibition on Chemical 
        Weapons, signed at Jackson Hole, Wyoming, on September 
        23, 1989.

SEC. 1305. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL WEAPONS 
                    PROLIFERATION PREVENTION ACTIVITIES IN RUSSIA.

    No fiscal year 1999 Cooperative Threat Reduction funds may 
be obligated or expended for biological weapons proliferation 
prevention activities in Russia until 15 days after the date on 
which the Secretary submits to the congressional defense 
committees a report on--
            (1) whether Cooperative Threat Reduction funds 
        provided for cooperative research activities at 
        biological research institutes in Russia have been 
        used--
                    (A) to support activities to develop new 
                strains of anthrax; or
                    (B) for any purpose inconsistent with the 
                objectives of providing such funds; and
            (2) the new strains of anthrax alleged to have been 
        developed at a biological research institute in Russia 
        and any efforts by the United States to examine such 
        strains.

SEC. 1306. COOPERATIVE COUNTER PROLIFERATION PROGRAM.

    (a) In General.--Of the amount authorized to be 
appropriated in section 1302 (other than the amounts authorized 
to be appropriated in subsections (a)(1) and (a)(2) of that 
section) and subject to the limitations in that section and 
subsection (b), the Secretary of Defense may provide a country 
of the former Soviet Union with emergency assistance for 
removing or obtaining from that country--
            (1) weapons of mass destruction; or
            (2) materials, equipment, or technology related to 
        the development or delivery of weapons of mass 
        destruction.
    (b) Certification Required.--(1) The Secretary may not 
provide assistance under subsection (a) until 15 days after the 
date that the Secretary submits to the congressional defense 
committees a certification in writing that the weapons, 
materials, equipment, or technology described in that 
subsection meet each of the following requirements:
            (A) The weapons, materials, equipment, or 
        technology are at risk of being sold or otherwise 
        transferred to a restricted foreign state or entity.
            (B) The transfer of the weapons, materials, 
        equipment, or technology would pose a significant near-
        term threat to the national security interests of the 
        United States or would significantly advance a foreign 
        country's weapon program that threatens the national 
        security interests of the United States.
            (C) Other options for securing or otherwise 
        preventing the transfer of the weapons, materials, 
        equipment, or technology have been considered and 
        rejected as ineffective or inadequate.
    (2) The 15-day notice requirement in paragraph (1) may be 
waived if the Secretary determines that compliance with the 
requirement would compromise the national security interests of 
the United States. In such case, the Secretary shall promptly 
notify the congressional defense committees of the 
circumstances regarding such determination in advance of 
providing assistance under subsection (a) and shall submit the 
certification required not later than 30 days after providing 
such assistance.
    (c) Content of Certifications.--Each certification required 
under subsection (b) shall contain information on the following 
with respect to the assistance being provided:
            (1) The specific assistance provided and the 
        purposes for which the assistance is being provided.
            (2) The sources of funds for the assistance.
            (3) Whether any assistance is being provided by any 
        other Federal department or agency.
    (4) The options considered and rejected for preventing the 
transfer of the weapons, materials, equipment, or technology, 
as described in subsection (b)(1)(C).
    (5) Whether funding was requested by the Secretary from 
other Federal departments or agencies.
    (6) Any additional information that the Secretary 
determines is relevant to the assistance being provided.
    (d) Additional Sources of Funding.--The Secretary may 
request assistance and accept funds from other Federal 
departments or agencies in carrying out this section.
    (e) Definitions.--In this section:
            (1) The term ``restricted foreign state or 
        entity'', with respect to weapons, materials, 
        equipment, or technology covered by a certification or 
        notification of the Secretary of Defense under 
        subsection (b), means--
                    (A) any foreign country the government of 
                which has repeatedly provided support for acts 
                of international terrorism, as determined by 
                the Secretary of State under section 620A of 
                the Foreign Assistance Act of 1961 (22 U.S.C. 
                2371); or
                    (B) any foreign state or entity that the 
                Secretary of Defense determines would 
                constitute a military threat to the United 
                States, its allies, or interests, if that 
                foreign state or entity were to possess the 
                weapons, materials, equipment, or technology.
            (2) The term ``weapon of mass destruction'' has the 
        meaning given that term in section 1403(1) of the 
        Defense Against Weapons of Mass Destruction Act of 1996 
        (title XIV of Public Law 104-201; 50 U.S.C. 2302(1)).

SEC. 1307. REQUIREMENT TO SUBMIT SUMMARY OF AMOUNTS REQUESTED BY 
                    PROJECT CATEGORY.

    (a) Summary Required.--The Secretary of Defense shall 
submit to Congress as part of the Secretary's annual budget 
request to Congress--
            (1) a descriptive summary, with respect to the 
        appropriations requested for Cooperative Threat 
        Reduction programsfor the fiscal year after the fiscal 
year in which the summary is submitted, of the amounts requested for 
each project category under each Cooperative Threat Reduction program 
element; and
            (2) a descriptive summary, with respect to 
        appropriations for Cooperative Threat Reduction 
        programs for the fiscal year in which the list is 
        submitted and the previous fiscal year, of the amounts 
        obligated or expended, or planned to be obligated or 
        expended, for each project category under each 
        Cooperative Threat Reduction program element.
    (b) Description of Purpose and Intent.--The descriptive 
summary required under subsection (a) shall include a narrative 
description of each program and project category under each 
Cooperative Threat Reduction program element that explains the 
purpose and intent of the funds requested.

SEC. 1308. REPORT ON BIOLOGICAL WEAPONS PROGRAMS IN RUSSIA.

    (a) Report.--Not later than March 1, 1999, the Secretary of 
Defense shall submit to the congressional defense committees a 
report, in classified and unclassified forms, containing--
            (1) an assessment of the extent of compliance by 
        Russia with international agreements relating to the 
        control of biological weapons; and
            (2) a detailed evaluation of the potential 
        political and military costs and benefits of 
        collaborative biological pathogen research efforts by 
        the United States and Russia.
    (b) Content of Report.--The report required under 
subsection (a) shall include the following:
            (1) An evaluation of the extent of the control and 
        oversight by the Government of Russia over the military 
        and civilian-military biological warfare programs 
        formerly controlled or overseen by states of the former 
        Soviet Union.
            (2) The extent and scope of continued biological 
        warfare research, development, testing, and production 
        in Russia, including the sites where such activity is 
        occurring and the types of activity being conducted.
            (3) An assessment of compliance by Russia with the 
        terms of the Biological Weapons Convention.
            (4) An identification and assessment of the 
        measures taken by Russia to comply with the obligations 
        assumed under the Joint Statement on Biological 
        Weapons, agreed to by the United States, the United 
        Kingdom, and Russia on September 14, 1992.
            (5) A description of the extent to which Russia has 
        permitted individuals from the United States or other 
        countries to visit military and nonmilitary biological 
        research, development, testing, and production sites in 
        order to resolve ambiguities regarding activities at 
        such sites.
            (6) A description of the information provided by 
        Russia about its biological weapons dismantlement 
        efforts to date.
            (7) An assessment of the accuracy and 
        comprehensiveness of declarations by Russia regarding 
        its biological weapons activities.
            (8) An identification of collaborative biological 
        research projects carried out by the United States and 
        Russia for which Cooperative Threat Reduction funds 
        have been used.
            (9) An evaluation of the political and military 
        utility of prior, existing, and prospective cooperative 
        biological pathogen research programs carried out 
        between the United States and Russia, and an assessment 
        of the impact of such programs on increasing Russian 
        military transparency with respect to biological 
        weapons activities.
            (10) An assessment of the political and military 
        utility of the long-term collaborative program 
        advocated by the National Academy of Sciences in its 
        October 27, 1997 report, ``Controlling Dangerous 
        Pathogens: A Blueprint for U.S.-Russian Cooperation''.

SEC. 1309. REPORT ON INDIVIDUALS WITH EXPERTISE IN FORMER SOVIET 
                    WEAPONS OF MASS DESTRUCTION PROGRAMS.

    Not later than January 31, 1999, the Secretary of Defense, 
in consultation with the Secretary of State, the Secretary of 
Energy, and any other appropriate officials, shall submit to 
the congressional defense committees a report on the number of 
individuals in the former Soviet Union who have significant 
expertise in the research, development, production, testing, 
and operational employment of ballistic missiles and weapons of 
mass destruction. The report shall contain the following:
            (1) A listing of the specific expertise of the 
        individuals, by category and discipline.
            (2) An assessment of which categories of expertise 
        would pose the greatest risks to the security of the 
        United States if that expertise were transferred to 
        potentially hostile states.
            (3) An estimate, by category, of the number of the 
        individuals in paragraph (1) who are fully or partly 
        employed at the time the report is submitted by the 
        military-industrial complex of the former Soviet Union, 
        the number of such individuals who are fully employed 
        at the time the report is submitted by commercial 
        ventures outside the military-industrial complex of the 
        former Soviet Union, and the number of such individuals 
        who are unemployed and underemployed at the time the 
        report is submitted.
            (4) An identification of the nature, scope, and 
        cost of activities conducted by the United States and 
        other countries to assist in the employment in 
        nonproliferation and nonmilitary-related endeavors and 
        enterprises of individuals involved in the weapons 
        complex of the former Soviet Union, and which 
        categories of individuals are being targeted in these 
        efforts.
            (5) An assessment of whether the activities 
        identified under paragraph (4) should be reduced, 
        maintained, or expanded.

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

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

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Defense Against Weapons of 
Mass Destruction Act of 1998''.

SEC. 1402. DOMESTIC PREPAREDNESS FOR RESPONSE TO THREATS OF TERRORIST 
                    USE OF WEAPONS OF MASS DESTRUCTION.

    (a) Enhanced Response Capability.--In light of the 
continuing potential for terrorist use of weapons of mass 
destruction against the United States and the need to develop a 
more fully coordinated response to that threat on the part of 
Federal, State, and local agencies, the President shall act to 
increase the effectiveness at the Federal, State, and local 
level of the domestic emergency preparedness program for 
response to terrorist incidents involving weapons of mass 
destruction by utilizing the President's existing authorities 
to develop an integrated program that builds upon the program 
established under the Defense Against Weapons of Mass 
Destruction Act of 1996 (title XIV of Public Law 104-201; 110 
Stat. 2714; 50 U.S.C. 2301 et seq.).
    (b) Report.--Not later than January 31, 1999, the President 
shall submit to Congress a report containing information on the 
actions taken at the Federal, State, and local level to develop 
an integrated program to prevent and respond to terrorist 
incidents involving weapons of mass destruction.

SEC. 1403. REPORT ON DOMESTIC EMERGENCY PREPAREDNESS.

    Section 1051 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1889; 31U.S.C. 
1113 note) is amended by adding at the end the following new 
subsection:
    ``(c) Annex on Domestic Emergency Preparedness Program.--As 
part of the annual report submitted to Congress under 
subsection (b), the President shall include an annex which 
provides the following information on the domestic emergency 
preparedness program for response to terrorist incidents 
involving weapons of mass destruction (as established under 
section 1402 of the Defense Against Weapons of Mass Destruction 
Act of 1998):
            ``(1) Information on program responsibilities for 
        each participating Federal department, agency, and 
        bureau.
            ``(2) A summary of program activities performed 
        during the preceding fiscal year for each participating 
        Federal department, agency, and bureau.
            ``(3) A summary of program obligations and 
        expenditures during the preceding fiscal year for each 
        participating Federal department, agency, and bureau.
            ``(4) A summary of the program plan and budget for 
        the current fiscal year for each participating Federal 
        department, agency, and bureau.
            ``(5) The program budget request for the following 
        fiscal year for each participating Federal department, 
        agency, and bureau.
            ``(6) Recommendations for improving Federal, State, 
        and local domestic emergency preparedness to respond to 
        incidents involving weapons of mass destruction that 
        have been made by the advisory panel to assess the 
        capabilities of domestic response to terrorism 
        involving weapons of mass destruction (as established 
        under section 1405 of the Defense Against Weapons of 
        Mass Destruction Act of 1998), and actions taken as a 
        result of such recommendations.
            ``(7) Additional program measures and legislative 
        authority for which congressional action may be 
        required.''.

SEC. 1404. THREAT AND RISK ASSESSMENTS.

    (a) Requirement To Develop Methodologies.-- The Attorney 
General, in consultation with the Director of the Federal 
Bureau of Investigation and representatives of appropriate 
Federal, State, and local agencies, shall develop and test 
methodologies for assessing the threat and risk of terrorist 
employment of weapons of mass destruction against cities and 
other local areas. The results of the tests may be used to 
determine the training and equipment requirements under the 
program developed under section 1402. The methodologies 
required by this subsection shall be developed using cities or 
local areas selected by the Attorney General, acting in 
consultation with the Director of the Federal Bureau of 
Investigation and appropriate representatives of Federal, 
State, and local agencies.
    (b) Required Completion Date.--The requirements in 
subsection (a) shall be completed not later than one year after 
the date of the enactment of this Act.

SEC. 1405. ADVISORY PANEL TO ASSESS DOMESTIC RESPONSE CAPABILITIES FOR 
                    TERRORISM INVOLVING WEAPONS OF MASS DESTRUCTION.

    (a) Requirement for Panel.--The Secretary of Defense, in 
consultation with the Attorney General, the Secretary of 
Energy, the Secretary of Health and Human Services, and the 
Director of the Federal Emergency Management Agency, shall 
enter into a contract with a federally funded research and 
development center to establish a panel to assess the 
capabilities for domestic response to terrorism involving 
weapons of mass destruction.
    (b) Composition of Panel; Selection.--(1) The panel shall 
be composed of members who shall be private citizens of the 
United States with knowledge and expertise in emergency 
response matters.
    (2) Members of the panel shall be selected by the federally 
funded research and development center in accordance with the 
terms of the contract established pursuant to subsection (a).
    (c) Procedures For Panel.--The federally funded research 
and development center shall be responsible for 
establishingappropriate procedures for the panel, including procedures 
for selection of a panel chairman.
    (d) Duties of Panel.-- The panel shall--
            (1) assess Federal agency efforts to enhance 
        domestic preparedness for incidents involving weapons 
        of mass destruction;
            (2) assess the progress of Federal training 
        programs for local emergency responses to incidents 
        involving weapons of mass destruction;
            (3) assess deficiencies in programs for response to 
        incidents involving weapons of mass destruction, 
        including a review of unfunded communications, 
        equipment, and planning requirements, and the needs of 
        maritime regions;
            (4) recommend strategies for ensuring effective 
        coordination with respect to Federal agency weapons of 
        mass destruction response efforts, and for ensuring 
        fully effective local response capabilities for weapons 
        of mass destruction incidents; and
            (5) assess the appropriate roles of State and local 
        government in funding effective local response 
        capabilities.
    (e) Deadline to Enter Into Contract.--The Secretary of 
Defense shall enter into the contract required under subsection 
(a) not later than 60 days after the date of the enactment of 
this Act.
    (f) Deadline for Selection of Panel Members.--Selection of 
panel members shall be made not later than 30 days after the 
date on which the Secretary enters into the contract required 
by subsection (a).
    (g) Initial Meeting of the Panel.-- The panel shall conduct 
its first meeting not later than 30 days after the date that 
all the selections to the panel have been made.
    (h) Reports.--(1) Not later than 6 months after the date of 
the first meeting of the panel, the panel shall submit to the 
President and to Congress an initial report setting forth its 
findings, conclusions, and recommendations for improving 
Federal, State, and local domestic emergency preparedness to 
respond to incidents involving weapons of mass destruction.
    (2) Not later than December 15 of each year, beginning in 
1999 and ending in 2001, the panel shall submit to the 
President and to the Congress a report setting forth its 
findings, conclusions, and recommendations for improving 
Federal, State, and local domestic emergency preparedness to 
respond to incidents involving weapons of mass destruction.
    (i) Cooperation of Other Agencies.--(1) The panel may 
secure directly from the Department of Defense, the Department 
of Energy, the Department of Health and Human Services, the 
Department of Justice, and the Federal Emergency Management 
Agency, or any other Federal department or agency information 
that the panel considers necessary for the panel to carry out 
its duties.
    (2) The Attorney General, the Secretary of Defense, the 
Secretary of Energy, the Secretary of Health and Human 
Services, the Director of the Federal Emergency Management 
Agency, and any other official of the United States shall 
provide the panel with full and timely cooperation in carrying 
out its duties under this section.
    (j) Funding.--The Secretary of Defense shall provide the 
funds necessary for the panel to carry out its duties from the 
funds available to the Department of Defense for weapons of 
mass destruction preparedness initiatives.
    (k) Compensation of Panel Members.--(1) Members of the 
panel shall serve without pay by reason of their work on the 
panel.
    (2) Members of the panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized 
for employees of agencies under subchapter 57 of title 5, 
United States Code, while away from their homes or regular 
place of business in performance of services for the panel.
    (l) Termination of the Panel.--The panel shall terminate 
three years after the date of the appointment of the member 
selected as chairman of the panel.
    (m) Definition.--In this section, the term ``weapon of mass 
destruction'' has the meaning given that term in section 
1403(1) of the Defense Against Weapons of Mass Destruction Act 
of 1996 (50 U.S.C. 2302(1)).

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

                    Subtitle A--Arms Control Matters

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

                  Subtitle B--Satellite Export Controls

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

                Subtitle C--Other Export Control Matters

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

                Subtitle D--Counterproliferation Matters

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

                    Subtitle A--Arms Control Matters

SEC. 1501. ONE-YEAR EXTENSION OF LIMITATION ON RETIREMENT OR 
                    DISMANTLEMENT OF STRATEGIC NUCLEAR DELIVERY 
                    SYSTEMS.

    Section 1302 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1948) is 
amended--
            (1) in subsections (a), (b), and (c)(2), by 
        striking out ``during fiscal year 1998'' and inserting 
        in lieu thereof ``during the strategic delivery systems 
        retirement limitation period'' ;
            (2) in subsection (c)(1), by striking out ``during 
        fiscal year 1998'';
            (3) in subsection (d)(1)--
                    (A) by striking out ``for fiscal year 
                1998''; and
                    (B) by striking out ``during fiscal year 
                1998''; and
            (4) by adding at the end the following new 
        subsection:
    ``(g) Strategic Delivery Systems Retirement Limitation 
Period.--For purposes of this section, the term ``strategic 
delivery systems retirement limitation period'' means the 
period of fiscal years 1998 and 1999.''.

SEC. 1502. TRANSMISSION OF EXECUTIVE BRANCH REPORTS PROVIDING CONGRESS 
                    WITH CLASSIFIED SUMMARIES OF ARMS CONTROL 
                    DEVELOPMENTS.

    (a) Reporting Requirement.--The Director of the Arms 
Control and Disarmament Agency (or the Secretary of State, if 
the Arms Control and Disarmament Agency becomes an element of 
the Department of State) shall transmit to the Committee on 
National Security of the House of Representatives on a periodic 
basis reports containing classified summaries of arms control 
developments.
    (b) Contents of Reports.--The reports required by 
subsection (a) shall include information reflecting the 
activities of forums established to consider issues relating to 
treaty implementation and treaty compliance.

SEC. 1503. REPORT ON ADEQUACY OF EMERGENCY COMMUNICATIONS CAPABILITIES 
                    BETWEEN UNITED STATES AND RUSSIA.

    Not later than three months after the date of the enactment 
of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on 
National Security of the House of Representatives a report on 
the status and adequacy of current direct communications 
capabilities between the governments of the United States and 
Russia. The report shall identify each existing direct 
communications link between those governments and each such 
linkthat is designed to be used, or is available to be used, in 
an emergency situation. The Secretary shall describe in the report any 
shortcomings with the existing communications capabilities and shall 
include such proposals as the Secretary considers appropriate to 
improve those capabilities. In considering improvements to propose, the 
Secretary shall assess the feasibility and desirability of establishing 
a direct communications link between the commanders of appropriate 
United States unified and specified commands, including the United 
States Space Command and the United States Strategic Command, and their 
Russian counterparts.

SEC. 1504. RUSSIAN NONSTRATEGIC NUCLEAR WEAPONS.

    (a) Findings.--The Congress makes the following findings:
            (1) The 7,000 to 12,000 or more nonstrategic (or 
        ``tactical'') nuclear weapons estimated by the United 
        States Strategic Command to be in the Russian arsenal 
        may present the greatest threat of sale or theft of a 
        nuclear warhead in the world today.
            (2) As the number of deployed strategic warheads in 
        the Russian and United States arsenals declines to just 
        a few thousand under the START accords, Russia's vast 
        superiority in tactical nuclear warheads--many of which 
        have yields equivalent to strategic nuclear weapons--
        could become strategically destabilizing.
            (3) While the United States has unilaterally 
        reduced its inventory of tactical nuclear weapons by 
        nearly 90 percent since the end of the Cold War, Russia 
        is behind schedule in implementing the steep tactical 
        nuclear arms reductions pledged by former Soviet 
        President Gorbachev in 1991 and Russian President 
        Yeltsin in 1992, perpetuating the dangers from Russia's 
        tactical nuclear stockpile.
    (b) Sense of Congress.--It is the sense of Congress that 
the President should call on Russia to expedite reduction of 
its tactical nuclear arsenal in accordance with the promises 
made in 1991 and 1992.
    (c) Report.--Not later than March 15, 1999, the Secretary 
of Defense shall submit to Congress a report on the 
nonstrategic nuclear weapons of Russia. The report shall 
include--
            (1) estimates regarding the current numbers, types, 
        yields, viability, and locations of those weapons;
            (2) an assessment of the strategic implications of 
        Russia's nonstrategic arsenal, including the potential 
        use of those weapons in a strategic role or the use of 
        their components in strategic nuclear systems and the 
        potential of Russian superiority in tactical nuclear 
        weapons to destabilize the overall nuclear balance as 
        strategic nuclear weapons are sharply reduced under the 
        START accords;
            (3) an assessment of the extent of the current 
        threat of theft, sale, or unauthorized use of the 
        warheads of those weapons, including an analysis of 
        Russian command and control as it concerns the use of 
        tactical nuclear weapons;
            (4) a summary of past, current, and planned efforts 
        to work cooperatively with Russia to account for, 
        secure, and reduce Russia's stockpile of tactical 
        nuclear weapons and associated fissile material;
            (5) a summary of how the United States would 
        prevent, or plans to cope militarily with, scenarios in 
        which a deterioration in relations with Moscow causes 
        Russia to redeploy tactical nuclear weapons or in which 
        Russia threatens to employ, or actually employs, 
        tactical nuclear weapons in a local or regional 
        conflict involving the United States or allies of the 
        United States; and
            (6) an assessment of the steps that could be taken 
        by the United States to enhance military preparedness 
        in order (A) to deter any potential attempt by Russia 
        to possibly exploit its advantage in tactical nuclear 
        weapons through coercive ``nuclear diplomacy'' or on 
        the battlefield, or (B) to counter Russia if Russia 
        should make such an attempt to exploit its advantage in 
        tactical nuclear weapons.
    (d) Views.--The Secretary of Defense shall include in the 
report under subsection (c) the views of the Director of 
CentralIntelligence and of the commander of the United States 
Strategic Command.

                 Subtitle B--Satellite Export Controls

SEC. 1511. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) United States business interests must not be 
        placed above United States national security interests;
            (2) United States foreign policy and the policies 
        of the United States regarding commercial relations 
        with other countries should affirm the importance of 
        observing and adhering to the Missile Technology 
        Control Regime (MTCR);
            (3) the United States should encourage universal 
        observance of the Guidelines to the Missile Technology 
        Control Regime;
            (4) the exportation or transfer of advanced 
        communication satellites and related technologies from 
        United States sources to foreign recipients should not 
        increase the risks to the national security of the 
        United States;
            (5) due to the military sensitivity of the 
        technologies involved, it is in the national security 
        interests of the United States that United States 
        satellites and related items be subject to the same 
        export controls that apply under United States law and 
        practices to munitions;
            (6) the United States should not issue any blanket 
        waiver of the suspensions contained in section 902 of 
        the Foreign Relations Authorization Act, Fiscal Years 
        1990 and 1991 (Public Law 101-246), regarding the 
        export of satellites of United States origin intended 
        for launch from a launch vehicle owned by the People's 
        Republic of China;
            (7) the United States should pursue policies that 
        protect and enhance the United States space launch 
        industry; and
            (8) the United States should not export to the 
        People's Republic of China missile equipment or 
        technology that would improve the missile or space 
        launch capabilities of the People's Republic of China.

SEC. 1512. CERTIFICATION OF EXPORTS OF MISSILE EQUIPMENT OR TECHNOLOGY 
                    TO CHINA.

    The President shall certify to the Congress at least 15 
days in advance of any export to the People's Republic of China 
of missile equipment or technology (as defined in section 74 of 
the Arms Export Control Act (22 U.S.C. 2797c)) that--
            (1) such export is not detrimental to the United 
        States space launch industry; and
            (2) the missile equipment or technology, including 
        any indirect technical benefit that could be derived 
        from such export, will not measurably improve the 
        missile or space launch capabilities of the People's 
        Republic of China.

SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.

    (a) Control of Satellites on the United States Munitions 
List.--Notwithstanding any other provision of law, all 
satellites and related items that are on the Commerce Control 
List of dual-use items in the Export Administration Regulations 
(15 C.F.R. Part 730 et seq.) on the date of the enactment of 
this Act shall be transferred to the United States Munitions 
List and controlled under section 38 of the Arms Export Control 
Act (22 U.S.C. 2778).
    (b) Defense Trade Controls Registration Fees.--Section 45 
of the State Department Basic Authorities Act of 1956 (22 
U.S.C. 2717) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``$700,000'' and 
                inserting in lieu thereof ``100 percent''; and
                    (B) by striking out ``(a) Defense Trade 
                Controls Registration Fees.--''; and
            (2) by striking out subsection (b).
    (c) Effective Date.--(1) Subsection (a) shall take effect 
on March 15, 1999, and shall not apply to any export license 
issued before such effective date or to any export 
licenseapplication made under the Export Administration Regulations 
before such effective date.
    (2) The amendments made by subsection (b) shall be 
effective as of October 1, 1998.
    (d) Report.--Not later than January 1, 1999, the Secretary 
of State, in consultation with the Secretary of Defense and the 
Secretary of Commerce, shall submit to Congress a report 
containing--
            (1) a detailed description of the plans of the 
        Department of State to implement the requirements of 
        this section, including any organizational changes that 
        are required and any Executive orders or regulations 
        that may be required;
            (2) an identification and explanation of any steps 
        that should be taken to improve the license review 
        process for exports of the satellites and related items 
        described in subsection (a), including measures to 
        shorten the timelines for license application reviews, 
        and any measures relating to the transparency of the 
        license review process and dispute resolution 
        procedures;
            (3) an evaluation of the adequacy of resources 
        available to the Department of State, including fiscal 
        and personnel resources, to carry out the additional 
        activities required by this section; and
            (4) any recommendations for additional actions, 
        including possible legislation, to improve the export 
        licensing process under the Arms Export Control Act for 
        the satellites and related items described in 
        subsection (a).

SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.

    (a) Actions by the President.--Notwithstanding any other 
provision of law, the President shall take such actions as are 
necessary to implement the following requirements for improving 
national security controls in the export licensing of 
satellites and related items:
            (1) Mandatory technology control plans.--All export 
        licenses shall require a technology transfer control 
        plan approved by the Secretary of Defense and an 
        encryption technology transfer control plan approved by 
        the Director of the National Security Agency.
            (2) Mandatory monitors and reimbursement.--
                    (A) Monitoring of Proposed Foreign Launch 
                of Satellites.--In any case in which a license 
                is approved for the export of a satellite or 
                related items for launch in a foreign country, 
                the Secretary of Defense shall monitor all 
                aspects of the launch in order to ensure that 
                no unauthorized transfer of technology occurs, 
                including technical assistance and technical 
                data. The costs of such monitoring services 
                shall be fully reimbursed to the Department of 
                Defense by the person or entity receiving such 
                services. All reimbursements received under 
                this subparagraph shall be credited to current 
                appropriations available for the payment of the 
                costs incurred in providing such services.
                    (B) Contents of monitoring.--The monitoring 
                under subparagraph (A) shall cover, but not be 
                limited to--
                            (i) technical discussions and 
                        activities, including the design, 
                        development, operation, maintenance, 
                        modification, and repair of satellites, 
                        satellite components, missiles, other 
                        equipment, launch facilities, and 
                        launch vehicles;
                            (ii) satellite processing and 
                        launch activities, including launch 
                        preparation, satellite transportation, 
                        integration of the satellite with the 
                        launch vehicle, testing and checkout 
                        prior to launch, satellite launch, and 
                        return of equipment to the United 
                        States;
                            (iii) activities relating to launch 
                        failure, delay, or cancellation, 
                        including post-launch failure 
                        investigations; and
                            (iv) all other aspects of the 
                        launch.
            (3) Mandatory licenses for crash-investigations.--
        In the event of the failure of a launch from a foreign 
        country of a satellite of United States origin--
                    (A) the activities of United States persons 
                or entities in connection with any subsequent 
                investigation of the failure are subject to the 
                controls established under section 38 of the 
                Arms Export Control Act, including requirements 
                for licenses issued by the Secretary of State 
                for participation in that investigation;
                    (B) officials of the Department of Defense 
                shall monitor all activities associated with 
                the investigation to insure against 
                unauthorized transfer of technical data or 
                services; and
                    (C) the Secretary of Defense shall 
                establish and implement a technology transfer 
                control plan for the conduct of the 
                investigation to prevent the transfer of 
                information that could be used by the foreign 
                country to improve its missile or space launch 
                capabilities.
            (4) Mandatory notification and certification.--All 
        technology transfer control plans for satellites or 
        related items shall require any United States person or 
        entity involved in the export of a satellite of United 
        States origin or related items to notify the Department 
        of Defense in advance of all meetings and interactions 
        with any foreign person or entity providing launch 
        services and require the United States person or entity 
        to certify after the launch that it has complied with 
        this notification requirement.
            (5) Mandatory intelligence community review.--The 
        Secretary of Commerce and the Secretary of State shall 
        provide to the Secretary of Defense and the Director of 
        Central Intelligence copies of all export license 
        applications and technical assistance agreements 
        submitted for approval in connection with launches in 
        foreign countries of satellites to verify the 
        legitimacy of the stated end-user or end-users.
            (6) Mandatory sharing of approved licenses and 
        agreements.--The Secretary of State shall provide 
        copies of all approved export licenses and technical 
        assistance agreements associated with launches in 
        foreign countries of satellites to the Secretaries of 
        Defense and Energy, the Director of Central 
        Intelligence, and the Director of the Arms Control and 
        Disarmament Agency.
            (7) Mandatory notification to congress on 
        licenses.--Upon issuing a license for the export of a 
        satellite or related items for launch in a foreign 
        country, the head of the department or agency issuing 
        the license shall so notify Congress.
            (8) Mandatory reporting on monitoring activities.--
        The Secretary of Defense shall provide to Congress an 
        annual report on the monitoring of all launches in 
        foreign countries of satellites of United States 
        origin.
            (9) Establishing safeguards program.--The Secretary 
        of Defense shall establish a program for recruiting, 
        training, and maintaining a staff dedicated to 
        monitoring launches in foreign countries of satellites 
        and related items of United States origin.
    (b) Exception.--This section shall not apply to the export 
of a satellite or related items for launch in, or by nationals 
of, a country that is a member of the North Atlantic Treaty 
Organization or that is a major non-NATO ally of the United 
States.
    (c) Effective Date.--The President shall take the actions 
required by subsection (a) not later than 45 days after the 
date of the enactment of this Act.

SEC. 1515. REPORT ON EXPORT OF SATELLITES FOR LAUNCH BY PEOPLE'S 
                    REPUBLIC OF CHINA.

    (a) Requirement for Report.--Each report to Congress 
submitted pursuant to subsection (b) of section 902 of the 
Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 
(22 U.S.C. 2151 note; Public Law 101-246) to waive the 
restrictions contained in subsection (a) of that section on the 
export to the People's Republic of China of any satellite of 
United States origin or related items shall be accompanied by a 
detailed justification setting forth the following:
            (1) A detailed description of all militarily 
        sensitive characteristics integrated within, or 
        associated with, the satellite.
            (2) An estimate of the number of United States 
        civilian contract personnel expected to be needed in 
        country to carry out the proposed satellite launch.
            (3)(A) A detailed description of the United States 
        Government's plan to monitor the proposed satellite 
        launch to ensure that no unauthorized transfer of 
        technology occurs, together with an estimate of the 
        number of officers and employees of the United States 
        that are expected to be needed in country to carry out 
        monitoring of the proposed satellite launch; and
            (B) the estimated cost to the Department of Defense 
        of monitoring the proposed satellite launch and the 
        amount of such cost that is to be reimbursed to the 
        department.
            (4) The reasons why the proposed satellite launch 
        is in the national security interest of the United 
        States.
            (5) The impact of the proposed export on employment 
        in the United States, including the number of new jobs 
        created in the United States, on a State-by-State 
        basis, as a direct result of the proposed export.
            (6) The number of existing jobs in the United 
        States that would be lost, on a State-by-State basis, 
        as a direct result of the proposed export not being 
        licensed.
            (7) The impact of the proposed export on the 
        balance of trade between the United States and the 
        People's Republic of China and on reducing the current 
        United States trade deficit with the People's Republic 
        of China.
            (8) The impact of the proposed export on the 
        transition of the People's Republic of China from a 
        nonmarket economy to a market economy and the long-term 
        economic benefit to the United States.
            (9) The impact of the proposed export on opening 
        new markets to United States-made products through the 
        purchase by the People's Republic of China of United 
        States-made goods and services not directly related to 
        the proposed export.
            (10) The impact of the proposed export on reducing 
        acts, policies, and practices that constitute 
        significant trade barriers to United States exports or 
        foreign direct investment in the People's Republic of 
        China by United States nationals.
            (11) The increase that will result from the 
        proposed export in the overall market share of the 
        United States for goods and services in comparison to 
        Japan, France, Germany, the United Kingdom, and Russia.
            (12) The impact of the proposed export on the 
        willingness of the People's Republic of China to modify 
        its commercial and trade laws, practices, and 
        regulations to make United States-made goods and 
        services more accessible to that market.
            (13) The impact of the proposed export on the 
        willingness of the People's Republic of China to reduce 
        formal and informal trade barriers and tariffs, duties, 
        and other fees on United States-made goods and services 
        entering that country.
    (b) Militarily Sensitive Characteristics Defined.--In this 
section, the term ``militarily sensitive characteristics'' 
includes antijamming capability, antennas, crosslinks, baseband 
processing, encryption devices, radiation-hardened devices, 
propulsion systems, pointing accuracy, kick motors, and other 
such characteristics as are specified by the Secretary of 
Defense.

SEC. 1516. RELATED ITEMS DEFINED.

    In this subtitle, the term ``related items'' means the 
satellite fuel, ground support equipment, test equipment, 
payload adapter or interface hardware, replacement parts, and 
non-embedded solid propellant orbit transfer engines described 
in the report submitted to Congress by the Department of State 
on February 6, 1998, pursuant to section 38(f) of the Arms 
Export Control Act (22 U.S.C. 2778(f)).

                Subtitle C--Other Export Control Matters

SEC. 1521. AUTHORITY FOR EXPORT CONTROL ACTIVITIES OF THE DEPARTMENT OF 
                    DEFENSE.

    (a) Functions of the Under Secretary for Policy.--Section 
134(b) of title 10, United States Code, is amended by adding at 
the end the following new paragraph:
    ``(3) Subject to the authority, direction, and control of 
the Secretary of Defense, the Under Secretary shall have 
responsibility for supervising and directing activities of the 
Department of Defense relating to export controls.''.
    (b) Establishment of Deputy Under Secretary for Technology 
Security Policy.--(1) Chapter 4 of title 10, United States 
Code, is amended by inserting after section 134a the following 
new section:

``Sec. 134b. Deputy Under Secretary of Defense for Technology Security 
                    Policy

    ``(a) There is in the Office of the Under Secretary of 
Defense for Policy a Deputy Under Secretary of Defense for 
Technology Security Policy.
    ``(b) The Deputy Under Secretary serves as the Director of 
the Defense Technology Security Administration (or any 
successor organization charged with similar responsibilities).
    ``(c) The principal duties of the Deputy Under Secretary 
are--
            ``(1) assisting the Under Secretary of Defense for 
        Policy in supervising and directing the activities of 
        the Department of Defense relating to export controls; 
        and
            ``(2) assisting the Under Secretary of Defense for 
        Policy in developing policies and positions regarding 
        the appropriate export control policies and procedures 
        that are necessary to protect the national security 
        interests of the United States.
    ``(d) The Deputy Under Secretary shall perform such 
additional duties and exercise such authority as the Secretary 
of Defense may prescribe.''.
    (2) The table of sections at the beginning of such chapter 
is amended by inserting after the item relating to section 134a 
the following new item:

``134b. Deputy Under Secretary of Defense for Technology Security 
          Policy.''.
    (c) Time for Implementation.--The Secretary of Defense 
shall complete the actions necessary to implement the amendment 
made by subsection (a) and to establish the office of Deputy 
Under Secretary of Defense for Technology Security Policy in 
accordance with section 134b of title 10, United States Code, 
as added by subsection (b), not later than 60 days after the 
date of the enactment of this Act.
    (d) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
the Committee on Armed Services of the Senate and the Committee 
on National Security of the House of Representatives a report 
on the plans of the Secretary for implementing the amendments 
made by subsections (a) and (b). The report shall include the 
following:
            (1) A description of any organizational changes 
        that are to be made within the Department of Defense to 
        implement those amendments.
            (2) A description of the role of the Chairman of 
        the Joint Chiefs of Staff in the export control 
        activities of the Department of Defense after those 
        subsections are implemented, together with a discussion 
        of how that role compares to the Chairman's role in 
        those activities before the implementation of those 
        subsections.

SEC. 1522. RELEASE OF EXPORT INFORMATION BY DEPARTMENT OF COMMERCE TO 
                    OTHER AGENCIES FOR PURPOSE OF NATIONAL SECURITY 
                    ASSESSMENT.

    (a) Release of Export Information.--The Secretary of 
Commerce shall, upon the written request of an official 
specified in subsection (c), transmit to that official any 
information relating to exports that is held by the Department 
of Commerce and is requested by that official for the purpose 
of assessingnational security risks. The Secretary shall 
transmit such information within 10 business days after receiving such 
a request.
    (b) Nature of Information.--The information referred to in 
subsection (a) includes information concerning--
            (1) export licenses issued by the Department of 
        Commerce;
            (2) exports that were carried out under an export 
        license issued by the Department of Commerce; and
            (3) exports from the United States that were 
        carried out without an export license.
    (c) Requesting Officials.--The officials referred to in 
subsection (a) are the Secretary of State, the Secretary of 
Defense, the Secretary of Energy, and the Director of Central 
Intelligence. Each of those officials may delegate to any other 
official within their respective departments and agency the 
authority to request information under subsection (a).

SEC. 1523. NUCLEAR EXPORT REPORTING REQUIREMENT.

    (a) Notification of Congress.--The President shall notify 
Congress upon the granting of a license by the Nuclear 
Regulatory Commission for the export or reexport of any 
nuclear-related technology or equipment, including source 
material, special nuclear material, or equipment or material 
especially designed or prepared for the processing, use, or 
production of special nuclear material.
    (b) Applicability.--The requirements of this section shall 
apply only to an export or reexport to a country that--
            (1) the President has determined is a country that 
        has detonated a nuclear explosive device; and
            (2) is not a member of the North Atlantic Treaty 
        Organization.

SEC. 1524. EXECUTION OF OBJECTION AUTHORITY WITHIN THE DEPARTMENT OF 
                    DEFENSE.

    Section 1211 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1932) is amended 
by adding at the end the following new subsection:
    ``(g) Delegation of Objection Authority Within the 
Department of Defense.--For the purposes of the Department of 
Defense, the authority to issue an objection referred to in 
subsection (a) shall be executed for the Secretary of Defense 
by an official at the Assistant Secretary level within the 
office of the Under Secretary of Defense for Policy. In 
implementing subsection (a), the Secretary of Defense shall 
ensure that Department of Defense procedures maximize the 
ability of the Department of Defense to be able to issue an 
objection within the 10-day period specified in subsection 
(c).''.

                Subtitle D--Counterproliferation Matters

SEC. 1531. ONE-YEAR EXTENSION OF COUNTERPROLIFERATION AUTHORITIES FOR 
                    SUPPORT OF UNITED NATIONS SPECIAL COMMISSION ON 
                    IRAQ.

    (a) Amount Authorized for Fiscal Year 1999.--The total 
amount of assistance for fiscal year 1999 provided by the 
Secretary of Defense under section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) that is 
provided for activities of the Department of Defense in support 
of the United Nations Special Commission on Iraq, may not 
exceed $15,000,000.
    (b) Extension of Authority To Provide Assistance.--
Subsection (f) of section 1505 of the Weapons of Mass 
Destruction Control Act of 1992 (22 U.S.C. 5859a) is amended by 
striking out ``1998'' and inserting in lieu thereof ``1999''.

SEC. 1532. SENSE OF CONGRESS ON NUCLEAR TESTS IN SOUTH ASIA.

    The Congress--
            (1) strongly condemns the decisions by the 
        Governments of India and Pakistan to conduct nuclear 
        tests in May 1998;
            (2) calls for the Governments of India and Pakistan 
        to commit not to conduct any additional nuclear tests;
            (3) urges the Governments of India and Pakistan to 
        take immediate steps to reduce tensions between the two 
        countries;
            (4) urges India and Pakistan to engage in high-
        level dialogue aimed at reducing the likelihood of 
        armed conflict, enacting confidence and security 
        building measures, and resolving areas of dispute;
            (5) commends all nations to take steps which will 
        reduce tensions in South Asia, including appropriate 
        measures to prevent the transfer of technology that 
        could further exacerbate the arms race in South Asia, 
        and thus avoid further deterioration of security there;
            (6) calls upon the President, leaders of all 
        nations, and the United Nations to encourage a 
        diplomatic, negotiated solution between the governments 
        of India and Pakistan to promote peace and stability in 
        South Asia and resolve the current impasse;
            (7) encourages United States diplomatic leadership 
        in assisting the governments of India and Pakistan to 
        seek a negotiated resolution of their 50-year conflict 
        over the disputed territory in Kashmir;
            (8) urges India and Pakistan to take immediate, 
        binding, and verifiable steps to roll back their 
        nuclear programs and come into compliance with 
        internationally accepted norms regarding the 
        proliferation of weapons of mass destruction; and
            (9) urges the United States to reevaluate its 
        bilateral relationship with India and Pakistan, in 
        light of the new regional security realities in South 
        Asia, with the goal of preventing further nuclear and 
        ballistic missile proliferation, diffusing long-
        standing regional rivalries between India and Pakistan, 
        and securing commitments from India and Pakistan which, 
        if carried out, could result in a calibrated lifting of 
        United States sanctions imposed under the Arms Export 
        Control Act and the Nuclear Proliferation Prevention 
        Act of 1994.

SEC. 1533. REPORT ON REQUIREMENTS FOR RESPONSE TO INCREASED MISSILE 
                    THREAT IN ASIA-PACIFIC REGION.

    (a) Study.--The Secretary of Defense shall carry out a 
study of the architecture requirements for the establishment 
and operation of a theater ballistic missile defense system in 
the Asia-Pacific region that would have the capability to 
protect key regional allies of the United States.
    (b) Report.--(1) Not later than January 1, 1999, the 
Secretary shall submit to the Committee on National Security of 
the House of Representatives and the Committee on Armed 
Services of the Senate a report containing--
            (A) the results of the study conducted under 
        subsection (a);
            (B) the factors used to obtain such results; and
            (C) a description of any United States missile 
        defense system currently deployed or under development 
        that could be transferred to key allies of the United 
        States in the Asia-Pacific region to provide for their 
        self-defense against limited ballistic missile attacks.
    (2) The report shall be submitted in both classified and 
unclassified form.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 1999''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out fiscal year 1998 
          projects.

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

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

                     Army: Inside the United States
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
Alabama...........................  Anniston Army Depot.      $3,550,000
                                    Fort Rucker.........     $14,300,000
                                    Redstone Arsenal....      $1,550,000
Alaska............................  Fort Wainwright.....     $22,600,000
California........................  Fort Irwin..........     $14,800,000
Georgia...........................  Fort Benning........     $28,600,000
Hawaii............................  Schofield Barracks..     $71,000,000
Illinois..........................  Rock Island Arsenal.      $5,300,000
Indiana...........................  Crane Army
                                     Ammunition Activity      $7,100,000
Kansas............................  Fort Riley..........     $41,000,000
Kentucky..........................  Blue Grass Army           $5,300,000
                                     Depot.
                                    Fort Campbell.......     $75,000,000
                                    Fort Knox...........     $23,000,000
Louisiana.........................  Fort Polk...........      $8,300,000
Maryland..........................  Fort Detrick........      $3,550,000
                                    Fort Meade..........      $5,300,000
Missouri..........................  Fort Leonard Wood...     $28,200,000
New Jersey........................  Fort Monmouth.......      $7,600,000
                                    Picatinny Arsenal...      $8,400,000
New York..........................  Fort Drum...........      $4,650,000
                                    United States
                                     Military Academy,
                                     West Point.........     $85,000,000
North Carolina....................  Fort Bragg..........     $95,900,000
Oklahoma..........................  Fort Sill...........     $13,800,000
                                    McAlester Army
                                     Ammunition Plant...     $10,800,000
Texas.............................  Fort Bliss..........      $4,100,000
                                    Fort Hood...........     $32,500,000
                                    Fort Sam Houston....     $27,300,000
Utah..............................  Tooele Army Depot...      $3,900,000
Virginia..........................  National Ground
                                     Intelligence
                                     Center,
                                     Charlottesville....     $46,200,000
                                    Fort Eustis.........     $41,181,000
                                    Fort Myer...........      $6,200,000
Washington........................  Fort Lewis..........     $18,200,000
CONUS Classified..................  Classified Location.      $4,600,000
                                                         ---------------
                                        Total...........    $768,781,000
------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
Belgium...........................  80th Area Support         $6,300,000
                                     Group.
Germany...........................  Schweinfurt.........     $18,000,000
                                    Wurzburg............      $4,250,000
Korea.............................  Camp Casey..........     $21,400,000
                                    Camp Castle.........     $18,226,000
                                    Camp Humphreys......      $8,500,000
                                    Camp Stanley........      $5,800,000
Kwajalein.........................  Kwajalein Atoll.....     $48,600,000
                                                         ---------------
                                        Total...........    $131,076,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

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

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Purpose              Amount
----------------------------------------------------------------------------------------------------------------
Alabama..................................  Redstone Arsenal............  118 Units..............     $14,000,000
Hawaii...................................  Schofield Barracks..........  64 Units...............     $14,700,000
North Carolina...........................  Fort Bragg..................  170 Units..............     $19,800,000
Texas....................................  Fort Hood...................  154 Units..............     $21,600,000
Virginia.................................  Fort Lee....................  80 Units...............     $13,000,000
                                                                                                 ---------------
                                                                           Total................     $83,100,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
family housing units in an amount not to exceed $6,350,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2104(a)(5)(A), the Secretary of the 
Army may improve existing military family housing units in an 
amount not to exceed $48,479,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1998, for military construction, land acquisition, and military 
family housing functions of the Department of the Army in the 
total amount of $2,098,713,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2101(a), 
        $609,781,000.
            (2) For military construction projects outside the 
        United States authorized by section 2101(b), 
        $95,076,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $12,500,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $64,269,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $137,929,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $1,097,697,000.
            (6) For the construction of the missile software 
        engineering annex, phase II, Redstone Arsenal, Alabama, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1998 
        (division B of Public Law 105-85; 111 Stat. 1966), 
        $13,600,000.
            (7) For the construction of a disciplinary 
        barracks, phase II, Fort Leavenworth, Kansas, 
        authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1998, 
        $29,000,000.
            (8) For the construction of the whole barracks 
        complex renewal, Fort Sill, Oklahoma, authorized by 
        section 2101(a) of the Military Construction 
        Authorization Act for Fiscal Year 1998, $20,500,000.
            (9) For rail yard expansion at Fort Carson, 
        Colorado, authorized by section 2101(a) of the Military 
        Construction Authorization Act for Fiscal Year 1998, 
        $23,000,000.
            (10) For the construction of an aerial gunnery 
        range at Fort Drum, New York, authorized by section 
        2101(a) of the Military Construction Authorization Act 
        for Fiscal Year 1998, $9,000,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2101 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $16,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a multipurpose digital training range at Fort Knox, 
        Kentucky);
            (3) $15,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a railhead facility at Fort Hood, Texas);
            (4) $73,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of a cadet development center at the United States 
        Military Academy, West Point, New York);
            (5) $36,000,000 (the balance of the amount 
        authorized under section 2101(b) for the construction 
        of a powerplant on Roi Namur Island at Kwajalein Atoll, 
        Kwajalein);
            (6) $3,500,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of the whole barracks complex renewal at Fort 
        Wainwright, Alaska);
            (7) $24,500,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of the whole barracks complex renewal at Fort Riley, 
        Kansas); and
            (8) $27,000,000 (the balance of the amount 
        authorized under section 2101(a) for the construction 
        of the whole barracks complex renewal at Fort Campbell, 
        Kentucky).
    (c) Adjustments.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (10) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by--
            (1) $2,639,000, which represents the combination of 
        project savings in military family housing construction 
        resulting from favorable bids, reduced overhead costs, 
        and cancellations due to force structure changes;
            (2) $3,000,000, which represents the combination of 
        savings in military family housing support resulting 
        from favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes; and
            (3) $8,000,000, which represents the combination of 
        project savings in military construction resulting from 
        favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes.

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
                    PROJECTS.

    (a) Modification.--The table in section 2101(a) of the 
Military Construction Authorization Act for Fiscal Year 1998 
(division B of Public Law 105-85; 111 Stat. 1967) is amended--
            (1) in the item relating to Fort Drum, New York, by 
        striking out ``$24,400,000'' in the amount column and 
        inserting in lieu thereof ``$24,900,000'';
            (2) in the item relating to Fort Sill, Oklahoma, by 
        striking out ``$25,000,000'' in the amount column and 
        inserting in lieu thereof ``$28,500,000''; and
            (3) by striking out the amount identified as the 
        total in the amount column and inserting in lieu 
        thereof ``$602,750,000''.
    (b) Conforming Amendments.--Section 2104 of that Act (111 
Stat. 1968) is amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), 
                by striking out ``$2,010,466,000'' and 
                inserting in lieu thereof ``$2,013,966,000''; 
                and
                    (B) in paragraph (1), by striking out 
                ``$435,350,000'' and inserting in lieu thereof 
                ``$438,850,000''; and
            (2) in subsection (b)(8), by striking out 
        ``$8,500,000'' and inserting in lieu thereof 
        ``$9,000,000''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Authorization to accept road construction project, Marine 
          Corps Base, Camp Lejeune, North Carolina.

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

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

                     Navy: Inside the United States
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
Arizona...........................  Marine Corps Air         $11,010,000
                                     Station, Yuma.
                                    Naval Observatory
                                     Detachment,
                                     Flagstaff..........        $990,000
California........................  Marine Corps Air
                                     Station, Miramar...     $29,570,000
                                    Marine Corps Base,
                                     Camp Pendleton.....     $40,430,000
                                    Naval Air Station,       $20,640,000
                                     Lemoore.
                                    Naval Air Warfare        $10,140,000
                                     Center Weapons
                                     Division, China
                                     Lake.
                                    Naval Facility, San
                                     Clemente Island....      $8,350,000
                                    Naval Submarine          $11,400,000
                                     Base, San Diego.
Connecticut.......................  Naval Submarine
                                     Base, New London...     $11,330,000
District of Columbia..............  Naval District,             $790,000
                                     Washington.
Florida...........................  Naval Air Station,        $3,730,000
                                     Key West.
                                    Naval Air Station,        $1,500,000
                                     Jacksonville.
                                    Naval Air Station,        $1,400,000
                                     Whiting Field.
                                    Naval Station,            $6,163,000
                                     Mayport.
Georgia...........................  Marine Corps
                                     Logistics Base,
                                     Albany.............      $2,800,000
                                    Naval Submarine
                                     Base, Kings Bay....      $2,550,000
Hawaii............................  Fleet and Industrial
                                     Supply Center,
                                     Pearl Harbor.......      $9,730,000
                                    Marine Corps Air
                                     Station, Kaneohe
                                     Bay................     $46,410,000
                                    Naval Communications
                                     &
                                     Telecommunications
                                     Area Master Station
                                     Eastern Pacific,
                                     Wahiawa............      $1,970,000
                                    Naval Shipyard,          $11,400,000
                                     Pearl Harbor.
                                    Naval Station, Pearl     $18,180,000
                                     Harbor.
                                    Naval Submarine
                                     Base, Pearl Harbor.      $8,060,000
                                    Navy Public Works
                                     Center, Pearl
                                     Harbor.............     $28,967,000
Illinois..........................  Naval Training
                                     Center, Great Lakes     $19,950,000
Indiana...........................  Naval Surface
                                     Warfare Center,
                                     Crane..............     $11,110,000
Maryland..........................  Naval Surface
                                     Warfare Center,
                                     Indian Head
                                     Division, Indian
                                     Head...............     $13,270,000
                                    United States Naval
                                     Academy............      $4,300,000
Mississippi.......................  Naval Air Station,        $3,280,000
                                     Meridian.
                                    Naval Construction
                                     Battalion Center,
                                     Gulfport...........     $10,670,000
North Carolina....................  Marine Corps Air
                                     Station, Cherry
                                     Point..............      $6,040,000
                                    Marine Corps Base,
                                     Camp LeJeune.......     $14,600,000
Pennsylvania......................  Naval Surface
                                     Warfare Center Ship
                                     Systems Engineering
                                     Station,
                                     Philadelphia.......      $2,410,000
                                    Naval Inventory
                                     Control Point,
                                     Mechanicsburg......      $1,600,000
                                    Naval Inventory
                                     Control Point,
                                     Philadelphia.......      $1,550,000
Rhode Island......................  Naval Education and
                                     Training Center,
                                     Newport............      $5,630,000
                                    Naval Undersea
                                     Warfare Center
                                     Division, Newport..      $9,140,000
South Carolina....................  Marine Corps Air
                                     Station, Beaufort..      $1,770,000
                                    Marine Corps Reserve
                                     Detachment, Parris
                                     Island.............     $15,990,000
                                    Naval Weapons
                                     Station, Charleston      $9,737,000
Texas.............................  Naval Station,           $12,200,000
                                     Ingleside.
Virginia..........................  Fleet and Industrial
                                     Supply Center,
                                     Norfolk (Craney
                                     Island)............      $1,770,000
                                    Fleet Training            $5,700,000
                                     Center, Norfolk.
                                    Naval Air Station,        $6,400,000
                                     Oceana.
                                    Naval Shipyard,
                                     Norfolk, Portsmouth      $6,180,000
                                    Naval Station,           $45,530,000
                                     Norfolk.
                                    Naval Surface
                                     Warfare Center,
                                     Dahlgren...........     $15,680,000
                                    Tactical Training
                                     Group Atlantic, Dam
                                     Neck...............      $2,430,000
Washington........................  Naval Shipyard,           $4,300,000
                                     Puget Sound.
                                    Strategic Weapons
                                     Facility Pacific,
                                     Bremerton..........      $2,750,000
                                                         ---------------
                                        Total...........    $521,497,000
------------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
Greece............................  Naval Support
                                     Activity, Souda Bay      $5,260,000
Guam..............................  Naval Activities,        $10,310,000
                                     Guam.
Italy.............................  Naval Support            $18,270,000
                                     Activity, Naples.
United Kingdom....................  Joint Maritime
                                     Communications
                                     Center, St. Mawgan.      $2,010,000
                                                         ---------------
                                        Total...........     $35,850,000
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or location             Purpose               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Naval Air Station, Lemoore  162 Units.................     $30,379,000
Hawaii..................................  Navy Public Works Center,
                                           Pearl Harbor.............  150 Units.................     $29,125,000
                                                                                                 ---------------
                                                                        Total...................     $59,504,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2204(a)(5)(A), the Secretary of the Navy may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$15,618,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2204(a)(5)(A), the Secretary of the 
Navy may improve existing military family housing units in an 
amount not to exceed $227,791,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1998, for military construction, land acquisition, and military 
family housing functions of the Department of the Navy in the 
total amount of $1,812,476,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2201(a), 
        $503,997,000.
            (2) For military construction projects outside the 
        United States authorized by section 2201(b), 
        $35,850,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $9,900,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $60,846,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $302,913,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $915,293,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2201 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $13,500,000 (the balance of the amount 
        authorized under section 2202(a) for the construction 
        of a berthing pier at Naval Station, Norfolk, 
        Virginia); and
            (3) $4,000,000 (the balance of the amount 
        authorized under section 2201(a) for the construction 
        of a bachelor enlisted quarters at Marine Corps Air 
        Station, Kaneohe Bay, Hawaii).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (5) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by--
            (1) $7,323,000, which represents the combination of 
        project savings in military family housing construction 
        resulting from favorable bids, reduced overhead costs, 
        and cancellations due to force structure changes;
            (2) $3,000,000, which represents the combination of 
        savings in military family housing support resulting 
        from favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes; and
            (3) $6,000,000, which represents the combination of 
        project savings in military construction resulting from 
        favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes.

SEC. 2205. AUTHORIZATION TO ACCEPT ROAD CONSTRUCTION PROJECT, MARINE 
                    CORPS BASE, CAMP LEJEUNE, NORTH CAROLINA.

    The Secretary of the Navy may accept from the State of 
North Carolina a road construction project valued at 
approximately $2,000,000, which is to be constructed at Marine 
Corps Base, Camp Lejeune, North Carolina, in accordance with 
plans and specifications acceptable to the Secretary.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
          projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.

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

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

                   Air Force: Inside the United States
------------------------------------------------------------------------
                                       Installation or
               State                      location            Amount
------------------------------------------------------------------------
Alabama...........................  Maxwell Air Force        $19,398,000
                                     Base.
Alaska............................  Eielson Air Force         $4,352,000
                                     Base.
Arizona...........................  Luke Air Force Base.      $3,400,000
Arkansas..........................  Little Rock Air           $1,500,000
                                     Force Base.
California........................  Edwards Air Force        $10,361,000
                                     Base.
                                    Travis Air Force          $4,250,000
                                     Base.
                                    Vandenberg Air Force     $18,709,000
                                     Base.
Colorado..........................  Falcon Air Force          $9,601,000
                                     Station.
                                    United States Air
                                     Force Academy......      $4,413,000
District of Columbia..............  Bolling Air Force         $2,948,000
                                     Base.
Florida...........................  Eglin Air Force Base     $20,437,000
                                    Eglin Auxiliary           $3,837,000
                                     Field 9.
                                    MacDill Air Force         $9,808,000
                                     Base.
                                    Tyndall Air Force         $3,600,000
                                     Base.
Georgia...........................  Robins Air Force         $11,894,000
                                     Base.
Hawaii............................  Hickam Air Force          $5,890,000
                                     Base.
Idaho.............................  Mountain Home Air
                                     Force Base.........     $17,897,000
Kansas............................  McConnell Air Force       $4,450,000
                                     Base.
Louisiana.........................  Barksdale Air Force       $9,300,000
                                     Base.
Maryland..........................  Andrews Air Force         $4,448,000
                                     Base.
Massachusetts.....................  Hanscom Air Force        $10,000,000
                                     Base.
Mississippi.......................  Columbus Air Force        $5,700,000
                                     Base.
                                    Keesler Air Force        $35,526,000
                                     Base.
Montana...........................  Malmstrom Air Force       $7,900,000
                                     Base.
Nevada............................  Indian Springs Air
                                     Force Auxiliary Air
                                     Field..............     $15,013,000
                                    Nellis Air Force          $6,378,000
                                     Base.
New Jersey........................  McGuire Air Force         $6,044,000
                                     Base.
New Mexico........................  Holloman Air Force       $11,100,000
                                     Base.
                                    Kirtland Air Force        $8,574,000
                                     Base.
North Carolina....................  Seymour Johnson Air
                                     Force Base.........      $6,100,000
North Dakota......................  Grand Forks Air          $11,486,000
                                     Force Base.
                                    Minot Air Force Base      $8,500,000
Ohio..............................  Wright-Patterson Air
                                     Force Base.........     $22,000,000
Oklahoma..........................  Altus Air Force Base      $9,300,000
                                    Tinker Air Force         $24,985,000
                                     Base.
                                    Vance Air Force Base      $6,223,000
South Carolina....................  Charleston Air Force     $24,330,000
                                     Base.
South Dakota......................  Ellsworth Air Force       $6,500,000
                                     Base.
Tennessee.........................  Arnold Air Force         $11,600,000
                                     Base.
Texas.............................  Dyess Air Force Base      $4,750,000
                                    Goodfellow Air Force      $7,300,000
                                     Base.
                                    Lackland Air Force       $14,930,000
                                     Base.
                                    Laughlin Air Force        $7,315,000
                                     Base.
                                    Randolph Air Force        $3,166,000
                                     Base.
Utah..............................  Hill Air Force Base.      $2,600,000
Washington........................  Fairchild Air Force      $15,220,000
                                     Base.
                                    McChord Air Force        $51,847,000
                                     Base.
                                                         ---------------
                                        Total...........    $514,880,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Country                     location            Amount
------------------------------------------------------------------------
Germany...........................  Spangdahlem Air Base      $9,501,000
Korea.............................  Kunsan Air Base.....      $5,958,000
                                    Osan Air Base.......      $7,496,000
Turkey............................  Incirlik Air Base...      $2,949,000
United Kingdom....................  Royal Air Force,         $15,838,000
                                     Lakenheath.
                                    Royal Air Force,         $24,960,000
                                     Mildenhall.
                                                         ---------------
                                        Total...........     $66,702,000
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

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

                        Air Force: Family Housing
------------------------------------------------------------------------
                               Installation or
            State                  location      Purpose      Amount
------------------------------------------------------------------------
Alabama......................  Maxwell Air
                                Force Base....  143
                                                 Units..     $16,300,000
Alaska.......................  Eielson Air
                                Force Base....  46 Units     $12,932,000
California...................  Edwards Air
                                Force Base....  48 Units     $12,580,000
                               Vandenberg Air
                                Force Base....  95 Units     $18,499,000
Delaware.....................  Dover Air Force  55 Units      $8,998,000
                                Base.
Florida......................  MacDill Air      48 Units      $7,609,000
                                Force Base.
                               Patrick Air      46 Units      $9,692,000
                                Force Base.
                               Tyndall Air      122          $14,500,000
                                Force Base.      Units.
Mississippi..................  Columbus Air     52 Units      $6,800,000
                                Force Base.
                               Keesler Air      52 Units      $6,800,000
                                Force Base.
Montana......................  Malmstrom Air    50 Units     $10,000,000
                                Force Base.
Nebraska.....................  Offutt Air
                                Force Base....  Ancillar
                                                 y
                                                 Facilit
                                                 y......        $870,000
                               Offutt Air
                                Force Base....  Ancillar
                                                 y
                                                 Facilit
                                                 y......        $900,000
                               Offutt Air
                                Force Base....  90 Units     $12,212,000
Nevada.......................  Nellis Air
                                Force Base....  28 Units      $5,000,000
New Mexico...................  Kirtland Air
                                Force Base....  37 Units      $6,400,000
Ohio.........................  Wright-
                                Patterson Air
                                Force Base....  40 Units      $5,600,000
Texas........................  Dyess Air Force  64 Units      $9,415,000
                                Base.
                               Sheppard Air
                                Force Base....  65 Units      $7,000,000
Washington...................  Fairchild Air
                                Force Base....  Ancillar
                                                 y
                                                 Facilit
                                                 y......      $1,692,000
                               Fairchild Air
                                Force Base....  14 Units      $2,300,000
                                                         ---------------
                                                  Total.    $176,099,000
------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(5)(A), the Secretary of the Air Force may carry out 
architectural and engineering services and construction design 
activities with respect to the construction or improvement of 
military family housing units in an amount not to exceed 
$11,342,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriations in section 2304(a)(5)(A), the Secretary of the 
Air Force may improve existing military family housing units in 
an amount not to exceed $104,108,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1998, for military construction, land acquisition, and military 
family housing functions of the Department of the Air Force in 
the total amount of $1,679,978,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2301(a), 
        $514,880,000.
            (2) For military construction projects outside the 
        United States authorized by section 2301(b), 
        $66,702,000.
            (3) For unspecified minor construction projects 
        authorized by section 2805 of title 10, United States 
        Code, $8,135,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $38,092,000.
            (5) For military housing functions:
                    (A) For construction and acquisition, 
                planning and design, and improvement of 
                military family housing and facilities, 
                $291,549,000.
                    (B) For support of military family housing 
                (including the functions described in section 
                2833 of title 10, United States Code), 
                $785,204,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2301 of this Act may not exceed the total amount 
authorized to be appropriated under paragraphs (1) and (2) of 
subsection (a).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (5) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by--
            (1) $10,584,000, which represents the combination 
        of project savings in military family housing 
        construction resulting from favorable bids, reduced 
        overhead costs, and cancellations due to force 
        structure changes;
            (2) $2,000,000,000, which represents the 
        combination of savings in military family housing 
        support resulting from favorable bids, reduced overhead 
        costs, and cancellations due to force structure 
        changes; and
            (3) $12,000,000, which represents the combination 
        of project savings in military construction resulting 
        from favorable bids, reduced overhead costs, and 
        cancellations due to force structure changes.

                      TITLE XXIV--DEFENSE AGENCIES

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

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

    (a) Inside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(1), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations inside the United States, and in 
the amounts, set forth in the following table:
      

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                       Installation or
              Agency                      location            Amount
------------------------------------------------------------------------
Chemical Demilitarization.........  Aberdeen Proving
                                     Ground, Maryland...    $186,350,000
                                    Newport Army Depot,
                                     Indiana............    $191,550,000
Defense Logistics Agency..........  Defense Fuel Support
                                     Point, Fort Sill,
                                     Oklahoma...........      $3,500,000
                                    Defense Fuel Support
                                     Point, Jacksonville
                                     Annex, Mayport,
                                     Florida............     $11,020,000
                                    Defense Fuel Support
                                     Point,
                                     Jacksonville,
                                     Florida............     $11,000,000
                                    Defense General
                                     Supply Center,
                                     Richmond (DLA),
                                     Virginia...........     $10,500,000
                                    Defense Fuel Supply
                                     Center, Camp
                                     Shelby, Mississippi      $5,300,000
                                    Defense Fuel Supply
                                     Center, Elmendorf
                                     Air Force Base,
                                     Alaska.............     $19,500,000
                                    Defense Fuel Supply
                                     Center, Pope Air
                                     Force Base, North
                                     Carolina...........      $4,100,000
                                    Various Locations...      $1,300,000
Defense Medical Facilities Office.  Barksdale Air Force
                                     Base, Louisiana....      $3,450,000
                                    Beale Air Force
                                     Base, California...      $3,500,000
                                    Carlisle Barracks,
                                     Pennsylvania.......      $4,678,000
                                    Cheatham Annex,          $11,300,000
                                     Virginia.
                                    Edwards Air Force
                                     Base, California...      $6,000,000
                                    Eglin Air Force           $9,200,000
                                     Base, Florida.
                                    Fort Bragg, North         $6,500,000
                                     Carolina.
                                    Fort Hood, Texas....     $14,100,000
                                    Fort Stewart/Hunter
                                     Army Air Field,
                                     Georgia............     $10,400,000
                                    Grand Forks Air
                                     Force Base, North
                                     Dakota.............      $5,600,000
                                    Holloman Air Force
                                     Base, New Mexico...      $1,300,000
                                    Keesler Air Force
                                     Base, Mississippi..        $700,000
                                    Marine Corps Air
                                     Station, Camp
                                     Pendleton,
                                     California.........      $6,300,000
                                    McChord Air Force
                                     Base, Washington...     $20,000,000
                                    Moody Air Force
                                     Base, Georgia......     $11,000,000
                                    Naval Air Station,
                                     Pensacola, Florida.     $25,400,000
                                    Naval Hospital,
                                     Bremerton,
                                     Washington.........     $28,000,000
                                    Naval Hospital,
                                     Great Lakes,
                                     Illinois...........      $7,100,000
                                    Naval Station, San
                                     Diego, California..      $1,350,000
                                    Naval Submarine
                                     Base, Bangor,
                                     Washington.........      $5,700,000
                                    Travis Air Force
                                     Base, California...      $1,700,000
Defense Education Activity........  Marine Corps Base,
                                     Camp LeJeune, North
                                     Carolina...........     $16,900,000
                                    United States
                                     Military Academy,
                                     West Point, New
                                     York...............      $2,840,000
National Security Agency..........  Fort Meade, Maryland        $668,000
Special Operations Command........  Eglin Auxiliary
                                     Field 3, Florida...      $7,310,000
                                    Elgin Auxiliary
                                     Field 9, Florida...      $2,400,000
                                    Fort Campbell,           $15,000,000
                                     Kentucky.
                                    MacDill Air Force
                                     Base, Florida......      $8,400,000
                                    Naval Amphibious
                                     Base, Coronado,
                                     California.........      $3,600,000
                                    Stennis Space
                                     Center, Mississippi      $5,500,000
                                                         ---------------
                                        Total...........    $690,016,000
------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2404(a)(2), the Secretary of Defense may acquire real property 
and carry out military construction projects for the 
installations and locations outside the United States, and in 
the amounts, set forth in the following table:
      

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                       Installation or
              Agency                      location            Amount
------------------------------------------------------------------------
Defense Logistics Agency..........  Lajes Field, Azores,
                                     Portugal...........      $7,700,000
Defense Medical Facilities Office.  Naval Air Station,
                                     Sigonella, Italy...      $5,300,000
                                    Royal Air Force,
                                     Lakenheath, United
                                     Kingdom............     $10,800,000
Defense Education Activity........  Fort Buchanan,
                                     Puerto Rico........      $8,805,000
                                    Naval Activities,        $13,100,000
                                     Guam.
Special Operations Command........  Naval Station,
                                     Roosevelt Roads,
                                     Puerto Rico........      $9,600,000
                                                         ---------------
                                        Total...........     $55,305,000
------------------------------------------------------------------------

SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, 
and using amounts appropriated pursuant to the authorization of 
appropriation in section 2404(a)(11)(A), the Secretary of 
Defense may improve existing military family housing units in 
an amount not to exceed $345,000.

SEC. 2403. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(9), the Secretary of Defense 
may carry out energy conservation projects under section 2865 
of title 10, United States Code.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated for fiscal years beginning after September 30, 
1998, for military construction, land acquisition, and military 
family housing functions of the Department of Defense (other 
than the military departments) in the total amount of 
$2,223,260,000 as follows:
            (1) For military construction projects inside the 
        United States authorized by section 2401(a), 
        $369,966,000.
            (2) For military construction projects outside the 
        United States authorized by section 2401(a), 
        $55,305,000.
            (3) For construction of the Ammunition 
        Demilitarization Facility, Pine Bluff Arsenal, Arkansas 
        authorized by section 2401 of the Military Construction 
        Authorization Act for Fiscal Year 1995 (division B of 
        Public Law 103-337; 108 Stat. 3040), as amended by 
        section 2407 of the Military Construction Authorization 
        Act for Fiscal Year1996 (division B of Public Law 104-
106; 110 Stat. 539), section 2408 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public Law 105-
85; 111 Stat. 1982), and section 2406 of this Act, $16,500,000.
            (4) For construction of the Ammunition 
        Demilitarization Facility, Umatilla Army Depot, Oregon, 
        authorized by section 2401 of the Military Construction 
        Authorization Act for Fiscal Year 1995, as amended by 
        section 2407 of the Military Construction Authorization 
        Act for Fiscal Year 1996, section 2408 of the Military 
        Construction Authorization Act for Fiscal Year 1998, 
        and section 2406 of this Act, $50,950,000.
            (5) For military construction projects at 
        Portsmouth Naval Hospital, Virginia, hospital 
        replacement, authorized by section 2401(a) of the 
        Military Construction Authorization Act for Fiscal 
        Years 1990 and 1991 (division B of Public Law 101-189; 
        106 Stat. 1640), as amended by section 2407 of this 
        Act, $17,954,000.
            (6) For unspecified minor construction projects 
        under section 2805 of title 10, United States Code, 
        $13,394,000.
            (7) For contingency construction projects of the 
        Secretary of Defense under section 2804 of title 10, 
        United States Code, $4,890,000.
            (8) For architectural and engineering services and 
        construction design under section 2807 of title 10, 
        United States Code, $41,005,000.
            (9) For energy conservation projects authorized by 
        section 2403, $46,950,000.
            (10) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment 
        Act of 1990 (part A of title XXIX of Public Law 101-
        510; 10 U.S.C. 2687 note), $1,630,902,000.
            (11) For military family housing functions:
                    (A) For improvement of military family 
                housing and facilities, $345,000.
                    (B) For support of military housing 
                (including functions described in section 2833 
                of title 10, United States Code), $36,899,000 
                of which not more than $31,139,000 may be 
                obligated or expended for the leasing of 
                military family housing units worldwide.
                    (C) For credit to the Department of Defense 
                Family Housing Improvement Fund established by 
                section 2883(a)(1) of title 10, United States 
                Code, $2,000,000.
    (b) Limitation of Total Cost of Construction Projects.--
Notwithstanding the cost variation authorized by section 2853 
of title 10, United States Code, and any other cost variation 
authorized by law, the total cost of all projects carried out 
under section 2401 of this Act may not exceed--
            (1) the total amount authorized to be appropriated 
        under paragraphs (1) and (2) of subsection (a);
            (2) $162,050,000 (the balance of the amount 
        authorized under section 2401(a) for the construction 
        of the Ammunition Demilitarization Facility at Newport 
        Army Depot, Indiana); and
            (3) $158,000,000 (the balance of the amount 
        authorized under section 2401(a) for the construction 
        of the Ammunition Demilitarization Facility at Aberdeen 
        Proving Ground, Maryland).
    (c) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1) through (11) of 
subsection (a) is the sum of the amounts authorized to be 
appropriated in such paragraphs, reduced by $63,800,000 (of 
which $50,500,000 represents savings from military construction 
for chemical demilitarization), which represents the 
combination of project savings in military construction 
resulting from favorable bids, reduced overhead costs, and 
cancellations due to force structure changes.

SEC. 2405. REPEAL OF FISCAL YEAR 1997 AUTHORIZATION OF APPROPRIATIONS 
                    FOR CERTAIN MILITARY HOUSING IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 2406(a) of 
the Military Construction Authorization Act for Fiscal Year 
1997 (division B of Public Law 104-201; 110 Stat. 2778) is 
amended--
            (1) by striking out ``$3,379,703,000'' and 
        inserting in lieu thereof ``$3,374,703,000''; and
            (2) in paragraph (14), by striking out subparagraph 
        (D).
    (b) Credit and Use of Funds.--Section 2404 of that Act (110 
Stat. 2777) is amended--
            (1) in subsection (a)--
                    (A) by striking out ``(1)'' before ``Of''; 
                and
                    (B) by striking out paragraph (2); and
            (2) in subsection (b)--
                    (A) by striking out ``(1)'' before ``The'';
                    (B) by striking out ``subsection (a)(1)'' 
                and inserting in lieu thereof ``subsection 
                (a)''; and
                    (C) by striking out paragraph (2).

SEC. 2406. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
                    1995 PROJECTS.

    The table in section 2401 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337; 108 Stat. 3040), as amended by section 2407 of the 
Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 539) and section 
2408 of the Military Construction Authorization Act for Fiscal 
Year 1998 (division B of Public Law 105-85; 111 Stat. 1982), 
under the agency heading relating to Chemical Weapons and 
Munitions Destruction, is amended--
            (1) in the item relating to Pine Bluff Arsenal, 
        Arkansas, by striking out $134,000,000'' in the amount 
        column and inserting in lieu thereof ``$154,400,000''; 
        and
            (2) in the item relating to Umatilla Army Depot, 
        Oregon, by striking out ``$187,000,000'' in the amount 
        column and inserting in lieu thereof ``$193,377,000''.

SEC. 2407. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1990 
                    PROJECT.

    (a) Increase.--The table in section 2401(a) of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 
(division B of Public Law 100-189; 103 Stat. 1640) is amended 
in the item relating to Portsmouth Naval Hospital, Virginia, by 
striking out ``$330,000,000'' and inserting in lieu thereof 
``$351,354,000''.
    (b) Conforming Amendment.--Section 2405(b)(2) of that Act 
(103 Stat. 1642) is amended by striking out ``$321,500,000'' 
and inserting in lieu thereof ``$342,854,000''.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

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

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

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal 
years beginning after September 30, 1998, for contributions by 
the Secretary of Defense under section 2806 of title 10, United 
States Code, for the share of the United States of the cost of 
projects for the North Atlantic Treaty Organization Security 
Investment program authorized by section 2501, in the amount of 
$154,000,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
          acquisition projects.
Sec. 2602. Modification of authority to carry out fiscal year 1998 
          project.

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

    (a) Authorization of Appropriations.--There are authorized 
to be appropriated for fiscal years beginning after September 
30, 1998, for the costs of acquisition, architectural and 
engineering services, and construction of facilities for the 
Guard and Reserve Forces, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the 
cost of acquisition of land for those facilities), the 
following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the 
                United States, $142,403,000; and
                    (B) for the Army Reserve, $102,119,000.
            (2) For the Department of the Navy, for the Naval 
        and Marine Corps Reserve, $31,621,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the 
                United States, $169,801,000; and
                    (B) for the Air Force Reserve, $34,371,000.
    (b) Adjustment.--(1) The amount authorized to be 
appropriated pursuant to subsection (a)(1)(A) is reduced by 
$2,000,000, which represents the combination of project savings 
in military construction resulting from favorable bids, reduced 
overhead costs, and cancellations due to force structure 
changes.
    (2) The amount authorized to be appropriated pursuant to 
subsection (a)(3)(A) is reduced by $4,000,000, which represents 
the combination of project savings in military construction 
resulting from favorable bids, reduced overhead costs, and 
cancellations due to force structure changes.

SEC. 2602. MODIFICATION OF AUTHORITY TO CARRY OUT FISCAL YEAR 1998 
                    PROJECT.

    Section 2603 of the Military Construction Authorization Act 
for Fiscal Year 1998 (division B of Public Law 105-85; 111 
Stat. 1983) is amended to read as follows:

``SEC. 2603. ARMY RESERVE CONSTRUCTION PROJECT, SALT LAKE CITY, UTAH.

    ``With regard to the military construction project for the 
Army Reserve concerning construction of a reserve center and 
organizational maintenance shop at an appropriate site in, or 
in the vicinity of, Salt Lake City, Utah, to be carried out 
using funds appropriated pursuant to the authorization of 
appropriations in section 2601(a)(1)(B), the Secretary of the 
Army shall enter into an agreement with the State of Utah under 
which the State agrees to provide financial or in-kind 
contributions in connection with the project.''.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
          specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 1996 
          projects.
Sec. 2703. Extension of authorization of fiscal year 1995 project.
Sec. 2704. Effective date.

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

    (a) Expiration of Authorizations After Three Years.--Except 
as provided in subsection (b), all authorizations contained in 
titles XXI through XXVI for military construction projects, 
land acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor) shall expire on the later of--
            (1) October 1, 2001; or
            (2) the date of enactment of an Act authorizing 
        funds for military construction for fiscal year 2002.
    (b) Exception.--Subsection (a) shall not apply to 
authorizations for military construction projects, land 
acquisition, family housing projects and facilities, and 
contributions to the North Atlantic Treaty Organization 
Security Investment program (and authorizations of 
appropriations therefor), for which appropriated funds have 
been obligated before the later of--
            (1) October 1, 2001; or
            (2) the date of enactment of an Act authorizing 
        funds for fiscal year 2002 for military construction 
        projects, land acquisition, family housing projects and 
        facilities, or contributions to the North Atlantic 
        Treaty Organization Security Investment program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 1996 
                    PROJECTS.

    (a) Extensions.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106; 110 Stat. 541), 
authorizationsfor the projects set forth in the tables in 
subsection (b), as provided in section 2201, 2202, 2302, or 2601 of 
that Act, shall remain in effect until October 1, 1999, or the date of 
enactment of an Act authorizing funds for military construction for 
fiscal year 2000, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are 
as follows:
      

                                 Navy: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Puerto Rico..............................  Naval Station Roosevelt
                                            Roads......................  Housing Office.........        $710,000
California...............................  Camp Pendleton..............  Family Housing
                                                                          Construction (138
                                                                          units)................     $20,000,000
----------------------------------------------------------------------------------------------------------------


                               Air Force: Extension of 1996 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Texas....................................  Lackland Air Force Base.....  Family Housing (67
                                                                          units)................      $6,200,000
----------------------------------------------------------------------------------------------------------------


                          Army National Guard: Extension of 1996 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Mississippi..............................  Camp Shelby.................  Multipurpose Range
                                                                          Complex (Phase I).....      $5,000,000
Missouri.................................  National Guard Training
                                            Site, Jefferson City.......  Multipurpose Range.....      $2,236,000
----------------------------------------------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATION OF FISCAL YEAR 1995 PROJECT.

    (a) Extension.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 1995 
(division B of Public Law 103-337; 108 Stat. 3046), the 
authorization for the project set forth in the table in 
subsection (b), as provided in section 2201 of that Act and 
extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public 
Law 105-85; 111 Stat. 1985), shall remain in effect until 
October 1, 1999, or the date of enactment of an Act authorizing 
funds for military construction for fiscal year 2000, whichever 
is later.
    (b) Table.--The table referred to in subsection (a) is as 
follows:
      

                                  Navy: Extension of 1995 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                      Installation or location            Project              Amount
----------------------------------------------------------------------------------------------------------------
Maryland.................................  Indian Head Naval Surface
                                            Warfare Center.............  Denitrification/Acid
                                                                          Mixing Facility.......      $6,400,000
----------------------------------------------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI shall take 
effect on the later of--
            (1) October 1, 1998; or
            (2) the date of the enactment of this Act.

                    TITLE XXVIII--GENERAL PROVISIONS

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

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

         Subtitle B--Real Property and Facilities Administration

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

            Subtitle C--Defense Base Closure and Realignment

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

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

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

                        Part II--Navy Conveyances

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

                     Part III--Air Force Conveyances

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

                        Subtitle E--Other Matters

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

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

SEC. 2801. ARCHITECTURAL AND ENGINEERING SERVICES AND CONSTRUCTION 
                    DESIGN.

    (a) Increase in Threshold for Notice to Congress.--
Subsection (b) of section 2807 of title 10, United States Code, 
is amended by striking out ``$300,000'' and inserting in lieu 
thereof ``$500,000''.
    (b) Availability of Appropriations.--Subsection (d) of that 
section is amended by striking out ``study, planning, design, 
architectural, and engineering services'' and inserting inlieu 
thereof ``architectural and engineering services and construction 
design''.

SEC. 2802. EXPANSION OF ARMY OVERSEAS FAMILY HOUSING LEASE AUTHORITY.

    (a) Alternative Maximum Unit Amounts.--Section 2828(e) of 
title 10, United States Code, is amended--
            (1) in paragraph (2), by inserting, ``, and the 
        Secretary of the Army may lease not more than 500 units 
        of family housing in Italy,'' after ``family housing in 
        Italy'';
            (2) by redesignating paragraphs (3) and (4) as 
        paragraphs (4) and (5), respectively; and
            (3) by inserting after paragraph (2) the following 
        new paragraph (3):
    ``(3) In addition to the 450 units of family housing 
referred to in paragraph (1) for which the maximum lease amount 
is $25,000 per unit per year, the Secretary of the Army may 
lease not more than 800 units of family housing in Korea 
subject to that maximum lease amount.''.
    (b) Conforming Amendment.--Paragraph (4) of that section, 
as redesignated by subsection (a)(2) of this section, is 
amended by striking out ``and (2)'' and inserting in lieu 
thereof ``, (2), and (3)''.

SEC. 2803. DEFINITION OF ANCILLARY SUPPORTING FACILITIES UNDER 
                    ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                    IMPROVEMENT OF MILITARY HOUSING.

    Section 2871(1) of title 10, United States Code, is amended 
by inserting after ``including'' the following: ``facilities to 
provide or support elementary or secondary education,''.

SEC. 2804. PURCHASE OF BUILD-TO-LEASE FAMILY HOUSING AT EIELSON AIR 
                    FORCE BASE, ALASKA.

    (a) Authority To Purchase.--The Secretary of the Air Force 
may purchase the entire interest of the developer in the 
military family housing project at Eielson Air Force Base, 
Alaska, described in subsection (b) if the Secretary determines 
that the purchase is in the best economic interests of the Air 
Force.
    (b) Description of Project.--The military family housing 
project referred to in this section is the 366-unit military 
family housing project at Eielson Air Force Base that was 
constructed by the developer and is being leased by the 
Secretary under the authority of former subsection (g) of 
section 2828 of title 10, United States Code (now section 2835 
of such title), as added by section 801 of the Military 
Construction Authorization Act, 1984 (Public Law 98-115; 97 
Stat. 782).
    (c) Purchase Price.--The purchase price to be paid by the 
Secretary under this section for the interest of the developer 
in the military family housing project may not exceed an amount 
equal to the amount of the outstanding indebtedness of the 
developer to the lender for the project that would have 
remained at the time of the purchase under this section if the 
developer had paid down its indebtedness to the lender for the 
project in accordance with the original debt instruments for 
the project.
    (d) Time for Purchase.--(1) Subject to paragraph (2), the 
Secretary may elect to make the purchase authorized by 
subsection (a) at any time during or after the term of the 
lease for the military family housing project.
    (2) The Secretary may not make the purchase until 30 days 
after the date on which the Secretary notifies the 
congressional defense committees of the Secretary's election to 
make the purchase under paragraph (1).

SEC. 2805. REPORT RELATING TO IMPROVEMENT OF HOUSING FOR UNACCOMPANIED 
                    MEMBERS.

    (a) Report Required.--(1) Not later than April 1, 1999, the 
Secretary of Defense shall submit to Congress a report on--
            (A) the plans of each of the military departments 
        to improve the condition, suitability, and availability 
        of housing for members of the Armed Forces who are 
        unaccompanied by dependents; and
            (B) the costs associated with the implementation of 
        the plans.
    (2) The Secretary of Defense shall prepare the report in 
consultation with the Secretaries of the military departments.
    (b) Elements.--The report under subsection (a) shall 
include the following:
            (1) The plans and programs of each of the military 
        departments to improve housing on military 
        installations for unaccompanied members of the Armed 
        Forces, including an assessment of the requirement, a 
        schedule to implement such plans and programs, and an 
        explanation of the standards used to determine the 
        adequacy, suitability, and availability of housing 
        outside of military installations.
            (2) A justification for the initiative to build 
        single occupancy rooms with a shared bath (commonly 
        known as the ``1 Plus 1 Initiative''), including--
                    (A) a description of the manner in which 
                the initiative is designed to enhance the 
                quality of life for enlisted members and the 
                retention of such members in adequate numbers; 
                and
                    (B) an assessment of the analysis and data 
                used in the justification to implement the 
                initiative.
            (3) The cost for each military department of 
        implementing the initiative, including the amount of 
        funds, by fiscal year, authorized and appropriated for 
        military construction and real property maintenance 
        obligated or expended on the improvement of military 
        housing for unaccompanied members beginning on October 
        1, 1996, and the amount of funds required to be 
        expended to ensure the suitability of such housing for 
        unaccompanied members.
            (4) An explanation of the difference in cost 
        between--
                    (A) upgrading existing military housing to 
                the standard proposed in the initiative; and
                    (B) rehabilitating such housing within 
                existing standards.
            (5) An assessment of the viability and utility of 
        the authorities provided by subchapter IV of chapter 
        169 of title 10, United States Code, to contribute to 
        the improvement of the condition, suitability, and 
        availability of housing for unaccompanied members, 
        especially members in junior grades.
            (6) The views of the Chief of Staff of the Army, 
        the Chief of Naval Operations, the Chief of Staff of 
        the Air Force, the Commandant of the Marine Corps, the 
        Commandant of the Coast Guard, and each of the senior 
        enlisted members of the Armed Forces regarding the 
        initiative referred to in paragraph (2) and regarding 
        any alternatives to the initiative having the potential 
        of enhancing the quality of life for unaccompanied 
        members, improving the readiness of the Armed Forces, 
        and improving the retention of enlisted members in 
        adequate numbers.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. EXCEPTIONS TO REAL PROPERTY TRANSACTION REPORTING 
                    REQUIREMENTS FOR WAR AND CERTAIN EMERGENCY AND 
                    OTHER OPERATIONS.

    (a) Exceptions.--Section 2662 of title 10, United States 
Code, is amended by adding at the end the following new 
subsection:
    ``(g) Exceptions for Transactions for War and Certain 
Emergency and Other Operations.--(1) The reporting requirement 
set forth in subsection (a) shall not apply with respect to a 
real property transaction otherwise covered by that subsection, 
and the reporting requirement set forth in subsection (e) shall 
not apply with respect to a real property transaction otherwise 
covered by that subsection, if the Secretary concerned 
determines that the transaction is made as a result of any of 
the following:
            ``(A) A declaration of war.
            ``(B) A declaration of a national emergency by the 
        President pursuant to the National Emergencies Act (50 
        U.S.C. 1601 et seq.).
            ``(C) A declaration of an emergency or major 
        disaster pursuant to the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
        seq.).
            ``(D) The use of the militia or the armed forces 
        after a proclamation to disperse under section 334 of 
        this title.
            ``(E) A contingency operation.
    ``(2) The reporting requirement set forth in subsection (a) 
shall not apply with respect to a real property transaction 
otherwise covered by that subsection if the Secretary concerned 
determines that--
            ``(A) an event listed in paragraph (1) is imminent; 
        and
            ``(B) the transaction is necessary for purposes of 
        preparation for such event.
    ``(3) Not later than 30 days after entering into a real 
property transaction covered by paragraph (1) or (2), the 
Secretary concerned shall submit to the committees named in 
subsection (a) a report on the transaction. The report shall 
set forth any facts or information which would otherwise have 
been submitted in a report on the transaction under subsection 
(a) or (e), as the case may be, but for the operation of 
paragraph (1) or (2).''.
    (b) Stylistic Amendments.--That section is further 
amended--
            (1) in subsection (a), by inserting ``General 
        Notice and Wait Requirements.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Annual 
        Reports on Certain Minor Transactions.--'' after 
        ``(b)'';
            (3) in subsection (c), by inserting ``Geographic 
        Scope; Excepted Projects.--'' after ``(c)'';
            (4) in subsection (d), by inserting ``Statements of 
        Compliance in Transaction Instruments.--'' after 
        ``(d)'';
            (5) in subsection (e), by inserting ``Notice and 
        Wait Regarding Leases of Space for DoD by GSA.--'' 
        after ``(e)''; and
            (6) in subsection (f), by inserting ``Reports on 
        Transactions Involving Intelligence Components.--'' 
        after ``(f)''.

SEC. 2812. RESTORATION OF DEPARTMENT OF DEFENSE LANDS USED BY ANOTHER 
                    FEDERAL AGENCY.

    (a) Restoration as Term of Agreement.--Section 2691 of 
title 10, United States Code, is amended by adding at the end 
the following new subsection:
    ``(c)(1) As a condition of any lease, permit, license, or 
other grant of access entered into by the Secretary of a 
military department with another Federal agency authorizing the 
agency to use lands under the control of the Secretary, the 
Secretary may require the agency to agree to remove any 
improvements and to take any other action necessary in the 
judgment of the Secretary to restore the land used by the 
agency to its condition before its use by the agency.
    ``(2) In lieu of performing any removal or restoration work 
under paragraph (1), a Federal agency may elect, with the 
consent of the Secretary, to reimburse the Secretary for the 
costs incurred by the military department in performing such 
removal or restoration work.''.
    (b) Clerical Amendments.--(1) The heading of such section 
is amended to read as follows:

``Sec. 2691. Restoration of land used by permit or lease''.

    (2) The table of sections at the beginning of chapter 159 
of title 10, United States Code, is amended by striking the 
item relating to section 2691 and inserting in lieu thereof the 
following new item:

``2691. Restoration of land used by permit or lease.''.

SEC. 2813. OUTDOOR RECREATION DEVELOPMENT ON MILITARY INSTALLATIONS FOR 
                    DISABLED VETERANS, MILITARY DEPENDENTS WITH 
                    DISABILITIES, AND OTHER PERSONS WITH DISABILITIES.

    (a) Access Enhancement.--Section 103 of the Sikes Act (16 
U.S.C. 670c) is amended by adding at the end the following new 
subsections:
    ``(b) Access for Disabled Veterans, Military Dependents 
WithDisabilities, and Other Persons With Disabilities.--(1) In 
developing facilities and conducting programs for public outdoor 
recreation at military installations, consistent with the primary 
military mission of the installations, the Secretary of Defense shall 
ensure, to the extent reasonably practicable, that outdoor recreation 
opportunities (including fishing, hunting, trapping, wildlife viewing, 
boating, and camping) made available to the public also provide access 
for persons described in paragraph (2) when topographic, vegetative, 
and water resources allow access for such persons without substantial 
modification to the natural environment.
    ``(2) Persons referred to in paragraph (1) are the 
following:
            ``(A) Disabled veterans.
            ``(B) Military dependents with disabilities.
            ``(C) Other persons with disabilities, when access 
        to a military installation for such persons and other 
        civilians is not otherwise restricted.
    ``(3) The Secretary of Defense shall carry out this 
subsection in consultation with the Secretary of Veterans 
Affairs, national service, military, and veterans 
organizations, and sporting organizations in the private sector 
that participate in outdoor recreation projects for persons 
described in paragraph (2).
    ``(c) Acceptance of Donations.--In connection with the 
facilities and programs for public outdoor recreation at 
military installations, in particular the requirement under 
subsection (b) to provide access for persons described in 
paragraph (2) of such subsection, the Secretary of Defense may 
accept--
            ``(1) the voluntary services of individuals and 
        organizations; and
            ``(2) donations of property, whether real or 
        personal.
    ``(d) Treatment of Volunteers.--A volunteer under 
subsection (c) shall not be considered to be a Federal employee 
and shall not be subject to the provisions of law relating to 
Federal employment, including those relating to hours of work, 
rates of compensation, leave, unemployment compensation, and 
Federal employee benefits, except that--
            ``(1) for the purposes of the tort claims 
        provisions of chapter 171 of title 28, United States 
        Code, the volunteer shall be considered to be a Federal 
        employee; and
            ``(2) for the purposes of subchapter I of chapter 
        81 of title 5, United States Code, relating to 
        compensation to Federal employees for work injuries, 
        the volunteer shall be considered to be an employee, as 
        defined in section 8101(1)(B) of title 5, United States 
        Code, and the provisions of such subchapter shall 
        apply.''.
    (b) Conforming Amendment.--Such section is further amended 
by striking out ``Sec. 103.'' and inserting in lieu thereof the 
following:

``SEC. 103. PROGRAM FOR PUBLIC OUTDOOR RECREATION.

    ``(a) Program Authorized.--''.

SEC. 2814. REPORT ON LEASING AND OTHER ALTERNATIVE USES OF NON-EXCESS 
                    MILITARY PROPERTY.

    (a) Report Required.--Not later than March 15, 1999, the 
Secretary of Defense shall submit to the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report regarding the 
authority of the military departments and Defense Agencies to 
lease to the private sector non-excess real and personal 
property. The Secretary shall prepare the report in 
consultation with the Secretaries of the military departments 
and the Director of the Office of Management and Budget.
    (b) Required Elements of Report.--The report shall set 
forth the following:
            (1) The number and purpose of all leases entered 
        into under sections 2667 and 2667a of title 10, United 
        States Code, other than leases under section 2667(f) of 
        that title, during the five-year period ending on the 
        date of the enactment of this Act.
            (2) The types and amounts of payments received 
        under the leases specified in paragraph (1) and the 
        costs, if any, foregone as a result of the leases.
            (3) An assessment of the positive and negative 
        aspects of leasing real property and surplus capacity 
        at military installations to the private sector, 
        including the potential effect of the use of the leases 
        on force protection and the military functions of the 
        installations.
            (4) An assessment of the current efforts of the 
        Department of Defense to identify for the private 
        sector any surplus capacity at military installations 
        that could be leased or otherwise used by the private 
        sector.
            (5) An assessment of the proposal of the Secretary 
        of the Air Force to reduce infrastructure costs at 
        Brooks Air Force Base, Texas, using the authority 
        provided in section 2667 of title 10, United States 
        Code, and the proposal of the Secretary of the Navy 
        regarding the potential for development of Ford Island 
        as part of Naval Complex, Pearl Harbor, Hawaii.
            (6) An assessment (including an economic analysis) 
        of the ability of the military departments and Defense 
        Agencies to reduce the quantity of real property leased 
        by them through the relocation of activities located in 
        such leased space to property of a military 
        installation, or another Federal agency, that is 
        unutilized or underutilized, while also lowering 
        operational and maintenance costs and minimizing the 
        need for new construction.
    (c) Additional Elements of Report.--In the event that the 
Secretary of Defense considers the authority under section 2667 
or 2667a of title 10, United States Code, to be insufficient, 
the Secretary shall also include in the report--
            (1) a proposal for authority to conduct a pilot 
        project based on the assessment made under subsection 
        (b)(5) or for such general legislative authority as the 
        Secretary considers appropriate to enhance the ability 
        of the Department of Defense to utilize surplus 
        capacity at military installations in order to improve 
        military readiness, achieve cost savings with respect 
        to such installations, or decrease the cost of 
        operating such installations;
            (2) an estimate of the income that could accrue to 
        the Department of Defense as a result of the 
        implementation of enhanced authority proposed under 
        paragraph (1) during the five-year period beginning on 
        the date of such implementation; and
            (3) an assessment of the extent to which any such 
        income should be reserved for the use of the 
        installations exercising such authority and of the 
        extent to which installations would be likely to enter 
        into such leases if they cannot retain such income.

SEC. 2815. REPORT ON IMPLEMENTATION OF UTILITY SYSTEM CONVEYANCE 
                    AUTHORITY.

    Not later than March 1, 1999, the Secretary of Defense, in 
consultation with the Secretaries of the military departments, 
shall submit to Congress a report containing--
            (1) the criteria to be used by the Secretary of a 
        military department to select utility systems, and 
        related improvements, easements, and rights-of-way, 
        under the jurisdiction of the Secretary, for conveyance 
        to a municipal, private, regional, district, or 
        cooperative utility company or other entity under the 
        authority of section 2688 of title 10, United States 
        Code;
            (2) an assessment of the need to include, as part 
        of the conveyance authority under such section, 
        authority for the Secretary to convey real property 
        associated with a utility system conveyed under such 
        section; and
            (3) a description of the manner in which the 
        Secretary will ensure that any conveyance under such 
        section does not adversely affect the national security 
        of the United States.

            Subtitle C--Defense Base Closure and Realignment

SEC. 2821. APPLICABILITY OF PROPERTY DISPOSAL LAWS TO LEASES AT 
                    INSTALLATIONS TO BE CLOSED OR REALIGNED UNDER BASE 
                    CLOSURE LAWS.

    Section 2667(f)(1) of title 10, United States Code, is 
amended by inserting after ``subsection (a)(3)'' the following: 
``or the Federal Property and Administrative Services Act of 
1949 (to the extent such Act is inconsistent with this 
subsection)''.

SEC. 2822. ELIMINATION OF WAIVER AUTHORITY REGARDING PROHIBITION 
                    AGAINST CERTAIN CONVEYANCES OF PROPERTY AT NAVAL 
                    STATION, LONG BEACH, CALIFORNIA.

    Section 2826 of the Military Construction Authorization Act 
for Fiscal Year 1998 (division B of Public Law 105-85; 111 
Stat. 2001) is amended by striking out subsection (e).

SEC. 2823. PAYMENT OF STIPULATED PENALTIES ASSESSED UNDER CERCLA IN 
                    CONNECTION WITH MCCLELLAN AIR FORCE BASE, 
                    CALIFORNIA.

    (a) Source of Payment.--Notwithstanding subsection (b) of 
section 2906 of the Defense Base Closure and Realignment Act of 
1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
2687 note), the Secretary of Defense may use amounts in the 
Department of Defense Base Closure Account 1990 established 
under subsection (a) of such section to pay stipulated 
penalties assessed under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.) against McClellan Air Force Base, California.
    (b) Amount of Payment.--The amount expended under the 
authority of subsection (a) may not exceed $15,000.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

SEC. 2831. MODIFICATION OF LAND CONVEYANCE, ARMY RESERVE CENTER, 
                    YOUNGSTOWN, OHIO.

    Section 2861(b) of the Military Construction Authorization 
Act for Fiscal Year 1996 (division B of Public Law 104-106; 110 
Stat. 573) is amended by striking out ``retain'' and all that 
follows through the period at the end and inserting in lieu 
thereof ``develop the parcel for educational purposes.''.

SEC. 2832. RELEASE OF INTERESTS IN REAL PROPERTY, FORMER KENNEBEC 
                    ARSENAL, AUGUSTA, MAINE.

    (a) Authority To Release.--The Secretary of the Army may 
release, without consideration, all right, title, and interest 
of the United States in and to the real property described in 
subsection (b).
    (b) Covered Property.--The real property referred to in 
subsection (a) is the parcel of real property consisting of 
approximately 40 acres located in Augusta, Maine, and formerly 
known as the Kennebec Arsenal, which parcel was conveyed by the 
Secretary of War to the State of Maine under the provisions of 
the Act entitled ``An Act Authorizing the Secretary of War to 
convey the Kennebec Arsenal property, situated in Augusta, 
Maine, to the State of Maine for public purposes'', approved 
March 3, 1905 (33 Stat. 1270), as amended by section 771 of the 
Department of Defense Appropriations Act, 1981 (Public Law 96-
527; 94 Stat. 3093).
    (c) Instrument of Release.--The Secretary of the Army shall 
execute and file in the appropriate office a deed of release, 
amended deed, or other appropriate instrument effectuating the 
release of interests authorized by this section.

SEC. 2833. RELEASE, WAIVER, OR CONVEYANCE OF INTERESTS IN REAL 
                    PROPERTY, FORMER REDSTONE ARMY ARSENAL PROPERTY, 
                    ALABAMA.

    (a) Release Authorized.--The Secretary of the Army may 
release, without consideration and to such extent as the 
Secretary considers appropriate to protect the interests of 
theUnited States, the reversionary interests of the United States in 
the real property described in subsection (b), which were retained by 
the United States when the property was conveyed to the Alabama Space 
Science Exhibit Commission, an agency of the State of Alabama. The 
release shall be executed in the manner provided in this section.
    (b) Description of Property.--The real property referred to 
in this section is the real property conveyed to the Alabama 
Space Science Exhibit Commission under the authority of the 
following provisions of law:
            (1) The first section of Public Law 90-276 (82 
        Stat. 68).
            (2) Section 813 of the Military Construction 
        Authorization Act, 1980 (Public Law 96-125; 93 Stat. 
        952).
            (3) Section 813 of the Military Construction 
        Authorization Act, 1984 (Public Law 98-115; 97 Stat. 
        790).
    (c) Release, Waiver, or Conveyance of Other Rights, Terms, 
and Conditions.--As part of the release under subsection (a), 
the Secretary may release, waive, or convey, without 
consideration and to such extent as the Secretary considers 
appropriate to protect the interests of the United States--
            (1) any and all other rights retained by the United 
        States in and to the real property described in 
        subsection (b) when the property was conveyed to the 
        Alabama Space Science Exhibit Commission; and
            (2) any and all terms and conditions and 
        restrictions on the use of the real property imposed as 
        part of the conveyances described in subsection (b).
    (d) Conditions on Release, Waiver, or Conveyance.--(1) The 
Secretary may execute the release under subsection (a) or a 
release, waiver, or conveyance under subsection (c) only 
after--
            (A) the Secretary approves of the master plan 
        prepared by the Alabama Space Science Exhibit 
        Commission, as such plan may exist or be revised from 
        time to time, for development of the real property 
        described in subsection (b); and
            (B) the installation commander at Redstone Arsenal, 
        Alabama, certifies to the Secretary that the release, 
        waiver, or conveyance is consistent with the master 
        plan.
    (2) A new facility or structure may not be constructed on 
the real property described in subsection (b) unless the 
facility or structure is included in the master plan, which has 
been approved and certified as provided in paragraph (1).
    (e) Instrument of Release, Waiver, or Conveyance.--In 
making a release, waiver, or conveyance authorized by this 
section, the Secretary shall execute and file in the 
appropriate office or offices a deed of release, amended deed, 
or other appropriate instrument effectuating the release, 
waiver, or conveyance.
    (f) Effect of Release.--Except as provided in subsection 
(g), upon release of any reversionary interest under this 
section, the right, title and interest of the Alabama Space 
Science Exhibit Commission in and to the real property 
described in subsection (b) shall, to the extent of the 
release, no longer be subject to the conditions prescribed in 
the provisions of law specified in such subsection. Except as 
provided in subsection (g), the Alabama Space Science Exhibit 
Commission may use the real property for any such purpose or 
purposes as it considers appropriate consistent with the master 
plan approved and certified as provided in subsection (d), and 
the real property may be conveyed by the Alabama Space Science 
Exhibit Commission without restriction and unencumbered by any 
claims or rights of the United States with respect to the 
property, subject to such rights, terms, and conditions of the 
United States previously imposed on the real property and not 
released, waived, or conveyed by the Secretary under subsection 
(c).
    (g) Exceptions.--(1) Conveyance of the drainage and utility 
easement reserved to the United States pursuant to section 
813(b)(3) of the Military Construction Authorization Act,1984 
(Public Law 98-115; 97 Stat. 791), is not authorized under this 
section.
    (2) In no event may title to any portion of the real 
property described in subsection (b) be conveyed by the Alabama 
Space Science Exhibit Commission or any future deed holder of 
the real property to any person other than an agency, 
instrumentality, political subdivision, municipal corporation, 
or public corporation of the State of Alabama. Any deed 
conveying title to any portion of the real property described 
in subsection (b) shall restrict the further use of the 
conveyed property to purposes and uses consistent with the 
master plan approved and certified as provided in subsection 
(d), unless otherwise approved by the Secretary.
    (3) Paragraph (2) does not prevent the Alabama Space 
Science Exhibit Commission or any future deed holder of the 
real property described in subsection (b) from giving a 
mortgage with respect to any portion of the real property to 
any person, except that any such mortgage shall provide that 
the further use of the real property shall be restricted to 
purposes and uses consistent with the master plan approved and 
certified as provided in subsection (d), unless otherwise 
approved by the Secretary.

SEC. 2834. CONVEYANCE OF UTILITY SYSTEMS, LONE STAR ARMY AMMUNITION 
                    PLANT, TEXAS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey all right, title, and interest of the United States in 
and to any utility system, or part thereof, including any real 
property associated with such system, at the Lone Star Army 
Ammunition Plant, Texas, to the redevelopment authority for the 
Red River Army Depot, Texas, in conjunction with the disposal 
of property at the Depot under the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510; 10 U.S.C. 2687 note).
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the redevelopment authority shall pay to 
the United States an amount equal to the fair market value of 
the conveyed utility system and any real property conveyed as 
part of the conveyance, as determined by an independent 
appraisal satisfactory to the Secretary and paid for by the 
redevelopment authority.
    (c) Rule of Construction.--Nothing in subsection (a) may be 
construed to prohibit or otherwise limit the Secretary from 
conveying any utility system referred to in that subsection 
under any other provision of law, including section 2688 of 
title 10, United States Code.
    (d) Utility System Defined.--In this section, the term 
``utility system'' has the meaning given that term in section 
2688(g) of title 10, United States Code.

SEC. 2835. CONVEYANCE OF WATER RIGHTS AND RELATED INTERESTS, ROCKY 
                    MOUNTAIN ARSENAL, COLORADO, FOR PURPOSES OF 
                    ACQUISITION OF PERPETUAL CONTRACTS FOR WATER.

    (a) Conveyance Authorized.--Subject to subsection (c), the 
Secretary of the Army may convey any and all interest of the 
United States in the water rights and related rights at Rocky 
Mountain Arsenal, Colorado, described in subsection (b) to the 
City and County of Denver, Colorado, acting through its Board 
of Water Commissioners.
    (b) Covered Water Rights and Related Rights.--The water 
rights and related rights authorized to be conveyed under 
subsection (a) are the following:
            (1) Any and all interest in 300 acre rights to 
        water from Antero Reservoir as set forth in Antero 
        Reservoir Contract No. 382 dated August 22, 1923, for 
        160 acre rights; Antero Reservoir Contract No. 383 
        dated August 22, 1923, for 50 acre rights; Antero 
        Reservoir Contract No. 384 dated October 30, 1923, for 
        40 acre rights; Antero Reservoir Contract No. 387 dated 
        March 3, 1923, for 50 acre rights; and Supplemental 
        Contract No. 382-383-384-387 dated July 24, 1932, 
        defining the amount of water to be delivered under the 
        300 acre rights in the prior contracts as 220 acre 
        feet.
            (2) Any and all interest in the 305 acre rights of 
        water from the High Line Canal, diverted at its 
        headgateon the South Platte River and delivered to the 
Fitzsimons Army Medical Center and currently subject to cost 
assessments pursuant to Denver Water Department contract #001990.
            (3) Any and all interest in the 2,603.55 acre 
        rights of water from the High Line Canal, diverted at 
        its headgate on the South Platte River and delivered to 
        the Rocky Mountain Arsenal in Adams County, Colorado, 
        and currently subject to cost assessments by the Denver 
        Water Department, including 680 acre rights transferred 
        from Lowry Field to the Rocky Mountain Arsenal by the 
        October 5, 1943, agreement between the City and County 
        of Denver, acting by and through its Board of Water 
        Commissioners, and the United States of America.
            (4) Any and all interest in 4,058.34 acre rights of 
        water not currently subject to cost assessments by the 
        Denver Water Department.
            (5) A new easement for the placement of water lines 
        approximately 50 feet wide inside the Southern boundary 
        of Rocky Mountain Arsenal and across the Reserve Center 
        along the northern side of 56th Avenue.
            (6) A permanent easement for utilities where Denver 
        has an existing temporary easement near the southern 
        and western boundaries of Rocky Mountain Arsenal.
    (c) Consideration.--(1) The Secretary of the Army may make 
the conveyance under subsection (a) only if the Board of Water 
Commissioners, on behalf of the City and County of Denver, 
Colorado--
            (A) enters into a permanent contract with the 
        Secretary of the Army for purposes of ensuring the 
        delivery of nonpotable water and potable water to Rocky 
        Mountain Arsenal; and
            (B) enters into a permanent contract with the 
        Secretary of the Interior for purposes of ensuring the 
        delivery of nonpotable water and potable water to Rocky 
        Mountain Arsenal National Wildlife Refuge, Colorado.
    (2) Section 2809(e) of title 10, United States Code, shall 
not operate to limit the term of the contract entered into 
under paragraph (1)(A).
    (d) Requirement Relating to Conveyance.--The Secretary of 
the Army may not make the conveyance authorized by subsection 
(a) until the execution of the proposed agreement provided for 
under subsection (c) between the City and County of Denver, 
Colorado, acting through its Board of Water Commissioners, the 
South Adams County Water and Sanitation District, the United 
States Fish and Wildlife Service, and the Army.
    (e) Additional Terms and Conditions.--The Secretary of the 
Army may require such additional terms and conditions in 
connection with the conveyance under subsection (a) as the 
Secretary considers appropriate to protect the interests of the 
United States.

SEC. 2836. LAND CONVEYANCE, ARMY RESERVE CENTER, MASSENA, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Village of Massena, New 
York (in this section referred to as the ``Village''), all 
right, title, and interest of the United States in and to a 
parcel of real property, including improvements thereon, 
consisting of the Army Reserve Center in Massena, New York, for 
the purpose of permitting the Village to develop the parcel for 
public benefit, including the development of municipal office 
space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Village.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, includingany improvements thereon, shall revert to 
the United States, and the United States shall have the right of 
immediate entry onto the property. Any determination of the Secretary 
under this subsection shall be made on the record after an opportunity 
for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2837. LAND CONVEYANCE, ARMY RESERVE CENTER, OGDENSBURG, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the City of Ogdensburg, New 
York (in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
the Army Reserve Center in Ogdensburg, New York, for the 
purpose of permitting the City to develop the parcel for public 
benefit, including the development of municipal office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2838. LAND CONVEYANCE, ARMY RESERVE CENTER, JAMESTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Greeneview Local School 
District of Jamestown, Ohio, all right, title, and interest of 
the United States in and to a parcel of real property, 
including improvements thereon, that is located at 5693 
Plymouth Road in Jamestown, Ohio, and contains an Army Reserve 
Center, for the purpose of permitting the Greeneview Local 
School District to retain and use the conveyed property for 
educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Greeneview Local School District.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2839. LAND CONVEYANCE, ARMY RESERVE CENTER, PEORIA, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Peoria School District 
#150 of Peoria, Illinois (in this section referred to as the 
``School District''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of the Army Reserve Center 
located at 1429 Northmoor Road in Peoria, Illinois, for the 
purpose of permitting the School District to develop the parcel 
for educational and transportation purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
School District.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2840. LAND CONVEYANCE, ARMY RESERVE CENTER, BRIDGTON, MAINE.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Town of Bridgton, Maine 
(in this section referred to as the ``Town''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately 3.65 acres and containing the Army Reserve Center 
in Bridgton, Maine, for the purpose of permitting the Town to 
develop the parcel for public benefit, including the 
development of municipal office space.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Town.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2841. LAND CONVEYANCE, FORT SHERIDAN, ILLINOIS.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the City of Lake Forest, Illinois (in this section 
referred to as the ``City''), all right, title, and interest, 
of the United States in and to all or some portion of the 
parcel of real property, including improvements thereon, at the 
former Fort Sheridan, Illinois, consisting of approximately 14 
acres and known as the northern Army Reserve enclave area.
    (b) Consideration.--As consideration for the conveyance 
under subsection (a), the City shall pay to the United Statesan 
amount equal to not less than the fair market value of the real 
property to be conveyed, as determined by the Secretary.
    (c) Use of Proceeds.--In such amounts as are provided in 
advance in appropriations Acts, the Secretary may use the funds 
paid by the City under subsection (b) to provide for the 
construction of replacement facilities and for the relocation 
costs for Reserve units and activities affected by the 
conveyance.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (e) Notice and Wait.--The Secretary may not make the 
conveyance authorized by subsection (a) until 21 days after the 
date on which the Secretary submits to the congressional 
defense committees a certification that the relocation of the 
Reserve units and activities affected by the conveyance is 
consistent with an approved master plan for the consolidation 
of Reserve activities in, or in the vicinity of, Chicago, 
Illinois.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2842. LAND CONVEYANCE, SKANEATELES, NEW YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Town of Skaneateles, New 
York (in this section referred to as the ``Town''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately 147.10 acres in Skaneateles, New York, and 
commonly known as the ``Federal Farm'', for the purpose of 
permitting the Town to develop the parcel for public benefit, 
including for recreational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Town.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interest of the United States.

SEC. 2843. LAND CONVEYANCE, INDIANA ARMY AMMUNITION PLANT, CHARLESTOWN, 
                    INDIANA.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to the Indiana Army Ammunition Plant Reuse Authority (in 
this section referred to as the ``Reuse Authority'') all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately 4660 acres located at the Indiana Army Ammunition 
Plant, Charlestown, Indiana, for the purpose of developing the 
parcel as an industrial park to replace all or part of the 
economic activity lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), 
as consideration for the conveyance under subsection (a), the 
Reuse Authority shall pay to the Secretary an amount equal to 
the fair market value of the conveyed property as of the time 
of the conveyance, determined by the Secretary in accordance 
with Federal appraisal standards and procedures.
    (c) Time for Payment.--The consideration required under 
subsection (b) shall be paid by the Reuse Authority at the end 
of the 10-year period beginning on the date on which the 
conveyance under subsection (a) is completed.
    (d) Effect of Reconveyance or Lease.--(1) If, during the 
10-year period specified in subsection (c), the Reuse Authority 
reconveys all or any part of the property conveyed under 
subsection (a), the Reuse Authority shall pay to the United 
States an amount equal to the fair market value of the 
reconveyed property as of the time of the reconveyance, 
excluding the value of any improvements made to the property by 
the Reuse Authority, determined by the Secretary in accordance 
with Federal appraisal standards and procedures.
    (2) The Secretary may treat a lease of the property within 
such 10-year period as a reconveyance if the Secretary 
determines that the lease is being used to avoid application of 
paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any 
proceeds received under subsection (b) or (d) in the special 
account established pursuant to section 204(h)(2) of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 485(h)(2)).
    (f) Administrative Expenses.--In connection with the 
conveyance under subsection (a), the Secretary may accept 
amounts provided by the Reuse Authority or other persons to 
cover administrative expenses incurred by the Secretary in 
making the conveyance. Amounts received under this subsection 
for administrative expenses shall be credited to the 
appropriation, fund, or account from which the expenses were 
paid. Amounts so credited shall be merged with funds in such 
appropriation, fund, or account and shall be available for the 
same purposes and subject to the same limitations as the funds 
with which merged.
    (g) Description of Property.--The property to be conveyed 
under subsection (a) includes the administrative area of the 
Indiana Army Ammunition Plant as well as open space in the 
southern end of the plant. The exact acreage and legal 
description of the property to be conveyed shall be determined 
by a survey satisfactory to the Secretary. The cost of the 
survey shall be borne by the Reuse Authority.
    (h) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.
    (i) Additional Conveyance for Recreational Purposes.--
Section 2858(a) of the Military Construction Authorization Act 
for Fiscal Year 1996 (division B of Public Law 104-106; 110 
Stat. 571), as amended by section 2838 of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B 
of Public Law 105-85; 111 Stat. 2006), is further amended by 
adding at the end the following new paragraph:
    ``(3) The Secretary may also convey to the State, without 
consideration, another parcel of real property at the Indiana 
Army Ammunition Plant consisting of approximately 2,000 acres 
of additional riverfront property in order to connect the 
parcel conveyed under paragraph (2) with the parcels of 
Charlestown State Park conveyed to the State under paragraph 
(1) and title II of the Defense Authorization Amendments and 
Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
2687 note).''.

SEC. 2844. LAND CONVEYANCE, VOLUNTEER ARMY AMMUNITION PLANT, 
                    CHATTANOOGA, TENNESSEE.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey to Hamilton County, Tennessee (in this section referred 
to as the ``County''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 1033 acres 
located at the Volunteer Army Ammunition Plant, Chattanooga, 
Tennessee, for the purpose of developing the parcel as an 
industrial park to replace all or part of the economic activity 
lost at the inactivated plant.
    (b) Consideration.--Except as provided in subsection (d), 
as consideration for the conveyance under subsection (a), the 
County shall pay to the Secretary an amount equal to the fair 
market value of the conveyed property as of the time of the 
conveyance, determined by the Secretary in accordance with 
Federal appraisal standards and procedures.
    (c) Time for Payment.--The consideration required under 
subsection (b) shall be paid by the County at the end of the 
10-year period beginning on the date on which the conveyance 
under subsection (a) is completed.
    (d) Effect of Reconveyance or Lease.--(1) If the County 
reconveys all or any part of the conveyed property during the 
10-year period specified in subsection (c), the County shall 
pay to the United States an amount equal to the fair market 
value of the reconveyed property as of the time of the 
reconveyance, excluding the value of any improvements made to 
the property by the County, determined by the Secretary in 
accordance with Federal appraisal standards and procedures.
    (2) The Secretary may treat a lease of the property within 
such 10-year period as a reconveyance if the Secretary 
determines that the lease is being used to avoid application of 
paragraph (1).
    (e) Deposit of Proceeds.--The Secretary shall deposit any 
proceeds received under subsection (b) or (d) in the special 
account established pursuant to section 204(h)(2) of the 
Federal Property and Administrative Services Act of 1949 (40 
U.S.C. 485(h)(2)).
    (f) Effect on Existing Leases.--The conveyance of the real 
property under subsection (a) shall not affect the terms or 
length of any contract entered into by the Secretary before the 
date of the enactment of this Act with regard to the property 
to be conveyed.
    (g) Administrative Expenses.--In connection with the 
conveyance under subsection (a), the Secretary may accept 
amounts provided by the County or other persons to cover 
administrative expenses incurred by the Secretary in making the 
conveyance. Amounts received under this subsection for 
administrative expenses shall be credited to the appropriation, 
fund, or account from which the expenses were paid. Amounts so 
credited shall be merged with funds in such appropriation, 
fund, or account and shall be available for the same purposes 
and subject to the same limitations as the funds with which 
merged.
    (h) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the County.
    (i) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2845. LAND CONVEYANCE, STEWART ARMY SUB-POST, NEW WINDSOR, NEW 
                    YORK.

    (a) Conveyance Authorized.--The Secretary of the Army may 
convey, without consideration, to the Town of New Windsor, New 
York (in this section referred to as the ``Town''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, consisting of 
approximately 291 acres at the Stewart Army Sub-Post in New 
Windsor, New York, for the purpose of permitting the Town to 
develop the parcel for economic purposes.
    (b) Exclusion.--The real property to be conveyed under 
subsection (a) does not include any portion of the 
approximately 89.2-acre parcel at Stewart Army Sub-Post that is 
proposed for transfer to the jurisdiction and control of the 
Marine Corps or the approximately 22-acre parcel at Stewart 
Army Sub-Post that is proposed for transfer to the jurisdiction 
and control of the Army Reserve.
    (c) Conditions of Conveyance.--The conveyance authorized by 
subsection (a) may only be made subject to the following 
conditions:
            (1) The Town must agree to provide connections to 
        the local wastewater and sewage treatment system for 
        allexisting and future improvements to the parcels of 
real property referred to in subsection (b).
            (2) The Town must agree to provide wastewater and 
        sewage treatment service to such parcels at a rate 
        established by the appropriate Federal or State 
        regulatory authority.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
Town.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                       PART II--NAVY CONVEYANCES

SEC. 2851. CONVEYANCE OF EASEMENT, MARINE CORPS BASE, CAMP PENDLETON, 
                    CALIFORNIA.

    (a) Easement Authorized.--The Secretary of the Navy may 
grant an easement, in perpetuity, to the Foothill/Eastern 
Transportation Corridor Agency (in this section referred to as 
the ``Agency'') over a parcel of real property at Marine Corps 
Base, Camp Pendleton, California, consisting of approximately 
340 acres to permit the recipient of the easement to construct, 
operate, and maintain a restricted access highway. The area 
covered by the easement shall include slopes and all necessary 
incidents thereto.
    (b) Consideration.--As consideration for the grant of an 
easement under subsection (a), the Agency shall pay to the 
United States an amount equal to the fair market value of the 
easement, as determined by an independent appraisal 
satisfactory to the Secretary and paid for by the Agency.
    (c) Use of Proceeds.--In such amounts as are provided in 
advance in appropriation Acts, the Secretary shall use the 
funds paid by the Agency under subsection (b) to carry out one 
or more of the following programs at Camp Pendleton:
            (1) Enhancement of access from Red, White, and 
        Green Beaches under Interstate Route 5 and railroad 
        crossings to inland areas.
            (2) Improvement of roads and bridge structures in 
        the range and training area.
            (3) Realignment of Basilone Road.
    (d) Description of Property.--The exact acreage and legal 
description of the easement to be granted under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the Agency.
    (e) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the grant of an easement under subsection (a) as the Secretary 
considers appropriate to protect the interests of the United 
States.

SEC. 2852. LAND EXCHANGE, NAVAL RESERVE READINESS CENTER, PORTLAND, 
                    MAINE.

    (a) Conveyance Authorized.--(1) The Secretary of the Navy 
may convey to the Gulf of Maine Aquarium Development 
Corporation, Portland, Maine (in this section referred to as 
the ``Corporation''), all right, title, and interest of the 
United States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 3.72 acres in 
Portland, Maine, and containing the Naval Reserve Readiness 
Center, Portland, Maine, for the purpose of permitting the 
Corporation to use the parcel for economic development and as 
the site for an aquarium and marine research facility.
    (2) As part of the conveyance under paragraph (1), the 
Secretary shall also convey to the Corporation any interest of 
the United States in the submerged lands adjacent to the real 
property conveyed under that paragraph that is appurtenant to 
the real property conveyed under that paragraph.
    (b) Provision of Replacement Facilities.--As consideration 
for the conveyance authorized by subsection (a), the 
Corporation shall design and construct such facilities as the 
Secretary determines appropriate for the Naval Reserve to 
replace the facilities conveyed under that subsection.
    (c) Location of Replacement Facilities.--(1) To provide a 
location for the replacement facilities required under 
subsection (b), the Corporation shall--
            (A) convey to the United States all right, title, 
        and interest in and to a parcel of real property 
        determined by the Secretary to be an appropriate 
        location for such facilities; or
            (B) design and construct such facilities on such 
        parcel of real property under the jurisdiction of the 
        Secretary as the Secretary shall specify.
    (2) The Secretary shall select the alternative provided 
under paragraph (1) to be used by the Corporation.
    (d) Notice and Wait.--The Secretary may not make the 
conveyance authorized by subsection (a) until 21 days after the 
date on which the Secretary submits to the congressional 
defense committees a report specifying the terms and conditions 
under which the conveyance will occur.
    (e) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a)(1), of any interest to be conveyed under 
subsection (a)(2), and of the real property, if any, to be 
conveyed under subsection (c)(1)(A) shall be determined by 
surveys satisfactory to the Secretary. The cost of the surveys 
shall be borne by the Corporation.
    (f) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2853. LAND CONVEYANCE, NAVAL AND MARINE CORPS RESERVE FACILITY, 
                    YOUNGSTOWN, OHIO.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey, without consideration, to the City of Youngstown, Ohio 
(in this section referred to as the ``City''), all right, 
title, and interest of the United States in and to a parcel of 
real property, including improvements thereon, that is located 
at 315 East Laclede Avenue in Youngstown, Ohio, and is the 
location of a Naval and Marine Corps Reserve facility, for the 
purpose of permitting the City to use the parcel for 
educational purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
City.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2854. LAND CONVEYANCE, NAVAL AIR RESERVE CENTER, MINNEAPOLIS, 
                    MINNESOTA.

    (a) Conveyance Authorized.--The Secretary of the Navy may 
convey to the Minneapolis-St. Paul Metropolitan Airports 
Commission, Minnesota (in this section referred to as the 
``Commission''), all right, title, and interest of the United 
States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 32 acres 
located in Minneapolis, Minnesota, and comprising the Naval Air 
Reserve Center, Minneapolis, Minnesota, for the purpose of 
facilitating the expansion of the Minneapolis-St. Paul 
International Airport.
    (b) Alternative Lease Authority.--In lieu of the conveyance 
authorized by subsection (a), the Secretary may electto lease 
the property referred to in that subsection to the Commission if the 
Secretary determines that a lease of the property would better serve 
the interests of the United States.
    (c) Provision of Replacement Facilities.--As consideration 
for the conveyance under subsection (a), or the lease under 
subsection (b), the Commission shall--
            (1) provide for such facilities as the Secretary 
        considers appropriate for the Naval Reserve to replace 
        the facilities conveyed or leased under this section;
            (2) assume the costs of designing and constructing 
        such replacement facilities, as may be acceptable to 
        the Secretary; and
            (3) assume any costs incurred by the Secretary in 
        relocating the operations of the Naval Air Reserve 
        Center to such replacement facilities.
    (d) Location of Replacement Facilities.--To provide a 
location for the replacement facilities required under 
subsection (c), the Commission may--
            (1) convey to the United States all right, title, 
        and interest in and to a parcel of real property 
        determined by the Secretary to be an appropriate 
        location for such facilities, if the Secretary elects 
        to make the conveyance authorized by subsection (a); or
            (2) lease to the United States a parcel of real 
        property determined by the Secretary to be an 
        appropriate location for such facilities, if the 
        Secretary elects to make the lease authorized by 
        subsection (b).
    (e) Availability of Replacement Facilities.--The Secretary 
may not make the conveyance authorized by subsection (a), or 
enter into the lease authorized by subsection (b), until the 
replacement facilities required by subsection (c) are available 
for the relocation of the operations of the Naval Air Reserve 
Center.
    (f) Agreement Relating to Conveyance.--(1) If the Secretary 
determines to proceed with the conveyance authorized by 
subsection (a), or the lease authorized by subsection (b), the 
Secretary and the Commission shall enter into an agreement 
specifying the terms and conditions under which the conveyance 
or lease will occur.
    (2) The Secretary may not enter into the agreement under 
paragraph (1) until 21 days after the date on which the 
Secretary submits to the congressional defense committees a 
report specifying the terms and conditions under which the 
conveyance or lease will occur.
    (g) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed to the 
Commission under subsection (a), or leased to the Commission 
under subsection (b), and the exact acreage and legal 
description of the real property to be conveyed or leased under 
subsection (d) to the United States, shall be determined by 
surveys satisfactory to the Secretary. The cost of the surveys 
shall be borne by the Commission.
    (h) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a), or the lease under 
subsection (b), as the Secretary considers appropriate to 
protect the interests of the United States.

                    PART III--AIR FORCE CONVEYANCES

SEC. 2861. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE BASE, 
                    FLORIDA.

    Section 809(c) of the Military Construction Authorization 
Act, 1979 (Public Law 95-356; 92 Stat. 587), as amended by 
section 2826 of the Military Construction Authorization Act, 
1989 (division B of Public Law 100-456; 102 Stat. 2123), is 
further amended by striking out ``and a third parcel containing 
forty-two acres'' and inserting in lieu thereof ``, a third 
parcel containing forty-two acres, a fourth parcel containing 
approximately 3.43 acres, and a fifth parcel containing 
approximately 0.56 acres''.

SEC. 2862. MODIFICATION OF LAND CONVEYANCE, FINLEY AIR FORCE STATION, 
                    NORTH DAKOTA.

    Section 2835 of the Military Construction Authorization Act 
for Fiscal Year 1995 (division B of Public Law 103-337; 108 
Stat. 3063) is amended--
            (1) by striking out subsections (a), (b), and (c) 
        and inserting in lieu thereof the following new 
        subsections:
    ``(a) Conveyance Authorized.--The Secretary of the Air 
Force may convey, without consideration, to the City of Finley, 
North Dakota (in this section referred to as the `City'), all 
right, title, and interest of the United States in and to the 
parcels of real property, including improvements thereon, in 
the vicinity of Finley, North Dakota, described in subsection 
(b), for the purpose of permitting the City to use the parcels 
for economic development.
    ``(b) Covered Parcels.--The parcels of real property 
authorized for conveyance under subsection (a) are as follows:
            ``(1) A parcel of approximately 14 acres that 
        served as the support complex of the Finley Air Force 
        Station and Radar Site.
            ``(2) A parcel of approximately 57 acres known as 
        the Finley Air Force Station Complex.
            ``(3) A parcel of approximately 6 acres that 
        includes a well site and wastewater treatment system.
    ``(c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.''; and
            (2) in subsections (d) and (e), by striking out 
        ``subsection (a)(1)'' and inserting in lieu thereof 
        ``subsection (a)''.

SEC. 2863. LAND CONVEYANCE, LAKE CHARLES AIR FORCE STATION, LOUISIANA.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to McNeese State University 
of Louisiana (in this section referred to as the 
``University''), all right, title, and interest of the United 
States in and to a parcel of real property, including 
improvements thereon, consisting of approximately 4.38 acres at 
Lake Charles Air Force Station, Louisiana, for the purpose of 
permitting the University to use the parcel for educational 
purposes and agricultural research.
    (b) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under 
subsection (a) shall be determined by a survey satisfactory to 
the Secretary. The cost of the survey shall be borne by the 
University.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

SEC. 2864. LAND CONVEYANCE, AIR FORCE HOUSING FACILITY, LA JUNTA, 
                    COLORADO.

    (a) Conveyance Authorized.--The Secretary of the Air Force 
may convey, without consideration, to the City of La Junta, 
Colorado (in this section referred to as the ``City''), all 
right, title, and interest of the United States in and to the 
unused Air Force housing facility, consisting of approximately 
28 acres and improvements thereon, located within the southern-
most boundary of the City, for the purpose of permitting 
theCity to develop the conveyed property for housing and educational 
purposes.
    (b) Description of Property.--The exact acreage and legal 
description of the property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary. 
The cost of the survey shall be borne by the City.
    (c) Reversionary Interest.--During the five-year period 
beginning on the date the Secretary makes the conveyance 
authorized under subsection (a), if the Secretary determines 
that the conveyed real property is not being used in accordance 
with the purpose of the conveyance specified in such 
subsection, all right, title, and interest in and to the 
property, including any improvements thereon, shall revert to 
the United States, and the United States shall have the right 
of immediate entry onto the property. Any determination of the 
Secretary under this subsection shall be made on the record 
after an opportunity for a hearing.
    (d) Additional Terms and Conditions.--The Secretary may 
require such additional terms and conditions in connection with 
the conveyance under subsection (a) as the Secretary considers 
appropriate to protect the interests of the United States.

                       Subtitle E--Other Matters

SEC. 2871. MODIFICATION OF AUTHORITY RELATING TO DEPARTMENT OF DEFENSE 
                    LABORATORY REVITALIZATION DEMONSTRATION PROGRAM.

    (a) Program Requirements.--Subsection (c) of section 2892 
of the Military Construction Authorization Act for Fiscal Year 
1996 (division B of Public Law 104-106; 110 Stat. 590; 10 
U.S.C. 2805 note) is amended to read as follows:
    ``(c) Program Requirements.--(1) Not later than 30 days 
before commencing the program, the Secretary shall establish 
procedures for the review and approval of requests from 
Department of Defense laboratories for construction under the 
program.
    ``(2) The laboratories at which construction may be carried 
out under the program may not include Department of Defense 
laboratories that are contractor-owned.''.
    (b) Report.--Subsection (d) of that section is amended to 
read as follows:
    ``(d) Report.--Not later than February 1, 2003, the 
Secretary shall submit to Congress a report on the program. The 
report shall include the Secretary's conclusions and 
recommendation regarding the desirability of making the 
authority set forth under subsection (b) permanent.''.
    (c) Extension.--Subsection (g) of that section is amended 
by striking out ``September 30, 1998'' and inserting in lieu 
thereof ``September 30, 2003''.

SEC. 2872. REPEAL OF PROHIBITION ON JOINT USE OF GRAY ARMY AIRFIELD, 
                    FORT HOOD, TEXAS, WITH CIVIL AVIATION.

    Section 319 of the National Defense Authorization Act for 
Fiscal Year 1987 (Public Law 99-661; 100 Stat. 3855) is 
repealed.

SEC. 2873. MODIFICATION OF DEMONSTRATION PROJECT FOR PURCHASE OF FIRE, 
                    SECURITY, POLICE, PUBLIC WORKS, AND UTILITY 
                    SERVICES FROM LOCAL GOVERNMENT AGENCIES.

    Section 816 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2820), as 
amended by section 352 of the National Defense Authorization 
Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2491), 
is further amended--
            (1) in subsection (a), by striking out ``, 
        beginning October 1, 1994,'';
            (2) in subsection (b), by striking out ``and 1998'' 
        and inserting in lieu thereof ``through 2000''; and
            (3) by adding at the end the following new 
        subsection:
    ``(c) Duration of Project.--The authority to purchase or 
receive services under the demonstration project shall expire 
on September 30, 2000.''.

SEC. 2874. DESIGNATION OF BUILDING CONTAINING NAVY AND MARINE CORPS 
                    RESERVE CENTER, AUGUSTA, GEORGIA.

    The building containing the Navy and Marine Corps Reserve 
Center located at 2869 Central Avenue in Augusta, Georgia, 
shall be known and designated as the ``A. James Dyess 
Building''.

               TITLE XXIX--JUNIPER BUTTE RANGE WITHDRAWAL

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

SEC. 2901. SHORT TITLE.

    This title may be cited as the ``Juniper Butte Range 
Withdrawal Act''.

SEC. 2902. WITHDRAWAL AND RESERVATION.

    (a) Withdrawal.--Subject to valid existing rights and 
except as otherwise provided in this title, the lands at the 
Juniper Butte Range, Idaho, referred to in subsection (c), are 
withdrawn from all forms of appropriation under the public land 
laws, including the mining laws and the mineral and geothermal 
leasing laws but not the Act of July 31, 1947 (commonly known 
as the Materials Act of 1947; 30 U.S.C. 601 et seq.).
    (b) Reserved Uses.--The lands withdrawn under subsection 
(a) are reserved for use by the Secretary of the Air Force 
for--
            (1) a high hazard training area;
            (2) dropping non-explosive training ordnance with 
        spotting charges;
            (3) electronic warfare and tactical maneuvering and 
        air support; and
            (4) other defense-related purposes consistent with 
        the purposes specified in paragraphs (1), (2), and (3), 
        including continued natural resource management and 
        environmental remediation in accordance with section 
        2916.
    (c) Site Development Plans.--(1) Site development plans 
shall be prepared before construction.
    (2) Site development plans shall be incorporated in the 
integrated natural resource management plan developed under 
section 2909.
    (3) Except in the case of any minimal improvements, 
development on the withdrawn lands of any facilities beyond 
those proposed and analyzed in the Environmental Impact 
Statement concerning Enhanced Training in Idaho, prepared by 
the Secretary of the Air Force, the Record of Decision dated 
March 10, 1998, concerning Enhanced Training in Idaho, prepared 
by the Secretary of the Air Force, and the site development 
plans shall be contingent upon review and approval of the Idaho 
State Director of the Bureau of Land Management.
    (d) General Description.--(1) The public lands withdrawn 
and reserved by this section comprise approximately 11,300 
acres of public land in Owhyee County, Idaho, as generally 
depicted on the map entitled ``Juniper Butte Range Withdrawal--
Proposed'', dated June 1998, that will be filed in accordance 
with section 2903.
    (2) The withdrawal is for an approximately 10,600-acre 
tactical training range, a 640-acre no-drop target site, four 
5-acre no-drop target sites and nine 1-acre electronic threat 
emitter sites.

SEC. 2903. MAP AND LEGAL DESCRIPTION.

    (a) In General.--As soon as practicable after the date of 
the enactment of this Act, the Secretary of the Interior 
shall--
            (1) publish in the Federal Register a notice 
        containing the legal description of the lands withdrawn 
        and reserved by this title; and
            (2) file a map or maps and the legal description of 
        the lands withdrawn and reserved by this title with the 
        Committee on Energy and Natural Resources of the Senate 
        and with the Committee on Resources of the House of 
        Representatives.
    (b) Incorporation by Reference.--Such maps and legal 
description shall have the same force and effect as if included 
in this title.
    (c) Correction of Errors.--The Secretary of the Interior 
may correct clerical and typographical errors in such map or 
maps and legal description.
    (d) Availability.--Copies of such map or maps and the legal 
description shall be available for public inspection in the 
following offices:
            (1) The office of the Idaho State Director of the 
        Bureau of Land Management.
            (2) The offices of the managers of the Lower Snake 
        River District, Bureau Field Office and Jarbidge Field 
        Office of the Bureau of Land Management.
            (3) The Office of the commander of Mountain Home 
        Air Force Base, Idaho.
    (e) Utilization of Air Force Descriptions and Maps.--To the 
extent practicable, the Secretary of the Interior shall adopt 
the legal description and maps prepared by the Secretary of the 
Air Force in support of this title.
    (f) Reimbursement of Costs.--The Secretary of the Air Force 
shall reimburse the Secretary of the Interior for the costs 
incurred by the Department of the Interior in implementing this 
section.

SEC. 2904. AGENCY AGREEMENT.

    (a) Findings.--Congress makes the following findings:
            (1) The Bureau of Land Management and the Air Force 
        have agreed upon additional mitigation measures 
        associated with this land withdrawal as specified in 
        the ``ENHANCED TRAINING IN IDAHO Memorandum of 
        Understanding Between The Bureau of Land Management and 
        The United States Air Force'' dated June 11, 1998.
            (2) This agreement specifies that these mitigation 
        measures will be adopted as part of the Air Force's 
        Record of Decision for Enhanced Training in Idaho.
            (3) Congress endorses this collaborative effort 
        between the agencies and directs that the agreement be 
        implemented.
    (b) Modification.--The parties may, in accordance with the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.), mutually agree to modify the mitigation measures 
specified in the agreement in light of experience gained 
through the actions called for in the agreement or as a result 
of changed military circumstances.
    (c) Construction.--Neither the agreement, any modification 
thereof, nor this section creates any right, benefit, or trust 
responsibility, substantive or procedural, enforceable at law 
or equity by a party against the United States, its agencies, 
its officers, or any person.

SEC. 2905. RIGHT-OF-WAY GRANTS.

    In addition to the withdrawal under section 2902 and in 
accordance with all applicable laws, the Secretary of the 
Interior shall process and grant the Secretary of the Air Force 
rights-of-way using the Department of the Interior regulations 
and policies in effect at the time of filing applications for 
the one-quarter acre electronic warfare threat emitter sites, 
roads, powerlines, and other ancillary facilities as described 
and analyzed in the Enhanced Training in Idaho Final 
Environmental Impact Statement, dated January 1998.

SEC. 2906. INDIAN SACRED SITES.

    (a) Management.--(1) In the management of the Federal lands 
withdrawn and reserved by this title, the Air Force shall, to 
the extent practicable and not clearly inconsistent with 
essential agency functions--
            (A) accommodate access to and ceremonial use of 
        Indian sacred sites by Indian religious practitioners; 
        and
            (B) avoid adversely affecting the integrity of such 
        sacred sites.
    (2) The Secretary of the Air Force shall maintain the 
confidentiality of such sites where appropriate.
    (b) Consultation.--The commander of Mountain Home Air Force 
Base, Idaho, shall regularly consult with the Tribal Chairman 
of the Shoshone-Paiute Tribes of the Duck Valley Reservation to 
assure that tribal government rights and concerns are fully 
considered during the development of the Juniper Butte Range.
    (c) Definitions.--In this section:
            (1) The term ``sacred site'' shall mean any 
        specific, discrete, narrowly delineated location on 
        Federal land that is identified by an Indian tribe, or 
        Indian individual determined to be an appropriately 
        authoritative representative of an Indian religion, as 
        sacred by virtue of its established religious 
        significance to, or ceremonial use by, an Indian 
        religion but only to the extent that the tribe or 
        appropriately authoritative representative of an Indian 
        religion has informed the Air Force of the existence of 
        such a site.
            (2) The term ``Indian tribe'' means an Indian or 
        Alaska Native tribe, band, nation, pueblo, village, or 
        community that the Secretary of the Interior 
        acknowledges to exist as an Indian tribe pursuant to 
        the Federally Recognized Indian Tribe List Act of 1994 
        (25 U.S.C. 479a-1).
            (3) The term ``Indian'' refers to a member of an 
        Indian tribe.

SEC. 2907. ACTIONS CONCERNING RANCHING OPERATIONS IN WITHDRAWN AREA.

    (a) Authority To Conclude and Implement Agreements.--The 
Secretary of the Air Force is authorized and directed to, upon 
such terms and conditions as the Secretary of the Air Force 
considers just and in the national interest, conclude and 
implement agreements with the grazing permittees to provide 
appropriate consideration, including future grazing 
arrangements.
    (b) Implementation.--(1) Upon the conclusion of these 
agreements, the Assistant Secretary of the Interior for Land 
and Minerals Management shall grant rights-of-way and approvals 
and take such actions as are necessary to implement promptly 
this title and the agreements with the grazing permittees.
    (2) The Secretary of the Air Force and the Secretary of the 
Interior shall allow the grazing permittees for lands withdrawn 
and reserved by this title to continue their activities on the 
lands in accordance with the permits and their applicable 
regulations until the Secretary of the Air Force has fully 
implemented the agreement with the grazing permittees under 
this section.
    (3) Upon the implementation of these agreements, the Bureau 
of Land Management is authorized and directed, subject to the 
limitations included in this section, to terminate grazing on 
the lands withdrawn.

SEC. 2908. MANAGEMENT OF WITHDRAWN AND RESERVED LANDS.

    (a) In General.--Except as provided in section 2916(d), 
during the withdrawal and reservation of any lands under this 
title, the Secretary of the Air Force shall manage such lands 
for purposes relating to the uses set forth in section 2902(b).
    (b) Management According To Plan.--The lands withdrawn and 
reserved by this title shall be managed in accordance with the 
provisions of this title under the integrated natural resources 
management plan prepared under section 2909.
    (c) Authority To Close Land.--(1) If the Secretary of the 
Air Force determines that military operations, public safety, 
or the interests of national security require the closure to 
public use of any road, trail, or other portion of the lands 
withdrawn by this title that are commonly in public use, the 
Secretary of the Air Force may take such action.
    (2) Closures under paragraph (1) shall be limited to the 
minimum areas and periods required for the purposes specified 
in this subsection.
    (3) During closures, the Secretary of the Air Force shall 
keep appropriate warning notices posted and take appropriate 
steps to notify the public about the closures.
    (d) Lease Authority.--The Secretary of the Air Force may 
enter into leases for State lands with the State of Idaho in 
support of the Juniper Butte Range and operations at the 
Juniper Butte Range.
    (e) Prevention and Suppression of Fire.--(1) The Secretary 
of the Air Force shall take appropriate precautions to prevent 
and suppress brush fires and range fires that occur within the 
boundaries of the Juniper Butte Range, as well as brush and 
range fires occurring outside the boundaries of the Range 
resulting from military activities.
    (2) Notwithstanding section 2465 of title 10, United States 
Code, the Secretary of the Air Force may obligate funds 
appropriated or otherwise available to the Secretary to enter 
into contracts for fire-fighting.
    (3)(A) The memorandum of understanding under section 2910 
shall provide for the Bureau of Land Management to assist the 
Secretary of the Air Force in the suppression of the fires 
described in paragraph (1).
    (B) The memorandum of understanding shall provide that the 
Secretary of the Air Force reimburse the Bureau of Land 
Management for any costs incurred by the Bureau of Land 
Management under this paragraph.
    (f) Use of Mineral Materials.--Notwithstanding any other 
provision of this title or the Act of July 31, 1947 (commonly 
known as the Materials Act of 1947; 30 U.S.C. 601 et seq.), the 
Secretary of the Air Force may use, from the lands withdrawn 
and reserved by this title, sand, gravel, or similar mineral 
material resources of the type subject to disposition under the 
Act of July 31, 1947, when the use of such resources is 
required for construction needs of the Juniper Butte Range.

SEC. 2909. INTEGRATED NATURAL RESOURCE MANAGEMENT PLAN.

    (a) Requirement.--(1)(A) Not later than 2 years after the 
date of the enactment of this Act, the Secretary of the Air 
Force shall, in cooperation with the Secretary of the Interior, 
the State of Idaho, and Owyhee County, Idaho, develop an 
integrated natural resources management plan to address the 
management of the resources of the lands withdrawn and reserved 
by this title during their withdrawal and reservation under 
this title.
    (B) Additionally, the integrated natural resource 
management plan shall address mitigation and monitoring 
activities by the Air Force for State and Federal lands 
affected by military training activities associated with the 
Juniper Butte Range.
    (C) The foregoing will be done cooperatively between the 
Air Force, the Bureau of Land Management, the State of Idaho, 
and Owyhee County, Idaho.
    (2) Except as otherwise provided under this title, the 
integrated natural resources management plan under this section 
shall be developed in accordance with, and meet the 
requirements of, section 101 of the Sikes Act (16 U.S.C. 670a).
    (3)(A) Site development plans shall be prepared before 
construction of facilities.
    (B) Such plans shall be reviewed by the Bureau of Land 
Management, for Federal lands, and the State of Idaho, for 
State lands, for consistency with the proposal assessed in the 
Enhanced Training in Idaho Environmental Impact Statement.
    (C) The portion of such development plans describing 
reconfigurable or replacement targets may be conceptual.
    (b) Elements.--The integrated natural resources management 
plan under subsection (a) shall--
            (1) include provisions for the proper management 
        and protection of the natural, cultural, and other 
        resources and values of the lands withdrawn and 
        reserved by this title and for the use of such 
        resources in a manner consistent with the uses set 
        forth in section 2902(b);
            (2) permit livestock grazing at the discretion of 
        the Secretary of the Air Force in accordance with 
        section 2907 or any other authorities relating to 
        livestock grazing that are available to that Secretary;
            (3) permit fencing, water pipeline modifications 
        and extensions, and the construction of aboveground 
        water reservoirs, and the maintenance and repair of 
        these items on the lands withdrawn and reserved by this 
        title, and onother lands under the jurisdiction of the 
Bureau of Land Management; and
            (4) otherwise provide for the management by the 
        Secretary of the Air Force of any lands withdrawn and 
        reserved by this title while retained under the 
        jurisdiction of that Secretary under this title.
    (c) Periodic Review.--The Secretary of the Air Force shall, 
in cooperation with the Secretary of the Interior and the State 
of Idaho, review the adequacy of the provisions of the 
integrated natural resources management plan developed under 
this section at least once every 5 years after the effective 
date of the plan.

SEC. 2910. MEMORANDUM OF UNDERSTANDING.

    (a) Requirement.--The Secretary of the Air Force, the 
Secretary of the Interior, and the Governor of the State of 
Idaho shall jointly enter into a memorandum of understanding to 
implement the integrated natural resources management plan 
required under section 2909.
    (b) Term.--The memorandum of understanding under subsection 
(a) shall apply to any lands withdrawn and reserved by this 
title until their relinquishment by the Secretary of the Air 
Force under this title.
    (c) Modification.--The memorandum of understanding under 
subsection (a) may be modified by agreement of all the parties 
specified in that subsection.

SEC. 2911. MAINTENANCE OF ROADS.

    The Secretary of the Air Force shall enter into agreements 
with the Owyhee County Highway District, Idaho, and the Three 
Creek Good Roads Highway District, Idaho, under which the 
Secretary of the Air Force shall pay the costs of road 
maintenance incurred by such districts that are attributable to 
operations of the Department of the Air Force associated with 
the Juniper Butte Range.

SEC. 2912. MANAGEMENT OF WITHDRAWN AND ACQUIRED MINERAL RESOURCES.

    Except as provided in subsection 2908(f), the Secretary of 
the Interior shall manage all withdrawn and acquired mineral 
resources within the boundaries of the Juniper Butte Range in 
accordance with the Act of February 28, 1958 (commonly known as 
the Engle Act; 43 U.S.C. 155 et seq.).

SEC. 2913. HUNTING, FISHING, AND TRAPPING.

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

SEC. 2914. WATER RIGHTS.

    (a) Limitation.--The Secretary of the Air Force shall not 
seek or obtain any water rights associated with any water 
pipeline modified or extended, or aboveground water reservoir 
constructed, for purposes of consideration under section 2907.
    (b) New Rights.--(1) Nothing in this title shall be 
construed to establish a reservation in favor of the United 
States with respect to any water or water right on the lands 
withdrawn and reserved by this title.
    (2) Nothing in this title shall be construed to authorize 
the appropriation of water on the lands withdrawn and reserved 
by this title by the United States after the date of the 
enactment of this Act unless such appropriation is carried out 
in accordance with the laws of the State of Idaho.
    (c) Applicability.--This section may not be construed to 
affect any water rights acquired by the United States before 
the date of the enactment of this Act.

SEC. 2915. DURATION OF WITHDRAWAL.

    (a) Termination--(1) Except as otherwise provided in this 
section and section 2916, the withdrawal and reservation made 
by this title shall terminate 25 years after the date of the 
enactment of this Act.
    (2) At the time of termination, the previously withdrawn 
lands shall not be open to the general land laws, including the 
mining laws and the mineral and geothermal leasing laws, until 
the Secretary of the Interior publishes in the Federal Register 
an appropriate order which shall state the date upon which such 
lands shall be opened.
    (b) Relinquishment.--(1) If the Secretary of the Air Force 
determines under subsection (c) that the Air Force hasno 
continuing military need for any lands withdrawn and reserved by this 
title, the Secretary of the Air Force shall submit to the Secretary of 
the Interior a notice of intent to relinquish jurisdiction over such 
lands to the Secretary of the Interior.
    (2) The Secretary of the Interior may accept jurisdiction 
over any lands covered by a notice of intent to relinquish 
jurisdiction under paragraph (1) if the Secretary of the 
Interior determines that the Secretary of the Air Force has 
completed the environmental review required under section 
2916(a) and the conditions under section 2916(c) have been met.
    (3) If the Secretary of the Interior decides to accept 
jurisdiction over lands under paragraph (2) before the date of 
termination, as provided for in subsection (a)(1), the 
Secretary of the Interior shall publish in the Federal Register 
an appropriate order which shall--
            (A) revoke the withdrawal and reservation of such 
        lands under this title;
            (B) constitute official acceptance of 
        administrative jurisdiction over the lands by the 
        Secretary of the Interior; and
            (C) state the date upon which such lands shall be 
        opened to the operation of the general land laws, 
        including the mining laws and the mineral and 
        geothermal leasing laws, if appropriate.
    (4) The Secretary of the Interior shall manage any lands 
relinquished under this subsection as multiple use status 
lands.
    (5) If the Secretary of the Interior declines pursuant to 
subsection (b)(2) to accept jurisdiction of any parcel of land 
proposed for relinquishment, that parcel shall remain under the 
continued administration of the Secretary of the Air Force 
pursuant to section 2916(d).
    (c) Extension.--(1) In the case of any lands withdrawn and 
reserved by this title that the Air Force proposes to include 
in a notice of extension because of continued military need 
under paragraph (2), the Secretary of the Air Force shall, 
before issuing the notice under paragraph (2)--
            (A) evaluate the environmental effects of the 
        extension of the withdrawal and reservation of such 
        lands in accordance with all applicable laws and 
        regulations; and
            (B) hold at least one public meeting in the State 
        of Idaho regarding that evaluation.
    (2)(A) Not later than 2 years before the termination of the 
withdrawal and reservation of lands by this title under 
subsection (a), the Secretary of the Air Force shall notify 
Congress and the Secretary of the Interior as to whether or not 
the Air Force has a continuing military need for any of the 
lands withdrawn and reserved by this title, and not previously 
relinquished under this section, after the termination date as 
specified in subsection (a).
    (B)(i) The Secretary of the Air force shall specify in the 
notice under subparagraph (A) the duration of any extension or 
further extension of withdrawal and reservation of such lands 
under this title.
    (ii) The duration of each extension or further extension 
under clause (i) shall not exceed 25 years.
    (C) The notice under subparagraph (A) shall be published in 
the Federal Register and a newspaper of local distribution with 
the opportunity for comments, within a 60-day period, which 
shall be provided to the Secretary of the Air Force and the 
Secretary of the Interior.
    (3)(A) Subject to subparagraph (B), in the case of any 
lands withdrawn and reserved by this title that are covered by 
a notice of extension under subsection (c)(2), the withdrawal 
and reservation of such lands shall extend under the provisions 
of this title after the termination date otherwise provided for 
under subsection (a) for such period as is specified in the 
notice under subsection (c)(2).
    (B) Subparagraph (A) shall not apply with respect to any 
lands covered by a notice referred to in that paragraph until 
90 legislative days after the date on which the notice with 
respect to such lands is submitted to Congress under paragraph 
(2).

SEC. 2916. ENVIRONMENTAL REMEDIATION OF RELINQUISHED WITHDRAWN LANDS OR 
                    UPON TERMINATION OF WITHDRAWAL.

    (a) Environmental Review.--(1) Before submitting under 
section 2915 a notice of an intent to relinquish jurisdiction 
over lands withdrawn and reserved by this title, and in all 
cases not later than 2 years before the date of termination of 
withdrawal and reservation, the Secretary of the Air Force 
shall, in consultation with the Secretary of the Interior, 
complete a review that fully characterizes the environmental 
conditions of such lands (including any water and air 
associated with such lands) in order to identify any 
contamination on such lands.
    (2) The Secretary of the Air Force shall submit to the 
Secretary of the Interior a copy of the review prepared with 
respect to any lands under paragraph (1). The Secretary of the 
Air Force shall also submit at the same time any notice of 
intent to relinquish jurisdiction over such lands under section 
2915.
    (3) The Secretary of the Air Force shall submit a copy of 
any such review to Congress.
    (b) Environmental Remediation of Lands.--The Secretary of 
the Air Force shall, in accordance with applicable State and 
Federal law, carry out and complete environmental remediation--
            (1) before relinquishing jurisdiction to the 
        Secretary of the Interior over any lands identified in 
        a notice of intent to relinquish under section 2915(b); 
        or
            (2) before the date of termination of the 
        withdrawal and reservation, except as provided under 
        subsection (d).
    (c) Postponement of Relinquishment.--The Secretary of the 
Interior shall not accept jurisdiction over any lands that are 
the subject of activities under subsection (b) until the 
Secretary of the Interior determines that environmental 
conditions on the lands are such that--
            (1) all necessary environmental remediation has 
        been completed by the Secretary of the Air Force;
            (2) the lands are safe for nonmilitary uses; and
            (3) the lands could be opened consistent with the 
        Secretary of the Interior's public land management 
        responsibilities.
    (d) Jurisdiction When Withdrawal Terminates.--If the 
determination required by section (c) cannot be achieved for 
any parcel of land subject to the withdrawal and reservation 
before the termination date of the withdrawal and reservation, 
the Secretary of the Air Force shall retain administrative 
jurisdiction over such parcels of land notwithstanding the 
termination date for the limited purposes of--
            (1) environmental remediation activities under 
        subsection (b); and
            (2) any activities relating to the management of 
        such lands after the termination of the withdrawal 
        reservation for military purposes that are provided for 
        in the integrated natural resources management plan 
        under section 2909.
    (e) Effect on Other Laws.--Nothing in this title shall 
affect, or be construed to affect, the obligations, if any, of 
the Secretary of the Air Force to decontaminate lands withdrawn 
by this title pursuant to applicable law, including the 
Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9601 et seq.) and the Solid 
Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2917. DELEGATION OF AUTHORITY.

    (a) Department of the Air Force Functions.--Except for 
executing the agreement referred to in section 2907, the 
Secretary of the Air Force may delegate that Secretary's 
functions under this title.
    (b) Department of the Interior Functions.--(1) Except as 
provided in paragraph (2), the Secretary of the Interior may 
delegate that Secretary's functions under this title.
    (2) The order referred to in section 2915(b)(3) may be 
approved and signed only by the Secretary of the Interior, the 
Deputy Secretary of the Interior, or an Assistant Secretary of 
the Interior.
    (3) The approvals granted by the Bureau of Land Management 
shall be pursuant to the decisions of the Secretary of the 
Interior, or the Assistant Secretary for Land and Minerals 
Management.

SEC. 2918. HOLD HARMLESS.

    Any party conducting any mining, mineral, or geothermal 
leasing activity on lands withdrawn and reserved by this title 
shall indemnify the United States against any costs, fees, 
damages, or other liabilities (including costs of litigation) 
incurred by the United States and arising from or relating to 
such mining activities, including costs of mineral materials 
disposal, whether arising under the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 
9601 et seq.), the Solid Waste Disposal Act (42 U.S.C. 6901 et 
seq.), or otherwise.

SEC. 2919. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this title.

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

       TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

          Subtitle A--National Security Programs Authorizations

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

                Subtitle B--Recurring General Provisions

Sec. 3121. Reprogramming.
Sec. 3122. Limits on general plant projects.
Sec. 3123. Limits on construction projects.
Sec. 3124. Fund transfer authority.
Sec. 3125. Authority for conceptual and construction design.
Sec. 3126. Authority for emergency planning, design, and construction 
          activities.
Sec. 3127. Funds available for all national security programs of the 
          Department of Energy.
Sec. 3128. Availability of funds.
Sec. 3129. Transfers of defense environmental management funds.

    Subtitle C--Program Authorizations, Restrictions, and Limitations

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

                        Subtitle D--Other Matters

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

         Subtitle A--National Security Programs Authorizations

SEC. 3101. WEAPONS ACTIVITIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1999 
for weapons activities in carrying out programs necessary for 
national security in the amount of $4,511,600,000, to be 
allocated as follows:
            (1) Stockpile stewardship.--Funds are hereby 
        authorized to be appropriated to the Department of 
        Energy for fiscal year 1999 for stockpile stewardship 
        in carrying out weapons activities necessary for 
        national security programs in the amount of 
        $2,148,375,000, to be allocated as follows:
                    (A) For core stockpile stewardship, 
                $1,591,375,000, to be allocated as follows:
                            (i) For operation and maintenance, 
                        $1,475,832,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification 
                        of facilities, and the continuation of 
                        projects authorized in prior years, and 
                        land acquisition related thereto), 
                        $115,543,000, to be allocated as 
                        follows:
                                    Project 99-D-102, 
                                rehabilitation of maintenance 
                                facility, Lawrence Livermore 
                                National Laboratory, Livermore, 
                                California, $6,500,000.
                                    Project 99-D-103, isotope 
                                sciences facilities, Lawrence 
                                Livermore National Laboratory, 
                                Livermore, California, 
                                $4,000,000.
                                    Project 99-D-104, 
                                protection of real property 
                                (roof reconstruction, Phase 
                                II), Lawrence Livermore 
                                National Laboratory, Livermore, 
                                California, $7,300,000.
                                    Project 99-D-105, central 
                                health physics calibration 
                                facility, Los Alamos National 
                                Laboratory, Los Alamos, New 
                                Mexico, $3,900,000.
                                    Project 99-D-106, model 
                                validation and system 
                                certification test center, 
                                Sandia National Laboratories, 
                                Albuquerque, New Mexico, 
                                $1,600,000.
                                    Project 99-D-107, joint 
                                computational engineering 
                                laboratory, Sandia National 
                                Laboratories, Albuquerque, New 
                                Mexico, $1,800,000.
                                    Project 99-D-108, renovate 
                                existing roadways, Nevada Test 
                                Site, Nevada, $2,000,000.
                                    Project 97-D-102, dual-axis 
                                radiographic hydrotest 
                                facility, Los Alamos National 
                                Laboratory, Los Alamos, New 
                                Mexico, $36,000,000.
                                    Project 96-D-102, stockpile 
                                stewardship facilities 
                                revitalization, Phase VI, 
                                various locations, $20,423,000.
                                    Project 96-D-103, ATLAS, 
                                Los Alamos National Laboratory, 
                                Los Alamos, New Mexico, 
                                $6,400,000.
                                    Project 96-D-104, 
                                processing and environmental 
                                technology laboratory, Sandia 
                                National Laboratories, 
                                Albuquerque, New Mexico, 
                                $18,920,000.
                                    Project 96-D-105, contained 
                                firing facility addition, 
                                Lawrence Livermore National 
                                Laboratory, Livermore, 
                                California, $6,700,000.
                    (B) For inertial fusion, $498,000,000, to 
                be allocated as follows:
                            (i) For operation and maintenance, 
                        $213,800,000.
                            (ii) For the following plant 
                        project (including maintenance, 
                        restoration, planning, construction, 
                        acquisition, and modification of 
                        facilities, and land acquisition 
                        related thereto), $284,200,000, to be 
                        allocated as follows:
                                    Project 96-D-111, national 
                                ignition facility, Lawrence 
                                Livermore National Laboratory, 
                                Livermore, California, 
                                $284,200,000.
                    (C) For technology partnership and 
                education, $59,000,000, to be allocated as 
                follows:
                            (i) For technology partnership, 
                        $50,000,000.
                            (ii) For education, $9,000,000.
            (2) Stockpile management.--Funds are hereby 
        authorized to be appropriated to the Department of 
        Energyfor fiscal year 1999 for stockpile management in 
carrying out weapons activities necessary for national security 
programs in the amount of $2,113,225,000, to be allocated as follows:
                    (A) For operation and maintenance, 
                $2,014,303,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $98,922,000, to be allocated 
                as follows:
                            Project 99-D-122, rapid 
                        reactivation, various locations, 
                        $11,200,000.
                            Project 99-D-123, replace 
                        mechanical utility systems, Y-12 Plant, 
                        Oak Ridge, Tennessee, $1,900,000.
                            Project 99-D-125, replace boilers 
                        and controls, Kansas City Plant, Kansas 
                        City, Missouri, $1,000,000.
                            Project 99-D-127, stockpile 
                        management restructuring initiative, 
                        Kansas City Plant, Kansas City, 
                        Missouri, $13,700,000.
                            Project 99-D-128, stockpile 
                        management restructuring initiative, 
                        Pantex Plant consolidation, Amarillo, 
                        Texas, $1,108,000.
                            Project 99-D-132, stockpile 
                        management restructuring initiative, 
                        nuclear material safeguards and 
                        security upgrades project, Los Alamos 
                        National Laboratory, Los Alamos, New 
                        Mexico, $9,700,000.
                            Project 98-D-123, stockpile 
                        management restructuring initiative, 
                        tritium facility modernization and 
                        consolidation, Savannah River Site, 
                        Aiken, South Carolina, $27,500,000.
                            Project 98-D-124, stockpile 
                        management restructuring initiative, Y-
                        12 Plant consolidation, Oak Ridge, 
                        Tennessee, $10,700,000.
                            Project 97-D-122, nuclear materials 
                        storage facility renovation, Los Alamos 
                        National Laboratory, Los Alamos, New 
                        Mexico, $3,764,000.
                            Project 97-D-123, structural 
                        upgrades, Kansas City Plant, Kansas 
                        City, Missouri, $6,400,000.
                            Project 96-D-122, sewage treatment 
                        quality upgrade, Pantex Plant, 
                        Amarillo, Texas, $3,700,000.
                            Project 95-D-102, chemistry and 
                        metallurgy research building upgrades, 
                        Los Alamos National Laboratory, Los 
                        Alamos, New Mexico, $5,000,000.
                            Project 93-D-122, life safety 
                        upgrades, Y-12 Plant, Oak Ridge, 
                        Tennessee, $3,250,000.
            (3) Program direction.--Funds are hereby authorized 
        to be appropriated to the Department of Energy for 
        fiscal year 1999 for program direction in carrying out 
        weapons activities necessary for national security 
        programs in the amount of $250,000,000.
    (b) Adjustments.--
            (1) Construction.--The total amount authorized to 
        be appropriated pursuant to paragraphs (1)(A)(ii), 
        (1)(B)(ii), and (2)(B) of subsection (a) is the sum of 
        the amounts authorized to be appropriated in those 
        paragraphs, reduced by $13,600,000.
            (2) Non-construction.--The total amount authorized 
        to be appropriated pursuant to paragraphs (1)(A)(i), 
        (1)(B)(i), (1)(C), (2)(A), and (3) of subsection (a) is 
        the sum of the amounts authorized to be appropriated in 
        those paragraphs, reduced by $178,900,000, to be 
        derived from use of prior year balances.

SEC. 3102. DEFENSE ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT.

    (a) In General.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1999 
for environmental restoration and waste management in carrying 
out programs necessary for national security in the amount of 
$5,446,143,000, to be allocated as follows:
            (1) Closure projects.--For closure projects carried 
        out in accordance with section 3143 of the National 
        Defense Authorization Act for Fiscal Year 1997 (Public 
        Law 104-201; 110 Stat. 2836; 42 U.S.C. 7274n) in the 
        amount of $1,038,240,000.
            (2) Site project and completion.--For site project 
        and completion in carrying out environmental 
        restoration and waste management activities necessary 
        for national security programs in the amount of 
        $1,067,253,000, to be allocated as follows:
                    (A) For operation and maintenance, 
                $868,090,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $199,163,000, to be allocated 
                as follows:
                            Project 99-D-402, tank farm support 
                        services, F&H areas, Savannah River 
                        Site, Aiken, South Carolina, 
                        $2,745,000.
                            Project 99-D-404, health physics 
                        instrumentation laboratory, Idaho 
                        National Engineering Laboratory, Idaho, 
                        $950,000.
                            Project 98-D-401, H-tank farm storm 
                        water systems upgrade, Savannah River 
                        Site, Aiken, South Carolina, 
                        $3,120,000.
                            Project 98-D-453, plutonium 
                        stabilization and handling system for 
                        plutonium finishing plant, Richland, 
                        Washington, $26,814,000.
                            Project 98-D-700, road 
                        rehabilitation, Idaho National 
                        Engineering Laboratory, Idaho, 
                        $7,710,000.
                            Project 97-D-450, Actinide 
                        packaging and storage facility, 
                        Savannah River Site, Aiken, South 
                        Carolina, $79,184,000.
                            Project 97-D-470, environmental 
                        monitoring laboratory, Savannah River 
                        Site, Aiken, South Carolina, 
                        $7,000,000.
                            Project 96-D-406, spent nuclear 
                        fuels canister storage and 
                        stabilization facility, Richland, 
                        Washington, $38,680,000.
                            Project 96-D-408, waste management 
                        upgrades, Kansas City Plant, Kansas 
                        City, Missouri, and Savannah River 
                        Site, Aiken, South Carolina, 
                        $4,512,000.
                            Project 96-D-464, electrical and 
                        utility systems upgrade, Idaho Chemical 
                        Processing Plant, Idaho National 
                        Engineering Laboratory, Idaho, 
                        $11,544,000.
                            Project 96-D-471, 
                        chlorofluorocarbon heating, 
                        ventilation, and air conditioning and 
                        chiller retrofit, Savannah River Site, 
                        Aiken, South Carolina, $8,000,000.
                            Project 95-D-456, security 
                        facilities consolidation, Idaho 
                        Chemical Processing Plant, Idaho 
                        National Engineering Laboratory, Idaho, 
                        $485,000.
                            Project 92-D-140, F&H canyon 
                        exhaust upgrades, Savannah River Site, 
                        Aiken, South Carolina, $3,667,000.
                            Project 86-D-103, decontamination 
                        and waste treatment facility, Lawrence 
                        Livermore National Laboratory, 
                        Livermore, California, $4,752,000.
            (3) Post-2006 completion.--For post-2006 project 
        completion in carrying out environmental restoration 
        and waste management activities necessary for national 
        security programs in the amount of $2,744,451,000, to 
        be allocated as follows:
                    (A) For operation and maintenance, 
                $2,663,195,000.
                    (B) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of 
projectsauthorized in prior years, and land acquisition related 
thereto), $81,256,000, to be allocated as follows:
                            Project 99-D-403, privatization 
                        phase I infrastructure support, 
                        Richland, Washington, $14,800,000.
                            Project 97-D-402, tank farm 
                        restoration and safe operations, 
                        Richland, Washington, $22,723,000.
                            Project 96-D-408, waste management 
                        upgrades, Richland, Washington, 
                        $171,000.
                            Project 94-D-407, initial tank 
                        retrieval systems, Richland, 
                        Washington, $32,860,000.
                            Project 93-D-187, high-level waste 
                        removal from filled waste tanks, 
                        Savannah River Site, Aiken, South 
                        Carolina, $10,702,000.
            (4) Science and technology.--For science and 
        technology in carrying out environmental restoration 
        and waste management activities necessary for national 
        security programs in the amount of $250,000,000.
            (5) Program direction.--For program direction in 
        carrying out environmental restoration and waste 
        management activities necessary for national security 
        programs in the amount of $346,199,000.
    (b) Adjustment.--The total amount authorized to be 
appropriated pursuant to paragraphs (1), (2)(A), (3)(A), (4), 
and (5) of subsection (a) is the sum of the amounts authorized 
to be appropriated in those paragraphs, reduced by $94,100,000, 
to be derived from use of prior year balances.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    (a) In General.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1999 
for other defense activities in carrying out programs necessary 
for national security in the amount of $1,716,160,000, to be 
allocated as follows:
            (1) Nonproliferation and national security.--For 
        nonproliferation and national security, $699,300,000, 
        to be allocated as follows:
                    (A) For verification and control 
                technology, $503,500,000, to be allocated as 
                follows:
                            (i) For nonproliferation and 
                        verification research and development, 
                        $210,000,000.
                            (ii) For arms control, 
                        $256,900,000.
                            (iii) For intelligence, 
                        $36,600,000.
                    (B) For nuclear safeguards and security, 
                $53,200,000.
                    (C) For security investigations, 
                $30,000,000.
                    (D) For emergency management, $23,700,000.
                    (E) For program direction, $88,900,000.
            (2) Worker and community transition assistance.--
        For worker and community transition assistance, 
        $40,000,000, to be allocated as follows:
                    (A) For worker and community transition, 
                $36,000,000.
                    (B) For program direction, $4,000,000.
            (3) Fissile materials control and disposition.--For 
        fissile materials control and disposition, 
        $168,960,000, to be allocated as follows:
                    (A) For operation and maintenance, 
                $111,372,000.
                    (B) For program direction, $4,588,000.
                    (C) For plant projects (including 
                maintenance, restoration, planning, 
                construction, acquisition, modification of 
                facilities, and the continuation of projects 
                authorized in prior years, and land acquisition 
                related thereto), $53,000,000, to be allocated 
                as follows:
                            Project 99-D-141, pit disassembly 
                        and conversion facility, various 
                        locations, $25,000,000.
                            Project 99-D-143, mixed oxide fuel 
                        fabrication facility, various 
                        locations, $28,000,000.
            (4) Environment, safety, and health.--For 
        environment, safety, and health, defense, $89,000,000, 
        to be allocated as follows:
                    (A) For the Office of Environment, Safety, 
                and Health (Defense), $84,231,000.
                    (B) For program direction, $4,769,000.
            (5) Office of hearings and appeals.--For the Office 
        of Hearings and Appeals, $2,400,000.
            (6) International nuclear safety.--For 
        international nuclear safety, $35,000,000.
            (7) Naval reactors.--For naval reactors, 
        $681,500,000, to be allocated as follows:
                    (A) For naval reactors development, 
                $661,400,000, to be allocated as follows:
                            (i) For operation and maintenance, 
                        $639,600,000.
                            (ii) For plant projects (including 
                        maintenance, restoration, planning, 
                        construction, acquisition, modification 
                        of facilities, and the continuation of 
                        projects authorized in prior years, and 
                        land acquisition related thereto), 
                        $21,800,000, to be allocated as 
                        follows:
                                    GPN-101 general plant 
                                projects, various locations, 
                                $9,000,000.
                                    Project 98-D-200, site 
                                laboratory/facility upgrade, 
                                various locations, $7,000,000.
                                    Project 90-N-102, expended 
                                core facility dry cell project, 
                                Naval Reactors Facility, Idaho, 
                                $5,800,000.
                    (B) For program direction, $20,100,000.
    (b) Adjustment.--(1) The total amount authorized to be 
appropriated pursuant to this section is the sum of the amounts 
authorized to be appropriated in paragraphs (1) through (7) of 
subsection (a) reduced by $2,000,000.
    (2) The amount authorized to be appropriated pursuant to 
subsection(a)(1)(C) is reduced by $20,000,000 to reflect an 
offset provided by user organizations for security 
investigations.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the 
Department of Energy for fiscal year 1999 for payment to the 
Nuclear Waste Fund established in section 302(c) of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$190,000,000.

SEC. 3105. DEFENSE ENVIRONMENTAL MANAGEMENT PRIVATIZATION.

    (a) In General.--Funds are hereby authorized to be 
appropriated to the Department of Energy for fiscal year 1999 
for privatization initiatives in carrying out environmental 
restoration and waste management activities necessary for 
national security programs in the amount of $286,857,000, to be 
allocated as follows:
            Project 99-PVT-1, remote handled transuranic waste 
        transportation, Carlsbad, New Mexico, $19,605,000.
            Project 98-PVT-2, spent nuclear fuel dry storage, 
        Idaho Falls, Idaho, $30,000,000.
            Project 98-PVT-5, waste disposal, Oak Ridge, 
        Tennessee, $50,000,000.
            Project 97-PVT-1, tank waste remediation system 
        phase I, Hanford, Washington, $100,000,000.
            Project 97-PVT-2, advanced mixed waste treatment 
        facility, Idaho Falls, Idaho, $87,252,000.
    (b) Adjustment.--The amount authorized to be appropriated 
in subsection (a) is the sum of the amounts authorized to be 
appropriated for the projects set forth in that subsection, 
reduced by $32,000,000 for use of prior year balances of funds 
for defense environmental management privatization.

                Subtitle B--Recurring General Provisions

SEC. 3121. REPROGRAMMING.

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

SEC. 3122. LIMITS ON GENERAL PLANT PROJECTS.

    (a) In General.--The Secretary of Energy may carry out any 
construction project under the general plant projects 
authorized by this title if the total estimated cost of the 
construction project does not exceed $5,000,000.
    (b) Report to Congress.--If, at any time during the 
construction of any general plant project authorized by this 
title, the estimated cost of the project is revised because of 
unforeseen cost variations and the revised cost of the project 
exceeds $5,000,000, the Secretary shall immediately furnish a 
complete report to the congressional defense committees 
explaining the reasons for the cost variation.

SEC. 3123. LIMITS ON CONSTRUCTION PROJECTS.

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

SEC. 3124. FUND TRANSFER AUTHORITY.

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

SEC. 3125. AUTHORITY FOR CONCEPTUAL AND CONSTRUCTION DESIGN.

    (a) Requirement for Conceptual Design.--(1) Subject to 
paragraph (2) and except as provided in paragraph (3), before 
submitting to Congress a request for funds for a construction 
project that is in support of a national security program of 
the Department of Energy, the Secretary of Energy shall 
complete a conceptual design for that project.
    (2) If the estimated cost of completing a conceptual design 
for a construction project exceeds $3,000,000, the Secretary 
shall submit to Congress a request for funds for the conceptual 
design before submitting a request for funds for the 
construction project.
    (3) The requirement in paragraph (1) does not apply to a 
request for funds--
            (A) for a construction project the total estimated 
        cost of which is less than $5,000,000; or
            (B) for emergency planning, design, and 
        construction activities under section 3126.
    (b) Authority for Construction Design.--(1) Within the 
amounts authorized by this title, the Secretary of Energy may 
carry out construction design (including architectural and 
engineering services) in connection with any proposed 
construction project if the total estimated cost for such 
design does not exceed $600,000.
    (2) If the total estimated cost for construction design in 
connection with any construction project exceeds $600,000, 
funds for such design must be specifically authorized by law.

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

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

SEC. 3128. AVAILABILITY OF FUNDS.

    (a) In General.--Except as provided in subsection (b), when 
so specified in an appropriations Act, amounts appropriated for 
operation and maintenance or for plant projects may remain 
available until expended.
    (b) Exception for Program Direction Funds.--Amounts 
appropriated for program direction pursuant to an authorization 
of appropriations in subtitle A shall remain available to be 
expended only until the end of fiscal year 2001.

SEC. 3129. TRANSFERS OF DEFENSE ENVIRONMENTAL MANAGEMENT FUNDS.

    (a) Transfer Authority for Defense Environmental Management 
Funds.--The Secretary of Energy shall provide the manager of 
each field office of the Department of Energy with the 
authority to transfer defense environmental management funds 
from a program or project under the jurisdiction of the office 
to another such program or project.
    (b) Limitations.--(1) Only one transfer may be made to or 
from any program or project under subsection (a) in a fiscal 
year.
    (2) The amount transferred to or from a program or project 
under subsection (a) may not exceed $5,000,000 in a fiscal 
year.
    (3) A transfer may not be carried out by a manager of a 
field office under subsection (a) unless the manager determines 
that the transfer is necessary to address a risk to health, 
safety, or the environment or to assure the most efficient use 
of defense environmental management funds at the field office.
    (4) Funds transferred pursuant to subsection (a) may not be 
used for an item for which Congress has specifically denied 
funds or for a new program or project that has not been 
authorized by Congress.
    (c) Exemption From Reprogramming Requirements.--The 
requirements of section 3121 shall not apply to transfers of 
funds pursuant to subsection (a).
    (d) Notification.--The Secretary, acting through the 
Assistant Secretary of Energy for Environmental Management, 
shall notify Congress of any transfer of funds pursuant to 
subsection (a) not later than 30 days after such transfer 
occurs.
    (e) Definitions.--In this section:
            (1) The term ``program or project'' means, with 
        respect to a field office of the Department of Energy, 
        any of the following:
                    (A) A program referred to or a project 
                listed in paragraph (2) or (3) of section 3102.
                    (B) A program or project not described in 
                subparagraph (A) that is for environmental 
                restoration or waste management activities 
                necessary for national security programs of the 
                Department, that is being carried out by the 
                office, and for which defense environmental 
                management funds have been authorized and 
                appropriated before the date of enactment of 
                this Act.
            (2) The term ``defense environmental management 
        funds'' means funds appropriated to the Department of 
        Energy pursuant to an authorization for carrying out 
        environmental restoration and waste management 
        activities necessary for national security programs.
    (f) Duration of Authority.--The managers of the field 
offices of the Department may exercise the authority provided 
under subsection (a) during the period beginning on October 1, 
1998, and ending on September 30, 1999.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

SEC. 3131. PERMANENT EXTENSION OF FUNDING PROHIBITION RELATING TO 
                    INTERNATIONAL COOPERATIVE STOCKPILE STEWARDSHIP.

    Section 3133(a) of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036) is 
amended by striking out ``for fiscal year 1998'' and inserting 
in lieu thereof ``for any fiscal year''.

SEC. 3132. SUPPORT OF BALLISTIC MISSILE DEFENSE ACTIVITIES OF THE 
                    DEPARTMENT OF DEFENSE.

    (a) Funds To Carry Out Certain Ballistic Missile Defense 
Activities.--Of the amounts authorized to be appropriated to 
the Department of Energy pursuant to section 3101, $30,000,000 
shall be available for research, development, and demonstration 
activities to support the mission of the Ballistic Missile 
Defense Organization of the Department of Defense, including 
the following activities:
            (1) Technology development, concept demonstration, 
        and integrated testing to improve reliability and 
        reduce risk in hit-to-kill interceptors for missile 
        defense.
            (2) Support for science and engineering teams to 
        address technical problems identified by the Director 
        of the Ballistic Missile Defense Organization as 
        critical to acquisition of a theater missile defense 
        capability.
    (b) Memorandum of Understanding.--The activities referred 
to in subsection (a) shall be carried out under the memorandum 
of understanding entered into by the Secretary of Energy and 
the Secretary of Defense for the use of national laboratories 
for ballistic missile defense programs, as required by section 
3131 of the National Defense Authorization Act for Fiscal Year 
1998 (Public Law 105-85; 111 Stat. 2034).
    (c) Method of Funding.--Funds for activities referred to in 
subsection (a) may be provided--
            (1) by direct payment from funds available pursuant 
        to subsection (a); or
            (2) in the case of such an activity carried out by 
        a national laboratory but paid for by the Ballistic 
        Missile Defense Organization, through a method under 
        which the Secretary of Energy waives any requirement 
        for the Department of Defense to pay any indirect 
        expenses (including overhead and federal administrative 
        charges) of the Department of Energy or its 
        contractors.

SEC. 3133. NONPROLIFERATION ACTIVITIES.

    (a) Initiatives for Proliferation Prevention.--Of the 
amount authorized to be appropriated by section 
3103(a)(1)(A)(ii), up to $20,000,000 may be used for the 
Initiatives for Proliferation Prevention program.
    (b) Nuclear Cities Initiative.--(1) Funds authorized under 
this title may not be obligated or expended for the purpose of 
implementing the Nuclear Cities Initiative until--
            (A) the Secretary of Energy submits to the 
        congressional defense committees the report described 
        in paragraph (2); and
            (B) a period of 20 legislative days has expired 
        following the date on which the report is submitted to 
        Congress.
    (2) The Secretary of Energy shall prepare a report on the 
Nuclear Cities Initiative. The report shall describe--
            (A) the objectives of the initiative;
            (B) methods and processes for the implementation of 
        the initiative;
            (C) a program timeline for the initiative with 
        milestones; and
            (D) the funding requirements for the initiative 
        through its completion.
    (3) For purposes of this section, the term ``Nuclear Cities 
Initiative'' means the initiative arising pursuant to the March 
1998 discussion between the Vice President of the United States 
and the Prime Minister of the Russian Federation and between 
the Secretary of Energy of the United States and the Minister 
of Atomic Energy of the Russian Federation.
    (4) For purposes of paragraph (1)(B), a legislative day is 
a day on which both Houses of Congress are in session.

SEC. 3134. LICENSING OF CERTAIN MIXED OXIDE FUEL FABRICATION AND 
                    IRRADIATION FACILITIES.

    (a) License Requirement.--Section 202 of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5842) is amended by 
adding at the end the following new paragraph:
            ``(5) Any facility under a contract with and for 
        the account of the Department of Energy that is 
        utilized for the express purpose of fabricating mixed 
        plutonium-uranium oxide nuclear reactor fuel for use in 
        a commercial nuclear reactor licensed under such Act, 
        other than any such facility that is utilized for 
        research, development, demonstration, testing, or 
        analysis purposes.''.
    (b) Availability of Funds for Licensing by NRC.--Section 
210 of the Department of Energy National Security and Military 
Applications of Nuclear Energy Authorization Act of 1981 (42 
U.S.C. 7272) shall not apply to any licensing activities 
required pursuant to section 202(5) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5842), as added by 
subsection (a).
    (c) Applicability of Occupational Safety and Health 
Requirements to Activities under License.--Any activities 
carried out under a license required pursuant to section 202(5) 
of the Energy Reorganization Act of 1974 (42 U.S.C. 5842), as 
added by subsection (a), shall be subject to regulation under 
the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 
et seq.).

SEC. 3135. CONTINUATION OF PROCESSING, TREATMENT, AND DISPOSITION OF 
                    LEGACY NUCLEAR MATERIALS.

    The Secretary of Energy shall continue operations and 
maintain a high state of readiness at the F-canyon and H-canyon 
facilities at the Savannah River Site, Aiken, South Carolina, 
and shall provide technical staff necessary to operate and so 
maintain such facilities.

SEC. 3136. AUTHORITY FOR DEPARTMENT OF ENERGY FEDERALLY FUNDED RESEARCH 
                    AND DEVELOPMENT CENTERS TO PARTICIPATE IN MERIT-
                    BASED TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Authority.--Section 217(f)(1) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 2695) is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by inserting ``or of the Department of Energy'' 
        after ``the Department of Defense''; and
            (3) by adding at the end the following new 
        subparagraph:
    ``(B) A federally funded research and development center of 
the Department of Energy described in subparagraph (A) may 
respond to solicitations and announcements described in that 
subparagraph only for activities conducted by the center under 
contract with or on behalf of the Department of Defense.''.
    (b) Conforming Amendment.--Section 217(f)(2) of such Act is 
amended by inserting ``(A)'' after ``(1)''.

SEC. 3137. ACTIVITIES OF DEPARTMENT OF ENERGY FACILITIES.

    (a) Research and Activities on Behalf of Non-Department 
Persons and Entities.--(1) The Secretary of Energy may conduct 
research and other activities referred to in paragraph (2) at 
facilities of the Department of Energy on behalf of other 
departments and agencies of the Government, agencies of State 
and local governments, and private persons and entities.
    (2) The research and other activities that may be conducted 
under paragraph (1) are those which the Secretary is authorized 
to conduct by law, including research and activities authorized 
under the following provisions of law:
            (A) The Atomic Energy Act of 1954 (42 U.S.C. 2011 
        et seq.).
            (B) The Energy Reorganization Act of 1974 (42 
        U.S.C. 5811 et seq.).
            (C) The Federal Nonnuclear Energy Research and 
        Development Act of 1974 (42 U.S.C. 5901 et seq.).
    (b) Charges.--(1) The Secretary shall impose on the 
department, agency, or person or entity for which research and 
other activities are carried out under subsection (a) a charge 
for such research and activities in carrying out such research 
and activities, which shall include--
            (A) the direct cost incurred in carrying out such 
        research and activities; and
            (B) the overhead cost, including site-wide indirect 
        costs, associated with such research and activities.
    (2)(A) Subject to subparagraph (B), the Secretary shall 
also impose on the department, agency, or person or entity 
concerned a Federal administrative charge (which includes any 
depreciation and imputed interest charges) in an amount not to 
exceed 3 percent of the full cost incurred in carrying out the 
research and activities concerned.
    (B) The Secretary may waive the imposition of the Federal 
administrative charge required by subparagraph (A) in the case 
of research and other activities conducted on behalf of small 
business concerns, institutions of higher education, non-profit 
entities, and State and local governments.
    (3) Not later than two years after the date of the 
enactment of this Act, the Secretary shall terminate any waiver 
of charges under section 33 of the Atomic Energy Act of 1954 
(42 U.S.C. 2053) that were made before such date, unless the 
Secretary determines that such waiver should be continued.
    (c) Pilot Program of Reduced Facility Overhead Charges.--
(1) The Secretary may, with the cooperation of participating 
contractors of the contractor-operated facilities of the 
Department, carry out a pilot program under which the Secretary 
and such contractors reduce the facility overhead charges 
imposed under this section for research and other activities 
conducted under this section.
    (2) The Secretary shall carry out the pilot program at 
contractor-operated facilities selected by the Secretary in 
consultation with the contractors concerned.
    (3) The Secretary shall determine the facility overhead 
charges to be imposed under the pilot program at a facility 
based on a joint review by the Secretary and the contractor for 
the facility of all items included in the overhead costs of the 
facility in order to determine which items are appropriately 
incurred as facility overhead charges by the contractor in 
carrying out research and other activities at such facility 
under this section.
    (4) The Secretary shall commence carrying out the pilot 
program under this subsection not later than October 1, 1999, 
and shall terminate the pilot program on September 30, 2003.
    (5) Not later than January 31, 2003, the Secretary shall 
submit to Congress an interim report on the results of the 
pilot program under this subsection. The report shall include 
any recommendations for the extension or expansion of the pilot 
program, including the establishment of multiple rates of 
overhead charges for various categories of persons and entities 
seeking research and other activities in contractor-operated 
facilities of the Department.
    (d) Applicability With Respect to User Fee Practice.--This 
section does not apply to the practice of the Department of 
Energy with respect to user fees at Department facilities.

SEC. 3138. HANFORD OVERHEAD AND SERVICE CENTER COSTS.

    (a) Target for Reduction of Costs.--The Secretary of Energy 
shall establish a target for the overhead and service center 
costs for the Project Hanford Management Contractor for fiscal 
year 1999 that is less than the established baseline for such 
costs for that fiscal year.
    (b) Use of Funds Resulting from Reduction.--If the actual 
overhead and service center costs for that contractor for 
fiscal year 1999 are less than the established baseline for 
such costs for that fiscal year, the Secretary, to the extent 
consistent with fiscal year 1999 appropriations, shall use an 
amount equal to the difference between the baseline and such 
actual costs to perform additional clean-up work at Hanford in 
order to reduce the most threatening environmental risks at 
Hanford and to comply with applicable laws and regulations and 
the Tri-Party Agreement among the Department of Energy, the 
Environmental Protection Agency, and the State of Washington.
    (c) Review.--The Director of the Defense Contract Audit 
Agency shall review the Project Hanford Management Contract for 
compliance with cost accounting standards promulgated pursuant 
to section 26(f) of the Office of Federal Procurement Policy 
Act (42 U.S.C. 422(f)). The review shall include the following:
            (1) An identification and assessment of methods for 
        calculating overhead costs.
            (2) A description of activities the costs of which 
        are allocated to--
                    (A) all accounts at the Hanford site other 
                than overhead accounts; or
                    (B) other contracts under which work is 
                performed at the Hanford site.
            (3) A description of service center costs, 
        including--
                    (A) computer service and information 
                management costs and other support service 
                costs; and
                    (B) costs of any activity which is paid for 
                on a per-unit basis.
            (4) An identification and assessment of all fees, 
        awards, or other profit on overhead or service center 
        costs that are not attributed to performance on a 
        single project or contract.
            (5) An identification and assessment of all 
        contracts awarded without competition.
            (6) An identification and assessment of any other 
        costs that the Director considers necessary or 
        appropriate to present a full and complete review of 
        Hanford costs.
    (d) Report.--Not later than March 1, 1999, the Director of 
the Defense Contract Audit Agency shall submit to the 
congressional defense committees a report on the results of the 
review under subsection (c).

SEC. 3139. HANFORD WASTE TANK CLEANUP PROGRAM REFORMS.

    (a) Establishment of Office of River Protection.--The 
Secretary of Energy shall establish an office at the Hanford 
Reservation, Richland, Washington, to be known as the ``Office 
of River Protection'' (in this section referred to as the 
``Office'').
    (b) Management and Responsibilities of Office.--(1) The 
Office shall be headed by a senior official of the Department 
of Energy, who shall report to the Assistant Secretary of 
Energy for Environmental Management.
    (2) The head of the Office shall be responsible for 
managing all aspects of the Tank Waste Remediation System (also 
referred to as the Hanford Tank Farm operations), including 
those portions under privatization contracts, of the Department 
of Energy at Hanford.
    (c) Department Responsibilities.--The Secretary shall 
provide the manager of the Office with the resources and 
personnel necessary to manage the tank waste privatization 
program at Hanford in an efficient and streamlined manner.
    (d) Integrated Management Plan.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
shall submit to the Committee on Armed Services of the Senate 
and the Committees on Commerce and on National Security of the 
House of Representatives an integrated management plan for all 
aspects of the Hanford Tank Farm operations, including the 
roles, responsibilities, and reporting relationships of the 
Office.
    (e) Report.--Not later than two years after the 
commencement of operations of the Office, the Secretary shall 
submit to the committees referred to in subsection (d) a report 
describing--
            (1) any progress in or resulting from the 
        utilization of the Tank Waste Remediation System; and
            (2) any improvements in the management structure of 
        the Department at Hanford with respect to the Tank 
        Waste Remediation System as a result of the Office.
    (f) Termination.--(1) The Office shall terminate five years 
after the commencement of operations under this section unless 
the Secretary determines that termination on that date would 
disrupt effective management of the Hanford Tank Farm 
operations.
    (2) The Secretary shall notify, in writing, the committees 
referred to in subsection (d) of a determination under 
paragraph (1).

SEC. 3140. HANFORD HEALTH INFORMATION NETWORK.

    Of the funds authorized to be appropriated or otherwise 
made available to the Department of Energy by section 3102, 
$1,500,000 shall be available for activities relating to the 
Hanford Health Information Network established pursuant to the 
authority in section 3138 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1834), 
as amended by section 3138(b) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 3087).

SEC. 3141. HAZARDOUS MATERIALS MANAGEMENT AND EMERGENCY RESPONSE 
                    TRAINING PROGRAM.

    The Secretary of Energy may enter into partnership 
arrangements with Federal and non-Federal entities to share the 
costs of operating the hazardous materials management and 
hazardous materials emergency response training program 
authorized under section 3140(a) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 
Stat. 3088). Such arrangements may include the exchange of 
equipment and services, in lieu of payment for the training 
program.

SEC. 3142. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF LOS ALAMOS 
                    NATIONAL LABORATORY, NEW MEXICO.

    (a) Availability of Funds.--Of the funds authorized to be 
appropriated or otherwise made available to the Department of 
Energy by this title, up to $5,000,000 shall be made available 
for payment by the Secretary of Energy to the educational 
foundation chartered to enhance educational activities in the 
public schools in the vicinity of Los Alamos National 
Laboratory, New Mexico (in this section referred to as the 
``Foundation'').
    (b) Use of Funds.--(1) The Foundation shall utilize funds 
provided under subsection (a) as a contribution to an endowment 
fund for the Foundation.
    (2) The Foundation shall use the income generated from 
investments in the endowment fund that are attributable to the 
payment made under subsection (a) to fund programs to support 
the educational needs of children in public schools in the 
vicinity of Los Alamos National Laboratory.

SEC. 3143. RELOCATION OF NATIONAL ATOMIC MUSEUM, ALBUQUERQUE, NEW 
                    MEXICO.

    The Secretary of Energy shall submit to the congressional 
defense committees a plan for the relocation of the National 
Atomic Museum in Albuquerque, New Mexico.

SEC. 3144. TRITIUM PRODUCTION.

    The Secretary of Energy may not obligate or expend any 
funds authorized to be appropriated or otherwise available to 
the Department of Energy for fiscal year 1999 to implement a 
final decision on the technology to be utilized for tritium 
production, made pursuant to section 3135 of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85; 111 Stat. 2037), until October 1, 1999.

                       Subtitle D--Other Matters

SEC. 3151. STUDY AND PLAN RELATING TO WORKER AND COMMUNITY TRANSITION 
                    ASSISTANCE.

    (a) Study by the General Accounting Office.--
            (1) Study requirement.--The Comptroller General 
        shall conduct a study on the effects of workforce 
        restructuring plans for defense nuclear facilities 
        developed pursuant to section 3161 of the National 
        Defense Authorization Act for Fiscal Year 1993 (42 
        U.S.C. 7274h).
            (2) Matters covered by study.--The study shall 
        cover the four-year period preceding the date of the 
        enactment of this Act and shall include the following:
                    (A) An analysis of the number of jobs 
                created by any employee retraining, education, 
                and reemployment assistance and any community 
                impact assistance provided in each workforce 
                restructuring plan developedpursuant to section 
3161 of the National Defense Authorization Act for Fiscal Year 1993.
                    (B) An analysis of other benefits provided 
                pursuant to such plans, including any 
                assistance provided to community reuse 
                organizations.
                    (C) A description of the funds expended, 
                and the funds obligated but not expended, 
                pursuant to such plans as of the date of the 
                report.
                    (D) A description of the criteria used 
                since October 23, 1992, in providing assistance 
                pursuant to such plans.
                    (E) A comparison of any similar benefits 
                provided--
                            (i) pursuant to such a plan to 
                        employees whose employment at the 
                        defense nuclear facility covered by the 
                        plan is terminated; and
                            (ii) to employees whose employment 
                        at a facility where more than 50 
                        percent of the revenues are derived 
                        from contracts with the Department of 
                        Defense has been terminated as a result 
                        of cancellation, termination, or 
                        completion of contracts with the 
                        Department of Defense and the employees 
                        whose employment is terminated 
                        constitute more than 15 percent of the 
                        employees at that facility.
                    (F) A comparison of--
                            (i) involuntary separation benefits 
                        provided to employees of Department of 
                        Energy contractors and subcontractors 
                        under such plans; and
                            (ii) involuntary separation 
                        benefits provided to employees of the 
                        Federal Government.
                    (G) A comparison of costs to the Federal 
                Government (including costs of involuntary 
                separation benefits) for--
                            (i) involuntary separations of 
                        employees of Department of Energy 
                        contractors and subcontractors; and
                            (ii) involuntary separations of 
                        employees of contractors and 
                        subcontractors of other Federal 
                        Government departments and agencies.
                    (H) A description of the length of service 
                and hiring dates of employees of Department of 
                Energy contractors and subcontractors provided 
                benefits under such plans in the two-year 
                period preceding the date of the enactment of 
                this Act.
            (3) Report on study.--The Comptroller General shall 
        submit a report to Congress on the results of the study 
        not later than March 31, 1999.
            (4) Definition.--In this section, the term 
        ``defense nuclear facility'' has the meaning provided 
        the term ``Department of Energy defense nuclear 
        facility'' in section 3163 of the National Defense 
        Authorization Act for Fiscal Year 1993 (Public Law 102-
        484; 42 U.S.C. 7274j).
    (b) Plan for Termination of Worker and Community Transition 
Program.--Not later than July 1, 1999, the Secretary of Energy 
shall submit to the congressional defense committees a plan to 
terminate the Office of Worker and Community Transition. The 
plan shall include--
            (1) a description of how the authority of the 
        Office would be terminated; and
            (2) a description of how the responsibility to 
        manage downsizing of the contractor workforce of the 
        Department of Energy would be transferred to other 
        offices or programs within the Department.

SEC. 3152. EXTENSION OF AUTHORITY FOR APPOINTMENT OF CERTAIN 
                    SCIENTIFIC, ENGINEERING, AND TECHNICAL PERSONNEL.

    Section 3161(c)(1) of the National Defense Authorization 
Act for Fiscal Year 1995 (42 U.S.C. 7231 note) is amended by 
striking out ``September 30, 1999'' and inserting in lieu 
thereof ``September 30, 2000''.

SEC. 3153. REQUIREMENT FOR PLAN TO MODIFY EMPLOYMENT SYSTEM USED BY 
                    DEPARTMENT OF ENERGY IN DEFENSE ENVIRONMENTAL 
                    MANAGEMENT PROGRAMS.

    (a) Plan Requirement.--Not later than February 1, 1999, the 
Secretary of Energy shall submit to Congress a report 
containing a plan to modify the Federal employment system used 
within the defense environmental management programs of the 
Department of Energy to allow for workforce restructuring in 
those programs.
    (b) Specified Elements of Plan.--The plan shall address 
strategies to recruit and hire--
            (1) individuals with a high degree of scientific 
        and technical competence in the areas of nuclear and 
        toxic waste remediation and environmental restoration; 
        and
            (2) individuals with the necessary skills to manage 
        large construction and environmental remediation 
        projects.
    (c) Legislative Changes.--The plan shall include an 
identification of the provisions of Federal law that would need 
to be changed to allow the Secretary of Energy to restructure 
the Department of Energy defense environmental management 
workforce to hire individuals described in subsection (b), 
while staying within any numerical limitations required by law 
(including section 3161 of Public Law 103-337 (42 U.S.C. 7231 
note)) on employment of such individuals.

SEC. 3154. DEPARTMENT OF ENERGY NUCLEAR MATERIALS COURIERS.

    (a) Maximum Age for Entry into Nuclear Materials Courier 
Force.--Section 3307 of title 5, United States Code, is 
amended--
            (1) in subsection (a), by striking ``and (d)'' and 
        inserting ``(d), (e), and (f)''; and
            (2) by adding at the end the following:
    ``(f) The Secretary of Energy may determine and fix the 
maximum age limit for an original appointment to a position as 
a nuclear materials courier, as defined by section 8331(27) or 
8401(33).''.
    (b) Definition for Purposes of Civil Service Retirement 
System.--Section 8331 of title 5, United States Code, is 
amended--
            (1) by striking ``and'' at the end of paragraph 
        (25);
            (2) by striking the period at the end of paragraph 
        (26) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(27) `Nuclear materials courier'--
                    ``(A) means an employee of the Department 
                of Energy, the duties of whose position are 
                primarily to transport, and provide armed 
                escort and protection during transit of, 
                nuclear weapons, nuclear weapon components, 
                strategic quantities of special nuclear 
                materials or other materials related to 
                national security; and
                    ``(B) includes an employee who is 
                transferred directly to a supervisory or 
                administrative position within the same 
                Department of Energy organization, after 
                performing duties referred to in subparagraph 
                (A) for at least 3 years.''.
    (c) Deductions, Contributions, and Deposits Under CSRS.--
(1) Subsection (a)(1) of section 8334 of title 5, United States 
Code, is amended by striking ``or member of the Capitol 
Police,'' and inserting ``member of the Capitol Police, or 
nuclear materials courier,''.
    (2) Subsection (c) of that section is amended by adding 
after the item for a Member of the Capitol Police the following 
new item:

``Nuclear materials courier............  7.....................  October 1, 1977 to the day before the date of
                                                                  enactment of the Strom Thurmond National
                                                                  Defense Authorization Act for Fiscal Year
                                                                  1999.
                                         7.5...................  The date of enactment of the Strom Thurmond
                                                                  National Defense Authorization Act for Fiscal
                                                                  Year 1999 to December 31, 1998.
                                         7.75..................  January 1, 1999 to December 31, 1999.
                                         7.9...................  January 1, 2000 to December 31, 2000.
                                         8.....................  January 1, 2001 to December 31, 2002.
                                         7.5...................  After December 31, 2002.''.

    (3) Notwithstanding subsection (a)(1) or (k)(1) of section 
8334 of title 5, United States Code, or section 7001(a) of 
Public Law 105-33, during the period beginning on the effective 
date provided for under subsection (n)(1) and ending on 
September 30, 2002, the Department of Energy shall deposit in 
the Treasury of the United States to the credit of the Civil 
Service Retirement and Disability Fund on behalf of each 
nuclear materials courier from whose basic pay a deduction is 
made under such subsection (a)(1) during that period an amount 
equal to 9.01 percent of such basic pay, in lieu of the agency 
contributions otherwise required under such subsection (a)(1) 
during that period.
    (d) Mandatory Separation Under CSRS.--Section 8335(b) of 
title 5, United States Code, is amended in the second 
sentence--
            (1) by inserting ``or nuclear materials courier'' 
        after ``law enforcement officer''; and
            (2) by inserting ``or courier, as the case may 
        be,'' after ``that officer''.
    (e) Immediate Retirement Under CSRS.--Section 8336(c)(1) of 
title 5, United States Code, is amended by striking ``or 
firefighter'' and inserting ``, firefighter, or nuclear 
materials courier''.
    (f) Definition for Purposes of Federal Employees' 
Retirement System.--Section 8401 of title 5, United States 
Code, is amended--
            (1) by striking ``and'' at the end of paragraph 
        (31);
            (2) by striking the period at the end of paragraph 
        (32) and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(33) `Nuclear materials courier' has the meaning 
        given that term in section 8331(27).''.
    (g) Immediate Retirement Under FERS.--Section 8412(d) of 
title 5, United States Code, is amended by striking ``or 
firefighter'' each place it appears in paragraphs (1) and (2) 
and inserting ``firefighter, or nuclear materials courier''.
    (h) Computation of Basic Annuity Under FERS.--Section 
8415(g) of title 5, United States Code, is amended by inserting 
``nuclear materials courier,'' after ``firefighter,''.
    (i) Deductions and Contributions Under FERS.--(1) Section 
8422(a)(3) of title 5, United States Code, is amended by adding 
after the item relating to a law enforcement officer, 
firefighter, member of the Capitol Police, or air traffic 
controller the following new item:

``Nuclear materials courier............  7.....................  January 1, 1987 to the day before the date of
                                                                  enactment of the Strom Thurmond National
                                                                  Defense Authorization Act for Fiscal Year
                                                                  1999.
                                         7.5...................  The date of enactment of the Strom Thurmond
                                                                  National Defense Authorization Act for Fiscal
                                                                  Year 1999 to December 31, 1998.
                                         7.75..................  January 1, 1999 to December 31, 1999.
                                         7.9...................  January 1, 2000 to December 31, 2000.
                                         8.....................  January 1, 2001 to December 31, 2001.
                                         7.5...................  After December 31, 2002.''.

    (2) Contributions under subsections (a) and (b) of section 
8423 of title 5, United States Code, shall not be reduced as a 
result of that portion of the amendment made by paragraph (1) 
requiring employee deductions at a rate in excess of 7.5 
percent for the period beginning on January 1, 1999, and ending 
on December 31, 2002.
    (j) Agency Contributions Under FERS.--Paragraphs (1)(B)(i) 
and (3)(A) of section 8423(a) of title 5, United States Code, 
are each amended by inserting ``nuclear materials couriers,'' 
after ``firefighters,''.
    (k) Mandatory Separation Under FERS.--Section 8425(b) of 
title 5, United States Code, is amended by inserting ``or 
nuclear materials courier'' after ``law enforcement officer'' 
both places it appears in the second sentence.
    (l) Payments.--(1) The Department of Energy shall pay into 
the Civil Service Retirement and Disability Fund an amount 
determined by the Director of the Office of Personnel 
Management to be necessary to reimburse the Fund for any 
estimated increase in the unfunded liability of the Fund 
resulting from the amendments related to the Civil Service 
Retirement System under this section, and for any estimated 
increase in the supplemental liability of the Fund resulting 
from the amendments related to the Federal Employees Retirement 
System under this section.
    (2) The Department shall pay the amount so determined in 
five equal annual installments with interest computed at the 
rate used in the most recent valuation of the Federal Employees 
Retirement System.
    (3) The Department shall make payments under this 
subsection from amounts available for weapons activities of the 
Department.
    (m) Applicability.--Subsections (b) through (l) shall apply 
only to an individual who is employed as a nuclear materials 
courier, as defined by section 8331(27) or 8401(33) of title 5, 
United States Code (as amended by this section), after the 
later of--
            (1) September 30, 1998; or
            (2) the date of the enactment of this Act.
    (n) Effective Dates.--(1) Except as provided in paragraph 
(2), the amendments made by this section shall take effect at 
the beginning of the first pay period that begins after the 
later of--
            (A) October 1, 1998; or
            (B) the date of the enactment of this Act.
    (2)(A) The amendments made by subsection (a) shall take 
effect on the date of the enactment of this Act.
    (B) The amendments made by subsections (d) and (k) shall 
take effect one year after the date of the enactment of this 
Act.

SEC. 3155. INCREASE IN MAXIMUM RATE OF PAY FOR SCIENTIFIC, ENGINEERING, 
                    AND TECHNICAL PERSONNEL RESPONSIBLE FOR SAFETY AT 
                    DEFENSE NUCLEAR FACILITIES.

    Section 3161(a)(2) of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 42 U.S.C. 7231 
note) is amended by striking out ``level IV of the Executive 
Schedule under section 5315'' and inserting in lieu thereof 
``level III of the Executive Schedule under section 5314''.

SEC. 3156. EXTENSION OF AUTHORITY OF DEPARTMENT OF ENERGY TO PAY 
                    VOLUNTARY SEPARATION INCENTIVE PAYMENTS.

    (a) Extension.--Notwithstanding subsection (c)(2)(D) of 
section 663 of the Treasury, Postal Service, and General 
Government Appropriations Act, 1997 (Public Law 104-208; 110 
Stat. 3009-383; 5 U.S.C. 5597 note), the Department of Energy 
may pay voluntary separation incentive payments to qualifying 
employees who voluntarily separate (whether by retirement or 
resignation) before January 1, 2001.
    (b) Exercise of Authority.--The Department shall pay 
voluntary separation incentive payments under subsection (a) in 
accordance with the provisions of such section 663.

SEC. 3157. REPEAL OF FISCAL YEAR 1998 STATEMENT OF POLICY ON STOCKPILE 
                    STEWARDSHIP PROGRAM.

    Section 3156 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2045; 42 U.S.C. 
2121 note) is repealed.

SEC. 3158. REPORT ON STOCKPILE STEWARDSHIP CRITERIA.

    (a) Requirement for Criteria.--The Secretary of Energy 
shall develop clear and specific criteria for judging whether 
the science-based tools being used by the Department of Energy 
for determining the safety and reliability of the nuclear 
weapons stockpile are performing in a manner that will provide 
an adequate degree of certainty that the stockpile is safe and 
reliable.
    (b) Coordination With Secretary of Defense.--The Secretary 
of Energy, in developing the criteria required by subsection 
(a), shall coordinate with the Secretary of Defense.
    (c) Report.--Not later than March 1, 2000, the Secretary of 
Energy shall submit to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives a report on the efforts by the Department of 
Energy to develop the criteria required by subsection (a). The 
report shall include--
            (1) a description of the information needed to 
        determine that the nuclear weapons stockpile is safe 
        and reliable and the relationship of the science-based 
        tools to the collection of that information; and
            (2) a description of the criteria required by 
        subsection (a) to the extent they have been developed 
        as of the date of the submission of the report.

SEC. 3159. PANEL TO ASSESS THE RELIABILITY, SAFETY, AND SECURITY OF THE 
                    UNITED STATES NUCLEAR STOCKPILE.

    (a) Requirement for Panel.--The Secretary of Defense, in 
consultation with the Secretary of Energy, shall enter into a 
contract with a federally funded research and development 
center to establish a panel for the assessment of the 
certification process for the reliability, safety, and security 
of the United States nuclear stockpile.
    (b) Composition and Administration of Panel.--(1) The panel 
shall consist of private citizens of the United States with 
knowledge and expertise in the technical aspects of design, 
manufacture, and maintenance of nuclear weapons.
    (2) The federally funded research and development center 
shall be responsible for establishing appropriate procedures 
for the panel, including selection of a panel chairman.
    (c) Duties of Panel.--Each year the panel shall review and 
assess the following:
            (1) The annual certification process, including the 
        conclusions and recommendations resulting from the 
        process, for the safety, security, and reliability of 
        the nuclear weaponsstockpile of the United States, as 
carried out by the directors of the national weapons laboratories.
            (2) The long-term adequacy of the process of 
        certifying the safety, security, and reliability of the 
        nuclear weapons stockpile of the United States.
            (3) The adequacy of the criteria established by the 
        Secretary of Energy pursuant to section 3158 for 
        achieving the purposes for which those criteria are 
        established.
    (d) Report.--Not later than October 1 of each year, 
beginning with 1999, the panel shall submit to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report setting forth 
its findings and conclusions resulting from the review and 
assessment carried out for the year covered by the report. The 
report shall be submitted in classified and unclassified form.
    (e) Cooperation of Other Agencies.--(1) The panel may 
secure directly from the Department of Energy, the Department 
of Defense, or any of the national weapons laboratories or 
plants or any other Federal department or agency information 
that the panel considers necessary to carry out its duties.
    (2) For carrying out its duties, the panel shall be 
provided full and timely cooperation by the Secretary of 
Energy, the Secretary of Defense, the Commander of United 
States Strategic Command, the Directors of the Los Alamos 
National Laboratory, the Lawrence Livermore National 
Laboratory, the Sandia National Laboratories, the Savannah 
River Site, the Y-12 Plant, the Pantex Facility, and the Kansas 
City Plant, and any other official of the United States that 
the chairman of the panel determines as having information 
described in paragraph (1).
    (3) The Secretary of Energy and the Secretary of Defense 
shall each designate at least one officer or employee of the 
Department of Energy and the Department of Defense, 
respectively, to serve as a liaison officer between the 
department and the panel.
    (f) Funding.--The Secretary of Defense and the Secretary of 
Energy shall each contribute 50 percent of the amount of funds 
that are necessary for the panel to carry out its duties. Funds 
available for the Department of Energy for atomic energy 
defense activities shall be available for the Department of 
Energy contribution.
    (g) Termination of Panel.--The panel shall terminate three 
years after the date of the appointment of the member 
designated as chairman of the panel.
    (h) Initial Implementation.--The Secretary of Defense shall 
enter into the contract required under subsection (a) not later 
than 60 days after the date of the enactment of this Act. The 
panel shall convene its first meeting not later than 30 days 
after the date as of which all members of the panel have been 
appointed.

SEC. 3160. INTERNATIONAL COOPERATIVE INFORMATION EXCHANGE.

    (a) Findings.--Congress finds the following:
            (1) Currently in the post-cold war world, there are 
        new opportunities to facilitate international political 
        and scientific cooperation on cost-effective, advanced, 
        and innovative nuclear management technologies.
            (2) There is increasing public interest in 
        monitoring and remediation of nuclear waste.
            (3) It is in the best interest of the United States 
        to explore and develop options with the international 
        community to facilitate the exchange of evolving 
        advanced nuclear wastes technologies.
    (b) Sense of Congress.--It is the sense of Congress that 
the Secretary of Energy, in consultation with the Secretary of 
State, the Secretary of Defense, the Administrator of the 
Environmental Protection Agency, and other officials as 
appropriate, should prepare and submit to the Committee on 
Armed Services of the Senate and the Committee on National 
Security of the House of Representatives a report containing 
the following:
            (1) An assessment of whether the United States 
        should encourage the establishment of an international 
        project to facilitate the international exchange of 
        information (including costs data) relating to nuclear 
        waste technologies, including technologies for solid 
        and liquid radioactive wastes and contaminated soils 
        and sediments.
            (2) An assessment of whether such a project could 
        be funded privately through industry, public interest, 
        and scientific organizations and administered by an 
        international nongovernmental organization, with 
        operations in the United States, Russia, and other 
        countries that have an interest in developing such 
        technologies.
            (3) A description of the Federal programs that 
        facilitate the exchange of such information and of any 
        added benefit of consolidating such programs into such 
        a project.
            (4) Recommendations for any legislation that the 
        Secretary of Energy believes would be required to 
        enable such a project to be undertaken.

SEC. 3161. PROTECTION AGAINST INADVERTENT RELEASE OF RESTRICTED DATA 
                    AND FORMERLY RESTRICTED DATA.

    (a) Plan for Protection Against Release.--The Secretary of 
Energy and the Archivist of the United States shall, after 
consultation with the members of the National Security Council 
and in consultation with the Secretary of Defense and the heads 
of other appropriate Federal agencies, develop a plan to 
prevent the inadvertent release of records containing 
Restricted Data or Formerly Restricted Data during the 
automatic declassification of records under Executive Order 
12958 (50 U.S.C. 435 note).
    (b) Plan Elements.--The plan under subsection (a) shall 
include the following:
            (1) The actions to be taken in order to ensure that 
        records subject to Executive Order 12958 are reviewed 
        on a page-by-page basis for Restricted Data and 
        Formerly Restricted Data unless they have been 
        determined to be highly unlikely to contain Restricted 
        Data or Formerly Restricted Data.
            (2) The criteria and process by which documents are 
        determined to be highly unlikely to contain Restricted 
        Data or Formerly Restricted Data.
            (3) The actions to be taken in order to ensure 
        proper training, supervision, and evaluation of 
        personnel engaged in declassification under that 
        Executive Order so that such personnel recognize 
        Restricted Data and Formerly Restricted Data.
            (4) The extent to which automated declassification 
        technologies will be used under that Executive Order to 
        protect Restricted Data and Formerly Restricted Data 
        from inadvertent release.
            (5) Procedures for periodic review and evaluation 
        by the Secretary of Energy, in consultation with the 
        Director of the Information Security Oversight Office 
        of the National Archives and Records Administration, of 
        compliance by Federal agencies with the plan.
            (6) Procedures for resolving disagreements among 
        Federal agencies regarding declassification procedures 
        and decisions under the plan.
            (7) The funding, personnel, and other resources 
        required to carry out the plan.
            (8) A timetable for implementation of the plan.
    (c) Limitation on Declassification of Certain Records.--(1) 
Effective on the date of the enactment of this Act and except 
as provided in paragraph (3), a record referred to in 
subsection (a) may not be declassified unless the agency having 
custody of the record reviews the record on a page-by-page 
basis to ensure that the record does not contain Restricted 
Data or Formerly Restricted Data.
    (2) Any record determined as a result of a review under 
paragraph (1) to contain Restricted Data or Formerly Restricted 
Data may not be declassified until the Secretary of Energy, in 
conjunction with the head of the agency having custodyof the 
record, determines that the document is suitable for declassification.
    (3) After the date occurring 60 days after the submission 
of the plan required by subsection (a) to the committees 
referred to in paragraphs (1) and (2) of subsection (d), the 
requirement under paragraph (1) to review a record on a page-
by-page basis shall not apply in the case of a record 
determined, under the actions specified in the plan pursuant to 
subsection (b)(1), to be a record that is highly unlikely to 
contain Restricted Data or Formerly Restricted Data.
    (d) Submission of Plan.--The Secretary of Energy shall 
submit the plan required under subsection (a) to the following:
            (1) The Committee on Armed Services of the Senate.
            (2) The Committee on National Security of the House 
        of Representatives.
            (3) The Assistant to the President for National 
        Security Affairs.
    (e) Submission of Reviews.--The Secretary of Energy shall, 
on a periodic basis, submit a summary of the results of the 
periodic reviews and evaluations specified in the plan pursuant 
to subsection (b)(4) to the committees and Assistant to the 
President specified in subsection (d).
    (f) Report and Notification Regarding Inadvertent 
Releases.--(1) The Secretary of Energy shall submit to the 
committees and Assistant to the President specified in 
subsection (d) a report on inadvertent releases of Restricted 
Data or Formerly Restricted Data under Executive Order 12958 
that occurred before the date of the enactment of this Act.
    (2) Not later than 30 days after any such inadvertent 
release occurring after the date of the enactment of this Act, 
the Secretary of Energy shall notify the committees and 
Assistant to the President specified in subsection (d) of such 
releases.
    (g) Definition.--In this section, the term ``Restricted 
Data'' has the meaning given that term in section 11 y. of the 
Atomic Energy Act of 1954 (42 U.S.C. 2014(y)).

SEC. 3162. SENSE OF CONGRESS REGARDING TREATMENT OF FORMERLY UTILIZED 
                    SITES REMEDIAL ACTION PROGRAM UNDER A NONDEFENSE 
                    DISCRETIONARY BUDGET FUNCTION.

    It is the sense of Congress that the Office of Management 
and Budget should, beginning with fiscal year 2000, transfer 
the Formerly Utilized Sites Remedial Action Program from the 
National Defense budget function (budget function 050) to a 
nondefense discretionary budget function.

SEC. 3163. REPORTS RELATING TO TRITIUM PRODUCTION.

    (a) Report on Tritium Production Technology Options.--(1) 
The Secretary of Defense, in consultation with the Secretary of 
Energy, shall establish a task force of the Defense Science 
Board to examine tritium production technology options.
    (2) The task force shall examine the following issues:
            (A) The risk associated with the design, 
        construction, operation, and cost of each option for 
        tritium production under consideration.
            (B) The implications for nuclear weapons 
        proliferation of each such option.
            (C) The extent to which each such option 
        contributes to the capability of the Government to 
        reliably meet the national defense requirements of the 
        United States.
            (D) Any other factors that the Secretary of Defense 
        or the Secretary of Energy considers appropriate.
    (3) The task force shall submit to the Secretary of Defense 
and the Secretary of Energy a report on the results of its 
examination. The Secretaries shall submit the report to 
Congress not later than June 30, 1999.
    (b) Report on Test Program for Tritium Production at Watts 
Bar.--(1) The Secretary of Energy shall submit to the 
congressional defense committees a report on the results of the 
test program at the Watts Bar Nuclear Station, Tennessee, after 
the test program is completed and the results of the program 
are evaluated. The report shall include--
            (A) data on the performance of the test rods, 
        including any leakage of tritium from the test rods;
            (B) the amount of tritium produced during the test;
            (C) the performance of the reactor during the test; 
        and
            (D) any other technical findings resulting from the 
        test.
    (2) The Secretary of Energy shall submit to the 
congressional defense committees an interim report on the test 
program not later than 60 days after the test rods are removed 
from the Watts Bar reactor.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 
1999, $17,500,000 for the operation of the Defense Nuclear 
Facilities Safety Board under chapter 21 of the Atomic Energy 
Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Definitions.
Sec. 3302. Authorized uses of stockpile funds.
Sec. 3303. Authority to dispose of certain materials in National Defense 
          Stockpile.
Sec. 3304. Use of stockpile funds for certain environmental remediation, 
          restoration, waste management, and compliance activities.

SEC. 3301. DEFINITIONS.

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

SEC. 3302. AUTHORIZED USES OF STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 
1999, the National Defense Stockpile Manager may obligate up to 
$83,000,000 of the funds in the National Defense Stockpile 
Transaction Fund for the authorized uses of such funds under 
section 9(b)(2) of the Strategic and Critical Materials Stock 
Piling Act (50 U.S.C. 98h(b)(2)), including the disposal of 
hazardous materials that are environmentally sensitive.
    (b) Additional Obligations.--The National Defense Stockpile 
Manager may obligate amounts in excess of the amount specified 
in subsection (a) if the National Defense Stockpile Manager 
notifies Congress that extraordinary or emergency conditions 
necessitate the additional obligations. The National Defense 
Stockpile Manager may make the additional obligations described 
in the notification after the end of the 45-day period 
beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section 
shall be subject to such limitations as may be provided in 
appropriations Acts.

SEC. 3303. AUTHORITY TO DISPOSE OF CERTAIN MATERIALS IN NATIONAL 
                    DEFENSE STOCKPILE.

    (a) Disposal Required.--Subject to subsection (c), the 
President shall dispose of materials contained in the National 
Defense Stockpile and specified in the table in subsection (b) 
so as to result in receipts to the United States in the amount 
of--
            (1) $105,000,000 by the end of fiscal year 1999;
            (2) $460,000,000 by the end of fiscal year 2002;
            (3) $555,000,000 by the end of fiscal year 2003; 
        and
            (4) $590,000,000 by the end of fiscal year 2005.
    (b) Limitation on Disposal Quantity.--The total quantities 
of materials authorized for disposal by the President under 
subsection (a) may not exceed the amounts set forth in the 
following table:

                     Authorized Stockpile Disposals
------------------------------------------------------------------------
   Material for disposal                              Quantity
------------------------------------------------------------------------
Bauxite Refractory........................  29,000 long calcined ton
Beryllium Metal...........................  100 short tons
Chromite Chemical.........................  34,000 short dry tons
Chromite Refractory.......................  159,000 short dry tons
Chromium Ferroalloy.......................  125,000 short tons
Columbium Carbide Powder..................  21,372 pounds of contained
                                             Columbium
Columbium Concentrates....................  1,733,454 pounds of
                                             contained Columbium
Columbium Ferro...........................  249,396 pounds of contained
                                             Columbium
Columbium Metal--Ingots...................  161,123 pounds of contained
                                             Columbium
Diamond, Stones...........................  3,000,000 carats
Germanium Metal...........................  28,198 kilograms
Graphite Natural Ceylon Lump..............  5,492 short tons
Indium....................................  14,248 troy ounces
Mica Muscovite Block......................  301,000 pounds
Mica Phlogopite Block.....................  130,745 pounds
Platinum..................................  439,887 troy ounces
Platinum--Iridium.........................  4,450 troy ounces
Platinum--Palladium.......................  750,000 troy ounces
Tantalum Carbide Powder...................  22,688 pounds of contained
                                             Tantalum
Tantalum Metal Ingots.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Metal Powder.....................  125,000 pounds of contained
                                             Tantalum
Tantalum Minerals.........................  1,751,364 pounds contained
                                             of Tantalum
Tantalum Oxide............................  122,730 pounds contained of
                                             Tantalum
Tungsten Carbide Powder...................  2,032,896 pounds of
                                             contained Tungsten
Tungsten Ferro............................  2,024,143 pounds of
                                             contained Tungsten
Tungsten Metal Powder.....................  1,898,009 pounds of
                                             contained Tungsten
Tungsten Ores & Concentrates..............  76,358,235 pounds of
                                             contained Tungsten
------------------------------------------------------------------------

    (c) Minimization of Disruption and Loss.--The President may 
not dispose of materials under subsection (a) to the extent 
that the disposal will result in--
            (1) undue disruption of the usual markets of 
        producers, processors, and consumers of the materials 
        proposed for disposal; or
            (2) avoidable loss to the United States.
    (d) Treatment of Receipts.--Notwithstanding section 9 of 
the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h), funds received as a result of the disposal of 
materials authorized for disposal under subsection (a) shall be 
treated as follows:
            (1) The following amounts shall be transferred to 
        the Secretary of Health and Human Services, to be 
        credited in the manner determined by the Secretary to 
        the Federal Hospital Insurance Trust Fund and the 
        Federal Supplementary Medical Insurance Trust Fund:
                    (A) $3,000,000 during fiscal year 1999.
                    (B) $22,000,000 during fiscal year 2000.
                    (C) $28,000,000 during fiscal year 2001.
                    (D) $31,000,000 during fiscal year 2002.
                    (E) $8,000,000 during fiscal year 2003.
            (2) The balance of the funds received shall be 
        deposited into the general fund of the Treasury.
    (e) Relationship to Other Disposal Authority.--The disposal 
authority provided in subsection (a) is new disposal authority 
and is in addition to, and shall not affect, any other disposal 
authority provided by law regarding the materials specified in 
such subsection.
    (f) Authorization of Sale.--The authority provided by this 
section to dispose of materials contained in the National 
Defense Stockpile so as to result in receipts of $100,000,000 
of the amount specified for fiscal year 1999 in subsection (a) 
by the end of that fiscal year shall be effective only to the 
extent provided in advance in appropriation Acts.

SEC. 3304. USE OF STOCKPILE FUNDS FOR CERTAIN ENVIRONMENTAL 
                    REMEDIATION, RESTORATION, WASTE MANAGEMENT, AND 
                    COMPLIANCE ACTIVITIES.

    Section 9(b)(2) of the Strategic and Critical Materials 
Stock Piling Act (50 U.S.C. 98h(b)(2)) is amended--
            (1) by redesignating subparagraphs (J) and (K) as 
        subparagraphs (K) and (L), respectively; and
            (2) by inserting after subparagraph (I) the 
        following new subparagraph (J):
            ``(J) Performance of environmental remediation, 
        restoration, waste management, or compliance activities 
        at locations of the stockpile that are required under a 
        Federal law or are undertaken by the Government under 
        an administrative decision or negotiated agreement.''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

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

SEC. 3401. DEFINITIONS.

    In this title:
            (1) The term ``naval petroleum reserves'' has the 
        meaning given the term in section 7420(2) of title 10, 
        United States Code.
            (2) The term ``Naval Petroleum Reserve Numbered 2'' 
        means the naval petroleum reserve, commonly referred to 
        as the Buena Vista unit, that is located in Kern 
        County, California, and was established by Executive 
        order of the President, dated December 13, 1912.
            (3) The term ``Naval Petroleum Reserve Numbered 3'' 
        means the naval petroleum reserve, commonly referred to 
        as the Teapot Dome unit, that is located in the State 
        of Wyoming and was established by Executive order of 
        the President, dated April 30, 1915.
            (4) The term ``Oil Shale Reserve Numbered 2'' means 
        the naval petroleum reserve that is located in the 
        State of Utah and was established by Executive order of 
        the President, dated December 6, 1916.
            (5) The term ``antitrust laws'' means has the 
        meaning given the term in section 1(a) of the Clayton 
        Act (15 U.S.C. 12(a)), except that the term also 
        includes--
                    (A) the Act of June 19, 1936 (15 U.S.C. 13 
                et seq.; commonly known as the Robinson-Patman 
                Act); and
                    (B) section 5 of the Federal Trade 
                Commission Act (15 U.S.C. 45), to the extent 
                that such section applies to unfair methods of 
                competition.
            (6) The term ``petroleum'' has the meaning given 
        the term in section 7420(3) of title 10, United States 
        Code.

SEC. 3402. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are hereby authorized to be appropriated 
to the Secretary of Energy $22,500,000 for fiscal year 1999 for 
the purpose of carrying out--
            (1) activities under chapter 641 of title 10, 
        United States Code, relating to the naval petroleum 
        reserves;
            (2) closeout activities at Naval Petroleum Reserve 
        Numbered 1 upon the sale of that reserve under subtitle 
        B of title XXXIV of the National Defense Authorization 
        Act for fiscal year 1996 (Public Law 104-106; 10 U.S.C. 
        7420 note); and
            (3) activities under this title relating to the 
        disposition of Naval Petroleum Reserve Numbered 2, 
        Naval Petroleum Reserve Numbered 3, and Oil Shale 
        Reserve Numbered 2.
    (b) Period of Availability.--Funds appropriated pursuant to 
the authorization of appropriations in subsection (a) shall 
remain available until expended.

SEC. 3403. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 2.

    (a) Disposal of Ford City Lots Authorized.--(1) Subject to 
section 3406, the Secretary of Energy may dispose of the 
portion of Naval Petroleum Reserve Numbered 2 that is located 
within the town lots in Ford City, California, which are 
identified as ``Drill Sites Numbered 3A, 4, 6, 9A, 20, 22, 24, 
and 26'' and described in the document entitled ``Ford City 
Drill Site Locations--NPR-2,'' and accompanying maps on file in 
the office of the Deputy Assistant Secretary for Naval 
Petroleum and Oil Shale Reserves of the Department of Energy.
    (2) The Secretary of Energy shall carry out the disposal 
authorized by paragraph (1) by competitive sale or lease 
consistent with commercial practices, by transfer to another 
Federal agency or a public or private entity, or by such other 
means as the Secretary considers appropriate. Any competitive 
sale or lease under this subsection shall provide for the 
disposal of all right, title, and interest of the United States 
in the property to be conveyed. The Secretary of Energy may use 
the authority provided by the Act of June 14, 1926 (43 U.S.C. 
869 et seq.; commonly known as the Recreation and Public 
Purposes Act), in the same manner and to the same extent as the 
Secretary of the Interior, to dispose of the portion of Naval 
Petroleum Reserve Numbered 2 described in paragraph (1).
    (3) Section 2696(a) of title 10, United States Code, 
regarding the screening of real property for further Federal 
use before disposal, shall apply to the disposal authorized by 
paragraph (1).
    (b) Transfer of Administrative Jurisdiction Authorized.--
(1) The Secretary of Energy shall continue to administer Naval 
Petroleum Reserve Numbered 2 (other than the portion of the 
reserve authorized for disposal under subsection (a)) in 
accordance with chapter 641 of title 10, United States Code, 
until such time as the Secretary makes a determination to 
abandon oil and gas operations in Naval Petroleum Reserve 
Numbered 2 in accordance with commercial operating practices.
    (2) After oil and gas operations are abandoned in Naval 
Petroleum Reserve Numbered 2, the Secretary of Energy may 
transfer to the Secretary of the Interior administrative 
jurisdiction and control over all public domain lands included 
within Naval Petroleum Reserve Numbered 2 (other than the 
portion of the reserve authorized for disposal under subsection 
(a)) for management in accordance with the general land laws.
    (c) Relationship to Antitrust Laws.--This section does not 
modify, impair, or supersede the operation of the antitrust 
laws.

SEC. 3404. DISPOSAL OF NAVAL PETROLEUM RESERVE NUMBERED 3.

    (a) Administration Pending Termination of Operations.--The 
Secretary of Energy shall continue to administer Naval 
Petroleum Reserve Numbered 3 in accordance with chapter 641 of 
title 10, United States Code, until such time as the Secretary 
makes a determination to abandon oil and gas operationsin Naval 
Petroleum Reserve Numbered 3 in accordance with commercial operating 
practices.
    (b) Disposal Authorized.--After oil and gas operations are 
abandoned in Naval Petroleum Reserve Numbered 3, the Secretary 
of Energy may dispose of the reserve as provided in this 
subsection. Subject to section 3406, the Secretary shall carry 
out any such disposal of the reserve by sale or lease or by 
transfer to another Federal agency. Any sale or lease shall 
provide for the disposal of all right, title, and interest of 
the United States in the property to be conveyed and shall be 
conducted in accordance with competitive procedures consistent 
with commercial practices, as established by the Secretary.
    (c) Relationship to Antitrust Laws.--This section does not 
modify, impair, or supersede the operation of the antitrust 
laws.

SEC. 3405. DISPOSAL OF OIL SHALE RESERVE NUMBERED 2.

    (a) Transfer of Administrative Jurisdiction Authorized.--
Subject to section 3406, the Secretary of Energy may transfer 
to the Secretary of the Interior administrative jurisdiction 
and control over all public domain lands included within Oil 
Shale Reserve Numbered 2 for management in accordance with the 
general land laws.
    (b) Relationship to Indian Reservation.--The transfer of 
administrative jurisdiction under this section does not affect 
any interest, right, or obligation respecting the Uintah and 
Ouray Indian Reservation located in Oil Shale Reserve Numbered 
2.

SEC. 3406. ADMINISTRATION.

    (a) Protection of Existing Rights.--At the discretion of 
the Secretary of Energy, the disposal of property under this 
title shall be subject to any contract related to the United 
States ownership interest in the property in effect at the time 
of disposal, including any lease agreement pertaining to the 
United States interest in Naval Petroleum Reserve Numbered 2.
    (b) Deposit of Receipts.--Notwithstanding any other law, 
all monies received by the United States from the disposal of 
property under this title, including any monies received from a 
lease entered into under this title, shall be deposited in the 
general fund of the Treasury.
    (c) Treatment of Royalties.--Any petroleum accruing to the 
United States as royalty from any lease of lands transferred 
under this title shall be delivered to the United States, or 
shall be paid for in money, as the Secretary of the Interior 
may elect.
    (d) Elements of Lease.--A lease under this title may 
provide for the exploration for, and development and production 
of, petroleum, other than petroleum in the form of oil shale.
    (e) Waiver of Requirements Regarding Consultation and 
Approval.--Section 7431 of title 10, United States Code, shall 
not apply to the disposal of property under this title.

                  TITLE XXXV--PANAMA CANAL COMMISSION

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

SEC. 3501. SHORT TITLE; REFERENCES TO PANAMA CANAL ACT OF 1979.

    (a) Short Title.--This title may be cited as the ``Panama 
Canal Commission Authorization Act for Fiscal Year 1999''.
    (b) References to Panama Canal Act of 1979.--Except as 
otherwise expressly provided, whenever in this title an 
amendment or repeal is expressed in terms of an amendment to, 
or repeal of, a section or other provision, the reference shall 
be considered to be made to a section or other provision of the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).

SEC. 3502. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama 
Canal Commission is authorized to use amounts in the Panama 
Canal Revolving Fund to make such expenditures within the 
limits of funds and borrowing authority available to it in 
accordance with law, and to make such contracts and 
commitments, as may be necessary under the Panama Canal Act of 
1979 (22 U.S.C. 3601 et seq.) for the operation, maintenance, 
improvement, and administration of the Panama Canal for fiscal 
year 1999.
    (b) Limitations.--For fiscal year 1999, the Panama Canal 
Commission may expend from funds in the Panama Canal Revolving 
Fund not more than $100,000 for official reception and 
representation expenses, of which--
            (1) not more than $28,000 may be used for official 
        reception and representation expenses of the 
        Supervisory Board of the Commission;
            (2) not more than $14,000 may be used for official 
        reception and representation expenses of the Secretary 
        of the Commission; and
            (3) not more than $58,000 may be used for official 
        reception and representation expenses of the 
        Administrator of the Commission.

SEC. 3503. PURCHASE OF VEHICLES.

    Notwithstanding any other provision of law, the funds 
available to the Commission shall be available for the purchase 
and transportation to the Republic of Panama of passenger motor 
vehicles, the purchase price of which shall not exceed $23,000 
per vehicle.

SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH TREATIES.

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

SEC. 3505. DONATIONS TO THE COMMISSION.

    Section 1102b (22 U.S.C. 3612b) is amended by adding at the 
end the following new subsection:
    ``(f)(1) The Commission may seek and accept donations of 
funds, property, and services from individuals, foundations, 
corporations, and other private and public entities for the 
purpose of carrying out its promotional activities.
    ``(2) The Commission shall establish written guidelines 
setting forth the criteria to be used in determining whether 
the acceptance of funds, property, or services authorized by 
paragraph (1) would reflect unfavorably upon the ability of the 
Commission (or any employee of the Commission) to carry out its 
responsibilities or official duties in a fair and objective 
manner or would compromise the integrity or the appearance of 
the integrity of its programs or of any official in those 
programs.''.

SEC. 3506. AGREEMENTS FOR UNITED STATES TO PROVIDE POST-TRANSFER 
                    ADMINISTRATIVE SERVICES FOR CERTAIN EMPLOYEE 
                    BENEFITS.

    Section 1110 (22 U.S.C. 3620) is amended by adding at the 
end the following new subsection:
    ``(c)(1) The Secretary of State may enter into one or more 
agreements to provide for the United States to furnish 
administrative services relating to the benefits described in 
paragraph (2) after December 31, 1999, and to establish 
appropriate procedures for providing advance funding for the 
services.
    ``(2) The benefits referred to in paragraph (1) are the 
following:
            ``(A) Pension, disability, and medical benefits 
        provided by the Panama Canal Commission pursuant to 
        section 1245.
            ``(B) Compensation for work injuries covered by 
        chapter 81 of title 5, United States Code.''.

SEC. 3507. SUNSET OF UNITED STATES OVERSEAS BENEFITS JUST BEFORE 
                    TRANSFER.

    (a) Repeals.--Effective 11:59 p.m. (Eastern Standard Time), 
December 30, 1999, the following provisions are repealed and 
any right or condition of employment provided for in, or 
arising from, those provisions is terminated: sections 1206 (22 
U.S.C. 3646), 1207 (22 U.S.C. 3647), 1217(a) (22 U.S.C. 
3657(a)), and 1224(11) (22 U.S.C. 3664(11)), subparagraphs (A), 
(B), (F), (G), and (H) of section 1231(a)(2) (22 U.S.C. 
3671(a)(2)) and section 1321(e) (22 U.S.C. 3731(e)).
    (b) Savings Provision for Basic Pay.--Notwithstanding 
subsection (a), benefits based on basic pay, as listed in 
paragraphs (1), (2), (3), (5), and (6) of section 1218 of the 
Panama Canal Act of 1979, shall be paid as if sections 1217(a) 
and 1231(a)(2) (A) and (B) of that Act had been repealed 
effective 12:00 noon, December 31, 1999. The exception under 
the preceding sentence shall not apply to any pay for hours of 
work performed on December 31, 1999.
    (c) Nonapplicability to Agencies in Panama Other Than 
Panama Canal Commission.--Section 1212(b)(3) (22 U.S.C. 
3652(b)(3)) is amended by striking out ``the Panama Canal 
Transition Facilitation Act of 1997'' and inserting in lieu 
thereof ``the Panama Canal Transition Facilitation Act of 1997 
(subtitle B of title XXXV of Public Law 105-85; 110 Stat. 
2062), or the Panama Canal Commission Authorization Act for 
Fiscal Year 1999''.

SEC. 3508. CENTRAL EXAMINING OFFICE.

    (a) Repeal.--Section 1223 (22 U.S.C. 3663) is repealed.
    (b) Clerical Amendment.--The table of contents in section 1 
is amended by striking out the item relating to section 1223.

SEC. 3509. LIABILITY FOR VESSEL ACCIDENTS.

    (a) Commission Liability Subject to Claimant Insurance.--
(1) Section 1411(a) (22 U.S.C. 3771(a)) is amended by inserting 
``to section 1419(b) of this Act and'' after ``Subject'' in the 
first sentence.
    (2) Section 1412 (22 U.S.C. 3772) is amended by striking 
out ``The Commission'' in the first sentence and inserting in 
lieu thereof ``Subject to section 1419(b) of this Act, the 
Commission''.
    (3) Section 1416 (22 U.S.C. 3776) is amended by striking 
out ``A claimant'' in the first sentence and inserting in lieu 
thereof ``Subject to section 1419(b) of this Act, a claimant''.
    (b) Authority to Require Claimants To Be Covered by 
Insurance.--Section 1419 (22 U.S.C. 3779) is amended--
            (1) by inserting ``(a)'' before ``The Commission''; 
        and
            (2) by adding at the end the following:
    ``(b)(1) The Commission may by regulation require as a 
condition of transit through the Panama Canal or presence in 
the Panama Canal or waters adjacent thereto that any potential 
claimant under section 1411 or 1412 of this Act be covered by 
insurance against the types of injuries described in those 
sections. The amount of insurance so required shall be 
specified in those regulations, but may not exceed $1,000,000.
    ``(2) In a claim under section 1411 or 1412 of this Act for 
which the Commission has required insurance under 
thissubsection, the Commission's liability shall be limited to the 
amount of damages in excess of the amount of insurance required by the 
Commission.
    ``(3) In regulations under this subsection, the Commission 
may prohibit consideration or payment by it of claims presented 
by or on behalf of an insurer or subrogee of a claimant in a 
case for which the Commission has required insurance under this 
subsection.''.

SEC. 3510. PANAMA CANAL BOARD OF CONTRACT APPEALS.

    (a) Establishment and Pay of Board.--Section 3102(a) (22 
U.S.C. 3862(a)) is amended--
            (1) in paragraph (1), by striking out ``shall'' in 
        the first sentence and inserting in lieu thereof 
        ``may''; and
            (2) by adding at the end the following new 
        paragraph:
    ``(3) Compensation for members of the Board of Contract 
Appeals shall be established by the Commission's supervisory 
board. The annual compensation established for members may not 
exceed the rate of basic pay established for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code. The compensation of a member may not be reduced during 
the member's term of office from the level established at the 
time of the appointment of the member.''.
    (b) Deadline for Commencement of Board.--Section 3102(e) 
(22 U.S.C. 3862(e)) is amended by striking out ``, but not 
later than January 1, 1999''.

SEC. 3511. RESTATEMENT OF REQUIREMENT THAT SECRETARY OF DEFENSE 
                    DESIGNEE ON PANAMA CANAL COMMISSION SUPERVISORY 
                    BOARD BE A CURRENT OFFICER OF THE DEPARTMENT OF 
                    DEFENSE.

    (a) Authority.--Section 1102(a) (22 U.S.C. 3612(a)) is 
amended--
            (1) by striking out the first sentence and 
        inserting in lieu thereof the following: ``The 
        Commission shall be supervised by a Board composed of 
        nine members, one of whom shall be an officer of the 
        Department of Defense. The officer of the Department of 
        Defense who shall serve on the Board shall be 
        designated by the Secretary of Defense and may continue 
        to serve on the Board only while continuing to serve as 
        an officer of the Department of Defense.''; and
            (2) in the last sentence, by striking out 
        ``Secretary of Defense or a designee of the Secretary 
        of Defense'' and inserting in lieu thereof ``the 
        officer of the Department of Defense designated by the 
        Secretary of Defense to be a member of the Board''.
    (b) Repeal of Superseded Provision.--Section 302 of Public 
Law 105-18 (111 Stat. 168) is repealed.

SEC. 3512. TECHNICAL AMENDMENTS.

    (a) Panama Canal Act of 1979.--The Panama Canal Act of 1979 
is amended as follows:
            (1) Section 1202(c) (22 U.S.C. 3642(c)) is 
        amended--
                    (A) by striking out ``the day before the 
                date of the enactment of the Panama Canal 
                Transition Facilitation Act of 1997'' and 
                inserting in lieu thereof ``November 17, 
                1997,'';
                    (B) by striking out ``on or after that 
                date''; and
                    (C) by striking out ``the day before the 
                date of enactment'' and inserting in lieu 
                thereof ``that date''.
            (2) Section 1212(b)(3) (22 U.S.C. 3652(b)(3)) is 
        amended by inserting ``the'' after ``by the head of''.
            (3) Section 1313 (22 U.S.C. 3723) is amended by 
        striking out ``subsection (d)'' in each of subsections 
        (a), (b), and (d) and inserting in lieu thereof 
        ``subsection (c)''.
            (4) Sections 1411(a) and 1412 (22 U.S.C. 3771(a), 
        3772) are amended by striking out ``the date of the 
        enactment of the Panama Canal Transition Facilitation 
        Act of 1997'' and inserting in lieu thereof ``by 
        November 18, 1998''.
            (5) Section 1416 (22 U.S.C. 3776) is amended by 
        striking out ``the date of the enactment of the Panama 
        Canal Transition Facilitation Act of 1997'' and 
        inserting in lieu thereof ``by May 17, 1998''.
    (b) Public Law 104-201.--Effective as of September 23, 
1996, and as if included therein as enacted, section 3548(b)(3) 
of the Panama Canal Act Amendments of 1996 (subtitle B of title 
XXXV of Public Law 104-201; 110 Stat. 2869) is amended by 
striking out ``section'' in both items of quoted matter and 
inserting in lieu thereof ``sections''.

                  TITLE XXXVI--MARITIME ADMINISTRATION

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

SEC. 3601. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 1999.

    Funds are hereby authorized to be appropriated for fiscal 
year 1999, to be available without fiscal year limitation if so 
provided in appropriations Act, for the use of the Department 
of Transportation for the Maritime Administration as follows:
            (1) For expenses necessary for operations and 
        training activities, $70,553,000.
            (2) For expenses under the loan guarantee program 
        authorized by title XI of the Merchant Marine Act, 1936 
        (46 U.S.C. App. 1271 et seq.), $20,000,000 of which--
                    (A) $16,000,000 is for the cost (as defined 
                in section 502(5) of the Federal Credit Reform 
                Act of 1990 (2 U.S.C. 661a(5))) of loan 
                guarantees under the program; and
                    (B) $4,000,000 is for administrative 
                expenses related to loan guarantee commitments 
                under the program.

SEC. 3602. AUTHORITY TO CONVEY NATIONAL DEFENSE RESERVE FLEET VESSEL.

    (a) Authority To Convey.--The Secretary of Transportation 
may convey all right, title, and interest of the United States 
Government in and to the vessel M/V BAYAMON (United States 
official number 530007) to a purchaser for use as a self-
propelled floating trade exposition to showcase United States 
technology, industrial products, and services.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection 
        (a), the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is 
                located on the date of conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the United States 
                Government.
            (2) Required conditions.--The Secretary may not 
        convey a vessel under this section unless--
                    (A) competitive procedures are used for 
                sales under this section;
                    (B) the vessel is sold for not less than 
                the fair market value of the vessel in the 
                United States, as determined by the Secretary 
                of Transportation;
                    (C) the recipient agrees that any repair, 
                except for emergency repairs, restoration, or 
                reconstruction work for the vessel will be 
                performed in the United States;
                    (D) the recipient agrees to hold the 
                Government harmless for any claims arising from 
                exposure to hazardous material, including 
                asbestos and polychlorinated biphenyls, after 
                the conveyance of the vessel, except for claims 
                arising before the date of the conveyance or 
                from use of the vessel by the Government after 
                that date; and
                    (E) the recipient provides sufficient 
                evidence to the Secretary that it has adequate 
                financial resources in the form of cash, liquid 
                assets, or a written loan commitment to 
                complete the reconstruction of the vessel.
            (3) Additional terms.--The Secretary may require 
        such additional terms in connection with the conveyance 
        authorized by this section as the Secretary considers 
        appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of the M/V BAYAMON shall be deposited in 
the Vessel Operations Revolving Fund established by section 801 
of the Act of June 2, 1951 (65 Stat. 59; 46 U.S.C. App. 1241a) 
and shall be available and expended in accordance with section 
6(a) of the National Maritime Heritage Act (16 U.S.C. App. 
5405(a)).

SEC. 3603. AUTHORITY TO CONVEY CERTAIN NATIONAL DEFENSE RESERVE FLEET 
                    VESSELS.

    (a) Authority To Convey.--The Secretary of Transportation 
may convey all right, title, and interest of the United States 
Government in and to the vessels BENJAMIN ISHERWOOD (TAO-191) 
and HENRY ECKFORD (TAO-192) to a purchaser for the limited 
purpose of reconstruction of those vessels for sale or charter 
to a North Atlantic Treaty Organization country for full use as 
an oiler.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection 
        (a), the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is 
                located on the date of the conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the United States 
                Government.
            (2) Required conditions.--The Secretary may not 
        convey a vessel under this section unless--
                    (A) competitive procedures are used for 
                sales under this section;
                    (B) the vessel is sold for not less than 
                the fair market value of the vessel in the 
                United States, as determined by the Secretary 
                of Transportation;
                    (C) the recipient agrees that any repair, 
                except for emergency repairs, restoration, or 
                reconstruction work for the vessel will be 
                performed in the United States;
                    (D) the recipient agrees to hold the 
                Government harmless for any claims arising from 
                defects in the vessel or from exposure to 
                hazardous material, including asbestos and 
                polychlorinated biphenyls, after the conveyance 
                of the vessel, except for claims arising before 
                the date of the conveyance or from use of the 
                vessel by the Government after that date;
                    (E) the recipient provides sufficient 
                evidence to the Secretary that it has adequate 
                financial resources in the form of cash, liquid 
                assets, or a written loan commitment to 
                complete the reconstruction of the vessel; and
                    (F) with respect to the vessel, the 
                recipient remains subject to all laws and 
                regulations governing the export of military 
                items, including the requirements administered 
                by the Department of State regarding export 
                licenses and certification of nontransfer end 
                use.
            (3) Additional terms.--The Secretary may require 
        such additional terms in connection with a conveyance 
        authorized by this section as the Secretary considers 
        appropriate.
    (c) Proceeds.--Any amounts received by the United States as 
proceeds from the sale of a vessel under this section shall be 
deposited in the Vessel Operations Revolving Fund established 
by section 801 of the Act of June 2, 1951 (65 Stat. 59; 46 
U.S.C. App. 1241a) and shall be available and expended in 
accordance with section 6(a) of the National Maritime Heritage 
Act (16 U.S.C. App. 5405(a)).

SEC. 3604. CLEARINGHOUSE FOR MARITIME INFORMATION.

    Of the amount authorized to be appropriated pursuant to 
section 3601(1) for operations of the Maritime Administration, 
$75,000 may be available for the establishment at a State 
Maritime Academy of a clearinghouse for maritime information 
that makes that information publicly available, including by 
use of the Internet.

SEC. 3605. CONVEYANCE OF NDRF VESSEL EX-USS LORAIN COUNTY.

    (a) Authority To Convey.--The Secretary of Transportation 
may convey all right, title, and interest of the Federal 
Government in and to the vessel ex-USS LORAIN COUNTY (LST-1177) 
to the Ohio War Memorial, Inc., located in Sandusky, Ohio (in 
this section referred to as the ``recipient''), for use as a 
memorial to Ohio veterans.
    (b) Terms of Conveyance.--
            (1) Delivery of vessel.--In carrying out subsection 
        (a), the Secretary shall deliver the vessel--
                    (A) at the place where the vessel is 
                located on the date of conveyance;
                    (B) in its condition on that date; and
                    (C) at no cost to the Federal Government.
            (2) Required conditions.--The Secretary may not 
        convey a vessel under this section unless--
                    (A) the recipient agrees to hold the 
                Government harmless for any claims arising from 
                exposure to hazardous material, including 
                asbestos and polychlorinated biphenyls, after 
                conveyance of the vessel, except for claims 
                arising before the date of the conveyance or 
                from use of the vessel by the Government after 
                that date; and
                    (B) the recipient has available, for use to 
                restore the vessel, in the form of cash, liquid 
                assets, or a written loan commitment, financial 
                resources of at least $100,000.
            (3) Additional terms.--The Secretary may require 
        such additional terms in connection with the conveyance 
        authorized by this section as the Secretary considers 
        appropriate.
    (c) Other Unneeded Equipment.--The Secretary may convey to 
the recipient of the vessel conveyed under this section any 
unneeded equipment from other vessels in the National Defense 
Reserve Fleet, for use to restore the vessel conveyed under 
this section to museum quality.

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

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

SEC. 3701. AUTHORIZATION FOR ADDITIONAL CUSTOMS PERSONNEL TO MONITOR 
                    THE IMPORTATION OF PRODUCTS MADE WITH FORCED LABOR.

    There are authorized to be appropriated for monitoring by 
the United States Customs Service of the importation into the 
United States of products made with forced labor, the 
importation of which violates section 307 of the Tariff Act of 
1930 or section 1761 of title 18, United States Code, 
$2,000,000 for fiscal year 1999.

SEC. 3702. REPORTING REQUIREMENT ON FORCED LABOR PRODUCTS DESTINED FOR 
                    THE UNITED STATES MARKET.

    (a) Report to Congress.--Not later than one year after the 
date of the enactment of this Act, the Commissioner of Customs 
shall prepare and transmit to the Congress a report on products 
made with forced labor that are destined for the United States 
market.
    (b) Contents of Report.--The report under subsection (a) 
shall include information concerning the following:
            (1) The extent of the use of forced labor in 
        manufacturing products destined for the United States 
        market.
            (2) The volume of products made with forced labor, 
        destined for the United States market, that is in 
        violation of section 307 of the Tariff Act of 1930 or 
        section 1761 of the title 18, United States Code, and 
        is seized by the United States Customs Service.
            (3) The progress of the United States Customs 
        Service in identifying and interdicting products made 
        with forced labor that are destined for the United 
        States market.

SEC. 3703. RENEGOTIATING MEMORANDA OF UNDERSTANDING ON FORCED LABOR.

    It is the sense of the Congress that the President should 
determine whether any country with which the United States has 
a memorandum of understanding with respect to reciprocal trade 
which involves goods made with forced labor is frustrating 
implementation of the memorandum. Should an affirmative 
determination be made, the President should immediately 
commence negotiations to replace the current memorandum of 
understanding with one providing for effective procedures for 
the monitoring of forced labor, including improved procedures 
to request investigations by international monitors of 
worksites suspected to be in violation of any such memorandum.

             TITLE XXXVIII--FAIR TRADE IN AUTOMOTIVE PARTS

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

SEC. 3801. SHORT TITLE.

    This title may be cited as the ``Fair Trade in Automotive 
Parts Act of 1998''.

SEC. 3802. DEFINITIONS.

    In this title:
            (1) Japanese markets.--The term ``Japanese 
        markets'' refers to markets, including markets in the 
        United States and Japan, where automotive parts and 
        accessories, both original equipment and aftermarket, 
        are purchased for use in the manufacture or repair of 
        Japanese automobiles.
            (2) Japanese and other asian markets.--The term 
        ``Japanese and other Asian markets'' refers to markets, 
        including markets in the United States, Japan, and 
        other Asian countries, where automotive parts and 
        accessories, both original equipment and aftermarket, 
        are purchased for use in the manufacture or repair of 
        Japanese, United States, or other Asian automobiles.

SEC. 3803. RE-ESTABLISHMENT OF INITIATIVE ON AUTOMOTIVE PARTS SALES TO 
                    JAPAN.

    (a) In General.--The Secretary of Commerce shall re-
establish the initiative to increase the sale of United States-
made automotive parts and accessories to Japanese markets.
    (b) Functions.--In carrying out this section, the Secretary 
shall--
            (1) foster increased access for United States-made 
        automotive parts and accessories to Japanese companies, 
        including specific consultations on access to Japanese 
        markets;
            (2) facilitate the exchange of information between 
        United States automotive parts manufacturers and the 
        Japanese automobile industry;
            (3) collect data and market information on the 
        Japanese automotive industry regarding needs, trends, 
        and procurement practices, including the types, volume, 
        and frequency of parts sales to Japanese automobile 
        manufacturers;
            (4) establish contacts with Japanese automobile 
        manufacturers in order to facilitate contact between 
        United States automotive parts manufacturers and 
        Japanese automobile manufacturers;
            (5) report on and attempt to resolve disputes, 
        policies, or practices, whether public or private, that 
        result in barriers to increased commerce between United 
        States automotive parts manufacturers and Japanese 
        automobile manufacturers;
            (6) take actions to initiate periodic consultations 
        with officials of the Government of Japan regarding 
        sales of United States-made automotive parts in 
        Japanese markets; and
            (7) transmit to Congress the annual report prepared 
        by the Special Advisory Committee under section 
        3804(c)(5).

SEC. 3804. ESTABLISHMENT OF SPECIAL ADVISORY COMMITTEE ON AUTOMOTIVE 
                    PARTS SALES IN JAPANESE AND OTHER ASIAN MARKETS.

    (a) In General.--The Secretary of Commerce shall seek the 
advice of the United States automotive parts industry in 
carrying out this title.
    (b) Establishment of Committee.--The Secretary of Commerce 
shall establish a Special Advisory Committee for purposes of 
carrying out this title.
    (c) Functions.--The Special Advisory Committee established 
under subsection (b) shall--
            (1) report to the Secretary of Commerce on barriers 
        to sales of United States-made automotive parts and 
        accessories in Japanese and other Asian markets;
            (2) review and consider data collected on sales of 
        United States-made automotive parts and accessories in 
        Japanese and other Asian markets;
            (3) advise the Secretary of Commerce during 
        consultations with other governments on issues 
        concerning sales of United States-made automotive parts 
        in Japanese and other Asian markets;
            (4) assist in establishing priorities for the 
        initiative established under section 3803, and 
        otherwise provide assistance and direction to the 
        Secretary of Commerce in carrying out the intent of 
        that section; and
            (5) assist the Secretary in reporting to Congress 
        by submitting an annual written report to the Secretary 
        on the sale of United States-made automotive parts in 
        Japanese and other Asian markets, as well as any other 
        issues with respect to which the Committee provides 
        advice pursuant to this title.
    (d) Authority.--The Secretary of Commerce shall draw on 
existing budget authority in carrying out this title.

SEC. 3805. EXPIRATION DATE.

    The authority under this title shall expire on December 31, 
2003.

                      TITLE XXXIX--RADIO FREE ASIA

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

SEC. 3901. SHORT TITLE.

    This title may be cited as the ``Radio Free Asia Act of 
1998''.

SEC. 3902. AUTHORIZATION OF APPROPRIATIONS FOR INCREASED FUNDING FOR 
                    RADIO FREE ASIA AND VOICE OF AMERICA BROADCASTING 
                    TO CHINA.

    (a) Authorization of Appropriations for Radio Free Asia.--
            (1) Authorization of appropriations.--There are 
        authorized to be appropriated for ``Radio Free Asia'' 
        $22,000,000 for fiscal year 1999.
            (2) Sense of the congress.--It is the sense of the 
        Congress that a significant amount of the funds under 
        paragraph (1) should be directed toward broadcasting to 
        China and Tibet in the appropriate languages and 
        dialects.
    (b) Authorization of Appropriations for International 
Broadcasting to China.--In addition to such sums as are 
otherwise authorized to be appropriated to the United States 
Information Agency for ``International Broadcasting 
Activities'' for fiscal year 1999, there are authorized to be 
appropriated for ``International Broadcasting Activities'' 
$3,000,000 for fiscal year 1999, which shall be available only 
for enhanced Voice of America broadcasting to China.
    (c) Authorization of Appropriations for Radio 
Construction.--In addition to such sums as are otherwise 
authorized to be appropriated for ``Radio Construction'' for 
fiscal year 1999, there are authorized to be appropriated for 
``Radio Construction'' $2,000,000 for fiscal year 1999, which 
shall be available only for construction in support of enhanced 
broadcasting to China, including the timely augmentation of 
transmitters at Tinian, the Commonwealth of the Northern 
Mariana Islands.

SEC. 3903. REPORTING REQUIREMENT.

    (a) Report.--Not later than 90 days after the date of the 
enactment of this Act, the Broadcasting Board of Governors 
shall prepare and submit to the appropriate congressional 
committees an assessment of the board's efforts to increase 
broadcasting by Radio Free Asia and Voice of America to China 
and Tibet. This report shall include an analysis of Chinese 
government control of the media, the ability of independent 
journalists and news organizations to operate in China, and the 
results of any research conducted to quantify listenership.
    (b) Definition.--As used in this section, the term 
``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on International Relations and 
        the Committee on Appropriations of the House of 
        Representatives.
    And the Senate agree to the same.

                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:
                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Steve Buyer,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   J.C. Watts, Jr.,
                                   William M. Thornberry,
                                   Saxby Chambliss,
                                   Walter B. Jones,
                                   Michael Pappas,
                                   Bob Riley,
                                   Ike Skelton,
                                   Norman Sisisky,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Lane Evans,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Jane Harman,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Thomas H. Allen,
                                   Vic Snyder,
                                   James H. Maloney,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Porter J. Goss,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Banking and Financial Services, for 
                consideration of section 1064 of the Senate 
                amendment:
                                   Jim Leach,
                                   Michael N. Castle,
                                   John J. LaFalce,
                As additional conferees from the Committee on 
                Commerce for consideration of sections 601, 
                3136, 3151, 3154, 3201, 3401, 3403, 3404, 3405, 
                3406, and 3407 of the House bill, and sections 
                321, 601, 1062, 3133, 3140, 3142, 3144, 3201, 
                and title XXXVIII of the Senate amendment, and 
                modifications committed to conference:
                                   Thomas J. Bliley, Jr.,
                                   Dan Schaefer,
                                   John D. Dingell,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Dan Schaefer for consideration of section 
                321 of the Senate amendment.
                                   Michael G. Oxley,
                Provided that Mr. Bilirakis is appointed in 
                lieu of Mr. Dan Schaefer for consideration of 
                section 601 of the House bill, and section 601 
                of the Senate amendment.
                                   Mike Bilirakis,
                Provided that Mr. Tauzin is appointed in lieu 
                of Mr. Dan Schaefer for consideration of 
                section 1062 and Title XXXVIII of the Senate 
                amendment.
                                   Billy Tauzin,
      As additional conferees from the Committee on Education 
and the Workforce, for consideration of sections 361, 364, 551, 
and 3151 of the House bill, and sections 522, 643, and 1055 of 
the Senate amendment, and modifications committed to 
conference:
                                   Tom Petri,
                                   Frank Riggs,
                                   Tim Roemer,
      As additional conferees from the Committee on Government 
Reform and Oversight, for consideration of sections 368, 729, 
1025, 1042, and 1101-1106 of the House bill, and sections 346, 
623, 707, 805, 806, 813, 814, 815, 816, 1101-1105, 3142, 3144, 
3145, 3162-3172 and 3510 of the Senate amendment, and 
modifications committed to conference:
                                   Dan Burton,
                                   John L. Mica,
                Provided that Mr. Horn is appointed in lieu of 
                Mr. Mica for consideration of section 368 of 
                the House bill and sections 346, 623, 707, 805, 
                806, 813, 814, 815, and 816 of the Senate 
                amendment.
                                   Stephen Horn,
      As additional conferees from the Committee on 
International Relations, for consideration of sections 233, 
1021, 1043, 1044, 1201, 1204, 1205, 1210, 1211, 1213, 1216, and 
Title XIII of the House bill, and sections 326, 332, 1013, 
1041, 1042, 1074, 1084, 3506, 3601, 3602, and 3901-3904 of the 
Senate amendment, and modifications committed to conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                                   Lee H. Hamilton,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                sections 1207, 1208, 1209, and 1212 of the 
                House bill, and modifications committed to 
                conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                                   Christopher H. Smith,
                                   Dan Burton,
                                   Dana Rohrabacher,
                                   Lee H. Hamilton,
                                   Tom Lantos,
                As additional conferees from the Committee on 
                the Judiciary for consideration of sections 
                1045 and 2812 of the House bill and section 
                1077 of the Senate amendment, and modifications 
                committed to conference:
                                   Henry J. Hyde,
                                   Ed Bryant,
                As additional conferees from the Committee on 
                Resources, for consideration of sections 601, 
                2812, and 3404-3407 of the House bill, and 
                section 601, 2828, and Title XXIX of the Senate 
                amendment and modifications committed to 
                conference:
                                   Don Young,
                                   Billy Tauzin,
                As additional conferees from the Committee on 
                Science, for consideration of sections 3135 and 
                3140 of the Senate amendment, and modifications 
                committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Ken Calvert,
                                   George E. Brown, Jr.,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for 
                consideration of sections 552, 601, 1411, and 
                1413 of the House bill, and sections 323, 601, 
                604, and 1080 of the Senate amendment, and 
                modifications committed to conference:
                                   Bud Shuster,
                                   Sherwood Boehlert,
                                   Bob Clement,
                As additional conferees from the Committee on 
                Veterans' Affairs for consideration of sections 
                556 and 1046 of the House bill, and sections 
                618, 619, 644, and 1082 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Christopher H. Smith,
                                   Mike Bilirakis,
                                   Ciro D. Rodriguez,
                As additional conferees from the Committee on 
                Ways and Means, for consideration of Titles 
                XXXVII and XXXVIII of the Senate amendment, and 
                modifications committed to conference:
                                   Philip M. Crane,
                                   Bill Thomas,
                                   Robert T. Matsui,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   John McCain,
                                   Dan Coats,
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Olympia J. Snowe,
                                   Pat Roberts,
                                   Carl Levin,
                                   Edward M. Kennedy,
                                   Jeff Bingaman,
                                   John Glenn,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   Joseph I. Lieberman,
                                   Max Cleland,
                                Managers on the Part of the Senate.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

      The managers on the part of the House and the Senate at 
the conference on the disagreeing votes of the two Houses on 
the amendment of the Senate to the bill (H.R. 3616) to 
authorize appropriations for fiscal year 1999 for military 
activities of the Department of Defense, for military 
construction, and for defense programs of the Department of 
Energy, to prescribe personnel strengths for such fiscal year 
for the Armed Forces, and for other purposes, submit the 
following joint statement to the House and the Senate in 
explanation of the effect of the action agreed upon by the 
managers and recommended in the accompanying conference report:
      The Senate amendment struck out all of the House bill 
after the enacting clause and inserted a substitute text.
      The House recedes from its disagreement to the amendment 
of the Senate with an amendment which is a substitute for the 
House bill and the Senate amendment. The differences between 
the House bill, the Senate amendment, and the substitute agreed 
to in conference are noted below, except for clerical 
corrections, conforming changes made necessary by agreements 
reached by the conferees, and minor drafting and clarifying 
changes.

                 Summary Statement of Conference Action

      The conferees recommend authorizations for the Department 
of Defense for procurement, research and development, test and 
evaluation, operation and maintenance, working capital funds, 
military construction and family housing, weapons programs of 
the Department of Energy, and the civil defense that have 
budget authority implications of $270.5 billion.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is provided in appropriations acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matter in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the defense function are 
authorized permanently or, in certain instances, authorized in 
other annual legislation. In addition, this authorization bill 
would establish personnel levels and include a number of 
legislative provisions affecting military compensation.
      The following table summarizes authorizations included in 
the bill for fiscal year 1999 and, in addition, summarizes the 
implications of the conference action for the budget totals for 
national defense (budget function 050).





                    Congressional Defense Committees

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

Procurement Overview
      The budget request for fiscal year 1999 contained an 
authorization of $49,109.6 million for Procurement in the 
Department of Defense. The House bill would authorize $49,455.3 
million. The Senate amendment would authorize $49,856.5 
million. The conferees recommended an authorization of 
$49,898.4 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.





Overview

      The budget request for fiscal year 1999 contained an 
authorization of $1,325.9 million for Aircraft Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,420.8 million. The Senate amendment would 
authorize $1,462.5 million. The conferees recommended an 
authorization of $1,396.0 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





Airborne reconnaissance low
      The budget request included $13.1 million for airborne 
reconnaissance low (ARL).
      The House bill would authorize an additional $35.0 
million. Of this amount, $30.0 million would be used to procure 
an additional aircraft, and $5.0 million would be used for a 
moving target indicator (MTI)/synthetic aperture radar (SAR) to 
upgrade a previously fielded aircraft.
      The Senate amendment would authorize the budget request.
      The House recedes.
C-XX (medium range) aircraft
      The budget request included no funds for the UC-35 
program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $15.9 
million for three additional aircraft.
      The House recedes.
UH-60 Blackhawk
      The budget request included $243.8 million for 22 UH-60s.
      The House bill would authorize an increase of $66.4 
million for eight additional UH-60s.
      The Senate amendment would authorize an increase of $78.5 
million for eight additional UH-60s.
      The conferees agree to authorize an increase of $66.4 
million for eight additional UH-60 aircraft. The conferees 
understand that this amount is sufficient to procure these 
additional aircraft and expect the Army to request funding in 
future budget submissions for advanced procurement requirements 
associated with future year procurements.
AH-64 modifications
      The budget request included $52.9 million for Apache 
helicopter modifications.
      The House bill and Senate amendment would authorize the 
budget request.
      The conferees agree to authorize an increase of $4.5 
million, as follows:
            (1) $3.0 million for the vibration management 
        enhancement program; and
            (2) $1.5 million for two engine upgrade kits and 
        qualification of those kits.
CH-47 cargo helicopter modifications
      The budget request included $101.2 million for CH-47 
Chinook helicopter modifications.
      The House bill would authorize a decrease of $12.7 
million, as follows:
      (1) $8.2 million for T55 engine conversion kits; and
      (2) $4.5 million for engine conversions to make them 
consistent with the number of engine fielding kits being 
procured.
      The Senate amendment would authorize the budget request.
      The conferees agree to a $12.7 million decrease for CH-47 
modifications.
C-12 modifications
      The budget request included $2.7 million for C-12 
modifications.
      The House bill would authorize an increase of $7.0 
million for avionics upgrades.
      The Senate amendment would authorize an increase of $6.0 
million for avionics upgrades.
      The conferees agree to an increase of $6.5 million for 
avionics upgrades.
OH-58D Kiowa Warrior
      The budget request included $40.4 million for OH-58D 
Kiowa Warrior safety upgrades.
      The House bill would authorize an increase of $16.0 
million to accelerate the aircraft safety upgrade program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $13.0 
million to support acceleration of the safety upgrade program.
Aircraft Survivability Equipment
      The budget request included $5.1 million for aircraft 
survivability equipment.
      The House bill would authorize an increase of $7.4 
million to upgrade aircraft survivability equipment trainer IV 
(ASET IV) training systems with infrared surface-to-air missile 
simulators and night vision cameras.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $6.4 
million to upgrade existing ASET IV equipment and provide for 
an improved night time training capability.
Army airborne command and control system
      The budget request included $24.4 million for Army 
airborne command and control system procurement.
      The House bill would authorize a decrease of $11.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees authorize a decrease of $24.4 million for 
this program.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $1,205.8 million for Missile Procurement, Army 
in the Department of Defense. The House bill would authorize 
$1,232.3 million. The Senate amendment would authorize $1,171.5 
million. The conferees recommended an authorization of $1,228.2 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.





Enhanced fiber optic guided missile
      The budget request included $13.7 million for enhanced 
fiber optic guided missile (E-FOGM) procurement.
      The House bill would authorize a decrease of $13.2 
million and would eliminate procurement of E-FOGM missiles.
      The Senate amendment would authorize a decrease of $13.7 
million and would eliminate procurement of E-FOGM missiles.
      The conferees agree to authorize a decrease of $13.7 
million and eliminate procurement of E-FOGM missiles.
Javelin system
      The budget request included $320.0 million to procure 
Javelin anti-tank missiles.
      The House bill would authorize an increase of $20.0 
million to accelerate fielding.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $16.0 
million for Javelin missile systems.
Multiple launch rocket system rockets
      The budget request included $16.5 million for the 
procurement of multiple launch rocket system (MLRS) rockets.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $16.5 
million, which would eliminate the procurement of extended 
range rockets due to excessively high component cost issues.
      The conferees agree to authorize a decrease of $16.5 
million and eliminate procurement of MLRS rockets in fiscal 
year 1999.
Multiple launch rocket system launcher
      The budget request included $85.4 million for multiple 
launch rocket system (MLRS) launchers.
      The House bill would authorize a total increase of $40.0 
million, as follows:
            (1) a decrease of $10.0 million for engineering 
        services; and
            (2) an increase of $50.0 million to procure 
        additional MLRS launchers for Army National Guard 
        (ARNG) units.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $45.0 
million to continue modernization of ARNG MLRS battalions, of 
which $21.0 million is to be used for ASIOE for two MLRS 
battalions and $24.0 million to procure new launchers. The 
conferees have learned that the Army has recently announced a 
change in MLRS force structure which will reduce the size of 
current MLRS battalions from 27 launchers per battalion to 18 
launchers. When fully implemented, this action will make 
available sufficient MLRS launchers to complete the fielding of 
the remaining 11 Corps artillery battalion in the ARNG. The 
conferees note, however, that the ``cascading'' of these MLRS 
launchers to the ARNG will require associated support items of 
equipment (ASIOE) for which there is no funding currently 
available and that seven MLRS battalions of ARNG heavy 
divisions remain unfunded.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $1,433.6 million for Weapons and Tracked 
Combat Vehicles Procurement, Army in the Department of Defense. 
The House bill would authorize $1,507.6 million. The Senate 
amendment would authorize $1,439.1 million. The conferees 
recommended an authorization of $1,507.6 million. Unless noted 
explicitly in the statement of managers, all changes are made 
without prejudice.





Bradley base sustainment

      The budget request included $285.8 million for Bradley 
base sustainment.
      The House bill would authorize an increase of $75.0 
million for modification of basic Bradley vehicles to the M2A2 
operation desert storm configuration for the Army National 
Guard.
      The Senate amendment would support the budget request.
      The conferees agree to authorize an increase of $70.0 
million for Bradley A2 ODS modifications for the Army National 
Guard.

M240 machine gun

      The budget request included $6.5 million for the 
procurement of M240 machine guns.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $6.5 
million to stabilize M240 production and meet warfighting 
requirements.
      The conferees agree to authorize an increase of $6.5 
million for M240 machine gun requirements necessary to 
stabilize production rates.

MK-19 grenade launcher

      The budget request included $12.2 million for the MK-19 
automatic grenade launcher.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $3.0 
million for launcher mounts.
      The conferees agree to authorize an increase of $3.0 
million to procure 800 launcher mounts for the MK-19.

Overview

      The budget request for fiscal year 1999 contained an 
authorization of $1,008.9 million for Ammunition Procurement, 
Army in the Department of Defense. The House bill would 
authorize $1,053.5 million. The Senate amendment would 
authorize $1,007.2 million. The conferees recommended an 
authorization of $1,016.3 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





M830A1 120mm tank ammunition
      The budget request included no funds for procurement of 
M830A1 120mm tank ammunition.
      The House bill would authorize an increase of $10.0 
million to procure M830A1 rounds.
      The Senate bill would authorize an increase of $15.0 
million to procure 4,500 M830A1 rounds to replace a like number 
of war reserve M830A1's which are being converted to the XM908 
obstacle demolition configuration.
      The conferees agree to authorize an increase of $15.0 
million to procure 4,500 M830A1 rounds.
      The conferees are aware that the Army has a requirement 
for more obstacle demolition rounds. The conferees believe that 
the Army should undertake a thorough review of its requirement 
for these rounds and include them in its budget request for 
fiscal year 2000.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $3,198.8 million for Other Procurement, Army 
in the Department of Defense. The House bill would authorize 
$3,136.9 million. The Senate amendment would authorize $3,556.9 
million. The conferees recommended an authorization of $3,344.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.





High mobility multipurpose wheeled vehicles

      The budget request included $12.1 million for high 
mobility multipurpose wheeled vehicles (HMMWV).
      The House bill would authorize an increase of $10.0 
million for up-armored upgrade requirements.
      The Senate amendment would authorize an increase of $65.7 
million to maintain production of vehicles necessary to support 
Army and Marine Corps plans to begin a fleet replacement 
program.
      The conferees agree to authorize an increase of $65.7 
million for new HMMWV production.

Family of medium tactical vehicles

      The budget request included $332.0 million for family of 
medium tactical vehicle trucks.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $88.0 
million to sustain family of medium tactical vehicles (FMTV) 
production.
      The conferees agree to authorize an increase of $42.5 
million to support production requirements and field critically 
needed trucks to replace an aging fleet.

Medium truck extended service program

      The budget request included $37.2 million for the medium 
truck extend service program (ESP).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $93.9 
million. Of this amount, $30.0 million would be made available 
to meet Army National Guard (ARNG) requirements.
      The conferees agree to authorize an increase of $20.0 
million for ARNG medium truck rebuild requirements.

High mobility multipurpose wheeled vehicle extended service program

      The budget request included $24.8 million for the high 
mobility multipurpose wheeled vehicle (HMMWV) extended service 
program (ESP).
      The House bill would authorize a decrease of $24.8 
million in response to Army plans to field new vehicles.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize no funds for this 
program and support the Army request for additional funding 
necessary for new vehicle production.

Project management support

      The budget request included $2.4 million for project 
management support.
      The House bill and the Senate amendment would authorize a 
decrease of $1.0 million.
      The conferees agree to authorize a decrease of $1.0 
million for project management support.
System fielding support
      The budget request included $4.2 million for system 
fielding support.
      The House bill would authorize a decrease of $1.2 
million.
      The Senate amendment would authorize a decrease of $1.0 
million.
      The conferees agree to authorize a decrease of $1.0 
million for system fielding support.
Army data distribution system
      The budget request included $24.0 million for the Army 
data distribution system.
      The House bill would authorize an increase of $5.0 
million.
      The Senate amendment would authorize an increase of $28.0 
million for both active and reserve component requirements for 
enhanced position location reporting systems (EPLRS) necessary 
to meet Army digitization requirements.
      The conferees agree to authorize an increase of $28.0 
million for EPLRS requirements.
Single channel ground and airborne radio system
      The budget request included $13.2 million for the single 
channel ground and airborne radio system (SINCGARS).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase $61.9 
million for Army National Guard (ARNG) enhanced brigade 
requirements.
      The conferees agree to authorize an increase of $50.0 
million for SINCGARS requirements for the ARNG enhanced 
brigades.
Area common user system modernization program
      The budget request included $97.1 million for area common 
user system (ACUS) modifications.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $47.8 
million to support Army requirements to downsize system 
shelters.
      The conferees agree to authorize an increase of $35.0 
million for system downsizing requirements.
Ground based common sensor
      The budget request included $25.4 million for the ground 
based common sensor (GBCS).
      The House bill would authorize a decrease of $11.2 
million, as follows:
            (1) A $9.7 million decrease for GBCS-light; and
            (2) A $1.5 million decrease because of duplicate 
        entries for the common modules electronic intelligence 
        system in the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $11.2 
million for GBCS.
Joint surveillance and target attack radar system common ground system
      The budget request included $87.2 million for Army joint 
surveillance and target attack radar system (JSTARS) common 
ground equipment.
      The House bill would authorize an increase of $10.0 
million for 24 JSTARS workstations.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million for seven additional JSTARS workstations.
Joint tactical terminal
      The budget request included $6.5 million in Other 
Procurement, Army for integrated broadcast terminal 
modifications, and $5.7 million in Other Procurement, Air Force 
for intelligence communications equipment.
      The House bill would authorize an increase of $5.0 
million for the Army, and $3.0 million for the Air Force, to 
reduce delivery delays for intelligence broadcast transceivers 
caused by contract protests that have since been resolved.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Shortstop electronic protection system
      The budget request included no funds for the Shortstop 
system.
      The House bill would authorize an increase of $15.0 
million for Shortstop electronic protection systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $13.0 
million to procure additional Shortstop electronic protection 
systems.
Night vision
      The budget request included $29.6 million for night 
vision equipment.
      The House bill would authorize an increase of $9.0 
million for AN/PEQ-2A infrared target pointers.
      The Senate amendment would authorize an increase of $13.5 
million, as follows:
            (1) $9.0 million for AN/PEQ-2A infrared target 
        pointers; and
            (2) $4.5 million for AN/PEQ-4C infrared aiming 
        lights.
      The conferees agree to authorize an increase of $43.1 
million, an increase of $13.5 million, for night vision 
equipment. Of this amount, $9.0 million is for AN/PEQ-2A 
infrared target pointers and $4.5 million is for AN/PEQ-4C 
infrared aiming lights.
Automated data processing equipment
      The budget request included $130.7 million for automated 
data processing equipment.
      The House bill would authorize a reduction of $19.1 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a total decrease of 
$19.1 million for the joint computer aided logistics system.
Land warrior
      The budget request included $51.4 million for land 
warrior equipment procurement.
      The House bill would authorize an increase of $5.0 
million for all-torso body armor.
      The Senate amendment would authorize the budget request.
      The conferees are aware of a significant number of cost 
and technical problems associated with this program. The 
conferees, therefore, agree to authorize no funds for this 
program for fiscal year 1999 and further direct the Secretary 
of the Army to review program cost and technical issues. The 
conferees further direct the Secretary of the Army provide a 
report on future requirements and resolution of outstanding 
technical issues to the congressional defense committees, no 
later than January 31, 1999.
Small pusher tug
      The budget request included $4.3 million for one small 
pusher tug.
      The House bill would authorize an increase of $4.3 
million for two additional small pusher tugs.
      The Senate amendment authorized the budget request.
      The conferees agree to authorize an increase of $4.3 
million for two additional small pusher tugs.
Training devices, nonsystem
      The budget request included $56.8 million for nonsystem 
training devices.
      The House bill would authorize an increase of $4.0 
million for four fire fighter trainers.
      The Senate amendment would authorize a decrease of $16.1 
million for the MILES 2000 program.
      The conferees agree to authorize an increase of $4.0 
million for fire fighter training devices and an increase of 
$5.0 million for engagement skills trainers.
Simulation network/close combat tactical trainer
      The budget request included $113.9 million for simulation 
network (SIMNET) close combat tactical trainer (CCTT).
      The House bill would authorize a decrease of $29.4 
million, as follows:
            (1) $17.0 million for modules and sight equipment;
            (2) $2.4 million for commercial trainers; and
            (3) $10.0 million for commercial image generators.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $29.4 
million.
R2000 engine flush system
      The budget request included no funds for the R2000 engine 
flush system.
      The House bill would authorize an increase of $5.0 
million for this equipment.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million for the R2000 engine flush system.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $7,466.7 million for Aircraft Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $7,420.8 million. The Senate amendment would 
authorize $7,477.9 million. The conferees recommended an 
authorization of $7,642.2 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





AV-8B
      The budget request included $300.2 million for the AV-8B 
remanufacturing program.
      The House bill would authorize a decrease of $3.2 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $3.2 
million.
F/A-18E/F
      The budget request included $2,876.1 million for the F/A-
18E/F.
      The House bill would authorize a decrease of $204.7 
million and would reduce the fiscal year 1999 production from 
30 aircraft to 27 aircraft.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize production of 30 
aircraft and to a decrease of $14.0 million from the budget 
request.
V-22
      The budget request included $610.8 million to procure 
seven V-22 tilt-rotor aircraft and $54.0 million for advance 
procurement of 10 aircraft in fiscal year 2000.
      The House bill would authorize a net increase of $64.0 
million, including an increase of $78.0 million for the 
procurement of one additional aircraft and a decrease of $14.0 
million for particular ground support equipment.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $78.0 
million for the procurement of one additional aircraft.
JPATS
      The budget request included no funds for the naval 
version of the T-6A.
      The House bill would authorize an increase of $12.2 
million for four aircraft for the Navy.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
EA-6 Series modifications
      The budget request included $75.7 million for various EA-
6 series modifications.
      The House bill would authorize an increase of $39.0 
million for the band 9/10 transmitter/receiver upgrade.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $25.0 
million for band 9/10 transmitter/receivers and note that the 
timely authorization for additional band 9/10 transmitters 
would allow the contractor to modify those transmitters to 
permit the transmitters to jam in the adjoining frequency 
range, band 7/8 (called ``modified band 9/10 transmitters'').
F-14 Series
      The budget request included $223.7 million for the F-14 
Series aircraft.
      The House bill would authorize a decrease of $7.3 million 
due to excessive cost growth related to structural 
improvements.
      The Senate amendment would authorize an increase of $8.0 
million for acceleration of the precision strike upgrade.
      The conferees agree to authorize an increase of $0.7 
million to accelerate the precision strike upgrade, and believe 
that the Department of Defense can meet requirements for 
structural improvements within the provided amount.
ES-3 Series Modifications
      The budget request included $5.2 million for ES-3 
modifications.
      The House bill would authorize a decrease of $5.2 million 
for this program based on a Navy decision to retire the ES-3 
aircraft.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $5.2 
million.
F-18 series modifications
      The budget request included $198.0 million for the F-18 
series aircraft.
      The House bill would authorize a decrease of $3.9 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $3.9 
million.
P-3C antisurface warfare improvement program
      The budget request included $120.7 million for the 
procurement of P-3C antisurface warfare improvement program 
(AIP) kits and for associated installation, logistics support, 
engineering change proposals and training.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $12.2 
million for procurement of P-3C AIP kits.
      The conferees agree to authorize an increase of $12.2 
million.
Lightweight environmentally sealed parachute assembly
      The budget request included no funds for the lightweight 
environmentally sealed parachute assembly (LESPA).
      The House bill would authorize an increase of $22.0 
million to procure LESPA, including $15.0 million for the P-3 
and $7.0 million for the E-2C.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $14.0 
million to procure LESPA, including $10.0 million for the P-3 
and $4.0 million for the E-2C.
E-6 modifications
      The budget request included $64.6 million for E-6 
modifications.
      The House bill would authorize a decrease of the budget 
request by $4.6 million.
      The Senate amendment would authorize the budget request.
      The conferees would authorize the budget request.
Common ground equipment
      The budget request included $330.9 million for common 
ground equipment.
      The House bill would authorize a decrease of $15.4 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $11.9 
million due to unjustified predicted price increases for 
consolidated automated support systems.
Aircraft industrial facilities
      The budget request included $13.7 million for aircraft 
industrial facilities.
      The House bill would authorize a decrease of $1.8 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $1.8 
million for aircraft industrial facilities based on an 
unjustified increase for caretaker maintenance.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $1,327.5 million for Weapons Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$1,192.2 million. The Senate amendment would authorize $1,366.0 
million. The conferees recommended an authorization of $1,223.9 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.





Tactical Tomahawk
      The budget request included $66.7 million in PE 24229N 
for Tomahawk operational system development, $129.8 million in 
Weapons Procurement, Navy (WPN) for the Tomahawk missile 
remanufacture program, $90.2 million in Other Procurement, Navy 
(OPN) for surface Tomahawk support equipment, and $117.1 
million in Operation and Maintenance, Navy (O&M, N) for the 
Tomahawk baseline improvement program (TBIP).
      The House bill would authorize an increase of $98.6 
million in PE 24229N for tactical Tomahawk, an increase of $2.8 
million in OPN for TBIP, a decrease of $96.5 million in WPN, 
and a decrease of $4.9 million in O&M,N for TBIP.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a $96.5 million decrease 
for Tomahawk missile WPN, a $98.6 million increase in PE 24229N 
for tactical Tomahawk, and a $4.9 million decrease in O&M, N 
for TBIP.
Advanced medium range air-to-air missile
      The budget request included $62.6 million for 115 
advanced medium range air-to-air missiles (AMRAAM).
      The House bill and the Senate amendment would authorize 
the budget in Navy AMRAAM procurement request.
      The conferees understand that the recent merger of the 
two competing prime contractors produced savings of $7.0 
million in the production of the AMRAAM for the Navy. The 
conferees agree to authorize a decrease of $7.0 million.
Standard missile
      The budget request included $225.7 million for 70 Block 
III and 45 Block IV Standard missiles.
      The House bill would authorize a $20.0 million decrease 
based on a 41 percent increase in support costs, despite the 
fact that the total number of missiles would only increase by 
15 percent from the fiscal year 1998 level.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $15.0 
million for Standard missile support.
Penguin missile program
      The budget request included no funds for procurement of 
Penguin missiles.
      The Senate amendment would authorize an increase of $7.5 
million for procurement of Penguin missiles to satisfy 
outstanding inventory objectives for both the tactical and 
telemetry variants of the missile.
      The House bill would authorize the budget request.
      The conferees agree to authorize the budget request.
Aerial targets
      The budget request included $75.5 million for aerial 
targets.
      The House bill would authorize a decrease of $2.7 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.7 
million.
Improved tactical air launched decoy
      The budget request included $300,000 for drones and 
decoys.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million for 70 improved tactical air launched decoys (ITALD).
      The conferees agree to authorize an increase of $10.0 
million.
Weapons industrial facilities
      The budget request included $27.3 million for capital 
type rehabilitation projects at government-owned contractor 
operated weapons industrial facilities.
      The House bill would authorize a decrease of $2.8 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.8 
million based on unjustified environmental cost increases.
Mk-48 torpedo advanced capability torpedo modifications
      The budget request included $52.8 million for procurement 
and installation of modifications for the Mk-48 advanced 
capability torpedo.
      The House bill would authorize a decrease of $2.2 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.2 
million due to the projected excessive unit cost growth of 
installation kits.
Close-in weapon system surface mode upgrade
      The budget request included no funds for procurement of 
Phalanx surface mode (PSUM) upgrade kits for the close-in 
weapon system (CIWS).
      The House bill would authorize an increase of $4.0 
million for procurement and installation of the surface mode 
upgrade kits for amphibious ships.
      The Senate amendment would authorize an increase of $10.0 
million for procurement and installation of the surface mode 
upgrade.
      The conferees agree to authorize an increase of $10.0 
million for procurement and installation of the surface mode 
upgrade.
Surface ship gun mount rotatable pool
      The budget request included $900,000 for procurement and 
installation of safety shock ordnance alterations to the 5-inch 
54 gun installed on surface combatants.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $15.0 
million for test facility preparation, procurement of long lead 
materials and establishment of a 5-inch 54 Mod 4 rotatable gun 
pool as part of the cruiser conversion program which begins in 
fiscal year 2001.
      The conferees agree to authorize an increase of $8.0 
million for the establishment of a 5-inch 54 Mod 4 rotatable 
gun pool.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $429.5 million for Ammunition Procurement, 
Navy and Marine Corps in the Department of Defense. The House 
bill would authorize $452.0 million. The Senate amendment would 
authorize $475.5 million. The conferees recommended an 
authorization of $463.3 million. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.





Shoulder launched multi-purpose assault weapon
      The budget request included $21.3 million for rockets, 
all type.
      The House bill would authorize an increase of $17.0 
million, in this account, for the shoulder launched multi-
purpose assault weapon (SMAW).
      The Senate amendment would authorize an increase of $18.0 
million, in this account, for the SMAW.
      The conferees agree to authorize an increase of $17.0 
million for maintaining the program initiated last year to 
repair SMAW High Explosive Dual Purpose rounds currently 
restricted from use.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $6,252.7 million for Shipbuilding and 
Conversion, Navy in the Department of Defense. The House bill 
would authorize $5,992.4 million. The Senate amendment would 
authorize $6,049.3 million. The conferees recommended an 
authorization of $6,033.5 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





LHD-8 advance procurement

      The budget request included no funds for LHD-8 advance 
procurement.
      The House bill would authorize an increase of $10.0 
million for advance procurement of LHD-8.
      The Senate amendment would authorize an increase of $50.0 
million for advance procurement of long lead materials for the 
construction of LHD-8 in lieu of a future service life 
extension program for LHA-1.
      The conferees agreed to authorize an increase of $50.0 
million for advanced procurement of long lead materials for the 
construction of LHD-8 in lieu of a future service life 
extension program for LHA-1.

Strategic sealift

      The budget request included $251.4 million in the 
Shipbuilding and Conversion, Navy (SCN) account for one large 
medium-speed roll-on/roll-off (LMSR) strategic sealift ship. 
Section 2218 of title 10, United States Code, establishes the 
National Defense Sealift Fund (NDSF) to fund construction of 
sealift vessels.
      The House bill and the Senate amendment would authorize 
the procurement of one LMSR and the $251.4 million requested 
for that purpose, but would provide that authorization for the 
NDSF account.
      The conferees agree to authorize $251.4 million for the 
NDSF for construction of one LMSR.

Landing craft air cushion service life extension program

      The budget request included no funds for landing craft 
air cushion (LCAC) service life extension program (SLEP).
      The House bill and the Senate amendment would authorize 
an increase of $16.0 million for the service life extension of 
two LCAC's.
      The conferees agree to authorize an increase of $16.0 
million for LCAC SLEP.

Navy shipbuilding outfitting

      The budget request included $95.7 million for outfitting 
new construction Navy ships with the initial equipment and 
spare parts required to operate.
      The House bill would authorize a decrease of $7.7 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $3.0 
million due to ship delivery schedule slippages and the 
concomitant reduced requirements.

Navy shipbuilding post delivery

      The budget request included $123.3 million for new 
construction ships' post delivery correction of deficiencies.
      The House bill would authorize a decrease of $8.3 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $6.0 
million.

Overview

      The budget request for fiscal year 1999 contained an 
authorization of $3,937.7 million for Other Procurement, Navy 
in the Department of Defense. The House bill would authorize 
$3,969.5 million. The Senate amendment would authorize $4,040.0 
million. The conferees recommended an authorization of $4,043.0 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.





Other generators
      The budget request included $9.6 million for the 
procurement and installation of various generators.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $1.2 
million for the generator installation that was requested one 
fiscal year before the requirement.
      The conferees note that the generator that was requested 
for procurement and installation in fiscal year 1999 will not 
be received for installation until fiscal year 2000.
AN/WSN-7 inertial navigation system and WQN-2 doppler sonar velocity 
        log
      The budget request included $21.8 million for procurement 
of AN/WSN-7 ring laser inertial navigation systems. The budget 
request included no funds for procurement of WQN-2 doppler 
sonar velocity log.
      The House bill would authorize an increase of $12.0 
million for the procurement and installation of additional AN/
WSN-7 navigation sets, an increase of $6.0 million for 
procurement and installation of WQN-2, and an increase of $2.5 
million to test and evaluate a second version for possible 
future production competition for WQN-2.
      The Senate amendment would authorize an increase of $12.0 
million for the procurement and installation of additional AN/
WSN-7 navigation sets.
      The conferees agree to authorize an increase of $12.0 
million to the budget request for the procurement and 
installation of additional AN/WSN-7 navigation sets and an 
increase of $6.0 million for procurement and installation of 
WQN-2.
Pollution control equipment
      The budget request included $28.0 million for Navy shore 
based operations to comply with hazardous waste management and 
disposal requirements, and $149.7 million for Navy shipboard 
operations to comply with certain oily waste and gray water 
discharge standards and provide for the conversion of 
chloroflorocarbon refrigerants.
      The House bill would authorize a decrease of $5.5 million 
for shore based operations and $19.4 million for shipboard 
operations related to Navy hazardous waste compliance 
activities.
      The Senate amendment would authorize the budget request 
to meet Navy shore based and shipboard hazardous waste 
compliance requirements.
      The conferees agree to authorize a decrease of $5.5 
million for shore based operations and $19.4 million for 
shipboard operations related to Navy hazardous waste compliance 
activities. The conferees direct the Navy to provide adequate 
support and justification for future funding requests related 
to its environmental compliance obligations.
Hull, mechanical, and electrical under $2.0 million
      The budget request included $58.1 million for procurement 
and installation of hull, mechanical, and electrical equipment 
that cost less than $2.0 million.
      The House bill would authorize a decrease of $3.1 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.1 
million based on unjustified unit cost growth in air 
conditioners.
AN/BPS-15H surface search radar
      The budget request included no funds for the procurement 
of AN/BPS-15H submarine radar navigation sets.
      The House bill and the Senate amendment would authorize 
an increase of $9.0 million for AN/BPS-15(H) software and 
hardware upgrades to bring them into electronic chart display 
information systems (ECDIS-N) compliance.
      The conferees agree to authorize an increase of $9.0 
million for AN/BPS-15(H) software and hardware upgrades for 
ECDIS-N compliance.
Submarine acoustic rapid commercial off-the-shelf insertion
      The budget request included $70.0 million for submarine 
acoustic rapid commercial off-the-shelf insertion (A-RCI).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $25.0 
million to accelerate the introduction of A-RCI to the 
operating fleet.
      The conferees agree to authorize an increase of $15.0 
million to accelerate the introduction of A-RCI to the 
operating fleet.
Cooperative engagement capability
      The budget request included $47.3 million for procurement 
and installation of four cooperative engagement capability 
(CEC) systems and $131.6 million in PE 63658N for CEC 
demonstration and validation. Within the amount requested in PE 
63658N, $38.8 million was included for identification and 
resolution of interoperability problems in the E-2C aircraft.
      The House bill would authorize an increase of $35.0 
million for procurement and installation of five additional CEC 
systems to meet training and operational requirements. The 
House bill would also authorize an increase of $20.0 million to 
correct deficiencies discovered during the initial operational 
test and evaluation of the system, and support follow-on 
testing inpreparation for the interoperability test that would 
involve two carrier battle groups. It would also authorize an increase 
of $6.0 million for continued development of the CEC test and 
evaluation system and linking that system to the military test and 
training ranges infrastructure.
      The Senate amendment would authorize the budget request.
      During congressional review of the fiscal year 1999 
budget request, the Navy advised the defense authorization 
committees of interoperability problems between the Advanced 
Combat Direction System Block 1 (the new combat direction 
system for large deck ships such as aircraft carriers) and the 
AEGIS Baseline 6 software (which includes the CEC). These 
problems occurred during operational test and evaluation of the 
ACDS Block 1 system, and resulted in the Commander, Operational 
Test and Evaluation Force, declaring that the ACDS Block 1 
system was not operationally suitable or effective for 
deployment with the fleet and that interoperability problems 
were exacerbated by the CEC. Fleet reports have also indicated 
similar interoperability problems. In addition, ongoing 
developmental testing of the AEGIS Baseline 6 Phase I software 
during early 1998 indicated that the software was immature.
      The conferees view these and previously identified relay 
aircraft interoperability problems and their effect on the 
fleet, the CEC, ship self defense, and Navy theater ballistic 
missile defense programs with great concern. The conferees 
recognize that the problems may result in part from efforts to 
accelerate the CEC program by shortcutting a systematic process 
for software development, verification, and validation. To 
resolve these problems, the conferees have been advised that 
the Navy is developing a program that will focus on 
interoperability issues to support carrier battle group 
deployments and for the longer-term, a force level process to 
coordinate requirements, development, investments, and 
installation of new system capabilities in the fleet. Key to 
the process will be: (1) development of a single common combat 
direction system equipment and computing architecture that will 
be able to adapt to technology changes more efficiently; and 
(2) establishment of an enhanced shore based testing capability 
that will allow force level interoperability testing ashore, 
before deployment of new system capabilities to the fleet.
      The conferees believe that the Navy has not yet fully 
assessed the magnitude of the CEC/combat direction system 
interoperability problem and its effect on other development 
programs or on the fleet. Additional system development may be 
required as the Navy assesses and defines the overall magnitude 
of the system interoperability and software maturity problems. 
Clear and unambiguous system integration responsibilities and 
accountability for management of the program to resolve the 
problems are required.
      The conferees agree to authorize an increase of $26.0 
million in PE 63658N for research and development and an 
increase of $35.0 million in Other Procurement, Navy for 
procurement of CEC systems.
      The conferees understand that the Navy may need to 
realign fiscal year 1999 CEC funding to implement a program to 
resolve the interoperability problems. Should the Navy's 
assessment of the program requirements indicate that 
realignment is necessary, the conferees encourage the Secretary 
of Defense to submit a reprogramming request promptly to the 
congressional defense committees.
      Given the seriousness of the interoperability problems 
and the potential effects on numerous other important Navy and 
Defense programs, the conferees direct the Secretary of the 
Navy to report to the congressional defense committees at least 
quarterly on CEC/combat direction system interoperability 
problems and planned solutions.
Integration and test facility command and control initiative
      The budget request included no funds for upgrading 
capabilities at the Navy's east coast in-service engineering 
Space Warfare System Center (SWSC).
      The Senate amendment would authorize an increase of $4.0 
million for engineering design; hardware and software 
procurement; and installation, testing, and documentation of 
the additional technical networking infrastructure for 
continued development of the SWSC's Integrated Products Center. 
Of this amount, $2.0 million would be for procurement and $2.0 
million would be for operation and maintenance.
      The House bill would authorize the budget request.
      The House recedes.
Ship communications items
      The budget request included $24.2 million for procurement 
and installation of ship communications equipment that has a 
cost less than $2.0 million.
      The House bill would authorize a decrease of $1.9 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $1.9 
million based on unjustified unit cost growth of installation 
kits.
AN/USC-42 mini-demand assigned multiple access ultra-high frequency 
        satellite communications terminals
      The budget request included $145.2 million for SATCOM 
ship terminals, but no funds for AN/USC-42 mini-demand assigned 
multiple access ultra-high frequency satellite communications 
terminals.
      The House bill would authorize an increase of $10.0 
million to procure mini-DAMA UHF SATCOM terminals and 
associated spare parts.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of 
$10.0million for mini-DAMA UHF SATCOM terminals and associated spare 
parts.
Joint engineering data management and information control system
      The budget request included no funds for Joint 
Engineering Data Management and Information Control System 
(JEDMICS), the designated Department of Defense standard system 
for management, control, and storage of engineering drawings.
      The Senate amendment would authorize an increase of $10.0 
million for the continued security system procurement, 
integration and accreditation surveys for the JEDMICS system.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $8.0 
million for JEDMICS security system procurement, integration, 
and accreditation surveys.
Weapons range support equipment
      The budget request included $8.1 million for weapons 
range support.
      The House bill would authorize an increase of $10.0 
million to procure two mobile remote emitter simulator (MRES) 
systems for the Pacific Missile Range Facility and an increase 
of $5.0 million for a deployable rangeless air combat training 
system (DRACTS).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $10.0 
million.
Aircraft launch and recovery equipment
      The budget request included $39.7 million for aircraft 
launch and recovery equipment.
      The House bill and the Senate amendment would authorize 
the budget request. The conferees note that pricing and 
quantity changes totaling a net decrease of $2.2 million were 
made after submission of the budget request.
      The conferees agree to authorize a decrease of $2.2 
million related to revised pricing and reductions in quantity 
of aircraft launch and recovery equipment.
Engagement systems support
      The budget request included $307,000 for computer 
programs and documentation for changes to ship engagement 
systems not supported elsewhere in the budget request.
      The House bill would authorize a decrease of $307,000.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $307,000 
based on the availability of prior year funds to meet this 
requirement.
Smart ship equipment
      The budget request included $12.8 million to procure and 
install proven smart ship technology in operational Navy ships.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $12.0 
million to procure and install smart ship equipment in Arleigh 
Burke class destroyers.
      The conferees agree to authorize an increase of $10.0 
million for Arleigh Burke class destroyer smart ship equipment 
procurement and installation.
Strategic missile systems equipment
      The budget request included $283.6 million for strategic 
missile systems equipment.
      The House bill would authorize a decrease of $5.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $5.0 
million due to lack of justification for a budget increase.
NULKA assembly qualification
      The budget request included $21.5 million for procurement 
and installation of the NULKA antiship missile decoy program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.0 
million to outfit and qualify a NULKA assembly facility in the 
United States.
      The conferees agree to authorize an increase of $1.0 
million to outfit and qualify a NULKA assembly facility in the 
United States.
Beamhit laser marksmanship training system (LMTS)
      The budget request included $2.2 million for training 
support equipment, but included no funds for the beamhit LMTS.
      The House bill would authorize an increase of $5.0 
million for the beamhit LMTS and encourages the Secretary of 
Defense to examine its utility for use throughout the 
Department.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $745.9 million for Marine Corps Procurement, 
Navy in the Department of Defense. The House bill would 
authorize $691.9 million. The Senate amendment would authorize 
$908.6 million. The conferees recommended an authorization of 
$881.9 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.





Modification kits--tracked vehicles
      The budget request included $5.7 million to procure 
modification kits for Marine Corps tracked vehicles.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $4.6 
million to meet Marine Corps requirements to upgrade tanks with 
muzzle boresight devices (MBD) and nuclear, biological, and 
chemical (NBBC) protection devices.
      The conferees agree to authorize an increase of $4.6 
million to meet Marine Corps requirements for MBD and NBC 
modifications.
155MM lightweight towed howitzer
      The budget request included $10.0 million for Marine 
Corps 155mm lightweight towed howitzer procurement.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize no funds for fiscal year 
1999. The conferees note recent actions taken by both the 
Marine Corps and the prime contractor for the lightweight 155mm 
howitzer program to address significant program deficiencies. 
The conferees continue to support this program and appreciate 
Marine Corps efforts to keep Congress informed on issues 
associated with the fielding of the lightweight 155mm howitzer. 
Actions taken to date have resulted in a complete change of 
contractor management staff and will likely result in a two-
year delay for the program. As a result, procurement funding 
requested for fiscal year 1999 is no longer required.
Pedestal mounted stinger
      The budget request included $0.2 million to provide 
program support for fielded Marine Corps Avenger systems.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $7.6 
million to complete Marine Corps Avenger forward looking 
infrared upgrades to existing sytems.
      The conferees agree to authorize an increase of $5.2 
million and an increase of $5.0 million, to support Avenger 
upgrade requirements.
Items less than $2.0 million (intelligence)
      The budget request included no funds for items less than 
$2.0 million (intelligence).
      The House bill would authorize an increase of $1.0 
million for purchasing and evaluating commercial imagery 
manipulation tools, state-of-the-art display devices, and high 
quality large format printers for field use.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $1.0 
million for the purpose of evaluating commercial imagery 
manipulation tools, state-of-the-art display devices, and high 
quality large format printers.
Night vision equipment
      The budget request included $11.6 million for Marine 
Corps night vision equipment.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $11.1 
million for night vision requirements, as follows:
            (1) $6.1 million for generation III tubes to 
        retrofit existing night vision equipment;
            (2) $1.4 million for laser aiming modules;
            (3) $2.6 million for medium power laser 
        illuminators; and
            (4) $1.0 million for borelights.

The Senate amendment would also authorize an increase of $22.6 
million in the Other Procurement, Navy account for OMNI IV 
retrofit requirements in AN/AVS-6 night vision goggle systems.
      The conferees agree to authorize an increase of $33.7 
million for night vision equipment, as follows:
            (1) $6.1 million for generation III tubes to 
        retrofit existing night vision equipment;
            (2) $1.4 million for laser aiming modules;
            (3) $2.6 million for medium power laser 
        illuminators;
            (4) $1.0 million for borelights; and
            (5) $22.6 million for OMNI IV retrofit requirements 
        in AN/AVS-6 night vision goggle systems.
Communications and electronics infrastructure
      The budget request included $57.9 million for the 
procurement of communications and electronics infrastructure 
upgrades.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $79.1 
million for communications and electronics infrastructure 
requirements. Of this amount, $64.1 would be for infrastructure 
upgrades and the remaining $15.0 million would be for 
procurement of computer workstations necessary to address the 
year 2000 compliance issue.
      The conferees agree to authorize an increase of $64.0 
million for the completion of Marine Corps infrastructure 
upgrade requirements.
Medium tactical vehicle replacement
      The budget request included $83.7 million to procure 
Marine Corps trucks.
      The House bill would authorize a decrease of $9.8 million 
to reduce the number of truck operator training devices 
procuredprior to award of the low rate initial production 
contract.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $9.8 
million for truck operator training devices.
Light tactical vehicle replacement
      The budget request included $39.3 million to procure 
Marine Corps high mobility multipurpose wheeled vehicles 
(HMMWVs) to replace an aging fleet.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $37.0 
million to accelerate the replacement process.
      The conferees agree to authorize an increase of $33.5 
million to accelerate procurement of replacement HMMWVs.
Power equipment assorted
      The budget request included $5.1 million to procure 
Marine Corps power generation equipment.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $9.5 
million to procure 1,311 generators necessary to support mobile 
command, control, and communications power requirements.
      The conferees agree to authorize an increase of $9.5 
million for tactically quiet generators necessary to meet 
Marine Corps requirements.
Shop equipment contact maintenance
      The budget request included $6.0 million to procure 
Marine Corps shop equipment contact maintenance (SECM) 
requirements.
      The House bill would authorize a decrease of $3.0 
million.
      The Senate amendment would authorize an increase of $5.4 
million to support the procurement and fielding of critically 
needed shop equipment contact maintenance requirements.
      The conferees agree to authorize an increase of $5.4 
million for SECM requirements.
Material handling equipment
      The budget request included $6.5 million to procure 
Marine Corps material handling equipment.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.4 
million to allow the Marine Corps to leverage an existing 
contract to begin replacement of its existing fleet.
      The conferees agree to authorize an increase of $1.9 
million to accelerate procurement of material handling 
equipment and support Marine Corps deployment activities.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $7,756.5 million for Aircraft Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $8,219.1 million. The Senate amendment would 
authorize $8,280.8 million. The conferees recommended an 
authorization of $8,350.6 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





F-22 procurement

      The budget request included $595.1 million to procure the 
first two F-22 production aircraft.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $14.0 
million.

F-16

      The budget request included no funds for F-16 aircraft.
      The House bill would authorize an increase of $60.0 
million to buy two F-16 attrition reserve aircraft.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $25.0 
million for one F-16 attrition reserve aircraft.

C-130J

      The budget request included $63.8 million for the 
procurement of one C-130J aircraft.
      The House bill would authorize an increase of $461.4 
million for an additional seven C-130J aircraft.
      The Senate amendment would authorize an increase of 
$381.1 million for an additional four C-130J aircraft, 
logistics support, and a simulator.
      The conferees agree to authorize a total of $482.6 
million for seven C-130J aircraft and a simulator, as follows:

                                                                     C-130 PROGRAMS
                                                                  [dollars in millions]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Budget request          House bill            Senate bill      Conference agreement
                              Type                               ---------------------------------------------------------------------------------------
                                                                   Quantity    Amount    Quantity    Amount    Quantity    Amount    Quantity    Amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
KC-130J.........................................................         --         --          2      112.4         --         --          2      112.4
WC-130J.........................................................         --         --          1       59.7          1       75.4          1       75.4
EC-130J.........................................................         --         --          1       51.5          1       85.0          1       85.0
C-130J..........................................................          1       63.8          1       63.8          1       63.8          1       63.8
C-130J ANG......................................................         --         --          3      174.0          2      157.6          2      146.0
                                                                 ---------------------------------------------------------------------------------------
      Total.....................................................          1       63.8          8      461.4          5      381.8          7     482.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note.--The $30.0 million simulator is included in the C-130J ANG totals.

C-130H
      The budget request included $11.2 million for the C-130H.
      The House bill would authorize a decrease of $11.2 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Joint Primary Aircraft Training System
      The budget request included $107.1 million for the Joint 
Primary Aircraft Training System (JPATS).
      The House bill would authorize a decrease of $27.1 
million, including a decrease of $36.2 million for the ground 
based training system (GBTS), deferring its acquisition for one 
year, and an increase of $9.1 million for three additional 
JPATS aircraft.
      The Senate amendment would authorize an increase of $9.1 
million for three additional JPATS aircraft.
      The conferees agree to authorize a decrease of $4.9 
million in the JPATS program, including of a decrease of $14.0 
million for the training integration management system (TIMS) 
and an increase of $9.1 million for three additional JPATS 
aircraft.
E-8C Joint Surveillance and Target Attack Radar System (JSTARS)
      The budget request included $578.2 million two JSTARS 
aircraft.
      The House bill would authorize a decrease of $13.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
B-1B
      The budget request included $91.6 million for B-1B bomber 
modifications.
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $9.6 
million from the budget request for fiscal year 1999.
      The conferees note that the funds authorized to be 
appropriated for B-1B modifications in fiscal year 1998, $9.6 
million has been identified as excess to fiscal year 1998 
requirements. The conferees direct that these funds be used to 
satisfy fiscal year 1999 requirements for B-1B modifications.
B-52
      The budget request included $38.3 million for B-52 
modifications.
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.6 
million and direct that prior year funds be used to fulfill 
fiscal year 1999 requirements for B-52 modifications.
      The conferees note that excess prior year funds remain 
available for obligation for B-52 modifications.
F-15 modifications
      The budget request included $196.6 million for F-15 
modifications.
      The House bill would authorize an increase of $34.8 
million, as follows:
            (1) an increase of $20.0 million for engine upgrade 
        kits;
            (2) an increase of $25.0 million for the ALQ-135 
        Band 1.5 program; and
            (3) a decrease of $10.2 million for excessive cost 
        growth.
      The Senate amendment would authorize an increase of $50.0 
million, as follows:
            (1) an increase of $25.0 million for engine upgrade 
        kits; and
            (2) an increase of $25.0 million for the ALQ-135 
        Band 1.5 program.
      The conferees agree to authorize an increase of $45.0 
million, as follows:
            (1) an increase of $20.0 million for engine upgrade 
        kits; and
            (2) an increase of $25.0 million for the ALQ-135 
        Band 1.5 program.
F-16 modifications
      The budget request included $229.3 million for F-16 
modifications.
      The House bill would authorize an increase of $5.1 
million, as follows:
            (1) an increase of $12.0 million for the digital 
        terrain system (DTS); and
            (2) a decrease of $6.9 million for poorly justified 
        modifications.
      The Senate amendment would authorize an increase of $13.3 
million for 15 medium altitude electro-optical sensors.
      The conferees agree to authorize an increase of $5.9 
million for DTS.
C-12 modifications
      The budget request included $3.8 million for C-12 
modifications.
      The House bill would authorize a decrease of $2.3 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Defense Airborne Reconnaissance Program procurement
      The budget request included $394.2 million for 
procurement activities of the Defense Airborne Reconnaissance 
Program (DARP), as shown in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                Change from request
                                                                      Budget  ----------------------  Conference
                     Procurement item/account                        request     House      Senate    agreement
                                                                                  bill    amendment
----------------------------------------------------------------------------------------------------------------
  EP-3:
    APN 28........................................................      5,437  .........  .........        8,937
    Displays......................................................  .........     3,000   .........      [1,500]
    Spares........................................................  .........  .........      2,000      [2,000]
  RC-135:
    APAF 55.......................................................    139,242  .........  .........      169,242
    Re-engine.....................................................  .........  .........     56,000     [28,000]
    TAWS..........................................................  .........  .........     12,000      [2,000]
  RC-135 Combat Sent:
    OPAF 107......................................................     12,656  .........  .........       16,456
    ESV/PCV.......................................................  .........     3,800   .........      [3,800]
  U-2:
    APAF 77.......................................................    152,113  .........  .........      141,813
    ASARS Transfer................................................  .........   (10,300)  .........   [(10,300)]
    RAS-1R Upgrades...............................................  .........  .........     17,000  ...........
  CIGSS:
    OPA 78a.......................................................  .........     2,508   .........        2,508
    OPN 67a.......................................................  .........    65,827   .........       65,827
    OPAF 106......................................................  .........     5,681   .........        5,681
    PDW 7.........................................................     74,016   (74,016)  .........  ...........
  ARGSS:
    PDW 7.........................................................      3,419    (3,419)  .........  ...........
    PDW 9.........................................................     11,988     3,419   .........       15,407
                                                                   ---------------------------------------------
      Total.......................................................    398,871    (3,500)     87,000      425,871
----------------------------------------------------------------------------------------------------------------

      Section 905 of the National Defense Authorization Act for 
Fiscal Year 1998 transferred the program management 
responsibilities of the Defense Airborne Reconnaissance Office 
(DARO) to the military services, while retaining Office of the 
Secretary of Defense (OSD)-level oversight responsibilities for 
determining airborne reconnaissance architecture and systems 
interface requirements.
      The table reflects both transfers and adjustments made by 
the conferees.

                                  EP-3

      The budget request included $5.4 million for various 
modifications for EP-3 aircraft.
      The House bill would authorize an increase of $3.0 
million to replace existing displays in EP-3 aircraft with flat 
panel displays.
      The Senate amendment would authorize an increase of $2.0 
million for spares to support the operational deployment of an 
EP-3 aircraft to evaluate the high band prototype of the joint 
signals intelligence avionics family (JSAF).
      The conferees agree to authorize an increase of $3.5 
million for the EP-3, $1.5 million for flat panel displays, and 
$2.0 million for spares support.

                                 RC-135

      The budget request included $139.2 million for various 
modifications for DARP aircraft in Aircraft Procurement, Air 
Force (APAF).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $68.0 
million in the DARP, including: $56.0 million for two re-
enginings, and $12.0 million to transfer the theater airborne 
warning system (TAWS) medium-wave infrared (MIRA) technology 
from the Cobra Ball program to Rivet Joint program. The Senate 
report (S. Rept. 105-189) would require successful completion 
of Cobra Ball integration testing and submission of a report on 
the test results to the congressional defense committees before 
obligation of the additional funds.
      The conferees agree to authorize an increase of $30.0 
million for DARP, including: $28.0 million to re-engine one RC-
135 aircraft, and $2.0 million to complete the TAWS and to 
upgrade the MIRA sensors. In addition, the conferees understand 
that $3.3 million authorized in the General Defense 
Intelligence Program in fiscal year 1998 for the development of 
a Cobra Ball radar ranging system remains unobligated. The 
conferees recommend that the unobligated $3.3 million 
authorized for fiscal year 1998 also be used to complete the 
TAWS development and upgrade the MIRA sensors on the Cobra Ball 
aircraft.
      The conferees do not agree to a transfer of this 
technology to the Rivet Joint fleet until the Cobra Ball 
integration is complete and test results clearly show that this 
transfer will provide a viable augmentation to the Defense 
Support Program (DSP). Further, the conferees endorse the 
requirement in the Senate report that the Department submit a 
report on the test results to the congressional defense 
committees before obligating the extra TAWS funding authorized 
in this bill.

                           RC-135 Combat Sent

      The budget request included $12.7 million in Other 
Procurement, Air Force for RC-135 ground support equipment.
      The House bill would authorize an increase of $3.8 
million for the RC-135 Combat Sent ground support system 
improvements.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.8 
million.

                            U-2 Procurement

      The budget request included $152.1 million in DARP 
modifications in APAF.
      The House bill would authorize a decrease of $10.3 
million for U-2 procurement, transferring these funds to the 
Advanced Synthetic Aperture Radar System Improvement program 
(AIP).
      The Senate amendment would authorize an increase of $17 
million for U-2 procurement to continue the reliability and 
maintainability (R&M) conversion of 11 Senior Glass systems for 
the U-2.
      The conferees agree to the AIP transfer and to authorize 
an increase of $7.5 million for R&M conversion of Senior Glass 
systems for the U-2 in the research and development program 
Manned Reconnaissance Systems (PE 35207F).

                                 Other

      The budget request included funding for the common 
imagery ground/surface system (CIGSS) and airborne 
reconnaissance ground SIGINT system (ARGSS) programs in DARO 
procurement lines. The conference agree to transfer this 
funding to the appropriate service or defense agency accounts.
E-8 modifications
      The budget request included $44.2 million for E-8 
modifications.
      The House bill would authorize a decrease of $11.8 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Passenger safety modifications
      The budget request included $252.6 million in various Air 
Force aircraft modification budget lines to support making 
communications, navigation, and safety improvements to improve 
safety of passenger and cargo carrying aircraft.
      The House bill would authorize an increase of $50.0 
million for passenger safety modifications in specific aircraft 
modification budget lines for enhanced ground proximity warning 
systems (EGPWS) and traffic collision avoidance system (TCAS) 
requirements, as follows:

                          [Dollars in millions]
------------------------------------------------------------------------
                 Aircraft                     EGPWS     TCAS      Total
------------------------------------------------------------------------
VC-25.....................................       5.8  ........       5.8
C-21......................................      15.7       6.5      22.2
C-130.....................................       3.5  ........       3.5
C-9.......................................  ........       3.4       3.4
C-141.....................................  ........       4.2       4.2
KC-10.....................................  ........      10.9      10.9
                                           -----------
    Total.................................      25.0      25.0      50.0
------------------------------------------------------------------------

      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $50.0 
million to procure additional aircraft safety modifications.
Pacer Coin
      The budget request included $2.4 million for aircraft 
spares and repair parts for the transfer of mission equipment 
from retiring Pacer Coin aircraft to the non-dedicated, follow-
on C-130 reconnaissance aircraft.
      The House bill would authorize a decrease of $2.4 million 
for transfer of mission equipment for Pacer Coin aircraft since 
the program is being terminated and a fiscal year 1998 
Department of Defense reprogramming request stated that all 
funds necessary for the C-130 follow-on program were addressed 
in the reprogramming request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $2.4 
million for transfer of mission equipment for Pacer Coin 
aircraft.
Common support equipment
      The budget request included $152.1 million for common 
support equipment.
      The House bill would authorize a decrease of $4.2 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
A-10 post production support
      The budget request included $11.4 million for A-10 post 
production support.
      The House bill would authorize a decrease of $1.9 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
B-2A
      The budget request included $189.9 million for post 
production support for the B-2A bomber fleet.
      The House bill would authorize an increase of $86.0 
million to enhance the B-2's operational effectiveness.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $86.0 
million.
      The conferees note that the increase would fund low 
observability maintainability and situational awareness 
upgrades key to maximizing the effectiveness of the small 
number of B-2 bombers in the fleet. The conferees also believe 
that the funding increase would provide the opportunity to 
coordinate efficiently these efforts with radar cross section 
improvements.
Miscellaneous production charges
      The budget request included $221.5 million for 
miscellaneous production charges, including $10.1 million for 
High Speed Anti- Radiation Missile targeting pod modifications.
      The House bill would authorize a decrease of $10.1 
million, recognizing that $6.1 million was requested for the 
same purpose in the ``Other aircraft modifications'' account.
      The Senate amendment would authorize the budget request.
      The conferees agree to a decrease of $10.9 million in 
miscellaneous production charges.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $384.2 million for Ammunition Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $383.6 million. The Senate amendment would authorize 
$383.2 million. The conferees recommended an authorization of 
$383.2 million. Unless noted explicitly in the statement of 
managers, all changes are made without prejudice.





Overview

      The budget request for fiscal year 1999 contained an 
authorization of $2,359.8 million for Missile Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $2,234.7 million. The Senate amendment would 
authorize $2,347.7 million. The conferees recommended an 
authorization of $2,210.6 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





Advanced Medium Range Air-to-Air Missile

      The budget request included $114.6 million for the 
procurement of 180 Advanced Medium Range Air-to-Air Missiles.
      The House bill would authorize a decrease of $4.6 
million.
      The Senate amendment would authorize a decrease of $21.0 
million because of cost savings associated with the merger of 
the system's two prime contractors.
      The conferees agree to authorize a decrease of $20.9 
million.

Minuteman III guidance replacement program

      The budget request included $90.6 million for Minuteman 
III modifications.
      The House bill would authorize an increase of $23.0 
million for the Minuteman III guidance replacement program 
(GRP).
      The Senate amendment would authorize an increase of $46.0 
million for GRP.
      The conferees agree to authorize an increase of $23.0 
million above the budget request for GRP. Additionally, the 
conferees are aware that $8.8 million in funds authorized in 
fiscal year 1998 for GRP are excess to fiscal year 1998 
requirements. Therefore, the conferees direct that such fiscal 
year 1998 funds be obligated in support of GRP during fiscal 
year 1999.

AGM-65H Maverick

      The budget request included no funds for the AGM-65H 
missile.
      The House bill would authorize an increase of $3.0 
million to ensure that the Air Force can accomplish a smooth 
transition to a service life extension program for these 
weapons.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

Defense Support Program

      The budget request included $89.9 million for procurement 
of Defense Support System (DSP) satellites.
      The House bill and the Senate amendment would authorize 
the budget request.
      The Senate amendment approved the budget request.
      The conferees agree to authorize a decrease of $7.0 
million to the budget request.
      The conferees note that excess prior year funds exist in 
the DSP program.

Overview

      The budget request for fiscal year 1999 contained an 
authorization of $6,974.4 million for Other Procurement, Air 
Force in the Department of Defense. The House bill would 
authorize $7,046.4 million. The Senate amendment would 
authorize $6,774.6 million. The conferees recommended an 
authorization of $6,950.4 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





60K Loader
      The budget request included $89.2 million for the 60K 
loader.
      The House bill would authorize a decrease of $2.9 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Combat training ranges
      The budget request included $13.2 million for combat 
training ranges, but included no funds for the rangeless air 
combat training system (RACTS). This system is also known as 
the Kadena Interim Training System (KITS) and was delivered to 
Kadena Air Base, Japan, in August 1997.
      For future fixed and deployable training support, the 
Department of Defense's plan is to shift to the Joint Tactical 
Combat Training System (JTCTS), a system that will support air, 
surface, and subsurface training requirements. However, the 
House report (H. Rept. 105-532) noted that no funds were 
included in the budget to meet near-term training requirements 
that had been identified by United States Air Forces Europe 
(USAFE).
      The House bill would authorize an increase of $5.0 
million for RACTS to meet these requirements.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Automated telecommunications program
      The budget request included $14.9 million for automated 
telecommunications equipment.
      The House bill would authorize a decrease of $4.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Air Force satellite control network
      The budget request included $26.0 million in Air Force 
other procurement for the Air Force Satellite Control Network 
(AFSCN) program.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $1.4 
million from the budget request.
      The conferees note that excess prior year funds exist in 
the AFSCN program. The conferees direct that these funds be 
used to satisfy fiscal year 1999 AFSCN requirements.
Communication electronics modifications
      The budget request included $57.7 million for 
communication electronics modifications.
      The House bill would authorize a decrease of $5.8 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $2,041.7 million for Defense-wide Procurement 
in the Department of Defense. The House bill would authorize 
$1,962.9 million. The Senate amendment would authorize $2,023.5 
million. The conferees recommended an authorization of $1,954.8 
million. Unless noted explicitly in the statement of managers, 
all changes are made without prejudice.





Automated document conversion system

      The budget request included no funds for automated 
document conversion system (ADCS).
      The House bill would authorize an increase of $32.0 
million for the procurement of ADCS hardware and software.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $25.0 
million for the procurement of ADCS hardware and software.

SOF intelligence systems

      The budget request included $19.1 million for special 
operations forces intelligence systems.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $5.0 
million for procurement and installation of Silent Shield real-
time situational awareness systems on special operations 
aircraft.
      The conferees agree to authorize an increase of $2.5 
million for Silent Shield system procurement.

Contamination avoidance

      The budget request included $96.2 million for 
contamination avoidance.
      The House bill would authorize a decrease of $6.9 
million. This decrease would eliminate funding for National 
Guard Rapid Assessment and Initial Detection equipment.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.

Overview

      The budget request for fiscal year 1999 contained no 
authorization for National Guard and Reserve Procurement in the 
Department of Defense. The House bill would authorize $300.0 
million. The Senate amendment would authorize $60.0 million. 
The conferees recommended an authorization of $60.0 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.





                  National Guard and Reserve Equipment

      The budget request included $1.36 billion for National 
Guard and Reserve equipment, as follows:

                                                                Millions
Aircraft, Army................................................    $110.2
Missiles, Army................................................      35.3
Weapons and Tracked Combat Vehicles, Army.....................      12.3
Ammunition, Army..............................................     182.3
Other Procurement, Army.......................................     502.9
Aircraft, Navy................................................      41.8
Ammunition, Navy/USMC.........................................      17.3
Other Procurement, Navy.......................................       3.6
Procurement, USMC.............................................      39.9
Aircraft, USAF................................................     293.3
Ammunition, USAF..............................................      30.4
Other Procurement, USAF.......................................      85.0
NG&RE, Other Procurement......................................       9.3
                    --------------------------------------------------------------
                    ____________________________________________________

      Department of Defense Total.............................   1,363.6

      This request reflects a net increase of almost $400.0 
million above the funding requested for the reserve component 
modernization in the fiscal year 1998 budget request. The 
conferees believe that the increased funding requested by the 
services for reserve component modernization reflects a 
recognition of the critical role that these forces provide in 
Department of Defense operations. The conferees agree that 
reserve component modernization, as an integral component of 
overall DOD modernization, should rely on a collaborative 
budget development process within the Department and not on 
annual congressional supplemental funding, which would have to 
come at the expense of other programs funded in the budget 
request. However, the conferees recognize that there are still 
significant modernization shortfalls in both the active and 
reserve components and remain concerned about the readiness 
implications of declining modernization funding requests.
      Accordingly, the conferees agree to authorize increases 
to support reserve component modernization, as follows:

                                                                Millions
UH-60 Blackhawk................................................... $66.4
Family of Medium Tactical Vehicles................................  42.5
Medium Truck Extended Service Program.............................  20.0
Multiple Launch Rocket System Launchers...........................  45.0
R2000 Engine Flush System.........................................   5.0
Bradley Upgrades..................................................  70.0
SINCGARS family...................................................  50.0
AH-64 Vibration Management Enhancement System.....................   3.0
Engagement Skills Trainers........................................   5.0
MIUW van upgrades.................................................  12.0
KC-135 Re-engining................................................  46.0
F-16 IAIS.........................................................  14.0
C-130 (1 WC-130J, 1 EC-130J, 2 C-130J)............................ 276.4
C-130J Simulator..................................................  30.0
                        -----------------------------------------------------------------
                        ________________________________________________
      Total increase.............................................. 685.3

      Additionally, the conferees agree to authorize an 
increase of $60.0 million for National Guard and Reserve 
miscellaneous equipment, as follows:

                                                                Millions
  Army Reserve
    Miscellaneous................................................. $10.0
  Navy Reserve
    Miscellaneous.................................................  10.0
  Marine Corps Reserve
    Miscellaneous.................................................  10.0
  Air Force Reserve
    Miscellaneous.................................................  10.0
  Army National Guard
    Miscellaneous.................................................  10.0
  Air National Guard
    Miscellaneous.................................................  10.0

      The conferees direct that the miscellaneous funding be 
allocated exclusively by the chiefs of the reserve components, 
in consultation with service chiefs, and give priority 
consideration to the following items: 2.5-ton and 5-ton truck 
extended service program; night vision equipment; high mobility 
multipurpose wheeled vehicles; CH-47 crashworthy internal fuel 
cells; heavy expanded mobility tactical truck bridge 
transportation kits; M915 truck extended service program 
upgrade kits; rock crush, screen; AVLB 60-70 ton upgrades; high 
mobility multipurpose wheeled vehicle contact maintenance 
trucks; 5 kilowatt tactically quiet generator; M915A3 long haul 
tractor; F/A-18A+ ECP; CH-53e HNVS ``B kits''; electronic 
calibration facility (AN/TSM-198); electronic test measurement 
and diagnostic equipment facility; D-7 bulldozer; 
reconfigurable mission simulator; meteorological measuring sets 
(AN/TMQ41); PATS (F-16); F-16 ALR-56M RWR; F-16 SADL ADP/color; 
A-10 SADL group A; airborne firefighting equipment; mobile 
backscatter truck inspection system; the advanced radar warning 
receiver; and the D-7 product improvement program.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $855.1 million for Chemical Agent and 
Munitions Destruction, Army. The House bill would authorize no 
funding for Chemical Agent and Munitions Destruction, Army, but 
would transfer the authorization of $834.0 million for Chemical 
Agent and Munitions Destruction, Defense. The Senate amendment 
would authorize no funding for Chemical Agent and Munitions 
Destruction, Army but would transfer the authorization of 
$777.2 million for Chemical Agent and Munitions Destruction, 
Defense. The conferees agree to authorize $803.0 million for 
Chemical Agent and Munitions Destruction, Defense. Unless noted 
explicitly in the conference agreement, all changes are made 
without prejudice.





                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 101-109)
      The House bill contained provisions (secs. 101-109) that 
would authorize the recommended fiscal year 1999 funding levels 
for the Army, Navy and Marine Corps, Air Force, Defense-Wide 
Activities, Reserve Components, Defense Inspector General, 
Chemical Demilitarization Program, Defense Health Program, and 
the Defense Export Loan Guarantee Program.
      The Senate amendment contained similar provisions.
      The conference agreement includes these provisions.
Chemical demilitarization program (sec. 107)
      The budget request for the Army included $855.1 million 
for the chemical agents and munitions destruction program.
      The House bill recommended no funding for Chemical Agents 
and Munitions Destruction, Army, but contained a provision 
(sec. 107) that would authorize $834.0 million for the 
Department of Defense for the destruction of lethal chemical 
agents in accordance with Section 1412 of the Department of 
Defense Authorization Act for Fiscal Year 1986 (Public Law 99-
145, 50 U.S.C. 1521) and for chemical warfare materiel of the 
United States not covered by Section 1412 of such Act, a $21.1 
million reduction to the budget request.
      The Senate amendment recommended no funding for Chemical 
Agents and Munitions Destruction, Army, but contained a similar 
provision (sec. 107) that would authorize $780.1 million for 
destruction of the lethal chemical agents and munitions 
stockpile pursuant to Section 1412 of the Department of Defense 
Authorization Act for Fiscal Year 1986 and U.S. chemical 
warfare materiel not covered by Section 1412 of the Act, a 
$78.5 million reduction to the budget request. Additionally, 
the Senate recommended that an additional $3.0 million be made 
available to accelerate the development and fielding of the 
Army's mobile munitions assessment system. Additionally, the 
Senate would recommend the transfer of the chemical 
demilitarization program to the Defense Threat Reduction 
Agency.
      The conferees agree to a provision that would authorize 
$803.0 million for the Department of Defense chemical agents 
and munitions destruction program, to include: $124.7 million 
for procurement; $172.8 for research and development; $508.6 
million for operation and maintenance; and a reduction of $3.0 
million for revised economic assumptions. Of the amount 
authorized for research and development, the conferees 
recommend that an additional $5.0 million be made available to 
accelerate the development and fielding of the Army's mobile 
munitions assessment system and an additional $6.0 million be 
made available to demonstrate alternatives to the baseline 
incineration process for the destruction of assembled chemical 
munitions and to proceed from a demonstration to the 
development of a pilot-scale facility.
      The conferees understand that additional funds above the 
amount recommended in this Act may be necessary to demonstrate 
viable alternative technologies, and encourage the Department 
of Defense to review funds available in the chemical agents and 
munitions demilitarization program from prior year 
authorization and appropriations, as well as funds available to 
the Department that have been identified as sources in the most 
recent omnibus reprogramming (FY98-16PA) forwarded to the 
Congress for approval, as possible sources for such additional 
funds necessary for activities related for the demonstration of 
alternative technologies to the destruction of assembled 
chemical munitions.
      Section 1412(f) of the Department of Defense 
Authorization Act for Fiscal Year 1986 requires that funds for 
the destruction of the U.S. stockpile of lethal chemical agents 
and munitions, including funds for military construction 
projects necessary to carry out the demilitarization program, 
shall be set forth in the budget of the Department of Defense 
as a separate program and shall not be included in the budget 
accounts for any military department. In the statement of 
managers accompanying the National Defense Authorization Act 
for Fiscal Year 1994 (H. Rept. 103-357), the conferees cited 
this section in transferring the funds contained in the fiscal 
year 1994 Army budget requests for the chemical 
demilitarization program to a separate DOD account. Section 
1412(e) of Public Law 99-145 further requires that the 
management organization for the chemical munitions destruction 
program shall be established within the Department of the Army.
      The conferees agree that the defense chemical 
demilitarization program should continue to be managed as a 
major defense acquisition program with the Office of the 
Secretary of Defense providing policy and program oversight, 
the Secretary of the Army as executive agent for the management 
and execution of the program, and the project manager for the 
program for the assembled chemical weapons assessment (ACWA) of 
alternative technologies reporting to the Under Secretary of 
Defense for Acquisition and Technology (until completion of the 
demonstration phase of the ACWA program).

                       Subtitle B--Army Programs

Multiyear procurement authority for Longbow Hellfire missile program 
        (sec. 111)
      The House bill contained a provision (sec. 111) that 
would authorize the Secretary of the Army to enter into a 
multiyear procurement contract for the Longbow Hellfire 
missile.
      The Senate amendment contained a similar provision (sec. 
111).
      The Senate recedes.
      The conferees agree to authorize the Secretary of the 
Army to enter into a multiyear contract for the Longbow 
Hellfire missile.
Condition for award of second-source procurement contract for the 
        family of medium tactical vehicles (sec. 112)
      The Senate amendment contained a provision (sec. 112) 
that would require certain conditions to be met before the 
Secretary of the Army could enter into a contract with more 
than one manufacturer for the procurement of the family of 
medium tactical vehicles (FMTV). The Senate supports Army 
efforts to qualify a second source for FMTV trucks, if the 
established conditions are met, and would support acceleration 
of this effort if the Army determines that this action could be 
accomplished within programmed resource limitations.
      The House bill contained no similar provision.
      The House recedes with an amendment. Based on critical 
shortfalls of modernized trucks within the Army, the conferees 
direct the Secretary of the Army to ensure that sufficient 
funding is programmed for any FMTV prime contractor to maintain 
minimum economic production levels necessary to sustain steady 
production and meet FMTV fielding requirements. The conferees 
note existing funding levels, constrained by modernization 
budget limitations, will result in a break in production, 
increased costs, and delays in the modernization process.
Armored system modernization (sec. 113)
      The Senate amendment contained a provision (sec. 113) 
that would require the Secretary of the Army to submit to the 
congressional defense committees a report on Army armored 
system modernization programs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$14.3 million for the M1A1D applique integration program and 
$6.0 million for an M1A2 risk reduction program. Of the amount 
authorized for the M1A1D applique integration program, not more 
than $11.4 million may be obligated before the end of the 30-
day period beginning on the date on which the Secretary of the 
Army submits the armored system modernization report.
      Congress supports the development and fielding of the 
M1A1D and authorizes $20.3 million to complete development and 
testing, and to initiate fielding. The conferees are concerned, 
however, about the risk inherent in the conversion of the M1A2 
to the Force XXI Battle Command Brigade and Below (FBCB2) 
software and directs that $6.0 million of the $20.3 million be 
used to develop an M1A2 risk reduction effort. The conferees 
recognize the Army's goal is to field only the M1A1D and 
M1A2SEP variants, but want to ensure risk is addressed.
      The conferees are also concerned that armor system 
modernization plans, including the proposal to close the tank 
plant in Lima, Ohio, do not adequately address future 
operational requirements for armor systems, modernization and 
upgrade requirements, and industrial base implications 
associated with plans to bridge the gap between production of 
existing armor systems and future combat platforms. The 
conferees direct the Secretary of the Army to provide a report 
on armor system modernization programs to the congressional 
defense committees no later than January 31, 1999.
Reactive armor tiles (sec. 114)
      The Senate amendment contained a provision (sec. 114) 
that would require the Secretary of Defense, with input from 
the Army and Marine Corps, to conduct a detailed assessment of 
requirements for reactive armor tiles and provide a cost-
benefit analysis of the procurement and installation of tiles 
on selected armor vehicles. The provision would preclude any 
expenditure of funds for armor tiles until 30 days after the 
date on which the Secretary of Defense submits the results of 
this study to the Congress.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Extension of authority to carry out Armament Retooling and 
        Manufacturing Support Initiative (sec. 115)
      The Senate amendment contained a provision (sec. 116) 
that would extend the Armament Retooling and Manufacturing 
Support Initiative through fiscal year 1999.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle C--Navy Programs

CVN-77 nuclear aircraft carrier program (sec. 121)
      The Senate amendment contained a provision (sec. 121) 
that would authorize $124.5 million for the advance procurement 
and construction of components, including nuclear components, 
for the CVN-77 aircraft carrier program.
      The House bill contained no similar provision.
      The House recedes.
Increase in amount authorized to be excluded from cost limitation for 
        Seawolf submarine program (sec. 122)
      The Senate amendment contained a provision (sec. 122) 
that would amend section 123(a) of the National Defense 
Authorization Act for Fiscal Year 1998 by striking the amount 
of $272.4 million and replacing it with the amount of $557.6 
million as the amount excluded from the Seawolf submarine 
program cost limitation.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Multiyear procurement authority for the Department of the Navy (sec. 
        123)
      The House bill contained a provision (sec. 121) that 
would authorize the Secretary of the Navy to enter into 
multiyear contracts for the AV-8B, E-2C, and T-45 aircraft, and 
to enter into a multiyearprocurement contract to procure the 
Marine Corps Medium Tactical Vehicle Replacement.
      The Senate amendment contained separate provisions (secs. 
124-123) that would authorize the same multiyear procurements.
      The Senate recedes.
Annual General Accounting Office review of F/A-18E/F program (sec. 124)
      The Senate amendment contained a provision (sec. 1034) 
that would require an annual General Accounting Office review 
of the F/A-18E/F program.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                     Subtitle D--Air Force Programs

F-22 aircraft program (sec. 131)
      The Senate amendment contained a provision (sec. 133) 
that would limit obligation of advance procurement funds for 
the six Lot II F-22 aircraft. The provision would make funds 
available after the completion of 10 percent of the F-22 flight 
test program, or alternatively, 30 days after the Secretary of 
Defense submits a certification that:
            (1) of the number of flight test hours completed, 
        if less than 10 percent;
            (2) that a lesser amount of flight testing would be 
        sufficient for making a production decision, and the 
        basis for that determination; and
            (3) that it would be financially advantageous to 
        proceed to Lot II production rather than delay 
        production until completion of 10 percent of the flight 
        testing.
      The House bill contained no similar provision.
      The House recedes with an amendment that would remove the 
30 day delay period from the provision. The provision would 
allow the Department to obligate advance procurement funds as 
soon as the certification is submitted to the congressional 
defense committees.
C-130J aircraft program (sec. 132)
      The Senate amendment contained a provision (sec. 134) 
that would require a report from the Secretary of Defense on 
the C-130J aircraft program.
      The House bill contained no similar provision.
      The House recedes.

                       Subtitle E--Other Matters

Chemical stockpile emergency preparedness program (sec. 141)
      The Senate amendment contained a provision (sec. 1080) 
that would direct the Director of the Federal Emergency 
Management Agency (FEMA) to carry out a program with state and 
local governments to assist them in developing capabilities to 
respond to public health or safety emergencies that may arise 
from the destruction of lethal chemical agents and munitions in 
the U.S. stockpile.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Director of FEMA, in accordance with a Memorandum of 
Understanding (MOU) with the Department of the Army, to carry 
out an emergency preparedness program with state and local 
governments. The provision would also direct that funds, 
appropriated in the defense account for this portion of the 
chemical stockpile emergency preparedness program, be made 
available to FEMA to implement its responsibilities pursuant to 
the requirements of this provision. Lastly, the provision would 
require the Secretary of Defense to include, in the 
Department's annual report on the defense chemical agents and 
munitions destruction program, information on actions taken and 
grants provided to assist state and local governments to 
develop their off-post emergency preparedness plans for 
responding to chemical accidents or incidents at the eight 
chemical stockpile storage installations.
Alternative technologies for destruction of assembled chemical weapons 
        (sec. 142)
      The House bill contained a provision (sec. 141) that 
would authorize $12.6 million for identification and 
demonstration of alternative technologies to the baseline 
incineration process for destruction of assembled chemical 
munitions in the U.S. stockpile, and would direct the transfer 
of management oversight responsibility for the program from the 
Under Secretary of Defense for Acquisition and Technology (USD, 
A&T) to the Secretary of the Army.
      The Senate amendment contained a provision (sec. 117) 
that would provide authority for the program manager for the 
Assembled Chemical Weapons Assessment (ACWA) to demonstrate 
alternative technologies to the baseline incineration process 
and to undertake post-demonstration activities necessary to 
implement any such alternative technology, if it is proven 
successful, and, would authorize $18.0 million for 
demonstration of alternative technologies and planning and 
preparation to proceed from demonstration to pilot-scale 
testing. Additionally, the provision would require the Under 
Secretary of Defense for Acquisition and Technology to provide 
for two evaluations of the cost and schedule of an alternative 
technology to baseline incineration to be submitted to the 
Under Secretary by September 30, 1999. Lastly, the provision 
would maintain the current program manager for the Assembled 
Chemical Weapons Assessment, who would continue to manage the 
development and testing (including demonstration and pilot-
scale testing) of alternative technologies for the destruction 
of lethal assembled chemical weapons, and would continue to 
operate independently from the program manager for the baseline 
chemical demilitarization program.
      The House recedes with an amendment that would require 
thecurrent program manager for the Assembled Chemical Weapons 
Assessment to continue to manage the development, testing, 
demonstration and pilot-scale testing of alternative technologies for 
the destruction of assembled chemical munitions and to act 
independently of the program manager for the Department of Defense 
baseline incineration program. In addition, the ACWA program manager 
shall report to the Under Secretary of Defense for Acquisition and 
Technology.
      The provision would also authorize the ACWA program 
manager to carry out post-demonstration activities to ensure 
that an alternative technology can be implemented immediately 
following the successful demonstration of an alternative 
technology, and the submission to Congress of a report on the 
demonstration and a decision by the Under Secretary of Defense 
for Acquisition and Technology to proceed with a pilot-scale 
facility.
      In order to ensure that an alternative technology may be 
demonstrated immediately, the conferees provide authority for 
the program manager to take certain actions during fiscal years 
1998 and 1999 related to the establishment, preparation, 
development and identification of activities related to 
awarding a contract for a potential successful alternative 
technology for assembled chemical munitions not later than 
December 30, 1999.
      The conferees also direct the Under Secretary of Defense 
for Acquisition and Technology to provide to Congress an 
independent, nongovernmental evaluation of the cost and 
schedule for any potential alternative technology resulting 
from the ACWA demonstration activities.
      Lastly, if the Secretary of Defense decides to proceed 
with a pilot program, the conferees direct that a report be 
submitted to the congressional defense committees on the 
Department's plan to conduct the pilot program, including 
information on the cost and the schedule for the alternative 
technology pilot program for destruction of assembled chemical 
munitions.
      As noted elsewhere in the statement of managers on the 
chemical agent and munitions destruction program (sec. 107), 
the conferees understand that additional funds may be necessary 
above the amounts recommended in this Act, as well as for 
fiscal year 1998, to demonstrate viable alternative 
technologies. The conferees encourage the Department of Defense 
to review funds available in the chemical agents and munitions 
demilitarization program from prior year authorizations and 
appropriations, as well as funds available to the Department 
which have been identified as sources in the most recent 
omnibus reprogramming (FY98-16PA) forwarded to the Congress for 
approval, as possible sources for any additional funds 
necessary for activities related to the demonstration of 
alternative technologies for the destruction of assembled 
chemical munitions.

                   Legislative Provisions Not Adopted

M1A2 system enhancement program step one
      The House bill contained a provision (sec. 112) that 
would require the Army to use the $20.3 million included in the 
budget request for M1A1D upgrade kits to instead procure M1A2 
system enhancement program step one communications upgrades.
      The Senate amendment contained no similar provision.
      The House recedes.
Annual reporting of costs associated with travel of members of the 
        chemical demilitarization citizenship advisory commission
      The Senate amendment contained a provision (sec. 115) 
that would amend section 1412(g)(2) of the National Defense 
Authorization Act for Fiscal Year 1986 (Public Law 102-484) to 
require that information on the travel costs of members of the 
chemical demilitarization citizenship advisory commission be 
included in the annual report to Congress on the chemical and 
munitions destruction program.
      The House bill contained no similar provision.
      The Senate recedes.
Joint surveillance target attack radar system
      The Senate amendment contained a provision (sec. 131) 
that would authorize $72.0 million for the joint surveillance 
target attack radar system (JSTARS), as follows:
            (1) advance procurement of long-lead items for two 
        additional E-8C JSTARS aircraft;
            (2) payment of expenses associated with termination 
        of production of JSTARS aircraft; or
            (3) development of an improved radar for the 
        JSTARS.
      The House bill contained no similar provision.
      The Senate recedes.
Limitation on replacement of engines on military aircraft derived from 
        Boeing 707 aircraft
      The Senate amendment contained a provision (sec. 132) 
that would prevent the Secretary of Defense from obligating or 
expending funds for reengining Department of Defense aircraft 
derived from Boeing 707 aircraft until an overdue report was 
submitted. The report was due in March 1998 and was not 
received until July 13, 1998.
      The House bill contained no similar provision.
      The Senate recedes.

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

Research, Development, Test, and Evaluation Overview
      The budget request for fiscal year 1999 contained an 
authorization of $36,078.6 million for Research and Development 
in the Department of Defense. The House bill would authorize 
$36,228.0 million. The Senate amendment would authorize 
$35,942.2 million. The conferees recommended an authorization 
of $36,007.9 million. Unless noted explicitly in the statement 
of managers, all changes are made without prejudice.





Overview
      The budget request for fiscal year 1999 contained an 
authorization of $4,780.5 million for Army, Research and 
Development in the Department of Defense. The House bill would 
authorize $4,793.0 million. The Senate amendment would 
authorize $4,816.1 million. The conferees recommended an 
authorization of $4,657.0 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





Additional decreases in technology base funding

      The conferees agree to include a number of decreases in 
recognition of lack of congressional support for funding. Among 
these are the following:

                                                             In millions
    PE 61102A--Defense Research Sciences.......................... -$8.0
    PE 61104A--University and Industry Research Centers...........  -3.3
    PE 62308A--Modeling and Simulation Technology.................  -4.5
    PE 64824A--DUAP Commercial Operations and Support Savings..... -10.0
    PE 64805N--Commercial Operations and Support Savings.......... -10.0
    PE 72207N--Depot Maintenance (Non-IF)......................... -20.0
    PE 64805F--Commercial Operations and Support Savings.......... -10.0
    PE 65122D--Industrial Capabilities Assessments................  -2.9

      Other similar decreases are noted elsewhere in the 
report.
      The conferees also agree to a number of decreases in 
authorization to fund higher priority programs. Among these 
decreases are the following:

                                                             In millions
    PE 62120A--Sensors and Electronic Survivability............... -$1.8
    PE 62211A--Aviation Technology................................  -1.9
    PE 65326A--Concepts Experimentation Program...................  -6.9
    PE 65804N--Technical Information Services.....................  -2.5
    PE 27424F--Evaluation & Analysis Program...................... -12.8

      Other similar decreases are noted elsewhere in the 
statement of managers accompanying this Act.
Materials technology
      The budget request included $10.1 million in PE 62105A 
for materials technology research.
      The House bill would authorize an increase of $5.0 
million for hardened materials research for land warfare 
systems applications.
      The Senate amendment would authorize an increase of $3.0 
million for continuing hardened materials research in missile 
composite structures and composite shroud assemblies.
      The House recedes.
Missile technology
      The budget request included $25.2 million in PE 62303A 
for missile technology.
      The House bill would authorize the budget request for 
missile technology in PE 62303A, but would authorize an 
increase of $8.0 million in scramjet technology development in 
PE 63003A.
      The Senate amendment would authorize an increase of $3.0 
million for scramjet technology in PE 62303A and an increase of 
$1.5 million for research in acoustic effects in the same 
program element.
      The House recedes.
Combat vehicle and automotive technology
      The budget request included $40.1 million in PE 62601A 
for combat vehicles and automotive technology.
      The House bill would authorize an increase of $10.0 
million for the innovative industry and academia alternative 
vehicle propulsion technology initiative.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.5 
million for the innovative alternative vehicle propulsion 
technology developed within industry and the academic 
community, as described in the House report (H. Rept. 105-532). 
The conferees further agree to a decrease of $5.0 million for 
the future infantry and combat system.
Human factors engineering technology
      The budget request included $13.3 million in PE 62716A 
for human factors engineering technology including $500,000 for 
Emergency Team Coordination (MedTeams) program.
      The House bill would authorize an increase of $4.8 
million to complete the MedTeams program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.8 
million and note that the authorized funds will allow for the 
completion of this program in fiscal year 1999, eliminating the 
need for further funding.
Environmental quality technology
      The budget request included $13.8 million for 
environmental quality technology within PE 62720A.
      The House bill would authorize an increase of $16.0 
million, with $4.0 million for the Radford Environmental 
Development and Management Program (REDMAP), $3.0 million for 
the Plasma Energy Pyrolysis System (PEPS), $4.0 million for the 
Computer-Based Land Management Model, and $5.0 million for the 
Agricultural Based Bioremediation.
      The Senate amendment would authorize an increase of $32.5 
million, with $24.0 million for pollution prevention research 
and development initiatives, to be awarded on a competitive 
basis by the National Defense Center for Environmental 
Excellence (PE 62720A), $3.5 million for REDMAP, and $5.0 
million for PEPS.
      The conferees agree to authorize an increase of $5.0 
million for PEPs, $3.5 million for REDMAP, $5.0 million for 
Agricultural Based Bioremediation, and $3.0 million for the 
Computer-Based Land Management Model in PE 62720A.
      The conferees also agree to authorize an increase of 
$20.0 million for pollution prevention research and development 
initiatives, and direct the Department of the Army to establish 
an Environmental Quality Technology (EQT) Budget Activity Four 
Program Element to manage these additional funds beginning in 
fiscal year 1999. The conferees direct the Department to 
transfer project DE31, and any related funding, from PE 78045A 
to this new program element, beginning in fiscal year 2000 and 
continuing through fiscal year 2005. The Department shall 
ensure that all applicable competitive procedures are used in 
the award of contracts or other agreements related to the 
obligation and expenditure of these $20.0 million, and that 
cost-sharing requirements for non-federal participants be 
utilized where appropriate. The conferees direct that these 
funds be used to develop new materials and manufacturing 
processes for the purpose of validating technology for 
installation of pollution abatement and enhancing weapons 
systems performance and reducing life cycle operations and 
maintenance costs. The Department shall seek to accomplish this 
work by exploiting the capabilities of the National Defense 
Center for Environmental Excellence (NDCEE), where appropriate.
Command, control, and communications technology
      The budget request included $19.7 million in PE 62782A 
for command, control, and communications technology.
      The House bill would authorize an increase of $2.8 
million for the Army multi-media communications device.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Military engineering technology
      The budget request included $37.5 million in PE 62784A 
for military engineering technology including $3.3 million for 
cold regions research.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.2 
million for cold regions research.
      The House recedes.
Medical advanced technology
      The budget request included $11.0 million in PE 63002A 
for medical advanced technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.0 
million for nutrition research.
      The House recedes.
Aviation advanced technology
      The budget request included $30.0 million in PE 63003A 
for aviation advanced technology.
      The House bill would authorize an increase of $2.0 
million for the Stinger universal launcher and an increase of 
$3.0 million to support comparative testing of Starstreak and 
Stinger missiles for application to the Apache helicopter 
program. The House bill would also authorize an increase of 
$8.0 million for scramjet technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million in PE 63003A, of which $2.0 million is for the Stinger 
universal launcher and $3.0 million is to support comparative 
testing of Starstreak and Stinger for application to the Apache 
helicopter program. Scramjet funding is addressed elsewhere in 
this statement of managers.
Weapons and munitions advanced technology
      The budget request included $24.6 million in PE 63004A 
for weapons and munitions advanced technology.
      The House bill would authorize an increase of $6.0 
million for the precision guided mortar munitions program, an 
increase of $5.0 million for the future direct support weapon 
system, and an increase of $6.0 million for the trajectory 
correctible munitions program.
      The Senate amendment would authorize an increase of $4.5 
million for the precision guided mortar munitions program.
      The conferees agree to authorize an increase of $4.5 
million for the precision guided mortar munitions program. The 
conferees regret the inability to authorize an additional $5.0 
million for the future direct support weapon system because of 
limitations on available appropriations. The conferees urge the 
Army to consider reprogramming up to $5.0 million from other 
available funds to accelerate this program. The authorization 
of additional funding for the trajectory correctable munitions 
program is addressed elsewhere in this statement of managers.
Combat vehicle and automotive advanced technology
      The budget request included $54.4 million in PE 63005A 
for combat vehicle and automotive advanced technology.
      The House bill would authorize an increase of $17.0 
million, as follows:
            (1) $10.0 million for advanced lightweight 
        composite materials; and
            (2) $7.0 million for innovative engine technology.
      The Senate amendment would authorize an increase of $3.0 
million for aluminum metal matrix development.
      The conferees agree to authorize an increase of $3.0 
million for aluminum metal matrix technology development and an 
increase of $2.0 million for innovative engine technology 
development.
Missile and rocket advanced technology
      The budget request included $86.1 million in PE 63313A 
for missile and rocket advanced technology.
      The House bill and Senate amendment would authorize a 
total decrease of $29.7 million, as follows:
            (1) a $35.7 million decrease for the enhanced fiber 
        optic guided missile (E-FOGM) program; and
            (2) a $6.0 million increase for the future missile 
        technology integration (FMTI) program.
      The conferees agree to authorize a decrease of $29.7 
million for missile and rocket advanced technology, including a 
decrease of $35.7 million for E-FOGM and an increase of $6.0 
million for FMTI.
Joint service small arms program
      The budget request included $5.2 million in PE 63607A for 
joint service small arms program.
      The House bill would authorize an increase of $3.5 
million for the objective crew served weapon (OCSW).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.5 
million for the OCSW program.
Tactical high energy laser
      The budget request included no funds for the joint U.S.-
Israel Tactical High Energy Laser (THEL) program.
      The House bill would authorize an increase of $10.0 
million for THEL and related advanced technologies.
      The Senate amendment would authorize an increase of $10.0 
million to continue THEL testing and deployment activities.
      The conferees agree to authorize an increase of $10.0 
million for the THEL program.
Armament enhancement initiative
      The budget request included $26.5 million in PE 63639A 
for the armament enhancement initiative program.
      The House bill would authorize an increase of $10.0 
million for the tank extended range munition-kinetic energy 
(TERM-KE) program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.0 
million for the TERM-KE program.
Comanche
      The budget request included $367.8 million in PE 64223A 
for Comanche helicopter development.
      The House bill would authorize an increase of $62.0 
million to accelerate testing of the second Comanche prototype 
and for other risk reduction efforts.
      The Senate amendment would authorize an increase of $24.0 
million to accelerate flight testing of the second Comanche 
prototype.
      The conferees agree to authorize an increase of $24.0 
million to accelerate flight testing of the second Comanche 
prototype.
Electronic warfare development
      The budget request included $86.0 million in PE 64270A 
for electronic warfare development.
      The House bill would authorize an increase of $5.0 
million for the Shortstop electronic protection system.
      The Senate amendment would authorize an increase of $8.6 
million for advanced threat infrared countermeasures (ATIRCM) 
development.
      The conferees agree to authorize an increase of $8.6 
million for ATIRCM development.
Follow-on to TOW
      The budget request included $48.1 million in PE 64325A 
for continued development of the follow-on to TOW (FOTT) 
system.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to a decrease of $35.0 million with 
the remaining funds made available for restructured research 
and development requirements associated with the TOW missile.
      The conferees note a recent Army decision to terminate 
the FOTT program due largely to affordability concerns.
Combat feeding, clothing, and equipment
      The budget request included $62.2 million to support 
research and development activities associated with combat 
feeding, clothing, and equipment development.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $4.0 
million that is no longer required due to contract 
modifications and engineering change proposals.
Aviation-engineering development
      The budget request included $6.6 million in PE 64801A for 
aviation engineering development requirements.
      The House bill would authorize an increase of $5.0 
million in PE 63801A for retinal display technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million in PE 64801A for retinal display technology 
development.
Weapons and munitions-engineering development
      The budget request included $37.7 million to support 
requirements for improved weapons and munitions.
      The House bill and the Senate amendment would support the 
budget request.
      The conferees agree to a decrease of $2.0 million as 
contract savings no longer require the level of funding 
requested.
      The conferees note that the Army contract for mortar fire 
control systems did not require the level of funding projected 
in the budget request.
Landmine warfare/barrier-engineering development
      The budget request included $46.9 million in PE 64808A 
for landmine warfare/barrier engineering development 
activities.
      The House bill and the Senate amendment would support the 
budget request.
      The conferees agree to authorize a decrease of $5.5 
million no longer required for the remote anti-armor mine 
system program due to a slip in the program and the recent 
approval of a reprogramming action.
Radar development
      The budget request included $2.8 million to support 
improvements to existing ground based radar systems.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $4.0 
million in PE 64820A for development of a passive adjunct 
sensor capability for the Sentinel radar.
      The conferees agree to authorize an increase of $4.0 
million to develop a passive adjunct sensor capability for the 
Sentinel radar.
Firefinder
      The budget request included $19.8 million in PE 64823A 
for Firefinder radar development activities.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $0.9 
million to accelerate new software development for the 
Firefinder system.
      The conferees agree to authorize an increase of $0.9 
million to accelerate software development.
Artillery systems-engineering and manufacturing development
      The budget request included $0.1 million in PE 64854A for 
artillery systems-engineering and manufacturing development.
      The House bill would authorize an increase of $13.0 
million, as follows:
            (1) $8.0 million for digital fire control 
        technology for Crusader; and
            (2) $5.0 million for fire control technology for 
        the lightweight howitzer.
      The Senate bill would authorize the budget request.
      The conferees agree to authorize an increase of $2.5 
million for lightweight 155 fire control technology.
Decrease to Research, Development, Test and Evaluation support programs
      The House bill would authorize a decrease of $9.8 million 
to address insufficiently justified program growth in Research, 
Development, Test and Evaluation (RDT&E) support programs.
      The Senate amendment would authorize a decrease of $27.0 
million to address concerns regarding the management, 
infrastructure and support programs in the RDT&E budget.
      The conferees agree to a total decrease of $42.8 million, 
as follows:

                                                             In millions

  Army:
    PE 64759A--Major test & evaluation support.................... -$1.0
    PE 65301A--Kwajalien.......................................... -14.0
  Navy:
    PE 65152N--Studies & analysis support.........................  -1.0
    PE 65853N--Management, technical & International support...... -11.0
    PE 65863N--RDT&E ship & aircraft support......................  -2.0
    PE 65864N--Test & evaluation support..........................  -5.8
  Air Force:
    PE 65807F--Test & evaluation support..........................  -4.0
    PE 65808F--Development planning...............................  -2.0
  Defense Agencies:
    PE 65804D--Developmental test & evaluation....................  -2.0

      The conferees intend that the decrease taken in PE 65853N 
should not affect project X2222, and that this particular 
project be moved from this program element to a more 
appropriate place in the budget.
Army technical test instrumentation and targets
      The budget request included $33.4 million in PE 65602A 
for Army technical test instrumentation and targets.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $7.0 
million for instrumentation and targets.
      The conferees agree to authorize an increase of $7.0 
million for instrumentation and targets.
Survivability/lethality analysis
      The budget request included $30.5 million in PE 65604A 
for survivability/lethality analysis.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $4.0 
million for information warfare vulnerability assessments.
      The conferees agree to authorize $4.0 million for 
information warfare vulnerability assessments.
Department of Defense high energy laser test facilities
      The budget request included $15.0 million in PE 65605A 
for Department of Defense high energy laser test facility.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $8.0 
million for solid state laser technology, and urged the Army to 
devote $1.5 million to address issues involving crystal growth 
manufacturing.
      The House recedes.
Multiple launch rocket system product improvement program
      The budget request included $20.2 million for the 
multiple launch rocket system (MLRS) product improvement 
program.
      The House bill would authorize an increase of $6.0 
million to accelerate development of high mobility artillery 
rocket system (HIMARS).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a net increase of $4.2 
million, including an increase of $6.0 million for HIMARS 
research and development activities, and a decrease of $1.8 
million for contract savings.
Advanced field artillery tactical data system
      The budget request included $35.1 million in PE 23726A 
for the advanced field artillery tactical data system (AFATDS).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $12.5 
million for airspace deconfliction and technical fire support 
enhancements.
      The conferees agree to authorize a net increase of $5.3 
million in PE 23726A, including an increase of $12.5 million 
for airspace deconfliction and technical fire support 
enhancements and a decrease of $7.2 million for AFATDS 2000 
development activities.
Combat vehicle improvement programs
      The budget request included $94.8 million in PE 23735A 
for combat vehicle improvement programs.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $7.0 
million for flat panel display technology development.
      The conferees agree to authorize an increase of $7.0 
million for flat panel display technology development.
Aircraft engine component improvement program
      The budget request included $2.9 million to develop 
improvements for Army aircraft engines.
      The House bill would authorize an increase of $5.0 
million for research and development of improved aircraft fuel 
pumps and an increase of $4.0 million for full authority 
digital engine control (FADEC) systems.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $7.0 
million, including $4.0 million for support research and 
development requirements for improved aircraft fuel pumps and 
$3.0 million for FADEC systems.
Force XXI warfighting rapid acquisition program
      The budget request included $99.5 million in PE 23761A to 
support procurements required for Army experimentation.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to a decrease of $30.0 million.
Missile/air defense product improvement program
      The budget request included $11.3 million to develop 
improvements for Army missile and air defense systems.
      The House bill would authorize an increase of $12.0 
million for further development of the Stinger block II air 
defense missile.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $6.0 
million to support research and development requirements for 
the Stinger block II missile system.
Defense information technology test bed
      The budget request included no funding in PE 23726A for 
the defense information technology test bed (DITT).
      The House bill would authorize an increase of $6.6 
million for DITT. This effort will establish a fully electronic 
virtual intelligence archive for use by battlefield commanders.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million for the development of a DITT program.
Information systems security program
      The budget request included $7.4 million in PE 303140A to 
meet information system security requirements.
      The House bill would authorize an increase of $5.0 
million to continue the demonstration program for military 
health care information protection.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million to support continued development and demonstration of 
military healthcare information protection measures.
Manufacturing technology
      The budget request included $150.7 million for the 
Department of Defense manufacturing technology (MANTECH) 
program including: $14.5 million in PE 78045A; $59.0 million in 
PE 78011N; $51.0 million in PE 78011F; and $26.2 million in PE 
78011S.
      The House bill would authorize an increase of $43.2 
million for MANTECH: $27.2 million in PE 78045A; $8.6 million 
in PE 78011N; and, $7.4 million in PE 78011F.
      The conferees agree to an increase of $21.8 million: 
$13.2 million for munitions manufacturing efforts within the 
Army MANTECH program (PE 78045A) and $8.6 million in the Navy 
MANTECH program (PE 78011N) to address program shortfalls. The 
conferees expect the additional funds to be awarded using 
competitive procedures based on the technical priorities 
established by the Army MANTECH technical council and the Navy 
MANTECH steering committee.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $8,108.9 million for Navy, Research and 
Development in the Department of Defense. The House bill would 
authorize $8,403.6 million. The Senate amendment would 
authorize $8,188.9 million. The conferees recommended an 
authorization of $8,305.0 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





Marine mammal research
      The budget request included $347.9 million in PE 61153N 
for the Navy's defense research and sciences program.
      The House bill would authorize the use of $500,000 from 
funds provided in PE 61153N for continuation of the Navy's 
cooperative marine mammal research program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the use of $500,000 from 
funds provided in PE 61153N for continuation of the Navy's 
cooperative marine mammal research program.
Pulse detonation engine technology
      The budget request included $37.1 million in PE 62111N 
for air and surface launched weapons technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.0 
million for pulse detonation engine technology.
      The conferees agree to authorize an increase of $1.0 
million for pulse detonation engine technology.
Stainless steel double hull research
      The budget request included $43.2 million in PE 62121N 
for ship, submarine and logistics technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $3.0 
million for stainless steel double hull research.
      The conferees agree to authorize an increase of $3.0 
million for stainless steel double hull research.
Communications, command, control, and intelligence
      The budget request included $65.0 million in PE 62232N 
for communications, command, control, and intelligence.
      The House bill would authorize an additional $1.0 million 
for hybrid fiberoptic/wireless communication systems.
      The Senate amendment would authorize a decrease of $5.0 
million for the strategic sustainment program with the 
communications, command, control, and intelligence account.
      The conferees agree to authorize a net decrease of $5.0 
million in PE 62232N, including an increase of $1.0 million for 
the hybrid fiberoptic/wireless communications systems and a 
decrease of $6.0 million for the strategic sustainment program.
Materials, electronic and computer technology
      The budget request included $77.6 million in PE 62234N 
for materials, electronic and computer technology.
      The House bill would authorize an increase of $12.0 
million, including $2.5 million for thermal management 
materials, $3.0 million for cryoelectronics waveform generator, 
$3.5 million for silicon carbide technology, and $3.0 million 
for carbon/carbon heatshields.
      The Senate amendment would authorize an increase of $6.0 
million, including $1.5 million for thermal management 
materials; $2.0 million for electronic propulsion technology, 
and $2.5 million for carbon/carbon heatshields.
      The conferees agree to authorize a net increase of $13.5 
million in PE 62234N, including an increase of $2.5 million for 
thermal management materials, an increase of $2.5 million for 
carbon/carbon heat shield, an increase of $3.0 million for the 
cryoelectronics waveform generator, an increase of $3.5 million 
for silicon carbide technology, and an increase of $2.0 million 
for the development of applied high temperature superconducting 
technology for synchronous AC electronic propulsion.
Autonomous underwater vehicle and sonar development
      The budget request included $56.7 million in PE 62435N 
for oceanographic and atmospheric technology.
      The House bill would authorize an increase of $10.0 
million for advanced sensors and unmanned underwater vehicle 
technologies.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $10.0 
million for advanced sensors and unmanned underwater vehicle 
technologies.
Micro electronic systems technology
      The budget request included $2.0 million in PE 62633N for 
undersea warfare weaponry technology.
      The House bill would authorize an increase of $2.0 
million for micro electronic systems technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million for micro electronic systems technology.
Air systems and weapons advanced technology
      The budget request included $48.1 million in PE 63217N 
for air systems and weapons advanced technology.
      The House bill would authorize a net decrease of $2.0 
million, including a decrease of $7.0 million for the 
vectoring, extremely short take-off and landing control 
tailless operation research (VECTOR) project and an increase of 
$5.0 million for the completion of the DP-2 proof of concept 
demonstration.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Precision strike and air defense technology
      The budget request included $58.3 million in PE 63238N 
for precision strike and air defense technology research.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $5.0 
million for mobile offshore base (MOB) research.
      The conferees agree to authorize a net decrease of $4.9 
million to PE 63238N, including an increase of $4.0 million for 
MOB research and a decrease of $8.9 million to fleet advanced 
demonstrations.
Advanced electric systems studies
      The budget request included $14.8 million in PE 63508N 
for fabrication, demonstration, development, and concept 
studies for quiet electric propulsion motor technologies.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $1.0 
million in PE 63508N to eliminate premature studies and reduce 
intermediate scale development.
      The House recedes.
Power electronic building blocks and power node control centers
      The budget request included $39.3 million in PE 63508N 
for surface ship and submarine hull, mechanical, and electrical 
advanced technology. The budget request included funding to 
continue the development and demonstration of power electronic 
building blocks and power node control centers for shipboard 
electrical power systems.
      The House bill would authorize an increase of $6.0 
million in PE 63508N to continue the program to accelerate the 
development of power electronic building block technology and 
the use of virtual prototyping and a virtual test bed to 
demonstrate and evaluate advanced shipboard electrical power 
system concepts. The House bill would also authorize an 
increase of $2.0 million in PE 63508N to continue the 
development of power node control centers for advanced 
electrical distribution system fault detection, switching, 
reconfiguration, and control of shipboard electrical systems.
      The Senate amendment would authorize the budget request.
      The Senate recedes.
Composite helicopter hangar
      The budget request included no funding for continuation 
of a program to design and fabricate the outer shell of a DDG-
51 helicopter hangar structure using composite materials.
      The Senate amendment would authorize an increase of $5.0 
million in PE 63508N to continue a developmental effort to 
design and fabricate the outer shell of a DDG-51 helicopter 
hangar structure using composite materials.
      The House bill would authorize the budget request.
      The House recedes.
Marine Corps advanced technology demonstration
      The budget request included $41.9 million for the Marine 
Corps advanced technology demonstration activities associated 
with the Commandant's warfighting laboratory.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million dollars for acceleration of warfighting experimentation 
activities, including $5.0 million for the second phase 
continued evaluation of the broad-area unmanned retail and re-
supply operation (BURRO). The Senate amendment would also 
authorize an increase of $1.0 million for evaluation of the K-
band training/test instrumentation system.
      The conferees agree to authorize an increase of $11.0 
million in PE 63640M, including $10.0 million for acceleration 
of warfighting experimentation, to include $5.0 million of this 
amount for the evaluation of the BURRO concept, and $1.0 
million for evaluation of the K-band training/test 
instrumentation system.
      The conferees note that the Senate report (S. Rept. 105-
189) would direct the Secretary of the Navy to provide a report 
on the long-term plan for developing a ``red team'' 
countermeasures efforts activity to keep pace with the 
warfighting experiment efforts. The Secretary was directed to 
provide the report to the congressional defense committees by 
May 15, 1999. Pending submission of the report, obligation of 
funds for the warfighting laboratory effort would have been 
limited to no more than 85 percent of the funds available.
      The conferees acknowledge the ongoing work on the ``red 
team'' effort and that the Marine Corps and Navy will be able 
to submit the required report on schedule. However, the Marine 
Corps has indicated that limiting obligations of funds until 
the report is submitted may cause the Department to forego some 
efforts that are important pieces of the Urban Warrior 
exercise.
      The conferees agree that the Secretary should submit the 
report as directed in the Senate report. However, the conferees 
further agree that the limitation on obligation is not needed 
to ensure timely submission of the report and could be 
counterproductive to this important experimentation effort.
Freeze dried blood
      The budget request included $18.7 million in PE 63706N 
for medical development.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.0 
million for freeze dried blood research.
      The conferees agree to authorize an increase of $1.0 
million for freeze dried blood research.
Advanced lightweight influence sweep system
      The budget request included $4.2 million for advanced 
mine sweeping.
      The Senate amendment would authorize an increase of $1.0 
million to PE 603782N for the advanced lightweight influence 
sweep system (ALISS) which is focused on developing high 
temperature superconducting magnets and acoustic transducers to 
sweep influence mines targeted against specific classes of Navy 
ships.
      The House bill would authorize the budget request.
      The conferees agree to authorize $1.0 million for ALISS.
Aviation survivability
      The budget request included $8.2 million in PE 63216N for 
aviation survivability equipment.
      The House bill would authorize an increase of $6.0 
million as follows:
      (1) $3.0 million for ejection seats; and
      (2) $3.0 million for the Escape System Dynamic Flow Test 
Facility.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million for the Escape System Dynamic Flow Facility.
ASW systems development
      The budget request included $20.1 million for ASW systems 
development.
      The House bill would authorize an increase of $3.0 
million for ASW systems development.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million to continue the development and testing of advanced 
anti-submarine warfare technologies on the BEARTRAP platform.
Studies and experiments for combat systems engineering
      The budget request included $8.6 million for studies and 
experiments for advanced combat systems engineering that, 
potentially, could be leveraged into new ship class computer 
architectures.
      The Senate amendment would authorize a decrease of $2.0 
million in PE 63382N for studies and experiments not directly 
connected to correcting warfighting deficiencies in 21st 
century platforms.
      The House bill would authorize the budget request.
      The conferees agree to authorize a decrease of $2.0 
million in PE 63382N.
Remote minehunting system
      The budget request included $73.5 million in PE 63502N 
for surface and shallow water mine countermeasures 
demonstration and validation, including $11.0 million for the 
remote minehunting system (RMS). The budget request also 
included $32.9 million for procurement of minesweeping system 
replacement equipment.
      The House bill would authorize an increase of $7.0 
million in PE 63502N to continue accelerated development and 
fielding of the RMS. The House bill would approve the 
procurement budget request.
      The Senate amendment would authorize a transfer of $15.9 
million included in the budget request for procurement to PE 
63502N for RMS research and development. This shift would 
enable the Navy to develop the modular V4 design to accommodate 
advanced sensors for RMS.
      The conferees agree to authorize a decrease of $15.9 
million for the procurement of RMS and an increase of $7.0 
million in PE 63502N for RMS.
Future aircraft carrier transition technology
      The budget request included a total of $190.1 million for 
future aircraft carrier research and development (R&D) and 
feasibility studies including $149.5 million in PE 63512N and 
$40.6 million in PE 63564N. The budget request also included 
$38.5 million in PE 64567N for CVN-77 contract design.
      The House bill and the Senate amendment would authorize 
the budget request. The House bill contained a provision (sec. 
212) that would authorize $50.0 million of those funds for CVN-
77 technologies that would be applicable to both CVN-77 and 
CV(X). The Senate amendment contained a similar provision (sec. 
212) that would direct that the $50.0 million be applied 
exclusively to CVN-77 technologies.
      The conferees strongly endorse the need to develop new 
technologies that will reduce life cycle costs and improve 
operational effectiveness of future aircraft carriers. The 
Chief of Naval Operations has advised the conferees that the 
most pressing need for the CV(X) is the initial development of 
a next generation propulsion plant of sufficient flexibility to 
support future technology insertion and performance 
improvements, while reducing propulsion plant life cycle costs.
      The conferees note a recent Navy decision to alter the 
design for the first CV(X). The conferees understand that the 
Navy's new plan to transition to the next generation aircraft 
carrier will be an evolutionary development in which carrier 
design changes will be incremental over several of the first 
generation of CV(X) carriers.
      Unfortunately, the congressional defense committees were 
provided with conflicting information regarding the Navy's 
purported change in plans regarding CV(X) and the Navy's 
intentions for near-term and Future Years Defense Program 
funding. These mixed communications are only now being sorted 
out. In the meantime, this conflicting information has caused 
some of the congressional defense committees to propose 
significant reductions to the budget request for fiscal year 
1999 CV(X) R&D funding.
      The conferees agree to authorize a reduction of $80.0 
million in PE 63512N without prejudice due to the ongoing 
refinement of the Navy's planning for CV(X). The conferees 
would be very receptive to a Navy request for additional 
authorization of CV(X) funding for fiscal year 1999 once the 
Navy makes available the restructured CV(X) plan and supporting 
documentation. The conferees strongly encourage the Secretary 
of Defense to submit such a request once the restructured CV(X) 
plan is completed.
      The conference agreements include a provision on CVN-77 
R&D funding (sec. 212) which is addressed elsewhere in this 
report.
Shipboard systems component development
      The budget request included $27.7 million for surface 
ship non-propulsion system component development.
      The House bill would authorize an increase of $1.0 
million in PE 63513N for the qualification and testing required 
to develop a new 150-kilowatt static frequency converter.
      The Senate amendment would authorize the budget request.
      It has come to the attention of the conferees that fiscal 
year 1999 test article procurement, installation and 
implementation programs assume low risk scenarios for research 
scheduled for fiscal year 1998 and early fiscal year 1999. 
These low risk scenarios are not supported by available 
documentation. Therefore, the conferees agree to a decrease of 
$2.0 million to PE 63513N.
      The conferees also agree to authorize an increase of $1.0 
million in PE 63513N for the qualification and testing required 
to develop a new 150-kilowatt static frequency converter.
SSGN study
      The budget request did not include funding for analyzing 
alternatives for converting Trident submarines for use in other 
than strategic missions.
      The Senate amendment would authorize an increase of $1.0 
million to PE 63564N for the Secretary of Defense to conduct an 
analysis of converting some of the Trident SSBNs to SSGN-
configuration and would direct the Secretary to provide a 
report of the analysis to the congressional defense committees 
no later than March 1, 1999.
      The House bill would authorize the budget request.
      The House recedes.
Intercooled recuperated gas turbine engine
      The budget request included $23.5 million in PE 63573N 
for continued development of the inter-cooled recuperated (ICR) 
gas turbine engine. The budget request would also continue 
testing of the ICR gas turbine engine under Memoranda of 
Understanding (MOUs) with the United Kingdom and France.
      The House bill would authorize the budget request. The 
House report (H. Rept. 105-532) would direct the Secretary of 
the Navy to provide an updated report on the resolution of 
technical, programmatic, and funding issues required to insure 
a stable development program supported by the fiscal year 2000 
budget request. The House report would also require 
consideration of the ICR engine among the alternatives for the 
prime power plant for the DD-21 land attack destroyer.
      The Senate amendment would authorize an increase of $5.0 
million in PE 63573N for continued development and testing of 
the ICR engine.
      The conferees agree to authorize the budget request.
      The conferees are aware that negotiations are underway 
among MOU signatories to restructure the ICR program. This 
restructuring would bring the engine to a point where it could 
be an industry candidate for DD-21 vice a fully government 
qualified engine. The conferees understand that this would 
involve completing a second 500 hour test and conducting a 
fifth design review. The 3000 hour test and other efforts would 
be transitioned to other signatories of the MOUs who intend to 
evaluate the ICR as the prime mover for the Common New 
Generation Frigate program.
      The conferees believe that this is a reasonable approach 
to further ICR development and the Navy should consider the ICR 
engine as a competitor for serving as the prime mover in future 
Navy ships.
Environmentally safe energetic materials
      The budget request included $39.8 million in PE 63609N 
for conventional munitions demonstration and validation.
      The House bill would authorize an increase of $3.0 
million in PE 63609N to accelerate the program for the 
development of propellants and explosives that utilize 
environmentally compliant energetic materials for undersea, 
surface, and other weapons systems.
      The Senate would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million in PE 63609N to accelerate the program for the 
development of propellants and explosives that utilize 
environmentally compliant energetic materials for undersea, 
surface, and other weapons systems.
Marine Corps assault vehicles
      The budget request included $104.8 million for Marine 
Corps assault vehicle research and development activities.
      The House bill would authorize an increase of $4.0 
million for further development of additional propulsion and 
suspension alternatives for the advanced amphibious assault 
vehicle (AAAV).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $4.0 
million for unfunded research and development requirements of 
the AAAV.
Marine Corps ground combat/support system
      The budget request included $37.1 million for Marine 
Corps ground combat/support research and development 
activities.
      The budget request included no funds in either the Army 
or Marine Corps research and development programs for improving 
howitzer capability by continuing development of trajectory 
correctable munitions (TCM).
      The House bill would authorize an increase of $2.5 
million for further development of lightweight 155mm howitzer 
requirements. The House bill would also authorize an increase 
of $6.0 million in PE63004A to continue Army development of 
TCM.
      The Senate amendment would authorize an increase of $4.0 
million for the Predator missile system to maintain the 
development and fielding schedule.
      The conferees agree to authorize an increase of $9.5 
million for Marine Corps ground combat and support system 
research and development requirements. Of this amount, $2.5 
million is for research and development requirements of the 
lightweight 155mm howitzer, $2.0million is to support Predator 
system development and fielding schedule, and $5.0 million is for 
development of TCM. The conferees note that the Army has demonstrated a 
lack of commitment to continue TCM development and believe there could 
be application for TCM technology within the Marine Corps' concept of 
operations. The conferees direct the Marine Corps to provide the 
congressional defense committees a report, no later than 31 January 
1999, on a concept of operations for using TCM in Marine Corps 
operations and on TCM program development plans and procurement 
forecast.
Aviation depot maintenance
      The budget request included $59.4 million in PE 63721N 
for environmental protection demonstration and validation, 
including $3.5 million for Naval aviation pollution prevention.
      The House bill would authorize an increase of $2.7 
million for the development and demonstration of aviation depot 
maintenance technologies that will significantly reduce 
maintenance and repair costs and reduce or eliminate hazardous 
waste and pollution products.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.7 
million in PE 63721N for the development and demonstration of 
aviation depot maintenance technologies to reduce overall costs 
and enhance pollution prevention measures.
Naval surface fire support system integration
      The budget request included $21.6 million for a new 
initiative to develop surface fire support planning and control 
systems for the 5-inch 62 gun on DDG-51 ships and the 155mm 
vertical gun for the future DD-21 class of ships.
      The Senate amendment would authorize a decrease of $7.7 
million to PE 63795N to eliminate the possibility of developing 
a stand-alone system for DD-21.
      The House bill would authorize the budget request.
      The conferees agree to authorize a reduction of $1.6 
million.
Vertical gun for advanced ships
      The budget request included $25.1 million in PE 63795N 
for a new initiative to develop a prototype vertical gun for 
land-based testing.
      The House bill would authorize a decrease of $20.0 
million due to the lack of a thorough analysis of gun system 
alternatives and sufficient consideration of gun and missile 
system technical requirements and operational roles.
      The Senate amendment contained a similar provision that 
would authorize a decrease of $10.0 million.
      The conferees authorize a decrease of $10.0 million in PE 
63795N and direct the Secretary of the Navy to report to the 
congressional defense committees the results of an analysis of 
all advanced gun designs, as well as ammunition availability 
for those designs, prior to the obligation of funds for a 
prototype advanced gun system.
Joint strike fighter
      The budget request included $463.4 million in PE 63800N 
for the joint strike fighter (JSF).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $15.0 
million for the JSF alternate engine program.
      The conferees agree to authorize an increase of $15.0 
million for the JSF alternate engine program.
Nonlethal weapons and technologies of mass protection program
      The budget request included $22.6 million for the 
nonlethal weapons (NLW) and technologies program (PE 63851M).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase to the 
budget request of $13.3 million for the following activities, 
including $6.3 million for the development and fielding of 
near-term, low-technology NLW technologies and $7.0 million for 
the development of nonlethal tactical denial systems. The 
Senate amendment would make available $2.0 million for 
activities of the Human Effects Panel of the Joint NonLethal 
Directorate and $500,000 for complete type classification of 
nonlethal weapons technology that can be mounted on existing 
weapons, such as M4 carbines and M16 rifles.
      The House recedes.
      The conferees remain concerned that the Department of 
Defense and the military services continue to conduct research 
and development on NLW activities that benefit all services 
outside the purview of the established defense NLW program, and 
without oversight by the executive agent, the Marine Corps. The 
conferees endorse the position expressed in the Senate report 
(S. Rept. 105-189) that ``all'' nonlethal weapons technology 
research and development be consolidated into a single program 
element, with management and oversight of the program conducted 
by the Marine Corps, as executive agent.
Commercial off-the-shelf insertion just prior to critical design review 
        for helicopter improvement
      The budget request included $231.1 million in PE 64212N 
for antisubmarine warfare and other helicopter development. Of 
this amount, $25.0 million would continue efforts to 
incorporate commercial off-the-shelf (COTS) technology during 
the two fiscal quarters prior to a second critical design 
review.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $1.0 
million in PE 64212N to insert COTS technology.
      The conferees agree to authorize a decrease of $1.0 
million in PE 64212N to insert COTS technology.
Parametric airborne dipping sonar
      The budget request included no funding for the parametric 
airborne dipping sonar (PADS).
      The Senate amendment would authorize an increase of $8.0 
million in PE 64212N for the continued development of PADS.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $8.0 
million in PE 64212N for the continued development of PADS.
Common support aircraft
      The budget request included $27.1 million in PE 64217N 
for the Common Support Aircraft (CSA).
      The House bill would authorize a decrease of $27.1 
million for the CSA program.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $27.1 
million for the CSA program.
Electronic warfare development
      The budget request included $128.6 million in PE 64270N 
for electronic warfare.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million for the Integrated Defensive Electronic Countermeasures 
(IDECM) system.
      The conferees agree to authorize an increase of $9.3 
million in PE 64270N to accommodate a restructure of the IDECM 
program, offset by a decrease of $9.3 million in line 43, 
Aircraft Procurement Navy.
Laboratories and field activities monitoring efforts
      The budget request included $132.5 million for surface 
combatant combat system engineering in PE 64307N, including 
$19.2 million was requested for laboratory and field activity 
unspecified scientific services for monitoring baseline 
efforts.
      The Senate amendment authorized a decrease of $3.0 
million to unspecified scientific services.
      The House bill would authorize the budget request.
      The conferees agree to authorize a decrease of $3.0 
million to unspecified scientific services.
DDG-51 composite director room
      The budget request in PE 64307N did not include funding 
for design and test of a composite director room for the DDG-51 
class of ships.
      The Senate amendment would authorize an increase of $5.0 
million in PE 64307N for continuation of a project to design 
and test a composite director room for the DDG-51 class of 
ships. The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $2.5 
million in PE 64307N for continuation of a project to design 
and test a composite director room for the DDG-51 class of 
ships.
Multi-purpose processor
      The budget request included $37.2 million for submarine 
sonar improvement. The multi-purpose processor (MPP) is the 
result of a small business innovative research (SBIR) 
initiative developed under the sponsorship of the new nuclear 
attack submarine (NSSN) program.
      The House bill would authorize an increase of $15.0 
million to continue the research and development necessary for 
the introduction of MPP technology in submarine and other naval 
sonar systems.
      The Senate amendment would authorize an increase of $15.0 
million in PE 64503N for continuation of the SBIR follow-on for 
advanced development of MPP transportable software technology, 
technology insertion, advanced processor software builds, and 
for providing MPP units and training throughout the fleet and 
the Navy research and development community.
      The conferees agree to authorize an increase of $15.0 
million in PE 64503N for continuation of the SBIR follow-on for 
advanced development of MPP transportable software technology, 
technology insertion, advanced processor software builds, and 
for providing MPP units and training throughout the fleet and 
the Navy research and development community.
Air control
      The budget request included $4.2 million in PE 64450N for 
air control research.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $4.0 
million for the expeditionary common automatic recovery system 
(ECARS). The ECARS is a lightweight, man-portable instrument 
landing system capable of providing azimuth and glide slope 
information to manned aircraft and UAVs.
      The conferees agree to authorize an increase of $4.0 
million to PE 64504N for ECARS development.
Submarine sonar domes
      The budget request included $218.8 million in PE 64558N 
for the New Design SSN (NSSN) program.
      The House bill would authorize an increase of $7.0 
million in PE 64558N to complete fabrication of a full-scale 
sonar dome using this acoustic sandwich material system for 
further evaluation and testing.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $7.0 
million to determine whether an acoustic sandwich material 
sonar dome system is capable of meeting submarine requirements 
for sonar domes.
NSSN advanced technology insertion
      The budget request included $218.8 million in PE 64558N 
for the New Attack Submarine (NSSN) program, including $146.4 
million for NSSN hull, mechanical, and electrical systems 
development, and $72.5 million for NSSN combat systems 
development.
      The House bill would authorize an increase of $10.0 
million for the development of high priority submarine 
technologies that are currently unfunded and the insertion of 
these technologies into the NSSN program. The House bill also 
encouraged the Navy to reprogram from within available funds 
the procurement funding (less than $5.0 million) necessary to 
complete the technology insertion in the appropriate NSSN 
hulls.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $8.0 
million in PE 64558N for the development of high priority 
submarine technologies that are currently unfunded and the 
insertion of these technologies into the NSSN program.
Non-propulsion electronics system
      The budget request included $218.8 million in PE 64558N 
for New Attack Submarine (NSSN) non-propulsion development.
      The Senate amendment would authorize an increase of $12.0 
million for integration of 15 non-propulsion electronics system 
(NPES) subsystems to reduce NSSN life-cycle costs.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $6.0 
million in PE 64558N for integration of 15 non-propulsion 
electronics system subsystems to reduce NSSN life-cycle costs.
System level shock testing
      The budget request included $27.5 million for SSN-21 
developments in PE 64561N including $5.0 million for Seawolf 
submarine shock testing.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to a decrease of $5.0 million in PE 
64561N. The conferees recent indicators that the total cost of 
a one-half shock factor test would be $47.0 million. The 
conferees have concluded that the additional information 
accumulated from conducting a one-half shock factor test would 
not justify the $47.0 million cost.
DD-21 land attack destroyer
      The budget request included $133.6 million in PE 64567N 
for ship contract design and live fire test and evaluation 
including $84.9 million was requested for the Navy's DD-21 land 
attack destroyer program and $8.6 million for the second year 
of DD-21 live fire test and evaluation.
      The House bill would authorize a decrease of $25.0 
million in PE 64567N for the DD-21 land attack destroyer.
      The Senate amendment would authorize a reduction of $8.6 
million, without prejudice, to reflect the re-phasing of the 
DD-21 program which was not reflected in the DD-21 live fire 
test and evaluation budget request.
      The House recedes.
      The conferees agree that the unique competitive teaming 
structure agreed upon for the first two phases of DD-21 might 
lead to either the program office relying on analysis from team 
members to evaluate options or the program office may grow to a 
size larger than originally intended. The program office has 
indicated that a smaller office size is possible by using Navy 
laboratory and field activity personnel to evaluate contractor 
applications of technology, systems engineering, and innovative 
designs. The conferees encourage the Navy to resist creating 
another level of bureaucracy and growing the program office, 
and instead coordinate evaluation of contractor options using 
in-place Navy expertise.
Smart propulsor product model
      The budget request included $7.0 million for continuation 
of the development of the smart propulsor product model (SPPM) 
for future ships.
      The Senate amendment would authorize an increase of $4.0 
million in PE 64567N for the SPPM.
      The House bill would authorize the budget request.
      The House recedes.
NULKA antiship missile decoy system electro-magnetic compatibility
      The budget request included $2.3 million for continued 
development and testing of the electro-magnetic compatibility 
(EMC) upgrade to the NULKA active countermeasures decoy.
      The Senate amendment would authorize an increase of $2.0 
million in PE 64755N to complete the development and 
operational testing of the EMC upgrade.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million in PE 64755N to complete the development and 
operational testing of the EMC upgrade.
Infrared search and track system
      The budget request included $983,000 in PE 64755N to 
continue engineering and manufacturing development and at sea 
testing of an infrared search and track (IRST) system.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $6.5 
million for continued development of the IRST system.
      The conferees agree to authorize an increase of $5.0 
million in PE 64755N for continued development of the IRST 
system.
      The conferees agree that horizon search, for which an 
IRST system would be optimal, is an area of relative weakness 
for active radar. In the statement of managers accompanying the 
National DefenseAuthorization Act for Fiscal Year 1996, the 
conferees noted that the Navy's cost and operational effectiveness 
analysis supported the conclusion that IRST has the potential to play a 
very important role in defending naval ships against sea skimming anti-
ship missiles. The conferees note, however, the Navy's inconsistent 
support for the IRST program, the reduction of IRST funding in order to 
support other Navy programs, and the absence of any funds in the Navy's 
budget projections to complete engineering and manufacturing 
development of the system and procurement of IRST for the fleet.
      The conferees acknowledge that proposals made within the 
Department of the Navy staff to establish an international 
cooperative program with the Netherlands and Canada for 
development of IRST. The conferees believe that such a 
cooperative program could be one avenue for developing this 
capability. The conferees direct the Secretary of the Navy to 
report to the congressional defense committees by March 1, 
1999, the Navy's plan and funding requirements for optimizing 
horizon search for defense of surface ships and the potential 
for application of IRST technology to other platforms.
Voice instructional devices
      The budget request included $4.3 million in PE 64771N for 
medical development.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.0 
million for voice instructional devices (VID) technology.
      The conferees agree to authorize an increase of $1.0 
million for voice instructional devices (VID) technology.
Distributed surveillance system
      The budget request included $42.0 million in PE 64784N 
for advanced deployable system (ADS) engineering and 
manufacturing development.
      The House bill would authorize an increase of $6.7 
million to continue the planned introduction of automation and 
data fusion capability for the ADS demonstration system.
      The Senate amendment contained no similar provision.
      The conferees agree to authorize an increase of $6.7 
million to continue the planned introduction of automation and 
data fusion capability for the ADS demonstration system.
Battle force tactical training
      The budget request included $5.9 million for the surface 
tactical team trainer (STTT). The STTT is designated to further 
develop an existing system, the battle force tactical training 
(BFTT) system, so it will be able to provide joint warfare 
training. A highly successful small business innovative 
research (SBIR) project, N96-111, leveraged the capabilities of 
commercial off-the-shelf operating systems and processors.
      The Senate amendment would authorize an increase of $7.0 
million in PE 24571N for the purpose of SBIR phase III follow-
on work to continue the BFTT operating system conversion.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million in PE 24571N for the purpose of SBIR phase III follow-
on work to continue the BFTT operating system conversion.
High Speed Anti-Radiation Missile Improvement
      The budget request included $18.9 million in PE 25601N 
for High Speed Anti-Radiation Missile Improvement.
      The House bill would authorize an increase of $15.0 
million for the Advanced Anti-Radiation Guided Missile (AARGM).
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $10.0 
million to accelerate AARGM development.
Marine corps ground combat/supporting arms systems
      The budget request included $14.7 million for the Marine 
Corps ground combat/supporting arms systems.
      The House bill would authorize an increase of $8.0 
million, including $5.0 million for research and development 
requirements associated with the Shortstop electronic 
protection system and an increase of an additional $3.0 million 
would be for development of an automatic target tracker for the 
M1 Abrams tank.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $3.0 
million in PE26623M for development of an automatic target 
tracking system for the M1 tank.
Airborne reconnaissance systems
      The budget request included no funding for the Navy in PE 
35206N to develop airborne reconnaissance systems. The budget 
request included $8.4 million in PE 35206D8Z that the 
Department of Defense asked to be transferred to the Navy 
program element. These funds included $4.6 million for 
development of framing reconnaissance cameras.
      The House bill would authorize an increase of $8.0 
million in PE 35207D8Z to accelerate the development of 
electro-optical (EO) framing technology. The House Report (H. 
Rept. 105-532) noted support of EO framing technology with ``on 
chip forward motion compensation.''
      The Senate amendment would approve the budget request.
      The conferees agree to authorize $16.4 million for PE 
35206N, including the transfer of $8.4 million from PR 35206D8Z 
and an increase of $8.0 million for EO framing technology.
      The conferees believe that the Department should select 
the system and the upgrades for using the EO framing resources 
that would best meet requirements. The conferees understand 
that the term ``forward motion compensation'' is a proprietary 
term that could unnecessarily limit the choices of the 
Department for improving the optical capability of sensors 
deployed in tactical aircraft and other platforms.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $13,598.1 million for Air Force, Research and 
Development in the Department of Defense. The House bill would 
authorize $13,577.2 million. The Senate amendment would 
authorize $13,635.0 million. The conferees recommended an 
authorization of $13,918.7 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





Friction welding
      The budget request included $62.6 million in PE 62102F 
for materials research.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $1.5 
million to develop and optimize friction welding techniques.
      The conferees agree to authorize an increase of the $1.5 
million to develop and optimize friction welding techniques.
Integrated high performance turbine engine program
      The budget request included a total of $15.0 million for 
the integrated high performance turbine engine program (IPTEP).
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $9.0 
million: $4.0 million in PE 62203F; $3.0 in PE 63202F; and $2.0 
in PE 63216F for IPTEP.
      The House recedes.
Variable displacement vane pump
      The budget request included $69.0 million in PE 62203F 
for aerospace propulsion.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $4.0 
million, as discussed elsewhere in this statement of managers, 
and an increase of $2.0 million for the variable displacement 
vane pump program.
      The House recedes.
High frequency active auroral research program
      The budget request included no funding for the high 
frequency auroral research program (HAARP).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $14.0 
million for HAARP, including: $9.0 million in PE 62601F; $3.0 
million in PE 63160BR; and $2.0 million in PE 63714D.
      The conferees agree to authorize a total of $14.0 million 
for HAARP, as recommended in the Senate amendment.
      The purpose of HAARP is to explore the use of low-
frequency electromagnetic waves for detecting and imaging 
underground structures and tunnels and to determine the 
viability and military utility of the HAARP concept. The 
conferees direct the Secretary of the Air Force to report to 
the congressional defense committees on the potential 
applications and use of the HAARP concept to support military 
and intelligence objectives with the submission of the fiscal 
year 2000 budget request.
Protein-based memory
      The budget request included $65.2 million in PE 62702F 
for command control and communications research.
      The House bill would authorize an increase of $3.0 
million for protein-based memory development.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.5 
million in PE 62702F for protein-based memory development.
Advanced low observable coatings
      The budget request included $21.0 million in PE 63112F 
for advanced materials for weapons systems.
      The House bill would authorize an increase of $9.0 
million for continued exploration of advanced low observable 
coatings.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $9.0 
million.
Night vision technology
      The budget request included $16.6 million in PE 63231F 
for crew systems and personnel protection technology.
      The House bill would authorize an increase of additional 
$13.0 million, including $3.0 million for ejection seat 
technology, $5.5 million for laser aircrew protection, and $4.5 
million for panoramic night vision technology.
      The Senate amendment would authorize an increase of $3.0 
million for panoramic night vision technology.
      The conferees agree to authorize an increase of $11.5 in 
PE 63231F, including an increase of $3.0 million for panoramic 
night vision technology; an increase of $3.0 million for 
ejection seat technology; and an increase of $5.5 million for 
laser aircrew protection.
Electronic combat technology
      The budget request included $25.6 million in PE 63270F 
for electronic combat technology.
      The House bill would authorize an increase of $9.0 
million for the ALR-69 Radar Warning Receiver.
      The Senate amendment would authorize an increase of $14.0 
million for the ALR-69 Precision Location and Identification 
upgrade.
      The conferees agree to authorize an increase of $14.0 
million for the ALR-69 Precision Location and Identification 
upgrade.
Ballistic Missile Technology
      The budget request included no funds in PE 63311F for the 
Ballistic Missile Technology (BMT) program.
      The House bill would authorize an increase of $16.0 
million in PE 63311F for advanced ballistic missile technology 
and the conventional ballistic missile demonstration, as well 
as transfer $1.3 million from PE 63401F to PE 63311F.
      The Senate amendment would authorize an increase of $5.0 
millionin PE 63311F to support an additional missile technology 
demonstration (MTD-4).
      The conferees agree to authorize an increase of $16.0 
million in PE 63311F for ballistic missile technology and GPS 
range safety.
Micro-satellite technology development program
      The budget request did not include funds for the micro-
satellite technology program.
      The House bill would authorize an increase of $4.0 
million in PE 63401F for the micro-satellite technology 
program.
      The Senate amendment would authorize an increase of $10.0 
million in PE 63401F for the micro-satellite technology 
program.
      The conferees agree to authorize an increase of $10.0 
million in PE 63401F for the micro-satellite technology 
program.
      The conferees note that $30.0 million is available in 
fiscal year 1998 funds for the Clementine II program. The 
conferees agree to authorize the use of these funds for the 
micro-satellite technology development program established 
pursuant to section 215 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85). The conferees 
support the plan that has been developed by the Air Force and 
the National Aeronautics and Space Administration to conduct a 
micro-satellite inspection mission from the space shuttle. In 
addition, the conferees direct the Secretary of Defense to 
develop a plan for executing the remaining funds. In developing 
this plan, the conferees direct the Secretary to evaluate 
proposals and technologies developed by the Air Force Research 
Laboratory, the Naval Research Laboratory, and the Lawrence 
Livermore National Laboratory. The Secretary's plan shall be 
submitted to the congressional defense committees by March 15, 
1999.
Solar orbital transfer vehicle
      The budget request did not include funds for the Solar 
Orbital Transfer Vehicle (SOTV).
      The Senate amendment would authorize an increase of $10.0 
million in PE 63401F for SOTV.
      The House bill would not authorize additional funds for 
SOTV.
      The conferees agree to authorize an increase of $7.5 
million in PE 63401F for SOTV. The conferees support the solar 
powered orbital transfer vehicle program, which combines 
thermionic technology for electricity production and thermal 
propulsion which can be used to move spacecraft to higher 
orbits or new orbits.
Low cost launch technology development
      The budget request included no funds for low cost launch 
technology development.
      The Senate amendment would authorize the following 
increases for low cost launch technology: (1) an increase of 
$5.0 million for the Scorpius concept in PE 63173C; (2) an 
increase of $5.0 million for the Excalibur concept in PE 
63173C; and (3) an increase of $5.0 million in PE 63401F for 
the Air Force to utilize in support of low cost launch 
technology development.
      The House bill would authorize the budget request for low 
cost technology development.
      The conferees agree to authorize an increase of $10.0 
million in PE 63401F and no funds in PE 63173C for low cost 
launch technology development. The conferees direct the 
Secretary of the Air Force to utilize these funds in support of 
the Scorpius and Excalibur concepts in a manner that is most 
effective. The conferees also believe that the Air Force should 
begin to program sustaining funds to support these technology 
efforts in the outyears.
Space maneuver vehicle
      The budget request did not include funds for space 
maneuver vehicle or common aero vehicle technology development.
      The House bill would authorize an increase of $15.0 
million in PE 63401F to support development of space maneuver 
vehicle and common aero vehicle technology development.
      The Senate amendment would authorize an increase of $10.0 
million in PE 65864F for space maneuver vehicle technology 
development.
      The conferees agree to authorize no increase in fiscal 
year 1999 funds, but note that $10.0 million is available in 
fiscal year 1998 funds appropriated for the Military 
Spaceplane. The conferees agree to authorize the use of these 
fiscal year 1998 funds for space maneuver vehicle or common 
aero vehicle technology development.
      The conferees direct the Air Force to work with the 
National Aeronautics and Space Administration (NASA) on 
developing responsive, reusable space access systems such as 
the space maneuver vehicle, which could serve as a reusable 
upper stage for a variety of space test missions.
Space control technology development
      The budget request did not include funds for a new space 
control technology initiative.
      The Senate amendment would authorize an increase of $30.0 
million for space control technology development.
      The House bill would authorize the budget request for a 
new space control technology initiative.
      The conferees have reviewed the Department of Defense's 
February 1998 report on the Kinetic Energy Anti-Satellite (KE-
ASAT) program. The report states that ``DOD is currently 
examining potential space control related research, 
development, and acquisition options to support the President's 
policy, satisfy military requirements within available 
resources, and address the architecture.'' In the cover letter 
to this report, the Under Secretary of Defense for Acquisition 
and Technology states that ``I anticipate that these efforts 
will culminate in a comprehensive plan in time for the FY 2000 
President's budget.''
      The conferees support the development of such a plan but 
are concerned that insufficient resources are available to 
support acomprehensive evaluation of various technical options. 
Therefore, the conferees agree to authorize an increase of $15.0 in PE 
63438F to support a range of space control technology activities and to 
develop the ``comprehensive plan'' cited in DOD's report. The Assistant 
Secretary of Defense for Command, Control, Communications, and 
Intelligence (Space and Information Superiority) shall be responsible 
for developing this plan. The conferees direct the Secretary of Defense 
to submit a report to the congressional defense committees by February 
15, 1999, that describes the Secretary's plan for executing the space 
control technology funds specified above. The report should also 
describe the Secretary's plan for continuing these efforts in fiscal 
year 2000 and beyond.
      The conferees note that $37.5 million is available in 
fiscal year 1998 funds appropriated for the KE-ASAT program. 
The conferees direct the Secretary to obligate promptly these 
funds. If the Secretary concludes that a portion of these 
fiscal year 1998 funds should be applied to other space control 
development activities, the conferees direct the Secretary to 
include any such recommendation in the comprehensive space 
control technology development plan specified above. The 
conferees will consider any such recommendation and any related 
reprogramming that the Secretary may choose to submit to 
Congress.
Variable stability in-flight simulator test aircraft
      The budget request included no funding for the Variable 
Stability In-Flight Simulator Test Aircraft (VISTA).
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $7.3 
million in PE 64237F for the VISTA.
      The conferees agree to authorize an increase of $7.3 
million in PE 64237F for the VISTA.
Electronic warfare development
      The budget request included $90.1 million in PE 64270F 
for electronic warfare development.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $20.0 
million to accelerate the development of the C-130 Compass Call 
upgrade to the block 30 configuration.
      The conferees agree to authorize an increase of $20.0 
million to accelerate the development of the C-130 Compass Call 
upgrade to the block 30 configuration.
Evolved expendable launch vehicle program
      The budget request included $280.3 million for the 
Evolved Expendable Launch Vehicle (EELV) program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize the budget request.
      The conferees are aware of excess prior year funding in 
the EELV program. The conferees agree to authorize a decrease 
to the budget request of $14.0 million in PE 64853F, and direct 
that $14.0 million in excess prior years funds be used to 
satisfy fiscal year 1999 requirements for the EELV program.
Big Crow program office
      The budget request included no funding for the Big Crow 
Program Office (BCPO). The BCPO operates two flying 
laboratories to evaluate weapons and communications systems 
under stressful conditions.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million to the budget request for the BCPO to underwrite 
activities in fiscal year 1999.
      The conferees agree to authorize an increase of $8.0 
million for BCPO, and support the need for the report on 
funding policy and management directed in the Senate report (S. 
Rept. 105-189).
Flight test safety
      The budget request included $370.1 million in PE 65807F 
for test and evaluation support.
      The House bill would authorize an increase of $6.0 
million for flight test safety enhancements.
      The Senate amendment would authorize a decrease of $4.0 
million, as discussed elsewhere in this statement of managers.
      The conferees agree to authorize a net increase of $2.0 
million in PE 65807F, including an increase of $6.0 million for 
flight test safety enhancements at the Air Force Flight Test 
Center and a decrease of $4.0 million, as discussed elsewhere 
in this report.
F-16 Squadrons
      The budget request included $125.0 million in PE 27133F 
for F-16 squadrons.
      The House bill would authorize a decrease of $24.6 
million.
      The House report (H. Rept. 105-532) noted that the budget 
request reflects an increase of $24.6 million over the level 
forecast as necessary to support fiscal year 1999 requirements 
in the fiscal year 1998 budget request.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Advanced medium range air-to-air missile
      The budget request included $45.0 million in PE 27163F 
for advanced medium range air-to-air missile (AMRAAM) research.
      The House bill and the Senate amendment would authorize 
the budget request.
      The conferees agree to authorize a decrease of $20.0 
million to reflect the delayed EMD effort.
      The conferees are aware that there are additional risk 
reductionactivities that will be required before the Air Force 
begins the engineering and manufacturing development (EMD) effort for 
the AMRAAM pre-planned product improvement (P3I) program. The conferees 
support the goals of the P3I program, but believe it prudent to conduct 
the additional risk reduction activities.
Joint Air-To-Surface Standoff Missile
      The budget request included $132.9 million for the Joint 
Air-to-Surface Standoff Missile (JASSM).
      The House bill and the Senate amendment would authorize 
the budget request.
      The budget request included 52 test missiles to support 
the JASSM test program. Based largely on lower than expected 
cost estimates, the conferees understand the Air Force now 
plans to procure 69 test missiles. Even under a revised test 
plan, eight of these missiles are excess to the testing needs 
of the program. The conferees agree to authorize a decrease of 
$3.0 million to eliminate these missiles.
Theater Battle Management C4I
      The budget request included $27.3 million for theater 
battle management C4I.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $5.0 
million for pre-planned product improvements for the air 
support operations center (ASOC).
      The conferees agree to authorize an increase of $5.0 
million for pre-planned product improvements for the ASOC.
Joint Surveillance and Target Attack Radar System
      The budget request included $123.8 million in PE 27581F 
for the Joint Surveillance and Target Attack Radar System 
(JSTARS).
      The House bill would authorize a decrease of $5.6 million 
to eliminate unnecessary studies and research.
      The Senate amendment would authorize the budget request.
      The conferees note that the budget request includes $40.2 
million for the Radar Technology Improvement Program (RTIP). 
The conferees support the RTIP program, but also understand 
that the Air Force has identified a funding shortfall of $428.0 
million for this program in fiscal year 2000 and beyond. Given 
the uncertain status of the program, the conferees believe it 
is prudent to reduce the level of resources applied to RTIP in 
fiscal year 1999 pending submission of a fully funded budget by 
the Air Force. Accordingly, the conferees agree to authorize a 
decrease of $25.0 million, as follows:
      (1) $5.6 million to eliminate unnecessary studies and 
research; and
      (2) $19.4 million to slow RTIP until such time as the Air 
Force clarifies future funding of the JSTARS program.
Seek Eagle
      The budget request included $17.6 million in PE 27590F 
for the Seek Eagle weapons integration flight test program.
      The House bill would authorize an increase of $2.0 
million to continue testing Longshot, a range-increasing 
modification for munitions.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.0 
million to continue testing Longshot.
Defense Airborne Reconnaissance Program research and development
      The budget request included funds for research and 
development in the Army, Navy, Air Force, and Defense-Wide 
accounts for activities of the Defense Airborne Reconnaissance 
Program (DARP), as shown in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                              Change from request
                                                                 Budget   --------------------------  Conference
                           Account                              request                    Senate     agreement
                                                                            House bill   amendment
----------------------------------------------------------------------------------------------------------------
RDT&E, Army.................................................       75,636     (26,000)  ...........       70,048
RDT&E, Navy.................................................          342       67,200     (23,400)       66,548
RDT&E, Air Force............................................  ...........      224,008  ...........      349,403
RDT&E, Defense-Wide.........................................      444,137    (143,333)      (8,000)       35,665
                                                             ---------------------------------------------------
    Total...................................................      520,115      121,875     (31,400)      521,664
----------------------------------------------------------------------------------------------------------------

      Section 905 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) transferred the management 
responsibilities of the Defense Airborne Reconnaissance Office 
(DARO) to the military services, while retaining Office of the 
Secretary of Defense (OSD)-level oversight responsibilities for 
determining airborne reconnaissance architecture and systems 
interface requirements.
      The budget request reflected continuation of airborne 
reconnaissance programs within DARO. However, subsequent to 
submitting the budget request, the Secretary of Defense decided 
to:
      (1) abolish the DARO;
      (2) transfer the OSD-level functions to the Assistant 
Secretary of Defense for Command, Control, Communications, and 
Intelligence (ASD C3I); and
      (3) transfer program management responsibilities to the 
military services.
      This decision was reflected in a April 14, 1998 letter 
from the Under Secretary of Defense for Acquisition and 
Technology.
      The conferees agree to make these adjustments, in both 
theprocurement and the research and development titles. These 
transfers are reflected in the tables contained in the conference 
report. In addition, a more detailed spreadsheet of DARO-related 
investment programs, summarizing transfers and other adjustments to 
individual budget lines and program elements, is provided in the 
classified annex that accompanies this conference report.
      The conferees note that, unless otherwise reflected in 
the statement of managers, the transfers do not reflect a 
change to the purposes for which the funds were requested in 
the original budget request.
      The conferees are extremely concerned that assignment of 
acquisition program management and funding to the services has 
not been seen as a signal that stovepipe systems of the past 
will be acceptable in the future. The conferees stress that 
these programmatic actions demand a firm leadership role by the 
Assistant Secretary of Defense (Command, Control, 
Communications and Intelligence) in establishing policy and 
exercising oversight to ensure reconnaissance system 
interoperability for joint operations.
      In particular, the tactical control system (TCS), 
previously assigned to the Unmanned Aerial Vehicle (UAV) Joint 
Program Office, continues to be assigned to the Navy as the 
lead service. The conferees note that there is some 
disagreement within the Department of Defense with respect to 
whether TCS will serve as the implementation of a single 
standard tactical UAV and sensor control architecture. The 
conferees believe that the issue of who operationally controls 
UAVs and their sensors is an issue separate and distinct from 
system design technical capabilities. The conferees believe it 
is imperative that the Joint Requirements Oversight Counsel 
makes the necessary standards decisions to ensure that 
operational commanders have full operational flexibility for 
employment of UAVs.
      The budget request included $5.0 million in PE 35204D8Z 
for the Army's Unmanned Aerial Vehicle (UAV) Systems 
Integration Laboratory (SIL), and included $3.0 million for 
continued development of the Multiple UAV Simulation 
Environment (MUSE).
      The House bill would direct the Assistant Secretary of 
Defense (Command, Control, Communications and Intelligence) to 
provide the congressional defense and intelligence committees a 
plan, which includes a funding profile, for the continued 
operation of the SIL no later than March 31, 1999.
      The Senate amendment had no similar provision.
      The Senate recedes.
Overview
      The budget request for fiscal year 1999 contained an 
authorization of $9,314.7 million for Defense-Wide, Research 
and Development in the Department of Defense. The House bill 
would authorize $9,173.9 million. The Senate amendment would 
authorize $9,302.8 million. The conferees recommended an 
authorization of $8,848.8 million. Unless noted explicitly in 
the statement of managers, all changes are made without 
prejudice.





University research initiative
      The budget request included $216.0 million in PE 61103D 
for the university research initiative. The request included 
$10.0 million for the Defense Experimental Program to Stimulate 
Competitive Research (DEPSCoR).
      The House bill would authorize an increase $15.0 million 
for the DEPSCoR.
      The Senate amendment would authorize the budget request 
but would fence an additional $10.0 million within the request 
for the DEPSCoR, a total of $20.0 million.
      The House recedes.
Ballistic Missile Defense Organization funding and programmatic 
        guidance
      The budget request included approximately $3.6 billion 
for the Ballistic Missile Defense Organization (BMDO) for 
research, development, test, and evaluation (RDT&E), and 
procurement.
      The House bill would authorize an increase of $76.8 
million for BMDO. In addition, the House bill would authorize 
an increase of $50.0 million for radar improvements related to 
Navy Upper Tier under Navy research, development, test, and 
evaluation (RDT&E).
      The Senate amendment would authorize a decrease of $97.7 
million for BMDO.
      The conferees agree to authorize a decrease of $51.7 
million for BMDO.
      The conferees recommended funding allocations for BMDO 
are summarized in the following table. Additional programmatic 
and funding guidance is also provided below.

                                             BMDO FUNDING ALLOCATION
                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                  Conference
                            Program                              Request   Senate     House  -------------------
                                                                                               Change     Total
----------------------------------------------------------------------------------------------------------------
Support Technology............................................     253.5    +140.0     +12.8    +130.0     383.5
THAAD.........................................................     821.7    -323.9  ........    -294.3     527.4
TMD-BM/C3*....................................................      22.8  ........  ........  ........      22.8
Navy Lower Tier**.............................................     289.1  ........  ........  ........     289.1
Navy Upper Tier***............................................     190.4    +120.0     +70.0    +120.0     310.4
MEADS.........................................................      43.0     -33.0  ........     -19.0      24.0
NMD...........................................................     950.5  ........  ........  ........     950.5
Joint TMD.....................................................     176.8  ........      -2.0  ........     176.8
PAC-3**.......................................................     480.5  ........  ........  ........     480.5
FOS E&I.......................................................      96.9  ........  ........  ........      96.9
BMD Tech Ops..................................................     190.1  ........      -4.0  ........     190.1
Int'l Coop Programs...........................................      50.7      -0.8  ........     +12.0      62.7
Threat/Countermeasures........................................      22.1  ........  ........  ........      22.1
    BMDO Total................................................   3,588.1     -97.7     +76.8     -51.3  3,536.8
----------------------------------------------------------------------------------------------------------------
*Procurement only.
**Procurement and RDT&E.
***The House bill also included an increase of $50.0 million for radar improvements related to Navy Upper Tier
  under Navy RDT&E.

                           Support technology

      The conferees continue to support BMDO's wide bandgap 
electronics material development program. Higher speed and 
higher temperature operation afforded by wide bandgap 
electronic materials could enhance the miniaturization and 
functionality of advanced sensors and processing systems for 
space-based ballistic missile defense (BMD) sensors and ground-
based radar systems. The conferees agree to authorize an 
increase of $14.0 million in PE 62173C to support this 
important activity.
      The conferees continue to support the Atmospheric 
Interceptor Technology (AIT) program to develop advanced 
interceptors with potential applications for a range of theater 
missile defense (TMD) programs. The conferees agree to 
authorize an increase of $22.0 million in PE 63173C to continue 
the AIT program.
      The conferees commend BMDO and the Air Force for 
increasing funding in the fiscal year 1999 budget request for 
the Space Based Laser (SBL) Readiness Demonstrator (RD) 
program, but are concerned by the Air Force's failure to move 
the program beyond initial concept definition studies. The 
conferees continue to support the development of an SBL-RD that 
could be ready for launch in the 2006-2008 timeframe and urge 
the Secretary of Defense to provide the necessary funding and 
programmatic guidance to put the SBL program on this path. Due 
to the failure to release a request for proposal (RFP) and the 
Air Force's apparent lack of interest in aggressively advancing 
the program, the conferees will evaluate alternative management 
arrangements for the program. The conferees direct the 
Secretary of Defense to promptly release the RFP for an SBL-RD 
that could be launched in the 2006-2008 timeframe. In order to 
support this objective, the conferees agree to authorize an 
increase of $94.0 million in PE 63173C.
      National Missile Defense
      The conferees note the existence of some confusion 
regarding what, if any, national missile defense (NMD) policy 
has been established in law or otherwise endorsed by Congress. 
Although the conferees agreed to a provision on this subject 
last year, which was enacted in the National Defense 
Authorization Act for Fiscal Year 1998 (section 231 of Public 
Law 105-85), this provision did not address NMD deployment 
policy nor otherwise endorse the administration's policy known 
as ``three-plus-three''.
      Although the Congress has acceded to recent funding 
requests for the administration's ``three-plus-three'' program, 
it has neverformally endorsed the concept. Indeed, the 
continued lack of programmatic definition associated with the ``plus-
three'' phase has called into question the administration's willingness 
and ability to deploy an NMD system on the ``three-plus-three'' 
schedule, the integrity of the concept itself, and exacerbated the 
current debate. The NMD program is the only major defense acquisition 
program that is not being managed to scheduled milestones beyond 
initial development. This is a departure from usual practice and proven 
program management principles. The conferees note that the Director of 
BMDO has testified that NMD is still an ``extremely high risk'' 
program. The conferees believe that the lack of program definition in 
the ``plus-three'' phase, and the lack of a defined path from this 
phase into production and deployment, is contributing to this risk and 
suboptimal decision-making with adverse impact to NMD programmatics and 
budgets.
      At the same time, the conferees note that the bipartisan 
Commission to Assess the Ballistic Missile Threat to the United 
States unanimously concluded that ``under some plausible 
scenarios . . . the U.S. might well have little or no warning 
before operational deployment'' of long range ballistic 
missiles by hostile powers. The conferees believe that the 
potential mismatch between this warning time and the deployment 
timeline for a national missile defense poses a conundrum. 
Current policy is that no ballistic missile threat to the 
United States currently justifies deployment of a national 
missile defense. However, when new ballistic missile threats do 
emerge, it may be too late to respond in a timely manner.
      In view of the above, the conferees believe that further 
program definition in the ``plus-three'' phase and beyond will 
mitigate some of the risks identified. Accordingly, the 
Secretary of Defense is expected to establish appropriate 
milestones and exit criteria for the NMD program that are 
consistent with those for other major defense acquisition 
programs. Further, the Secretary is expected to conduct NMD 
program milestone and budget reviews to ensure that established 
exit criteria are being met.
      The conferees note that the Secretary of Defense has 
completed and submitted to Congress the report on sea-based NMD 
options called for in last year's conference report (H. Rept. 
105-340), but that this report was submitted only in classified 
form. The conferees direct the Secretary to submit an 
unclassified summary of this report to the congressional 
defense committees as soon as possible.

                   Medium Extended Air Defense System

      Although the conferees continue to support the need for a 
TMD system to support maneuver forces, the conferees are 
troubled by the failure of the Department of Defense to 
structure a fully-funded development program to satisfy this 
requirement. Although the conferees would support a coherent 
and fully-funded Medium Extended Air Defense System (MEADS) 
program, they are unwilling to support a MEADS program that has 
no funding programmed beyond fiscal year 1999. The conferees 
note that the Department of Defense has had ample opportunity 
to address this shortfall. In light of the Department's 
unwillingness to provide adequate funding in the outyears, the 
conferees recommend a reduction of $19.0 million in PE 63869C. 
Additional funding and programmatic guidance regarding the 
MEADS program is provided elsewhere in this report.

           Theater High Altitude Area Defense (THAAD) system

      The conferees continue to support the development, 
production, and fielding of THAAD as a matter of highest 
priority. The conferees support the budget request of $497.7 
million for THAAD Demonstration and Validation (Dem/Val). In 
addition, as addressed elsewhere in this report, the conferees 
agree to authorize an increase of $29.6 million in THAAD Dem/
Val funding to support increased competition in the THAAD 
program, for a total authorization in PE 63861C of $527.4 
million.
      The conferees are encouraged by the recent cost sharing 
agreement between the prime contractor and BMDO, and believe 
that testing should resume at an expeditious pace, without 
undue delay. However, given recent delays in the THAAD testing 
program, and the requirement for THAAD to achieve three 
successful intercept tests prior to entering Engineering and 
Manufacturing Development (EMD), the conferees agree to 
authorize a decrease of $323.9 million from PE 64861C for THAAD 
EMD.
      The conferees expect the Secretary of Defense not to 
overreact to limited, albeit adverse, test results but to re-
double efforts to structure a THAAD program that provides for 
as timely a response as possible to the recent medium range 
ballistic missile threat developments. The conferees reiterate 
the views expressed in previous reports that the THAAD missile 
and the Navy Upper Tier missile should not be viewed as 
competing systems, but as complementary. The conferees do not 
support proposals to use the Navy Upper Tier missile as a 
substitute for THAAD. The conferees note that the Navy endorses 
continuation of the THAAD program and views continuation of 
THAAD testing as important to the success of an accelerated 
Navy Upper Tier program.

                     Navy Upper Tier (Theater Wide)

      The conferees continue to support the Navy Upper Tier 
program and urge the Secretary of Defense to accelerate this 
important development effort within an acceptable degree of 
program risk. To facilitate this acceleration, the conferees 
also urge the Navy to begin allocating funds from within its 
budget to complement those already programmed within the BMDO 
budget.
      The conferees are concerned that necessary radar 
improvements have not kept up with developments in the Navy 
Upper Tier interceptor missile system. Therefore, the conferees 
agree to authorize an increase of $50.0 million for radar 
improvements competition. The conferees direct BMDO and the 
Navy to accelerate radar upgrades to ensure that this 
capability becomes available at the earliest possible date. In 
pursuing this competition, the conferees direct that a 
prototype solid state radar be available in 2001 in order to 
take full advantage of the Standard Missile III development 
testing planned for2002. In addition, the conferees agree to 
authorize an increase of $70.0 million for Navy Upper Tier 
acceleration, for an overall increase of $120.0 million in PE 63868C.

                        BMD Technical Operations

      The conferees support the efforts being performed at the 
Army Space and Strategic Defense Command's Advanced Research 
Center (ARC). The ARC continues to be a valuable tool in 
support of the Army's development of both theater and national 
missile defense systems. Therefore, the conferees agree to 
authorize an increase of $5.0 million in PE 63874C for support 
of the ARC.
      The conferees note substantial unexplained growth in 
BMDO's system architecture and engineering effort and agree to 
authorize a decrease of $5.0 million in PE 63874C.

                   International Cooperative Programs

      The budget request included $37.9 million for BMDO's 
Israeli Cooperative Project, which includes funding for the 
Arrow ballistic missile defense system. The conferees agree to 
authorize an increase of $12.0 million in PE 63875C to support 
interoperability design so the Arrow can operate alongside 
forward deployed U.S. missile defense systems.

                             Patriot PAC-3

      At the request of the Director of BMDO, the conferees 
recommend a zero-balance transfer of $40.0 million from PAC-3 
procurement to PAC-3 EMD to properly align funds for the type 
of work being performed. The conferees note with concern that 
this realignment is the result of significant delays in the 
PAC-3 flight test program. The conferees remain convinced that 
PAC-3 is an essential TMD system and is the only near term 
defense against threats emerging in the Southwest Asia and 
elsewhere. Nevertheless, if the PAC-3 test program does not 
demonstrate significant improvement, the conferees do not rule 
out the possibility of future funding reductions.

                      Medical free electron laser

      The budget request included $9.7 million in PE 62227D for 
the medical free electron laser program.
      The House bill would authorize an increase of $5.0 
million.
      The Senate amendment would authorize an increase $7.0 
million.
      The conferees agree to authorize an increase of $7.0 
million.

            Computing systems and communications technology

      The budget request included $417.7 million in PE 62301E 
for computing systems and communications technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $30.0 
million in the joint infrastructure protection project and a 
transfer of an additional $10.0 million from that project to PE 
33104F for cyber-security research.
      The conferees endorse the views in the Senate report (S. 
Rept. 105-189) with regard to the joint infrastructure 
protection project and reiterate the requirement for the report 
specified by the Senate. The conferees are especially concerned 
about the deficient planning for such a project given the 
widely recognized need to address vulnerabilities in the U.S. 
information infrastructure as quickly as possible. However, in 
recognition of the urgency of this issue, the conferees agree 
to an undistributed reduction in PE 62301E of $40.0 million to 
allow Defense Advanced Research Projects Agency (DARPA) 
flexibility to allocate the reduction consistent with national 
security priorities.
Chemical-biological defense program
      The budget request included $620.3 million for the 
chemical-biological defense program, including $336.4 million 
in research and development, test and evaluation and $283.9 
million in procurement. The budget request also included $88.0 
million for the Defense Advanced Research Projects Agency 
(DARPA) biological warfare (BW) defense program (PE 62383E).
      The House bill would authorize the budget request for the 
chemical-biological defense program and the biological warfare 
defense program (PE 62383E), but would decrease the budget 
request of $6.9 million for procurement of contamination 
avoidance equipment for the use by the Reserve Components to 
respond to domestic emergencies.
      The Senate amendment would recommend the following 
increases to the budget request for the chemical-biological 
defense program: $10.0 million to accelerate research and 
development of small, light-weight, man-portable chemical and 
biological agent detection sensors; $4.0 million in PE 62384BP 
for Project SAFEGUARD to continue proof of concept testing to 
establish sensor performance, initiate packaging and real-time 
processing, and the conduct of platform studies; and $1.5 
million in PE 62383E to demonstrate the use of technologies for 
the deployment of telemedicine and other capabilities to the 
warfighters; but would recommend a $12.0 million reduction to 
the budget request for the DARPA BW program.
      Additionally, the Senate amendment would transfer the 
mission, function and resources for the chemical-biological 
defense program to the Defense Threat Reduction Agency (DTRA), 
consistent with the recommendation of the November 1997 Defense 
Reform Initiative (DRI).
      The conferees agree to authorize an increase of $15.5 
million for chemical-biological defense for acceleration of 
research and development of small, light-weight, man-portable 
chemical and biological detectors ($5.0 million in PE 61384BP 
and $5.0 million in PE 62384BP), $4.0 million in PE 62384 BP 
for Project SAFEGUARD, and $1.5 million in PE 62384E for the 
demonstration and deployment of technologies for telemedicine 
and other capabilities to the warfighters; but would reduce the 
budget request by $7.0 million forPE 62383E. Additionally, the 
conferees continue to express strong support for innovative 
technologies to detect chemical and biological agents, such as aerogels 
and radio frequency identification sensor tags, and encourage the broad 
participation of the national laboratories, universities and, where 
appropriate, industry, in these efforts.
      The conferees endorse the concerns expressed in the 
Senate report (S. Rept. 105-189) regarding the shortcomings and 
deficiencies in the chemical-biological defense program related 
to the provision of adequate force structure and equipment to 
protect military facilities, as well as the deficiencies in 
doctrine, policy, equipment and training for the defense of 
critical overseas ports and airfields. The conferees direct the 
Secretary of Defense to report to the congressional defense 
committees by December 1, 1998 and annually thereafter, in the 
Department of Defense Nuclear, Chemical Biological (NCB) 
Defense Annual Report, on the plans to correct these 
deficiencies, including the deployment on a long-term basis of 
Army Biological Integrated Detection Systems (BIDS) companies 
in high threat commands or regions.

    Oversight and management of chemical/biological defense program

      The conferees note progress achieved in implementing the 
provisions of section 1701 of the National Defense 
Authorization Act for Fiscal Year 1994 (Public Law 103-160, 52 
U.S.C. 1522) in consolidating, coordinating and integrating the 
chemical-biological defense requirements of the military 
departments into a single office within the Department of 
Defense. Under this agreement, the DOD chemical-biological 
defense program office provides overall policy and budget 
guidance for the program, the Defense Acquisition Board process 
provides oversight of the program, and the Department of the 
Army acts as the executive agent. The conferees also note that 
the establishment of a Joint Nuclear, Chemical and Biological 
(NCB) Board to provide management structure for the program 
ensures that the operational needs of the services are 
integrated and coordinated, and that unnecessary duplication of 
effort is eliminated in the preparation of the chem-bio defense 
Program Objective Memorandum.
      The conferees agree that a single office for overall 
coordination and integration of the DOD chem-bio defense 
program, as required by Public Law 103-160, be maintained 
within the Office of the Secretary, and strongly believe that 
the office must be assigned sufficient staff to exercise its 
policy and budget guidance roles. In addition, the conferees 
strongly support continued implementation of the Joint Service 
Agreement to ensure coordination, integration and management of 
the program.
      With regard to the transfer of the chem-bio defense 
program to the Defense Threat Reduction Agency (DTRA), the 
conferees agree that the management role of the DTRA with 
regard to the chem-bio defense program should be limited to 
those chem-bio defense activities and projects that represent 
unique operational mission responsibilities of DTRA. Therefore, 
the conferees do not agree to transfer overall responsibility 
for the execution and day-to-day management of the chem-bio 
defense program to DTRA. However, to ensure consideration of 
DTRA chem-bio defense and related counterproliferation 
operational requirements in the DOD chem-bio defense program, 
the conferees recommend that DTRA become a party to the Joint 
Service Agreement on NCB defense and be included as a voting 
member of the Joint NCB Defense Board.
Tactical technology
      The budget request included $189.0 million in PE 62702E 
for tactical technology.
      The House bill would authorize a decrease of $37.0 
million for applied research in tactical technology.
      The Senate amendment would authorize a decrease of $5.0 
million for the increased scope of work on the micro unmanned 
aerial vehicle program.
      The conferees agree to authorize a decrease of $32.0 
million in PE 62702E.
Integrated command and control technology
      The budget request included $34.0 million in PE 62708E 
for integrated command and control technology.
      The House bill would authorize an increase of $6.0 
million for continued development of advanced technologies for 
flat panel displays.
      The Senate amendment would authorize an increase of $8.0 
million for flat panel display to continue the development of a 
domestic infrastructure within the context of the flat panel 
display initiative.
      The conferees agree to authorize an increase of $7.0 
million for flat panel displays.
Materials and electronic technologies
      The budget request included $244.4 million in PE 62712E 
for material and electronics technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $6.0 
million for the continued development of the mixed mode 
electronics multi-technology insertion (MIME) program.
      The conferees agree to authorize an increase of $6.0 
million for the MIME program and to authorize a reduction of 
$8.0 million for sonoelectronics to fund other higher priority 
projects.
Weapons of mass destruction technologies
      The budget request included $203.6 million for weapons of 
mass destruction technologies (PE 62715BR) of the Defense 
Special Weapons Agency (DSWA).
      The House bill would authorize the budget request.
      The Senate amendment would recommend an increase of 
$15.0million, including $10.0 million to maintain nuclear core 
competencies and critical scientific and engineering expertise; $2.0 
million to maintain efforts to protect critical civil and commercial 
advanced electronic technologies and space systems against nuclear and 
conventional explosions; and $3.0 million to accelerate the pace and 
development of components and subsystems toward a prototype ``deep 
digger'' system.
      The conferees agree to authorize an increase of $13.0 
million to the budget request: $10.0 million to maintain 
nuclear core competencies and critical scientific and 
engineering expertise in nuclear weapons effects technology and 
$3.0 million to accelerate the pace and development of 
components and subsystems toward a prototype ``deep digger'' 
system.
      The conferees remain concerned about the impact of high 
altitude nuclear and conventional explosions on critical civil 
and commercial activities and the potential vulnerability of 
next generation satellites and high technology upon which U.S. 
Armed Forces rely. The conferees have supported the efforts of 
the DSWA to conduct research on the effects of electromagnetic 
pulse (EMP) and the potential impact on military systems and 
critical technologies, and to develop technologies that would 
reduce potential vulnerabilities of the effects of radiation 
and EMP on advanced electronic technologies and space systems.
      The conferees endorse the direction contained in the 
House Report (H. Rept. 105-532) accompanying its fiscal year 
1999, defense authorization bill that the Secretary of Defense, 
in consultation with the Director of Central Intelligence, 
report to the congressional defense committees by March 1, 1999 
on the potential effects of high- and low-frequency EMP on 
critical military and civil systems and steps that might be 
taken to reduce potential vulnerabilities to EMP.
Explosives demilitarization technology
      The budget request included $11.6 million for the 
explosives demilitarization technology program (PE 63104D8Z).
      The House bill would authorize an increase of $2.0 
million to allow continued aggressive development of 
environmentally safe procedures to safely dispose of 
conventional military munitions.
      The Senate amendment would authorize an increase of $5.5 
million: $4.0 million to complete the demonstration of existing 
commercially available blast chamber technology; and $1.5 
million to design a mobile system utilizing the commercially 
available blast chamber technology.
      The conferees agree to authorize an increase of $6.0 
million to the budget request, including $2.0 million to 
continue aggressive development of environmentally safe 
procedures to dispose of conventional military munitions and 
$4.0 million to complete the demonstration of commercially 
available blast chamber technology as a viable alternative to 
open burn/open detonation demilitarization of conventional 
munitions.
      The conferees concur with the concerns expressed in the 
Senate report (S. Rept. 105-189) regarding the existence of 
small numbers of conventional munitions at demilitarization 
sites in the United States which need to be destroyed, where it 
may not be cost effective or practical to construct a 
destruction facility. The conferees support the efforts of the 
Department of Defense to design a mobile system utilizing the 
commercially available blast chamber technology.
Counterterror technical support program
      The budget request included $35.8 million for the 
counterterror technical support (CTTS) program (PE 63122D8Z).
      The House bill would authorize an increase of $4.0 
million increase for the development and demonstration of 
biometric access control technology, to include the use of 
authentication software and the principal component method of 
facial recognition.
      The Senate amendment would authorize an increase of $5.0 
million for the facial recognition technology program. 
Additionally, the Senate would recommend the transfer of the 
counterterror technical support program to the Defense Threat 
Reduction Agency.
      The conferees agree to authorize an increase of $4.0 
million for the facial recognition technology program. In 
addition, the conferees endorse two recommendations contained 
in the Senate report (S. Rept. 105-185). First, the conferees 
support efforts by the Department of Defense to maintain 
collaborative efforts with allies who have demonstrated 
counter-terrorism capabilities, which can provide the United 
States with a cost-effective way to remain on the cutting-edge 
of technology. Second, the conferees support efforts by the 
Department to continue its examination of retrofit options and 
to develop design guidelines for new and existing structures, 
including the use of composite systems.
      The conferees recognize the success of the interagency 
Technical Support Working Group (TSWG) and the Counterterror 
Technical Support program, and direct that oversight and 
direction of the program remain with the Office of the 
Assistant Secretary for Special Operations and Low Intensity 
Conflict.
      The conferees understand that the ASD (SO/LIC) is 
responsible for oversight of the TSWG and the Office of Special 
Technology (OST). The conferees also understand that there are 
other entities within the Department of Defense that can 
contribute to the interagency program to combat terrorism, such 
as the Defense Special Weapons Agency (DSWA), and encourage the 
TSWG to continue its coordination activities with these DOD 
entities, as well as with non-DOD entities, to ensure that the 
expertise available to the U.S. Government is appropriately 
applied to national and international efforts to combat 
terrorism.
      The conferees also encourage the continued cooperation 
between the TSWG and the Physical Security Action Group (PSEAG) 
to ensure that the CTTS and the physical security equipment 
programs address technologies that meet force protection needs.
Counterproliferation support program
      The budget request included $80.4 million for the 
counterproliferation support program, $70.6 million in PE 
63160BR and$9.8 million in PE 65160BR.
      The House bill would recommend that the 
counterproliferation support program be maintained at the 
fiscal year 1998 level and would authorize a decrease of $13.0 
million.
      The Senate amendment would authorize an increase of $4.0 
million to PE 65160BR for the Counterproliferation Analysis and 
Planning System (CAPS) and an increase of $3.0 million to PE 
63160BR for the high frequency active auroral research program 
(HAARP). In addition, the Senate would recommend an increase of 
$20.5 million increase for the unfunded requirements for the 
U.S. Special Operations Command (USSOCOM) for training, 
equipment and activities related to detecting, identifying, 
rendering safe, destroying or recovering weapons of mass 
destruction.
      The House recedes.
      The conferees endorse the concerns expressed in the 
Senate report (S. Rept. 105-185) and the recommendation that 
funds authorized for HAARP not be diverted to fund government 
overhead and Systems Engineering and Technical Assessments 
(SETA) support, and that the combined overhead/SETA support 
costs be no more than 10 percent.
Automatic target recognition
      The budget request included $5.1 million in PE 63232D for 
automatic target recognition.
      The House bill would authorize an increase of $3.0 
million for optical correlation technology research.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Generic logistics research and development technology demonstrations
      The budget request included $17.8 million in PE 63712S 
for generic logistics research and development technology 
demonstrations.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $4.0 
million for the computer assisted technology transfer program.
      The conferees agree to authorize an increase of $4.0 
million for the computer assisted technology transfer program.
Strategic Environmental Research and Development Program
      The budget request included $54.4 million for the 
Strategic Environmental Research and Development Program 
(SERDP) and transferred the program from PE 63716D to PE 
63780A.
      The House bill included no funds for SERDP.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request and 
direct that SERDP be identified under a Department of Defense 
(DOD) program element to avoid confusion about its unique 
multi-agency purpose. The conferees recognize the value of 
SERDP as a tri-agency cooperative program that supports basic 
and applied research and development of innovative technologies 
to meet the environmental obligations of the DOD, the 
Department of Energy, and the Environmental Protection Agency. 
The conferees expect that maintaining SERDP under a DOD program 
element will preserve its multi-agency focus.
Advanced electronics technologies
      The budget request included $244.7 million in PE 63739E 
for advanced electronics technologies.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $10.0 
million for advanced mask writer development in advanced 
lithography and would authorize a decrease of $4.0 million for 
new start work in project MT-04.
      The conferees agree to authorize an increase of $10.0 
million for advanced lithography development, as described in 
the Senate report (S. Rept. 105-189), and a decrease of $8.4 
million for molecular level printing program acceleration and 
submarine sensor suite development to fund higher priority 
projects.
Maritime technology
      The budget request included $15.0 million in PE 63746E 
for the maritime technology (MARITECH) advanced shipbuilding 
enterprise (ASE) program.
      The Senate amendment would authorize an increase of $5.0 
million to PE 63746E for MARITECH ASE.
      The House bill would authorize the budget request.
      The conferees agree to authorize an increase of $5.0 
million to PE 63746E for MARITECH ASE.
Advanced concept technology demonstrations
      The budget request included $116.3 million in PE 63750D 
for advanced concept technology demonstrations.
      The House bill would authorize a decrease of $12.0 
million for advanced concept technology demonstrations.
      The Senate amendment would authorize a decrease of $6.0 
million in the same program.
      The conferees agree to authorize a decrease of $12.0 
million for advanced concept technology demonstrations.
High performance computing modernization program
      The budget request included $140.9 million in PE 63755D 
for high performance computing modernization program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $20.0 
million to sustain operations of supercomputing centers 
established with Department of Defense funds and an increase of 
$3.0 million for a program to address related challenges in 
remote visualization, distance learning expansion, and 
collaborative exploitation of high performance computing 
capabilities.
      The House recedes.
Command, control and communications systems
      The budget request included $200.1 million in PE 63760E 
for command, control and communications systems.
      The House bill would authorize a decrease of $27.5 
million for command, control and communications systems.
      The Senate amendment would authorize a decrease of $11.0 
million in the same program.
      The conferees agree to authorize a decrease of $27.5 
million.
Sensor and guidance technology
      The budget request included $213.2 million in PE 63762E 
for sensor and guidance technology.
      The House bill would authorize a decrease of $13.1 
million within the program and an increase of $10.0 million for 
seismic sensor technology development.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize a decrease of $13.1 
million for the program. The funding for seismic sensor 
technology development is addressed elsewhere in this statement 
of managers.
Land warfare technology
      The budget request included $108.5 million in PE 63764E 
for land warfare technology.
      The House bill would authorize a decrease of $11.6 
million in the program.
      The Senate amendment would authorize a decrease of $4.0 
million for a new start project in LNW01.
      The conferees agree to a decrease of $17.6 million in the 
program: a reduction of $11.6 million, as described in the 
House report (H. Rept. 105-532); and a reduction of $6.0 
million for tactical mobile robots acceleration and situation 
awareness system program growth to fund higher priority 
programs.
Physical security
      The budget request included $31.7 million for the 
Department of Defense physical security program (PE 63228D8Z).
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $6.0 
million for activities related to demonstrating commercial off-
the-shelf technologies. In addition, the Senate would make 
available $3.0 million for a study to determine the utility of 
a software technology developed jointly by industry and the 
national laboratories, the Analytic System and Software for 
Evaluating Safeguards and Security (ASSESS), for use by the 
Department of Defense as an integral component in conducting 
vulnerability assessments at numerous Department of Defense 
facilities and installations.
      The conferees agree to authorize a decrease of $3.0 
million for activities related to demonstrating commercial off-
the-shelf technologies in PE 63228D8Z, and that decreases to 
this program not be made to projects currently underway. 
Additionally, the conferees would make available $3.0 million 
for a study on the utility of ASSESS as an integral component 
of DOD efforts to assess vulnerability assessments at its 
facilities and installations.
Continuous acquisition and life-cycle support activities initiative
      The budget request included $1.9 million in PE 63736D for 
the continuous acquisition and life-cycle support activities 
(CALS) initiative.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.0 
million for the integrated data environment program.
      The conferees agree to authorize an increase of $2.0 
million for the integrated data environment program.
North Atlantic Treaty Organization research and development
      The budget request included $44.4 million for the North 
Atlantic Treaty Organization (NATO) research and development 
activities in the following accounts: $11.6 million for the 
Army (PE 63790A); $11.0 million for the Navy (PE 63790N); $11.1 
million for the Air Force (PE 63790F); and $10.7 million for 
the Department of Defense (PE 63790T).
      The House bill would authorize a decrease of $5.0 million 
VECTOR activity in the Navy program (PE 63790N), an 
international flight demonstration effort utilizing X-31 
experimental aircraft.
      The Senate amendment would recommend that funds for the 
NATO research and development activities remain at the fiscal 
year 1998 funding levels plus inflation, resulting in the 
following decreases: $2.0 million (Army); $1.1 million (Navy); 
$0.4 million (Air Force); and $2.3 million (defense-wide).
      The conferees agree to authorize the following decreases: 
$2.0 million (Army); $4.0 million (Navy); $0.4 million (Air 
Force); and $2.3 million (defense-wide). The omnibus 
reprogramming (FY98-16PA) currently before the Congress for 
approval includes as a source of funds $3.0 million from the 
Navy NATO research and development program for activities 
related to VECTOR. According to the rationale making the 
sources available for reprogramming, agreements have not been 
reached yet between the United States and Sweden, and therefore 
the funds are available. The conferees recommend that the 
Department of the Navy utilize those funds for activities in 
fiscal year 1999.
Humanitarian demining
      The budget request included $17.2 million for 
humanitarian demining research and development activities in PE 
63920D8Z.
      The House bill would authorize a decrease of $5.0 
million.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request.
Joint robotics program-engineering development
      The budget request included $11.3 million in PE 64709D 
for the joint robotics program-engineering development.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $6.0 
million for accelerated joint robotics technology engineering 
and management development.
      The conferees agree to authorize an increase of $6.0 
million for accelerated joint robotics technology engineering 
and management development.
Defense technology analysis
      The budget request included $5.0 million in PE 65798S for 
the defense technology analysis program.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an increase of $2.0 
million for the commodity management technology program.
      The conferees agree to an increase of $2.0 million for 
the commodity management technology program.
Defense technical information services
      The budget request included $46.5 million in PE 65801K 
for defense technical information services.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $1.0 
million for expansion of defense technical information.
      The conferees agree to authorize a decrease of $1.0 
million for expansion of defense technical information.
Special operations intelligence systems development
      The budget request included $1.8 million for special 
operations forces intelligence systems development.
      The House bill would authorize an increase of $5.0 
million for research and development requirements associated 
with the Special Operations intelligence vehicle.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize an increase of $2.5 
million for development of the Special Operations intelligence 
vehicle.
Live fire testing
      The budget request included $9.9 million in PE 65131D for 
live fire testing.
      The House bill would authorize an increase of $4.0 
million to expand threat vulnerability testing to include the 
threat of radio frequency weapons.
      The Senate amendment would authorize the budget request.
      The Senate recedes.

                       ITEMS OF SPECIAL INTERESt

Advanced lightweight grenade launcher
      The conferees note ongoing efforts by the Special 
Operations Command (SOCOM) to develop new lightweight weapon 
systems necessary to support critical mission requirements by 
reducing the load that special operations personnel must carry. 
The conferees support ongoing efforts to develop a new advanced 
lightweight grenade launcher (ALGL) that will support special 
operations missions and believe this capability has 
applicability beyond the Special Operations Command. The 
conferees encourage the Special Operations Command to assess 
future warfighting requirements and determine the viability of 
ALGL concept. If ALGL meets warfighting requirements, the 
conferees would expect SOCOM to request funding necessary to 
develop this weapon and meet future warfighting requirements.
Advanced tactical computer science and sensor technology
      The budget request included $18.5 million in PE 63772A 
for advanced tactical computer science and sensor technology.
      The House bill would authorize the budget request.
      The Senate amendment would authorize an additional $2.5 
million for digital intelligence technology development.
      The Senate recedes.
      The conferees strongly endorse the use of commercial-off-
the-shelf (COTS) technology where appropriate to meet the needs 
of the 21st Century Army. The committee urges the Army to 
consider spending up to $5.0 million of the discretionary funds 
in the Army's digitization program to explore alternative COTS 
technology for command and control applications for dismounted 
soldiers.
Commercial technologies for maintenance activities
      The conferees agree to amend the budget request to change 
the name of PE 63805S to commercial technologies for 
maintenance activities.
      The conferees support funding for this program 
established in section 361 of the National Defense 
Authorization Act for Fiscal Year 1998. The conferees believe 
the commercial technologies for maintenance activities program 
provides a framework for the depot maintenance activities to 
work together with U.S. manufacturing companies on projects of 
common interest in which industry will match Department of 
Defense funding on a two-for-one basis. The conferees believe 
that in planning the program in the outyears, the Defense 
Logistics Agency (DLA) should require each of the participating 
services to match DLA funds for the projects conducted under 
the program. In managing the program in fiscal year 1999, the 
DLA should consider imposing such a matching requirement where 
practicable.
Cyber Security Program
      The conferees support the Air Force cyber-security 
program, which would allow the Air Force to conduct research 
and development at federally funded research and development 
centers that are currently working in collaboration on issues 
relating to security information assurance. This program would 
help to facilitate the transition of information assurance 
technology to the defense community which is vital as the 
Defense Department increases its reliance on computer networks 
and information technology.
Defense information superiority, assurance, and interoperability
      Joint Vision 2010, the Joint Chiefs of Staff conceptual 
template for how U.S. Armed Forces will fight future wars, 
identifies information superiority--the capability of 
maintaining an uninterrupted flow of information while denying 
an adversary's ability to do the same--as a key enabler for 
success in any future conflict.
      The conferees believe that communications network 
interoperability problems experienced by Navy carrier battle 
groups during operational test and evaluation of the advanced 
combat direction system and the cooperative engagement 
capability, as discussed elsewhere in this statement of 
managers, highlight potentially greater interoperability 
problems in communications, command, control, computers, 
intelligence, surveillance, and reconnaissance (C4ISR) systems 
networking at the joint level. Such problems will adversely 
affect the ability of U.S. Armed Forces to achieve the 
information superiority required for success on future 
battlefields.
      The General Accounting Office (GAO) has identified a 
number of activities within the Department of Defense (DOD) 
intended to ensure that U.S. Armed Forces are capable of 
establishing and maintaining information superiority in the 
future. According to the GAO reports, the DOD has begun to make 
progress toward establishing a comprehensive C4ISR 
architecture, but needs to complete its development, establish 
adequate information assurance measures, and ensure compliance 
with the architecture by the military departments, unified 
commands, and agencies. The GAO also observed that the 
complexity, magnitude, and cost of DOD's information 
superiority efforts warrant a comprehensive annual overview of 
the state of the Department's management and oversight of C4ISR 
acquisitions. The conferees understand that the DOD agreed with 
the recommendations contained in the GAO reports.
      Accordingly, the conferees direct the Secretary of 
Defense to submit with the DOD budget request for fiscal year 
2000 a report to the congressional defense committees on the 
implementation of the information superiority concept and its 
attendant key C4ISR systems development and acquisitions. The 
report should describe a DOD roadmap for C4ISR 
interoperability. The report should describe identified 
obstacles to interoperability, architecture development, 
implementation, and maintenance and the plans, including the 
planned allocation of resources, to address them.
Joint simulation system
      The conferees view the development of the Joint 
Simulation System (JSIMS) in PE 92740J as an important step in 
meeting a critical joint readiness requirement. In addition, 
JSIMS provides a framework for the migration of all training 
simulations into a common system and the elimination of the 
existing suite of legacy simulations across the services. These 
legacy simulations are increasingly outdated and expensive to 
maintain. JSIMS is also a key enabler for the joint 
experimentation process recently directed by the Secretary of 
Defense to be established under the Commander in Chief, U.S. 
Atlantic Command.
      The conferees encourage the Department of Defense to 
adequately fund this program in fiscal year 2000 and beyond as 
a means of ensuring that full operating capability follows the 
fielding of initial operating capability without delay.
Man overboard indicator technology
      The budget request included no funds for the development 
of man overboard indicator technology.
      Both the House report (H. Rept. 105-532) and the Senate 
report (S. Rept. 105-189) encouraged the Navy to investigate 
the utility of commercially available, water-activated man 
overboard indicator and the feasibility of integrating such a 
system for fleet use.
      The conferees encourage the Navy to investigate the 
feasibility of integrating a commercial off-the-shelf man 
overboard indicator as a means of immediately alerting ship 
control personnel of a person accidentally falling overboard. 
Additionally, the conferees encourage the Navy to continue 
their initiatives to identify a commercial off-the-shelf 
personnel tracking and physiological monitoring system, and to 
investigate the possibility and utility of combining man 
overboard, tracking, and physiological monitoring requirements 
into one device.
Materials research
      The House report (H. Rept. 105-532) expressed concern 
about the direction of materials research within the Department 
of Defense and the belief that such research should seek to 
reduce long-term dependence for critical defense materials upon 
foreign sources. The report directed the Secretary of Defense 
to undertake a basic review of the policies and programs 
regarding defense critical materials and critical materials 
research and to report the results of this review by February 
15, 1999.
      The Senate report (S. Rept. 105-189) included no similar 
direction.
      The conferees note the views expressed in the House 
report and the potential vulnerabilities of the domestic and 
foreign supplier base for critical defense materials needed in 
the production of future defense systems. The conferees 
recognize the decline in funding of applied materials research 
in the Department, particularly in the support of fundamental 
materials research by the Defense AdvancedResearch Projects 
Agency.
      In addition to the issues identified in the House report, 
the conferees direct the Secretary of Defense to assess the 
requirements for a long-range plan for future materials 
research that would ensure the availability of emerging high 
performance materials for future defense needs and to include 
the results of this assessment in the report submitted to the 
Congress. As a part of this assessment, the Secretary should 
consider the state of competition, both within the United 
States and international markets, for raw materials for high 
speed applications, such as gallium or other materials.
Military human immunodeficiency virus research
      The budget request included $5.7 million in PE 63105A for 
military human immunodeficiency virus research.
      The House bill would authorize the budget request.
      The Senate amendment would authorize a decrease of $2.6 
million for the program.
      The conferees agree to authorize the budget request.
Navy antisubmarine warfare program
      The conferees note the 1997 report by the Naval Studies 
Board of the National Academy of Sciences, Technology for the 
United States Navy and Marine Corps, 2000-2035. The report 
concludes that:
            (1) antisubmarine warfare (ASW) is one of the 
        Navy's most fundamental core competencies;
            (2) ASW must remain a core competency in the face 
        of a submarine threat that will increase in the 21st 
        century to become the dominant threat to the 
        accomplishment of naval missions;
            (3) the continuing draw down in naval forces and 
        the current de-emphasis on ASW have seriously eroded 
        the Navy's ASW capabilities;
            (4) this erosion of capabilities comes at a time 
        when potential future adversaries are rapidly acquiring 
        advanced quieting techniques and other offensive 
        submarine capabilities;
            (5) the lack of consensus on a submarine threat and 
        competing naval warfare priorities, combined with 
        mounting pressure on the overall defense budget, have 
        put the Navy's ASW program at historically low levels;
            (6) advances in ASW capability come about only as a 
        result of dedicated, long-term research and development 
        based on at-sea operations, testing, measurements, and 
        experimentation; and
            (7) these types of research and development 
        projects and operations are largely absent from current 
        Navy programs and plans.
      The conclusions of the Naval Studies Board closely 
parallel congressional concerns about the erosion of the Navy's 
ASW capabilities since the end of the Cold War. These concerns 
led to direction to the Secretary of Defense in the statement 
of managers that accompanied the conference report on S. 1124 
(H. Rept. 104-450), and in the classified annex that 
accompanied the statement of managers on H.R. 3230 (H. Rept. 
104-724). These reports directed the Secretary to assess the 
current and projected U.S. ASW capability in the light of the 
developing threat and budget trends, and to identify the short-
term and long-term improvements needed to cope with the 
evolving submarine threat.
      The conferees commend the Navy and the Office of the 
Secretary of Defense for The 1997 Anti-Submarine Warfare 
Assessment, dated March 1998. The assessment reaffirms that ASW 
is a top priority mission for the Navy, as well as being a core 
and enduring naval competency. The assessment of ASW training, 
modernization, and organization concludes that ASW training 
proficiency has declined and recommends that responsibility for 
ASW proficiency be refocused in the fleet. According to the 
report, the highest priority ASW modernization efforts are 
funded and the President's budget request for fiscal year 1999 
provides adequate equipment to respond to likely threats to the 
end of the Future Year Defense Program and beyond. The Navy has 
also created a new staff organization within the Office of the 
Chief of Naval Operations (N-84), and charged that organization 
with the responsibility for integration and assessment of the 
Navy ASW program.
      The conferees believe that ASW is a critical enabler for 
naval operations in the world's littoral regions, and that a 
stable and focused ASW program under appropriate oversight by 
the Department of the Navy and the Office of the Secretary of 
Defense will be critical to achieving the goals of near- and 
long-term improvements in ASW proficiency and capabilities. To 
that end, the conferees direct the Navy to update, at least 
biannually, an ASW Master Plan that reflects the Navy's overall 
ASW investment strategy and program. The conferees also believe 
that the Chief of Naval Operations should consider providing 
staffing and responsibility for N-84 that is on a level 
commensurate with that of other Navy staff resource sponsors 
for the functional warfare areas.
Navy land attack missile program
      The budget request included $11.3 million in PE 63795N 
for continued evaluation of a naval version of the Army 
Tactical Missile System (NTACMS) for naval surface ship and 
submarine use. No funds were included in the budget request for 
the Land Attack Standard Missile (LASM), a land attack variant 
of the Navy Standard Missile.
      The House bill would authorize the budget request. The 
House bill would also direct that the Navy's land attack 
missile program not proceed to a Milestone I development 
decision until the analysis of alternatives and other issues 
appropriate to a major acquisition program milestone decision 
have been resolved.
      The Senate amendment would authorize the budget request. 
The Senate amendment would also direct the Secretary of the 
Navy to report, among other things, an analysis of alternatives 
for an advanced gun system that considers fulfilling some 
portion of the Navy's fire support requirement with a modified 
version of the Army's extended range multiple launch rocket 
system and some portion of the fire support requirement with 
NTACMS.
      The House Report (H. Rept. 105-132) accompanying the 
National Defense Authorization Act for Fiscal Year 1998 
cautioned that a thorough, objective and independent cost and 
operational effectiveness analysis of competing system 
alternatives for meeting the operational requirements for a 
naval land attack missile would be required before the Navy 
proceeds with any development milestone decision for such a 
missile system.
      The conferees are aware that the Chief of Naval 
Operations selected LASM as the most cost effective near-term 
solution to its requirement for a land attack missile system. 
According to the Navy, selection of LASM was based on an 
extensive and broadly based land attack analysis that compared 
LASM and NTACMS on the basis of range, responsiveness, 
lethality, growth potential, and cost. But, the conferees 
believe that the assumptions used in the analysis may not 
accurately reflect the operational realities of the littoral 
battlefield. In addition, the impact of selecting LASM may 
result in the cancellation of the NTACMS program. Cancellation 
of NTACMS would result in a different approach regarding land 
attack missile support of Marines ashore and submarine 
employment in the littorals from that described in Navy 
testimony before Congress. The conferees are reluctant to 
approve a request for authorizing LASM if it results in 
cancellation of NTACMS without Navy explanations of the impact 
of such a decision on support of Marines ashore and other 
submarine missions in littoral warfare.
      The conferees agree to authorize $11.3 million for 
development, risk reduction, and analytical activities leading 
to a defense acquisition program milestone decision for the 
missile system program to satisfy the Navy's land attack 
missile requirement. The conferees direct the Secretary of 
Defense to ensure that the analysis of alternatives for a Navy 
land attack missile system, as discussed in the statements of 
managers accompanying the National Defense Authorization Act 
for 1998 (Public Law 105-85) and the National Defense 
Authorization Act for Fiscal Year 1999 (H. Rept. 105-532 and S. 
Rept. 105-189), and other issues appropriate to a major 
acquisition milestone decision are completed and the results 
reviewed by the Defense Acquisition Board before the Navy 
proceeds with a development milestone decision for the land 
attack missile system.
Oceanographic research information
      The conferees are aware of recent announcements by the 
Vice President that the Department of the Navy is 
declassifying, and will make available for use by the public 
and private institutions and agencies with ocean research and 
education programs, previously classified acoustical data from 
the U.S. Navy's underwater Sound Surveillance System (SOSUS) 
and data on ocean temperature and salinity levels under the 
Arctic ice cap. These data can be used, among other things, to 
track the migrations of large marine mammals, predict natural 
catastrophes, and support long-term climate change research. 
The conferees believe that such actions provide the opportunity 
to leverage the nation's $16.0 billion investment in the SOSUS 
system by making data from this system available for continuing 
defense research and for civilian scientific research and 
education.
      The conferees request that the Chairman of the National 
Oceanographic Research Leadership Council conduct an assessment 
of: (1) the value of SOSUS data to meet the requirements of 
appropriate private and public institutions and agencies with 
ocean research and education programs; (2) the cost of making 
SOSUS data available for such purposes in comparison to the 
cost of deploying alternative data-gathering systems; (3) 
recommended options for making such data available to civilian 
and defense research and education institutions and agencies; 
and (4) recommendations on effective ways to foster cooperation 
among agencies that would benefit from SOSUS data, including 
the potential for cost-sharing among the agencies and 
institutions that would participate in the program. In 
conducting the assessment, the Council should take into account 
the cooperative research and development agreement that was 
established between the Navy and the Scientific Environmental 
Research Foundation in June 1998, to use deactivated SOSUS 
stations to collect data for scientific and educational 
purposes. The conferees further request that a report of the 
results of the assessment be included in the annual report to 
Congress on the National Oceanographic Partnership Program that 
is to be submitted by March 1, 1999.
Optical correlation technology for automatic target recognition
      The conferees understand that progress in the development 
of optical correlation technology for automatic target 
recognition holds promise for the application of this 
technology to precision munitions, target cueing for 
surveillance systems, medical diagnosis, and other 
applications. The conferees agree with the direction contained 
in the House report (H. Rept. 105-532) that the Under Secretary 
of Defense (Acquisition and Technology) report to the 
congressional defense committees with the submission of the 
fiscal year 2000 budget request, the overall plan and program 
of the Department of Defense for the development and 
demonstration of optical correlator technology for automatic 
target recognition. The conferees urge the Secretary of Defense 
to consider using discretionary funds to continue development 
of this program through fiscal year 1999.
Patriot anti-cruise missile defense
      The conferees reaffirm their support for fully evaluating 
the Patriot anti-cruise missile (PACM) concept and direct the 
Secretary of the Army to complete a rigorous test and 
evaluation program in fiscal year 1999, using funds previously 
appropriated for this purpose, to determine the effectiveness 
of the PACM seeker against the full range of cruise missile 
threats. Results of this evaluation shall be provided to the 
congressional defense committees in a report by April 15, 1999. 
The report shall also include an assessment of options and 
associated costs for utilizing the PACM seeker in future 
upgrades to existing Patriot missiles.
Project M
      The budget request included $4.9 million in PE 63508N to 
continue the development and demonstration of advanced 
vibration control and quieting technology for naval machinery 
support structures that was developed under the Defense 
Advanced Research Project Agency's Project M.
      The House bill would authorize the budget request. The 
House bill would also direct the Secretary of the Navy to 
program funds for fiscal year 2000 to develop a prototype 
system for surface ships that uses the Project M technology.
      The Senate amendment would authorize the budget request.
      The conferees agree to authorize the budget request to 
continue the development and demonstration of the Project M 
technology in the Navy's submarine large scale vehicle. The 
conferees also request the Secretary of the Navy to assess the 
potential benefits that might result from the application of 
the Project M technology in surface ships and to report the 
results of that assessment to the congressional defense 
committees by March 31, 1999.
Software security
      The conferees note the potential value of continuing 
efforts to improve computer security by developing and testing 
prototype software security mechanisms, and the conferees urge 
the Secretary of Defense to consider using $500,000 from 
discretionary funds for this purpose.

              Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 201-202)
      The House bill contained provisions (secs. 201-202) that 
would authorize the recommended fiscal year 1999 funding levels 
for all research, development, test, and evaluation accounts.
      The Senate amendment contained similar provisions.
      The conference agreement includes these provisions.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Management responsibility for Navy mine countermeasures programs (sec. 
        211)
      The House bill contained a provision (sec. 211) that 
would extend until fiscal year 2003 the Office of the Secretary 
of Defense's responsibilities for certifying that: (1) the Navy 
has submitted an adequate plan for mine countermeasures 
programs; (2) the budget and the Future Years Defense Program 
support the plan; and (3) the Chairman of the Joint Chiefs of 
Staff has determined the Navy's program is sufficient.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Future aircraft carrier transition technologies (sec. 212)
      The budget request included $149.5 million for future 
aircraft carrier research and development in PE 63512N and 
$40.6 million for CV(X) feasibility studies in PE 63564N. The 
request also included $38.5 million for CVN-77 contract design 
in PE 64567N.
      The House bill contained a provision (sec. 212) that 
would authorize the budget request and designate $50.0 million 
of the $149.5 million authorization for future carrier 
development to be available for CVN-77 research and 
development.
      The Senate amendment contained a similar provision (sec. 
212).
      The Senate recedes.
Manufacturing technology program (sec. 213)
      The House bill contained a provision (sec. 213) that 
would amend section 2525 of title 10, United States Code, to 
establish goals for cost sharing in the manufacturing 
technology program and procedures for waiver of the cost 
sharing requirements. The provision would also require the 
Secretary of Defense to include information on the extent of 
cost sharing by participants in the manufacturing technology 
program in the five-year plan for the manufacturing technology 
program.
      The Senate amendment contained a similar provision (sec. 
216) which would modify cost sharing requirements to allow for 
different levels of cost sharing where appropriate, provide for 
establishing the level of cost sharing by competitive bidding, 
move the authority for wavier of cost sharing requirements to 
the service secretaries, and require cost share reporting to 
track investments by non-industry program participants.
      The conferees agree to a provision that would require the 
use of competitive procedures for determination of cost 
sharing, delegate the authority to waive cost sharing 
requirements to the Under Secretary of Defense for Acquisition 
and Technology or to service acquisition executives, provide 
for the establishment of annual goals for cost sharing, and 
require that the five-year plan for the program include 
assessments of the effectiveness of the manufacturing 
technology program and of the extent to which costs of projects 
are being shared by the participants in the program.
      The conferees note the requirement of section 2525(d)(1) 
of Title 10, United States Code, that competitive procedures 
shall be used for awarding all grants and entering into all 
contracts, cooperative agreements, and other transactions under 
the manufacturing technology program. The conferees note 
further the policy of Congress, as reflected in section 2374 of 
Title 10, United States Code, that the Department of Defense, 
the military departments, the Coast Guard, and the National 
Aeronautics and Space Administration, should not be required by 
legislation to award a new grant for research, development, 
test, or evaluation to a non-federal entity; and that 
anyprogram, project, or technology identified in legislation be awarded 
through merit-based selection procedures.
Sense of Congress on the defense science and technology program (sec. 
        214)
      The House bill contained a provision (sec. 214) that 
would express the sense of Congress that at least 10 percent of 
the funds in the research, development, test and evaluation 
accounts of the services should be spent on science and 
technology programs. The provision would also express the sense 
of Congress concerning certain management objectives and would 
require an interagency study on recommendations for maintaining 
the technology base supporting the Department of Defense.
      The Senate amendment contained a provision (sec. 1076) 
that would express the sense of Congress that the Secretary of 
Defense have an objective of increasing science and technology 
funding by no less than 2 percent over inflation above the 
amount requested for the prior fiscal year for each year during 
the period of fiscal years 2000 through 2008. The provision 
would also express the sense of Congress regarding management 
goals for the program.
      The Senate recedes with an amendment that would include 
the Senate funding objectives and integrate the House and 
Senate management goals.
Next generation internet (sec. 215)
      The budget request included $40.0 million in PE 62110E 
for the next generation internet program.
      The House bill contained a provision (sec. 215) that 
would authorize $53.0 million for the program and clarify that 
the amount specified in section 201(4) would be the amount 
authorized for the program, notwithstanding any other provision 
of law.
      The Senate amendment contained no similar provision and 
would authorize the budget request.
      The Senate recedes.
Crusader self-propelled artillery system program (sec. 216)
      The Senate amendment contained a provision (sec. 211) 
that would require the Secretary of the Army to revisit both 
requirements and schedule for the established Crusader program 
and provide a report to the Congress that addresses:
            (1) assessment of the risk associated with the 
        current Crusader program technology;
            (2) total requirement for Crusader associated with 
        Army After Next force structure revisions;
            (3) potential for reducing system weight by as much 
        as 50 percent;
            (4) potential for propellant and munition 
        alternatives and the impact of maturing this technology 
        on the overall program schedule; and
            (5) cost and benefit analysis of delaying 
        procurement of Crusader to avoid affordability issues 
        associated with the current schedule and allow for 
        maturation of weight and propellant technologies.
      The provision would limit the expenditure of funds for 
Crusader development to $223.0 million until 30 days after the 
date on which the Secretary of the Army submits the results of 
this report to the Congress.
      The House bill contained no similar provision.
      The House recedes with an amendment.
Airborne Laser Program (sec. 217)
      The Senate amendment contained a provision (sec. 214) 
that would: (1) direct the Secretary of Defense to conduct an 
assessment of the technical obstacles and operational 
shortcomings expected for the Airborne Laser (ABL) program; (2) 
direct the Secretary to submit a report to Congress by March 
15, 1999 that outlines his findings and recommendations 
regarding the ABL program; (3) recommend a reduction of $97.0 
million for the ABL program; and (4) direct that no more than 
$150.0 million of the funds remaining available to the ABL 
program be obligated until 30 days after the Secretary submits 
the report.
      The House bill contained no similar provision.
      The House recedes with an amendment that would: (1) 
direct the Secretary of Defense to conduct an assessment of the 
technical and operational aspects of the ABL program; (2) 
direct the Secretary to submit a report to Congress by March 
15, 1999 that outlines his findings and recommendations 
regarding the ABL program; (3) authorize $235.2 million for the 
ABL program, a reduction of $57.0 million to the budget 
request; and (4) direct that no more than $185.0 million of the 
funds authorized for the ABL program be obligated until 30 days 
after the Secretary submits the report.
      The conferees understand and support the Department of 
Defense's desire to achieve operational boost phase intercept 
capability as soon as technically possible. In pursuit of this 
goal, the conferees support continuation of the Airborne Laser 
program. The conferees note that, although the ABL program has 
undergone a significant degree of technical review, questions 
having to do with the technical risk in the program continue to 
be raised in the Department of Defense and by independent 
organizations. Although the conferees have not come to any 
final conclusions regarding these questions, they are concerned 
that the current ABL development program may not include 
sufficient near-term risk reduction in the area of beam 
compensation and may be structured to proceed too rapidly with 
finalization of an objective design. In particular, the 
conferees are concerned that the Air Force plans to enter 
engineering and manufacturing development (EMD) without 
adequate time to operate,test, and evaluate the program 
definition and risk reduction (PDRR) configuration. For example, the 
Air Force plans to order its first EMD aircraft a year before the PDRR 
aircraft undergoes a full system demonstration against a missile 
target.
      To meet these concerns, the conferees believe that the 
Secretary of Defense must carefully evaluate the technical risk 
in the ABL program and determine: (1) whether additional 
testing and risk reduction is necessary prior to integration of 
the ABL subsystems into a commercial 747-400F aircraft; and (2) 
whether the fully integrated PDRR aircraft should be operated 
for a period of time and thoroughly tested prior to finalizing 
an objective design. In addition, the Secretary must also 
evaluate the ABL operational concepts and their relationship to 
technical risk and uncertainties in the program.
      The conferees direct the Secretary of Defense to 
establish an independent review team to assist him in 
addressing the issues specified above, and transmit to Congress 
the review team's findings with the Secretary's report. While 
this review is underway, and while the Air Force undertakes 
additional ground testing and data collection, the conferees 
believe that the Air Force should temporarily slow the pace of 
activities related to integration of the PDRR aircraft. 
Therefore, the conferees agree to authorize a reduction of 
$57.0 million to the budget request for ABL. If the Secretary 
concludes that additional ground testing or other risk 
reduction activities beyond those already planned are required 
during fiscal year 1999, the conferees agree to authorize the 
Secretary to utilize up to $40.0 million from funds authorized 
for ABL to conduct those activities.
Enhanced Global Positioning System program (sec. 218)
       The Senate amendment contained a provision (sec. 215) 
that would: (1) require the Secretary of Defense to develop an 
enhanced Global Positioning System (GPS) program as an urgent 
national security priority; (2) authorize $44.0 million for 
fiscal year 1999 to begin such development; (3) urge the 
Secretary of Defense to fund adequately this initiative in the 
Future Years Defense Program; (4) urge the Secretary of 
Transportation to provide sufficient funding to support 
additional civil frequencies and other enhancements for civil 
users; (5) extend by five years the existing requirement to 
outfit all major Defense Department platforms with GPS 
receivers by the year 2000; and (6) require the Secretary to 
submit a plan for implementing this provision by April 15, 
1999.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees strongly support the modernization of the 
Global Positioning System to meet new military requirements and 
evolving threats. Such modernization should include those 
enhancements necessary to sustain the Global Positioning 
System's unique advantage to friendly forces for the long term. 
Similarly, the modernization plan should include a suitable 
array of methods and techniques to deny these same advantages 
to an adversary when necessary. Although U.S. forces presently 
may be more dependent than other nations' forces on the Global 
Positioning System's highly accurate position, velocity, and 
timing information, these same dependencies will naturally 
arise among the forces of potential enemies as satellite 
navigation technologies are further disseminated and integrated 
into force doctrine, training, and techniques, and as GPS-
embedded applications become widely available. While near term 
needs may suggest that assured access to GPS signals by the 
United States and its allies will have a higher pay-off than 
techniques that would deny access to the GPS signal by 
adversaries, a longer term view suggests that denial of enemy 
exploitation may offer significant, if not overwhelming, 
advantage. Furthermore, the conferees recognize that 
modernization of GPS satellites will take a long time given 
current purchasing approaches and the long life of individual 
satellites comprising the operational satellite constellation. 
A design change that must be implemented in a full 
constellation to be effective will take 12 or more years to 
field and will be in place for another 12-13 years. This 25-
year time period necessitates balanced investment in both 
protection and prevention enhancements. Although the conferees 
appreciate the funding constraints facing the Department of 
Defense, they do not believe that such constraints justify 
freezing the GPS design for the next quarter century in a way 
that does not adequately respond to obvious emerging threats. 
Consequently, the conferees direct the Secretary of Defense to 
undertake a GPS modernization program that improves access by 
friendly forces and denies access by hostile forces. The 
conferees direct the Secretary to include in the report 
required by this provision specific details of the actions to 
protect and deny the GPS signal.
      The conferees note that the effort by the Department of 
Defense to modernize the GPS system has delayed the new GPS 
satellite design. Given this situation, it is premature for the 
Department to enter into a multi-year procurement or other 
significant block satellite buy. At the same time, however, the 
Department requires additional funds for research and 
development to define fully the scope of the GPS modernization 
effort and to begin development of new satellite sub-systems. 
Therefore, the conferees agree to authorize no funds in Air 
Force missile procurement for GPS advance procurement, and to 
authorize an increase of $44.0 million in PE 64480F for GPS 
modernization.

                 Subtitle C--Ballistic Missile Defense

Sense of Congress on national missile defense coverage (sec. 231)
      The House bill contained a provision (sec. 231) that 
would express the sense of Congress that any deployed national 
missile defense system should defend all fifty states and that 
U.S. territories should be protected from ballistic missile 
attack.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Limitation on funding for the Medium Extended Air Defense System (sec. 
        232)
      The House bill contained a provision (sec. 232) that 
would prohibit the Secretary of Defense from obligating or 
expending funds authorized and appropriated for the Medium 
Extended Air Defense System (MEADS) until the Secretary 
certifies to Congress that funding has been designated for 
MEADS in the Future Years Defense Program (FYDP). The provision 
would require that if such certification is not received by 
January 1, 1999, the funds authorized for MEADS would 
thereafter be authorized only for the purpose of research and 
development to adapt the Patriot Advanced Capability 3-
Configuration 3 (PAC-3) to meet the Army requirement for a 
mobile theater missile defense system.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make 
funds authorized for MEADS available to support alternative 
programmatic and technical approaches to meeting the 
requirement for mobile theater missile defense if the Secretary 
does not certify to Congress that funding has been designated 
for MEADS in the FYDP.
Limitation on funding for cooperative ballistic missile defense 
        programs (sec. 233)
      The House bill contained a provision (sec. 233) that 
would prohibit obligation or expenditure of $5.0 million 
authorized to be appropriated for the Russian-American 
Observation Satellites (RAMOS) program until the Secretary of 
Defense certifies to Congress that the Department of Defense 
has received detailed information concerning the nature, 
extent, and military implications of ballistic missile 
technology transfer from Russian sources to Iran.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Sense of Congress with respect to ballistic missile defense cooperation 
        with Russia (sec. 234)
      The Senate amendment contained a provision (sec. 231) 
that would state that the United States should seek to foster a 
climate of cooperation with Russia on matters related to 
missile defense, especially in the area of early warning.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees believe that a cooperative approach to 
ballistic missile defense could lead to a mutually agreeable 
evolution of the ABM Treaty, i.e., either modification or 
replacement by a newer understanding or agreement, that would 
clear the way for the United States and Russia to deploy 
national missile defenses each believes necessary for its 
security. If implemented in a cooperative manner, the conferees 
do not believe that such steps would undermine the original 
intent of the ABM Treaty, which was to maintain strategic 
stability and permit significant nuclear arms reductions.
Ballistic missile defense program elements (sec. 235)
      The House bill contained a provision (sec. 235) that 
would realign program elements for the Ballistic Missile 
Defense Organization and require each program element to 
include funding for the management and support necessary for 
the activities within that program element.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Restructuring of Theater High Altitude Area Defense System Acquisition 
        Strategy (sec. 236)
      The House bill contained a provision (sec. 236) that 
would: (1) require the Secretary of Defense to select an 
alternative contractor as a potential source for the 
development and production of the Theater High Altitude Area 
Defense (THAAD) interceptor missile within a ``leader-
follower'' acquisition strategy; (2) require the Secretary of 
Defense to establish a cost sharing arrangement with the THAAD 
prime contractor for flight test failures of that missile 
beginning with the ninth test flight; (3) require the Secretary 
of Defense to proceed as expeditiously as possible with the 
milestone approval process for the engineering and 
manufacturing development (EMD) phase of the THAAD system for 
the battle management and command, control, and communications 
(BM/C3) and ground based radar elements of the system; (4) 
prohibit the obligation of funds for the THAAD user operational 
evaluation system (UOES) until there have been two successful 
tests of the THAAD interceptor missile; and (5) prohibit the 
Secretary of Defense from approving the commencement of EMD for 
the THAAD interceptor missile until there have been three 
successful tests of that missile.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would: (1) 
require the Secretary of Defense to take appropriate steps to 
implement technical and price competition for the development 
and production of the THAAD interceptor missile; (2) authorize 
$29.6 million to establish this technical and price 
competition; (3) require the Secretary of Defense to establish 
a cost sharing arrangement with the THAAD prime contractor for 
flight test failures of that missile beginning with the ninth 
flight test; (4) allow the Secretary of Defense to proceed with 
the milestone approval process for the EMD phase of the THAAD 
system for the BM/C3 and ground based radar elements of the 
system; (5) require the Secretary of Defense to prepare a plan 
that would allow for contingency deployment of THAAD missile 
interceptors before U.S. military forces are equipped with the 
objective configuration of those missiles; and (6) prohibit the 
Secretary of Defense from approving the commencement of EMD for 
the THAAD interceptor missile until there have been three 
successful tests of that missile.
      The conferees are aware that the Department of Defense is 
considering establishment of a second source for the THAAD 
interceptor missile seeker, the portion of the missile deemed 
to contain the highest technical risk. Based on information 
received to date, theconferees tentatively support this 
proposal, but direct the Secretary of Defense to submit a detailed 
report on this concept to the congressional defense committees by 
February 15, 1999, including the cost and programmatic implications of 
this approach.

                       Subtitle D--Other Matters

Extension of authority to carry out certain prototype projects (sec. 
        241)
      The Senate amendment contained a provision (sec. 218) 
that would extend the authority to carry out certain 
prototyping projects as specified under section 845 of the 
National Defense Authorization Act for Fiscal Year 1994 (Public 
Law 103-160), through September 30, 2001.
      The House bill contained no similar provision.
      The House recedes.
      The conferees continue to believe that the section 845 
authority should only be used in the exceptional cases where it 
can be clearly demonstrated that a normal contract or grant 
will not allow sufficient access to affordable technologies. 
The conferees are especially concerned that such authority not 
be used to circumvent the appropriate management controls in 
the standard acquisition and budgeting process. Any further 
consideration of extending this authority beyond September 30, 
2001 will be based upon a careful review and a conclusion by 
the congressional defense committees that this authority has 
been used in a limited and responsible manner. The conferees 
direct the Secretary of Defense to provide a report to the 
congressional defense committees, no later than March 1, 1999, 
on the use of this authority.
North Atlantic Treaty Organization alliance ground surveillance concept 
        definition (sec. 242)
      The Senate amendment contained a provision (sec. 219) 
that would make available funds from Army and Air Force 
research and development of a North Atlantic Treaty 
Organization Alliance Ground Surveillance (NATO AGS) capability 
based on the Joint Surveillance/Target Attack Radar System 
(JSTARS).
      The House bill contained no similar provision.
      The House recedes.
NATO common funded civil budget (sec. 243)
      The Senate amendment contained a provision (sec. 220) 
that would authorize the contribution of the United States to 
the common funded Civil Budget of NATO.
      The House amendment contained no similar provision, but 
would authorize funds included in the budget request for the 
U.S. contribution to the common funded Civil Budget of NATO.
      The House recedes.
Executive agent for cooperative research program of the Department of 
        Defense and the Department of Veterans Affairs (sec. 244)
      The Senate amendment contained a provision (sec. 222) 
that would authorize $10.0 million for the Department of 
Defense/Department of Veterans Affairs (DOD/VA) Cooperative 
Research Program and clarify the role of the Department of 
Defense as executive agent of the program.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
reference to funding. The conferees agree to authorize $10.0 
million in PE 63738D for the DOD/VA cooperative research 
program.
Review of pharmacological interventions for reversing brain injury 
        (sec. 245)
      The Senate amendment contained a provision (sec. 232) 
that would require the Secretary of Defense to review and 
report to the Congress on research on pharmacological 
interventions for reversing brain injury resulting from 
injuries incurred in combat or exposures to chemical weapons.
      The House bill contained no similar provision.
      The House recedes.
      The conferees direct that the Secretary of Defense 
include in the report a discussion of the ability to detect and 
treat status epilepticus at the scene of the injury, which 
could have an impact on reducing mortality and morbidity 
resulting from both head trauma and chemical weapon exposure.
Pilot program for revitalizing the laboratories and test and evaluation 
        centers of the Department of Defense (sec. 246)
      The Senate amendment contained a provision (sec. 1067) 
that would provide authority for one laboratory and one test 
and evaluation center to carry out a pilot program to 
demonstrate improved cooperative agreements with universities 
and other private entities.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Chemical warfare defense (sec. 247)
      The House bill contained a provision (sec. 723) that 
would authorize the Secretary of the Air Force to conduct 
research on health-related environmental and ecological effects 
of exposure to chemical, biological and radiological hazards 
and to develop more accurate risk assessment tools. In 
addition, the provision would authorize an increase of $1.8 
million in the Defense Health Program to conduct this risk 
assessment program.
      The Senate amendment contained a provision (sec. 1045) 
that would direct the Secretary of Defense to review, and 
modify as appropriate, Department of Defense chemical warfare 
defense policy and doctrine regarding the protection of U.S. 
forces against exposure to low levelsof chemical warfare 
agents. In addition, the provision would require the Secretary of 
Defense to report to the congressional defense committees on any 
modification to chemical warfare policy and doctrine as a result of the 
review, and establish a plan for a five-year research program to assist 
the Secretary in developing policy and doctrine on exposure to low-
level chemical agents.
      The conferees agree to a provision that would direct the 
Secretary of Defense to review and modify Department of Defense 
chemical warfare policy and doctrine to ensure that U.S. forces 
are adequately protected against any exposure to chemical 
warfare agents, to include exposure to low-levels of chemical 
agents and other potentially toxic substances in the 
environment that would endanger the health of exposed 
personnel. Additional areas to be included in the review are 
the exposure of U.S. forces to low-grade nuclear and 
electromagnetic radiation, preventive medications, and diesel, 
jet, and other hydro-carbon based fuels.
      The provision would also require the Secretary of Defense 
to develop and carry out a plan to establish a research program 
that would assist the Secretary in developing policy and 
doctrine, as well as new risk assessment methods and 
instruments, with respect to the effects of exposure to 
chemical warfare agents and other toxic substances, in order to 
ensure that U.S. forces are adequately protected against 
exposure to chemical warfare agents and toxic substances. The 
provision also requires that a five-year budget plan be 
developed.
      The Secretary of Defense is required to report to the 
congressional defense committees not later than May 1, 1999, on 
the review of DOD policies and doctrine on exposure to chemical 
warfare agents and toxic substances, and any recommendations to 
modify current policy and doctrine as a result of the review, 
any recommended legislative provisions, and the plan to 
establish the research program.
Landmine alternatives (sec. 248)
      The Senate amendment contained a provision (sec. 233) 
that would make $17.2 million available from funds authorized 
in section 201 of this Act for alternatives to anti-personnel 
landmines and anti-personnel submunitions used in mixed anti-
tank mine systems; would require the Secretary of Defense to 
contract with scientific organizations to identify existing and 
new tactics, technologies and concepts that would provide 
comparable combat capabilities to current anti-personnel 
landmines and anti-personnel landmines used in mixed systems, 
and report to Congress on their recommendations; would require 
the Secretary of Defense to submit a report to the 
congressional defense committees by April 1, 1999 and April 1, 
2000 on the progress achieved in identifying and deploying 
tactics, technologies and concepts as alternatives to anti-
personnel landmines; and would define anti-personnel landmines 
and mixed munition systems consistent with the definitions 
contained in the Convention on the Prohibition on the Use, 
Stockpiling, Production and Transfer of Anti-Personnel Mines 
and their Destruction (otherwise known as the Ottawa Treaty) 
for anti-personnel landmine and mixed mine systems.
      The House bill contained no similar provision, but would 
authorize the budget request for Army and defense-wide 
activities related to research and development of alternatives 
to anti-personnel landmines.
      The conferees agree to a provision that would direct that 
not more than $19.2 million be made available from amounts 
authorized in section 201 of this Act for research and 
development of alternatives to anti-personnel landmines and 
anti-personnel landmines used in mixed anti-tank mine systems 
that would be equivalent to the combat capabilities of the 
current systems. The conferees also direct the Secretary of 
Defense to submit, with the fiscal year 2000 budget, an 
explanation of any funds requested to support a research and 
development program for existing and new technologies and 
concepts that could provide an equivalent combat capability to 
anti-personnel submunitions used in mixed mine systems or to 
mixed mine systems.
      Additionally, the conferees direct the Secretary of 
Defense to submit a report to the congressional defense 
committees describing progress made in identifying existing and 
new technologies and concepts as alternatives to anti-personnel 
submunitions used in mixed mine systems or to mixed mine 
systems. The conferees direct the Secretary to include in the 
report the recommendations of two scientific organizations 
regarding the identification, adaptation, modification, 
research and development of existing and new technologies and 
concepts.

                   Legislative Provisions Not Adopted

Limitation on funding for counterproliferation support
      The House bill contained a provision (sec. 234) that 
would prohibit the obligation or expenditure of funds requested 
in the fiscal year 1999 budget for the counterproliferation 
support program in PE 63160BR until receipt of an annual report 
required by Section 234 of the National Defense Authorization 
Act of 1998 (Public Law 105-340) on the threat posed to the 
United States and its allies by weapons of mass destruction and 
cruise and ballistic missiles.
      The Senate amendment contained no similar provision.
      The House recedes.
Unmanned aerial vehicle programs
      The budget request included $178.7 million for High 
Altitude Endurance, Unmanned Aerial Vehicles (HAE UAVs) in the 
Defense-Wide research and development account (PE 35205D8Z). 
This included $90.1 million for the Global Hawk program, $40.5 
million for the DarkStar program, and $48.1 million for common 
ground segment development. Within these totals, the budget 
request included $68.6 million to support contractor 
participation in test and evaluation of military utility in 
joint exercises for the Global Hawk and DarkStar programs 
($39.2 million and $29.4 million, respectively). The budget 
request also included $4.3 million for Air Force enduranceUAVs 
in PE 35205F.
      The House bill would authorize an increase of $32.5 
million in the procurement title to buy three additional Global 
Hawk UAVs. The House bill would also transfer HAE UAV 
development funding from Defense-Wide research and development 
to PE 35205F.
      The Senate amendment would authorize a decrease of $8.5 
million. The Senate amendment also contained a provision (sec. 
213) that would terminate the DarkStar unmanned aerial vehicle 
program, and transfer $32.5 million to the Global Hawk unmanned 
aerial vehicle program once phase II testing of the Global Hawk 
unmanned aerial vehicle is complete.
      The conferees note the recent successful test flights of 
the DarkStar UAV. The Senate recedes on the provision to 
terminate the DarkStar program.
      The conferees are disappointed that these two UAV 
programs have not been able to adhere to the original schedule. 
The conferees believe that the delays in the Global Hawk and 
DarkStar development and test programs will reduce the level of 
participation in joint exercises in fiscal year 1999 below that 
level assumed in the budget request. The conferees are also 
aware that these delays have affected the common ground segment 
development effort as well.
      In view of the above, the conferees believe that the 
budget request for joint exercise participation and common 
ground segment development exceeds what can realistically be 
accomplished in fiscal year 1999. Thus, the conferees agree to 
authorize a decrease of $25.0 million for these two activities 
in a manner which will allow equitable testing of both Global 
Hawk and DarkStar, the specific application of which shall be 
at the discretion of the Secretary of the Air Force.
      The conferees have also learned that, because of business 
decisions about production facilities unrelated to the Global 
Hawk program, the contractor is experiencing substantial 
dislocation in its business plan and the construction facility 
has been forced to operate in a manner that could adversely 
impact any future Global Hawk production. Accordingly, the 
conferees agree to authorize an increase of $25.0 million to 
mitigate the effects of the business plan dislocation on the 
Global Hawk construction facility.
      In summary, the conferees authorize $183.0 million for 
endurance UAVs in PE 35205F, including a $25.0 million increase 
to mitigate adverse impacts to the Global Hawk construction 
facility, and a $25.0 million decrease to be applied against 
the joint exercise and/or common ground segment development 
activities.
      In accordance with section 216 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85), the 
conferees reiterate that no additional HAE UAV aircraft are to 
be procured until the completion of the respective phase II 
military user assessments (NMA).
      Because the conferees believe that the transition to 
procurement could involve significant air vehicle design 
changes, the conferees direct the Department of Defense to 
conduct any follow-on HAE UAV procurement program in adherence 
with its established acquisition procedures. Further, the 
conferees direct that no follow-on HAE UAV procurement may 
commence until the Secretary of the Air Force provides the 
congressional defense and intelligence committees with the 
following:
            (1) a formal statement of requirements for the HAE 
        UAVS;
            (2) a certification that either or both of these 
        UAVs satisfy the Air Force's military utility and 
        suitability requirements; and
            (3) completes a formal engineering and 
        manufacturing development program for the selected UAV 
        alterative(s).
Persian gulf illnesses
      The Senate amendment contained a provision (sec. 221) 
that would authorize an increase of $10.0 million in PE 61105D 
for research in Persian Gulf illnesses.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees urge the Secretary of Defense to use 
discretionary funds to increase research for Persian Gulf 
illnesses in fiscal year 1999.
Low cost launch development program
      The Senate amendment contained a provision (sec. 223) 
that would increase funds for low cost launch technology 
development.
      The House bill contained no similar provision.
      The Senate recedes. Funding for low cost launch 
technology development is addressed elsewhere in this report.

                  Title III--Operation and Maintenance

Overview
      The budget request for fiscal year 1999 contained an 
authorization of $94,219.1 million for Operation and 
Maintenance in the Department of Defense and $900.0 for Working 
Capital Fund Accounts in fiscal year 1999. The House bill would 
authorize $92,476.5 million for Operation and Maintenance and 
$1,746.1 for Working Capital Fund Accounts. The Senate 
amendment would authorize $93,849.8 million for Operation and 
Maintenance and $764.1 for Working Capital Fund Accounts. The 
conferees recommended an authorization of $92,891.5 million for 
Operation and Maintenance and $1,746.1 for Working Capital Fund 
Accounts for fiscal year 1999. Unless noted explicitly in the 
statement of managers, all changes are made without prejudice.





Arms control implementation

      The budget request included $275.3 million in the 
military services and defense accounts to meet specific arms 
control implementation and compliance obligations. The budget 
request is formulated on anticipated resource requirements, to 
include planning assumptions of anticipated dates of entry into 
force of arms control agreements, numbers of inspections or 
observations to be performed in the year, data reporting and 
information exchange requirements.
      The House bill would decrease the budget request for the 
On-Site Inspection Agency for the following: $1.5 million for 
START II implementation activities; $1.0 million for 
implementation of the Open Skies Treaty; and $1.0 million for 
activities related to entry into force of the Comprehensive 
Test Ban Treaty (CTBT). The House bill would also authorize a 
decrease of $25.0 million for research and development 
activities related to implementation of the CTBT. Lastly, the 
House bill would authorize no funds for reimbursement to the 
Organization for the Prohibition of Chemical Weapons (OPCW) for 
the costs of inspectors salaries and transportation from the 
Hague for inspections conducted pursuant to the Chemical 
Weapons Convention.
      The Senate amendment would authorize no funds to 
reimburse the Organization for the Prohibition of Chemical 
Weapons for inspectors salaries and transportation from The 
Hague to the U.S. Point of Entry, and for reimbursement of the 
cost of arms control inspections in foreign countries when 
those costs are the obligation of the inspected country.
      The conferees agree to authorize a decrease of $28.0 
million for the following arms control implementation 
activities: $1.5 million for START II; $1.0 million for Open 
Skies activities; $1.0 million for CTBT; $9.0 million for 
reimbursement of other than ``usual'' in-country inspection 
costs; and, $0.5 million for anticipated reimbursement of 
payments for arms control inspection costs borne by the 
inspected party to a treaty or agreement. The conferees also 
agree to a decrease of $15.0 million for research and 
development activities in support of CTBT and U.S. nuclear test 
detection requirements.
      The conferees agree that of the funds authorized for 
research and development activities in support of CTBT 
requirements, $20.0 million shall be available for efforts to 
develop critical seismic technology to detect, verify, and 
evaluate both natural and weapons-related phenomena important 
to nuclear test detection.

Navy Environmental Leadership Program

      The budget request included $2.4 million for the Navy 
Environmental Leadership Program (NELP).
      The House bill would authorize an increase of $4.0 
million for NELP.
      The Senate amendment would authorize no funds for NELP.
      The conferees agree to authorize an increase of $2.0 
million for NELP.

Defense Threat Reduction Agency (DTRA)

      The budget request included $304.7 million for the 
Defense Threat Reduction Agency (DTRA).
      In November 1997, as part of its Defense Reform 
Initiative (DRI), the Department of Defense recommended the 
establishment on October 1, 1998 of the Defense Threat 
Reduction Agency (DTRA), a single agency that would carry out 
programs to counter proliferation and reduce threats posed by 
weapons of mass destruction and to provide nuclear weapons 
stockpile and related support. The agency would consolidate 
several functions from the Office of the Secretary of Defense 
(OSD) and the Washington Headquarters Services involved in the 
oversight and management of associated programs, including the 
On-Site Inspection Agency (OSIA), the Defense Special Weapons 
Agency (DSWA), the chemical-biological defense program and the 
counterproliferation support program. The budget request also 
recommended elimination of the position of the Assistant to the 
Secretary of Defense for Nuclear, Chemical and Biological 
Matters (ATSD(NCB)).
      The House bill would authorize a decrease of $500,000 for 
DTRA.
      The Senate amendment would authorize a decrease of $20.0 
million for DTRA and would recommend that in addition to 
transferring the activities of the OSIA and DSWA to the DTRA, 
the chemical-biological defense program, counterproliferation 
support program, the unitary and nonstockpile chemical and 
munitions destruction programs, and programs related to force 
protection, such as the physical security program (PE 
63228D8Z), and the counter-terror technical support program (PE 
63122D8Z), also be transferred to DTRA.
      The conferees agree to authorize a decrease of $12.0 
million for DTRA. The conferees agree that the 
counterproliferation support program and activities related to 
force protection, such as the physical security program (PE 
63228D8Z) and subelements of the counter-terror technical 
support program (PE 63122D8Z) related to weapons of mass 
destruction and force and infrastructure protection, be 
transferred to DTRA. As noted elsewhere in this report, 
oversight and direction of the counter-terror technical support 
program remains with the Assistant Secretary of Defense 
(Special Operations/Low Intensity Conflict).
      The conferees agree that policy and programmatic 
oversight for the chem-bio defense program and the chemical 
demilitarization program should remain within the Office of the 
Secretary of Defense, and that the Department of the Army 
should remain the executive agent for these programs, pursuant 
to Section 1701 of the National Defense Authorization Act for 
Fiscal Year 1994 (Public Law 103-160) and Section 1412 of the 
Department of Defense Authorization Act for Fiscal Year 1986 
(Public Law 99-145). However, the conferees do recognize that 
there may be activities within both of these programs that 
represent unique operational responsibilities of DTRA, and 
encourage DTRA to consult closely with both the Office of the 
Secretary of Defense and the Department of the Army.
      The conferees agree to a separate provision (sec. 1521) 
dealing with the Defense Technical Security Administration 
(DTSA). A discussion of the conferees recommendation for the 
DTSA can be foundelsewhere in this report.
      The conferees do not agree to transfer the statutory 
responsibility for nuclear weapons, including support of the 
Nuclear Weapons Council, to DTRA. Elsewhere in this report the 
conferees discuss in greater detail the decision not to abolish 
the Assistant to the Secretary of Defense for Nuclear, 
Chemical, and Biological Matters.
      A part of the proposal to create DTRA is the physical 
consolidation of the various functions located in the Dulles 
area of Virginia. The On-Site Inspection Agency (OSIA), one of 
the DTRA components, is currently located in the Dulles area. 
The conferees have been informed by the Department of Defense 
(DOD) that sufficient space does not currently exist at OSIA, 
or in the Dulles area, to co-locate all of the DTRA elements in 
one building or in one complex. As a result, DOD must either 
build or lease substantial additional space to accommodate the 
new organization. The conferees believe that one of the primary 
goals of any consolidation should be to have all the elements 
of the DTRA either in one building or complex or at least 
within walking distance of each other. Otherwise, the conferees 
are concerned the consolidation unnecessarily could result in 
substantial disruption of personnel and substantial increases 
in time commuting to meetings and other events during the day.
      Before any further commitments for office space are made 
or additional efforts taken to consolidate the component parts 
of DTRA in the Dulles area, the conferees direct the Secretary 
of Defense to submit a report no later than May 14, 1999 on the 
cost and overall effect of this move on the work of the agency. 
This report should address: the availability of public 
transportation; plans for transporting employees during the 
day; relocations costs; commuting impacts; potential savings; 
an assessment of the advantages and disadvantages of co-
locating and co-locating to the Dulles area; issues associated 
with force protection; an assessment of the alternatives to co-
locating including not moving; and the impact on retention and 
morale of personnel that would move.
Joint Military Intelligence Program
      The budget request included $3.8 billion in the Operation 
and Maintenance, Defense-Wide account for classified and 
intelligence programs, including funds in the Joint Military 
Intelligence Program for the National Imagery and Mapping 
Agency (NIMA), the Joint Reserve Intelligence Program (JRIP), 
and the Command, Control, Communications, Computers, 
Intelligence, Surveillance, and Reconnaissance Integrated 
Architecture Plan (CIAP).
      The House bill would authorize a net decrease of $9.0 
million for NIMA, an increase of $3.0 million for JRIP, and an 
increase of $3.0 million for CIAP. The House report (H. Rept. 
105-508) accompanying the Intelligence Authorization Act for 
Fiscal Year 1999 (H.R. 3694) directed that no funds authorized 
or appropriated for NIMA be made available for the joint 
mapping tool kit (JMTK) module of the global command and 
control system (GCCS) until the Assistant Secretary of Defense 
for Command, Control, Communications, and Intelligence 
(ASD(C3I)) either certifies that the Defense Information 
Systems Agency (DISA) will procure the module commercially, or 
reports to the congressional defense and intelligence 
committees why such commercial procurement would be 
disadvantageous.
      The Senate amendment would authorize the budget request 
for NIMA, JRIP, and CIAP.
      The conferees agree to authorize a decrease of $7.0 
million for NIMA sustaining capabilities and an increase of 
$7.0 million for product outsourcing. The conferees direct that 
the sustaining capabilities reduction be applied equitably 
across all NIMA facilities and functions, and that no more than 
half of the decrease be applied to personnel. The conferees 
also agree to authorize an increase of $3.0 million for JRIP 
and an increase of $3.0 million for CIAP.
      With regard to the House position on JMTK module 
procurement, the conferees agree that NIMA and DISA should be 
acquiring commercially available products unless there is very 
strong justification to the contrary. Therefore, the conferees 
direct the ASD (C3I) to provide the congressional defense and 
intelligence committees by January 29, 1999 a report on his 
plan for: (1) establishing a process for certifying commercial 
products that meet GCCS interface protocols and standards; (2) 
providing all documentation needed for vendors to determine 
whether their applications software products can achieve such 
certification; and (3) ensuring that NIMA and DISA are making 
all reasonable efforts to evaluate commercially available GCCS 
modules (such as JMKT) that can achieve such certification 
before spending Department of Defense funds to develop such 
modules.
Domestic emergency response program
      The budget request included $246.2 million for key 
Department of Defense programs to counter paramilitary and 
terrorist threats involving weapons of mass destruction, 
including $99.1 million for the domestic emergency response 
preparedness program as follows: $49.9 million for the 
Department of Defense to prepare and enhance Federal, state and 
local response capabilities to terrorist incidents involving 
weapons of mass destruction (WMD), and $49.2 million for the 
Department of the Army for the Reserve Components' 
participation in domestic emergency preparedness and response 
to the terrorist use of weapons of mass destruction.
      The House bill would authorize a decrease of $28.5 
million for the Reserve Components' participation in WMD 
domestic preparedness, including $14.6 million for military 
personnel, $7.0 million for operation and maintenance, and $6.9 
million for the procurement of contamination avoidance 
equipment.
      The Senate amendment would authorize the budget request 
for domestic emergency preparedness for the Department of 
Defense and the Department of the Army. In addition, the Senate 
would recommend the transfer of the mission, function and 
resources for the Defense domestic emergency preparedness 
program to the Defense Threat Reduction Agency (DTRA).
      The conferees agree to authorize the budget request for 
countering paramilitary and terrorist WMD threats and for the 
DOD andthe Department of the Army for the WMD domestic 
emergency response program. Authorization of Reserve Components' 
participation in WMD domestic emergency preparedness and response is 
discussed in Title V of this report. Additionally, specific adjustments 
to program elements for countering paramilitary and terrorist WMD 
threats are discussed elsewhere in the report on the individual 
projects which are included in the program.
      The conferees are aware that a National Coordinator has 
been appointed by the President, pursuant to the direction 
contained in the National Defense Authorization Act for Fiscal 
Year 1997 (Public Law 104-201), whose responsibilities shall 
include operational oversight of the Federal government's 
security and counterterrorism efforts, to include domestic 
emergency preparedness and response to the terrorist use of 
WMD. The conferees have included a provision in Title XIV of 
this report that would require the President to increase the 
effectiveness of the domestic emergency preparedness program 
and to submit a report to Congress by January 31, 1999 
outlining the actions taken to increase the effectiveness of 
the program. In addition, the conferees direct that the report 
submitted by the President on January 31, 1999 include 
information on the efforts to meet the challenge of limiting 
the damage and manage the consequences of the terrorist use of 
WMD, as outlined in Presidential Decision Directive (PDD) 62. 
The conferees understand that the intent of PDD 62 is to create 
a new and more systematic approach to fighting the threat of 
the terrorist use of WMD. The report should outline the role 
and obligations of the National Coordinator in overseeing the 
relevant policies and programs in the U.S. Government, the 
responsibility of the National Coordinator to the Congress, 
implementation of recommendations on budgets for counter-
terrorism programs and the coordination and development of 
guidelines necessary for crisis management. The conferees 
request that the President's report identify requirements for 
any additional fiscal year 1999 funds that may be required to 
implement actions taken to increase the effectiveness of the 
domestic emergency response program.
      The conferees endorse the direction contained in the 
Senate report (S. Rept. 105-189) requiring the Secretary of 
Defense to report to the congressional defense committees on 
the use of the DOD stockpile of vaccines, medical supplies and 
protective gear in a domestic WMD emergency, and the 
availability of vaccines, antiserums and antidotes in other 
Federal entities that could also be used. In addition, the 
President's report to Congress should discuss the advisability 
of establishing regional stockpiles of both emergency 
protective gear and vaccines that could be available for 
emergency use by Federal, state and local responders in the 
event of a terrorist event using WMD.

                       ITEMS OF SPECIAL INTEREST

Fire support software engineering center
      The conferees are concerned about the readiness and 
upgrades of Army command and control and fire direction systems 
presently maintained by the Fire Support Software Engineering 
Center (FSSEC) at Fort Sill, Oklahoma. Delays on systems such 
as the Battery Computer System, the Initial Fire Support 
Automated System, and the Multiple Launch Rocket System must be 
avoided. Therefore, the conferees urge the Army to continue 
full operational funding for the FSSEC.
Lead-based paint soil contamination at Department of Defense facilities
      A December 20, 1996, Environmental Protection Agency 
(EPA) memorandum indicates that the Comprehensive Environmental 
Response, Compensation and Liability Act (CERCLA) may be 
applied to compel the cleanup of lead-contaminated soils on 
federal facilities. The conferees understand that, to date, EPA 
has only applied this interpretation of CERCLA at DOD sites.
      The conferees note that section 120(a)(1) and (2) of the 
CERCLA provides that federal facilities are to comply with all 
guidelines, rules, regulations, and criteria ``. . . in the 
same manner, and to the extent as such guidelines, rules, 
regulations, and criteria are applicable to other facilities.'' 
Although the conferees recognize that there may be quantifiable 
human health risks that support response actions at certain 
sites with lead-based paint contamination, there is concern 
about consistency.
      The conferees are concerned about the possibility of 
disparate enforcement actions related to lead-based paint. The 
conferees direct that the Secretary of Defense include in the 
fiscal year 1998 annual report on environmental restoration (10 
U.S.C. 2706(a)) a description of the sites, human health risks, 
costs, and delays, if any, related to the EPA enforcement of 
response action requirements for lead-based paint at Department 
of Defense sites.
State certification of underground storage tanks
      The conferees note that underground storage tanks owned 
and operated by the Department of Defense (DOD) are subject to 
Federal, state, and local statutory and regulatory guidance. 
The Resource Conservation and Recovery Act (RCRA) (42 U.S.C. 
6991-6991h) sets minimum standards for spill, overfill, and 
corrosion protection mechanisms to be included in standards for 
upgrading, replacing, and closing new and existing underground 
storage tanks. Existing underground storage tanks, those 
installed prior to December 22, 1988, must be upgraded to have 
spill, overfill, and corrosion protection, otherwise such tanks 
may be subject to removal, closure in place, or replacement. 
Generally, state environmental regulatory agencies have adopted 
the Federal minimum RCRA compliance standards for underground 
storage tanks.
      A recent audit conducted by the DOD Office of Inspector 
General (IG) determined that there were significant variances 
between state- and DOD-generated underground storage tank 
inventories. The DOD IG determined that such divergent results 
occurred because the DOD managers and state environmental 
regulators prepared separate underground storage tank 
inventories that were not reconciled.Consistent with that 
determination, the DOD IG concluded that operations may be disrupted at 
some DOD installations after December 22, 1998, if state regulatory 
agencies do not obtain accurate data with which to assess DOD 
underground storage tank compliance under RCRA, Subtitle I.
      The conferees direct the Secretary of Defense to submit a 
report, no later than 60 days after the enactment of this Act, 
to the congressional defense committees on the number of 
underground storage tanks projected to be noncompliant after 
December 22, 1998. The report shall identify a plan that would 
minimize operational disruptions associated with noncompliant 
tanks.

                     LEGISLATIVE PROVISIONS ADOPTED

               Subtitle A--Authorization of Appropriations

Authorization of appropriations (secs. 301-302)
      The House bill contained provisions (secs. 301-302) that 
would authorize the recommended fiscal year 1999 funding levels 
for all operations and maintenance and working capital fund 
accounts.
      The Senate amendment contained similar provisions.
      The conference agreement includes these provisions.
Armed Forces Retirement Home (sec. 303)
      The House bill contained a provision (sec. 303) that 
would authorize $70.7 million from the Armed Forces Retirement 
Trust Fund for the operation of the Armed Forces Retirement 
Home, including the U.S. Soldiers' and Airmen's Home and the 
Naval Home.
      The Senate amendment contained an identical provision 
(sec. 303).
      The conference agreement includes this provision.
Transfer from the National Defense Stockpile Transaction Fund (sec. 
        304)
      The House bill contained a provision (sec. 304) that 
would authorize the Secretary of Defense, to the extent 
provided in an appropriation act, to transfer $150.0 million 
from the National Defense Stockpile Transaction Fund to the 
operations and maintenance accounts.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

    Subtitle B--Program Requirements, Restrictions, and Limitations

Refurbishment of M1-A1 Tanks (sec. 311)
      The House bill contained a provision (sec. 305) that 
would authorize $31.0 million for the refurbishment of up to 70 
M1-A1 tanks under the AIM-XXI program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Operation of prepositioned fleet, National Training Center, Fort Irwin, 
        California (sec. 312)
      The House bill contained a provision (sec. 306) that 
would authorize $60.2 million for the operation of the 
prepositioned fleet of equipment during training operations at 
the National Training Center, Fort Irwin, California.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Berthing space at Norfolk Naval Shipyard, Virginia (sec. 313)
      The House bill contained a provision (sec. 307) that 
would authorize the Navy to obligate $6.0 million for the 
relocation of the U.S.S. Wisconsin from Norfolk Naval Shipyard 
to another suitable location to increase available berthing 
space at the shipyard.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees are aware of the facility capacity 
constraints at Norfolk Naval Shipyard where the Navy currently 
maintains some of its inactive reserve vessels. These 
constraints require the relocation of the U.S.S. Wisconsin to a 
different location in order to make space available for active 
vessels in need of repair and maintenance. Because of the 
requirement for the Navy to berth this deep draft vessel within 
the Norfolk vicinity so that it can be returned to the shipyard 
for reactivation, if necessary, the Navy is exploring 
alternative berthing sites including some within the Elizabeth 
River. The committee is aware that the redeployment of this 
vessel to a suitable location in the Norfolk area may require 
some additional dredging. Therefore, the conferees recommend an 
increase of $6.0 million for the dredging and other costs 
associated with the redeployment of the U.S.S. Wisconsin within 
the Norfolk region.
NATO common-funded military budget (sec. 314)
      The budget request for Army operations and maintenance 
included $227.4 million for support of other nations, which 
includes support of North Atlantic Treaty Organization (NATO) 
operations and NATO expansion.
      The Senate amendment contained a provision (sec. 314) 
that would authorize the budget request for Army operations and 
maintenance for support of other nations.
      The House bill contained no similar provision.
      The House recedes.

                  Subtitle C--Environmental Provisions

Settlement of claims of foreign governments for environmental cleanup 
        of overseas sites formerly used by the Department of Defense 
        (sec. 321)
      The Senate amendment contained a provision (sec. 326) 
that would require the President to provide notification to 
Congress of any negotiations related to the ex-gratia 
settlement of environmental cleanup claims by other countries.
      The House bill contained no similar provision.
      The House recedes.
Authority to pay negotiated settlement for environmental cleanup of 
        formerly used defense sites in Canada (sec. 322)
      The House bill contained a provision (sec. 321) that 
would authorize the Secretary of Defense to pay the Government 
of Canada up to $100.0 million in annual payments over a ten 
year period.
      The Senate amendment contained a provision (sec. 325) 
that would allow for the payment of $100.0 million 
reimbursement to Canada, subject to annual authorizations and 
appropriations process. The Department would be required to 
submit to Congress evidence of proportionate Canadian 
investment in environmental cleanup in support of each annual 
authorization and appropriation request. The provision would 
make certain findings regarding the basis for the 
reimbursement, state that the authorization shall not be 
construed as precedent setting, and that the $100.0 million 
would be paid in full satisfaction of any and all environmental 
contamination claims by Canada.
      The House recedes with an amendment that would authorize 
the $10.0 million appropriated in fiscal year 1998 
appropriation for the Canadian reimbursement.
Removal of underground storage tanks (sec. 323)
      The House bill contained a provision (sec. 322) that 
would enable the Department of Defense (DOD) to use not more 
than $150,000 of the funds available for environmental 
restoration of formerly used defense sites to conduct removal 
of underground storage tanks at the Authorities Allied 
Industrial Park in Macon, Georgia.
      The Senate amendment contained no similar provision.
      Senate recedes with an amendment that would give the 
Secretary of Defense discretion to fund any tank removal at 
formerly used defense sites. The conferees note that such 
exercise of discretion would be dependent upon a determination 
of DOD liability, consistent with current law. The conferees 
direct the Secretary of Defense to determine whether it would 
be appropriate to use authorized funds for removal of former 
DOD underground storage tanks, and then report to the 
congressional defense committees within 90 days of the 
enactment of this Act.
Report regarding polychlorinated biphenyls under Department of Defense 
        control overseas (sec. 324)
      The Senate amendment contained a provision (sec. 321) 
that would amend Chapter 157 of title 10, United States Code, 
by adding a new section to permit Department of Defense 
agencies to transport to the United States for disposal, 
treatment, or storage of foreign manufactured polychlorinated 
biphenyls (PCBs) generated by the Department's overseas 
activities. The provision would ensure that the PCB-containing 
material transported to the United States is handled in an 
environmentally responsible manner.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a report to the Congress 
that addresses international and domestic issues related to the 
transportation and disposition of foreign manufactured PCBs.
Modification of deadline for submittal to Congress of annual reports on 
        environmental activities (sec. 325)
      The Senate amendment contained a provision (sec. 322) 
that would amend section 2706 of title 10, United States Code, 
by substituting the 45 day annual reporting deadline for the 
current 30 day period.
      The House bill contained no similar provision.
      The House recedes.
      The conferees are aware that the Department of Defense 
has considered modification of the annual report on 
environmental restoration activities. While the Department has 
been directed to restructure the annual report on environmental 
compliance by including useful and comprehensible information, 
the conferees note that the environmental restoration report 
does not require such changes. The conferees expect that any 
modifications to the annual environmental reports will be fully 
coordinated with the Committee on Armed Services of the Senate 
and the Committee on National Security of the House of 
Representatives.
Submarine solid waste control (sec. 326)
      The Senate amendment contained a provision (sec. 323) 
that would amend the Act to Prevent Pollution from Ships (APPS) 
(33 U.S.C. 1901, et seq.) by authorizing certain submersible 
vessels owned or operated by the Navy to discharge non-plastic 
garbage that has been compacted and weighted to ensure negative 
buoyancy within special use areas. The APPS implements the 
Annex V of the International Convention for the Prevention of 
Pollution on Ships (MARPOL). The Navy has determined that 
compliance with the special use area requirements of MARPOL 
Annex V would impair submarine operations and operational 
capability, or would not be technologically feasible. A 
comprehensive Navy environmental analysis revealed that the 
discharge of non-plastic garbage from Navy submarines would not 
have a significant effect on the marine environment, either 
within or beyond the limits of MARPOL Annex V special use 
areas.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees direct the Navy to provide adequate support 
andjustification for future funding requests related to the 
compliance obligations associated with this new authority.
Arctic Military Environmental Cooperation program (sec. 327)
      The budget request included $5.5 million in the defense 
operations and maintenance to address military environmental 
matters in the Arctic region under the Arctic Military 
Environmental Cooperation (AMEC) program, to include 
environmental restoration activities.
      The Senate amendment contained a provision (sec. 327) 
that would authorize the AMEC program, subject to the 
legislative prohibitions and limitations of the Cooperative 
Threat Reduction (CTR) program, to include section 1503 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 105-85). The provision would authorize $4.0 million for 
AMEC, a decrease of $1.5 million, and would preclude the 
obligation or expenditure of fiscal year 1999 funds until 45 
days after the Secretary of Defense submits a plan that 
specifies the conformance of AMEC projects to existing 
prohibitions and limitations on the use of CTR funds.
      The House bill contained no similar provision. The House 
report (H. Rept. 105-532) urged the Secretary of Defense to use 
up to $1.0 million to support the establishment of a Joint 
United States-Russia Nuclear Materials Commission that would 
include legislators, agency and ministry leaders, and 
environmental experts representing the international 
environmental community.
      The House recedes with an amendment that would require 
congressional notification prior to the obligation of AMEC 
funds, similar to the requirement that applies to the use of 
CTR funds, and would also prohibit the use of AMEC funds for 
environmental restoration. The conferees agree that AMEC should 
address important military environmental issues related to U.S. 
national security interests in the Arctic. In order to ensure 
that AMEC has the requisite focus, the conferees expect the 
Secretary of Defense to develop a comprehensive program plan, 
consistent with the legislative prohibitions and limitations of 
the CTR program. That plan must be in place before funds are 
obligated for AMEC. The conferees direct the Secretary of 
Defense to include in the plan a specific program termination 
date.
      The Secretary of Defense recently notified the Congress 
of an intent to reobligate prior year CTR funds for AMEC to ``. 
. . focus on threats to the environment. . . .'' The conferees 
are concerned about the vagueness of this notice, the possible 
use of reobligated funds for environmental restoration, and the 
potential conflict with existing law. The Congress prohibited 
the use of CTR funds for the provision of assistance to promote 
environmental restoration (National Defense Authorization Act 
for Fiscal Year 1997 (Public Law 105-85)). The new AMEC 
authority and existing CTR requirements would prohibit the use 
of CTR or AMEC funds for environmental restoration.
Sense of Congress regarding oil spill prevention training for personnel 
        on board Navy vessels (sec. 328)
      The Senate amendment contained a provision (sec. 328) 
that would express a sense of the Senate that the Secretary of 
the Navy should ensure that personnel on board Navy vessels in 
Puget Sound, Washington, receive oil spill prevention training.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

               Subtitle D--Information Technology Issues

Additional information technology responsibilities of chief information 
        officers (sec. 331)
      The House bill contained a provision (sec. 311) that 
would assign certain responsibilities to the chief information 
officers of the military services and the Department of Defense 
to ensure that information system budget requests are 
sufficient and that the systems themselves are interoperable.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would ensure 
that the Chief Information Officer of the Department of Defense 
(DOD) is responsible for examining all information systems 
within the Department to ensure that they are interoperable and 
are not duplicative of other DOD systems.
Defense-wide electronic mall system for supply purchases (sec. 332)
      The House bill contained a provision (sec. 312) that 
would require the Defense Logistics Agency to develop a single, 
defense wide electronic mall system that would be operational 
by June 1, 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Joint Electronic Commerce Program Office (JECPO) of the 
Department of Defense to develop a single, defense-wide 
electronic mall system, which would provide a single, defense-
wide electronic point of entry and a single view, access, and 
ordering capability for all Department of Defense electronic 
catalogs. The provision would direct that the Defense Logistics 
Agency would be responsible for maintaining the system under 
the direction of the JECPO.
Year 2000 Compliance of Department of Defense Information Technology 
        and National Security Systems
      The conferees are concerned with the Department of 
Defense's (DOD) and the intelligence community's information 
technology and national security systems lack of progress in 
achieving year 2000 (Y2K) compliance. While debate continues 
over which steps are necessary to prepare the national security 
community for 21st century threats, the conferees agree that 
insufficient attention has been given to preparing this 
community for the Y2K transition.
      Despite the fact that Y2K problems have been known for 
years, the Department has not met its projected time lines for 
renovating allnecessary systems. In particular, many mission 
critical systems are still in the renovation phase, with little 
assurance from DOD that the required testing and integration efforts 
will be completed in sufficient time to avoid system-wide problems. The 
Department's reliance upon other public and private sector, including 
other nations, information technology systems adds to these concerns.
      It is difficult to know how other nations will react if 
their own information technology systems are crippled by Y2K 
deficiencies and they are left without reliable and complete 
information. In an age where weapons of mass destruction with 
global reach are controlled through elaborate information 
networks, it is of critical importance that steps be taken to 
minimize any confusion or misunderstandings before they develop 
into crisis situations. The conferees commend the U.S. 
Strategic Command for its foresight and efforts in 
strengthening communications with other nations on Y2K, 
ensuring responsible management of Y2K problems that may arise.
      For these reasons the conferees included three provisions 
(secs. 333, 334, and 335) to address the Department's and the 
intelligence communities Y2K issues. As discussed further in 
this title, these provisions cover such issues as Y2K 
contingency plans, relations with foreign nations, testing of 
systems, and adequate funding.
Priority funding to ensure year 2000 compliance of information 
        technology and national security systems (sec. 333)
      The House bill contained a provision (sec. 314) that 
would transfer $1.0 billion from other information technology 
and national security programs to assist in the Department's 
Y2K compliance efforts. The provision would also require that 
75 percent of funds for information technology and national 
security programs be used for these Y2K efforts.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would prohibit 
the expenditure of funds on the development or modernization of 
any information technology system unless that system is Y2K 
compliant, or is required to be performed by law. The amendment 
would further protect funds for mission critical systems from 
any unallocated reductions. Finally, the provision would 
require the Department to develop contingency plans for these 
systems in the event that they are not Y2K compliant, and 
provide the Congress with a report on the Department's efforts 
to ensure its systems are compliant.
Evaluation of year 2000 compliance as part of training exercises 
        programs (sec. 334)
      The House bill contained a provision (sec. 315) that 
would require the Secretary of Defense to provide the 
congressional defense committees with a report that would 
outline the Department's plans for incorporating Y2K tests as 
part of its joint exercises.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that Y2K tests be incorporated in at least 25 exercises, and 
that each mission critical system expected to be used in any 
major theater war be tested in at least one of these exercises.
Continuity of essential operations at risk of failure because of 
        information technology and national security systems that are 
        not year 2000 compliant (sec. 335)
      The Senate amendment contained a provision (sec. 1026) 
that would require the Secretary of Defense and the Director of 
Central Intelligence to provide a joint report outlining their 
planned course of action to ensure a continuity of essential 
operations in the year 2000.
      The House bill contained no similar provision.
      The House recedes with an amendment that would eliminate 
the findings.
      The conferees believe the report should include the 
adoption of a comprehensive contingency plan for the entire 
national security community, as well as individual contingency 
plans for the separate elements of the community, including the 
creation of crisis action teams to respond to emergencies 
arising from the Y2K problem. Furthermore, the report should 
outline any cooperative agreements between the United States 
and foreign countries to ensure that the Y2K problems with the 
strategic systems of those countries do not pose a threat to 
the United States.

         Subtitle E--Defense Infrastructure Support Improvement

Clarification of definition of depot-level maintenance and repair (sec. 
        341)
      The House bill contained a provision (sec. 335) that 
would clarify section 2460 (a) of title 16, United States Code, 
to include the location at which depot level maintenance is 
performed.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Reporting and analysis requirements before change of commercial and 
        industrial type functions to private sector performance (sec. 
        342)
      The House bill contained a provision (sec. 331) that 
would amend and clarify certain requirements and notifications 
that the Department of Defense must meet before it could study 
a commercial or industrial type function under section 2461 of 
title 10, United States Code.
      The Senate amendment contained a provision (sec. 346) 
that would express the Sense of the Senate that the Secretary 
of Defense should take action to initiate public-private 
competitions pursuant to Office of Management and Budget 
Circular A-76 for functions of the Department of Defense 
involving not fewer than 180,000 full time employees over the 
next six years. The provision would further waive any study 
requirements for functions involving 50 or fewer employees, and 
would give the Department increased flexibility to choose the 
public orprivate option that provides the best overall value 
for the taxpayer by expressly authorizing the use of ``best value'' 
techniques for public-private competitions for support services.
      The Senate recedes with an amendment that would not 
include the requirement contained in the original House 
provision for the Secretary of Defense to notify the Congress 
of his determination regarding the cost effectiveness of 
procuring services or supplies through the private sector, 
rather than a working capital fund organization, before 
entering into such a contract. Any analysis performed to 
determine if supplies or services should be procured from the 
private sector rather than through a working capital fund 
organization, should, to the extent practicable, include the 
impact on the rates of the working capital fund organization. 
Furthermore, although the provision would allow any employee to 
raise an objection on the grounds that the required report and 
certifications were not performed, such an objection would have 
to be raised within 90 days of the date on which the employee 
either knew, or should have known, that the function was being 
studied for potential conversion to the private sector. In 
addition, the provision would waive the reporting requirement 
of section 2461 of title 10, United States Code, for functions 
with 51 or more employees, rather than 21 or more employees as 
provided in current law.
Notification of determinations of military items as being commercial 
        items for purposes of the exception to requirements regarding 
        core logistics capabilities (sec. 343)
      The House bill contained a provision (sec. 336) that 
would define a commercial item for those situations in which 
the Department is determining if there is a requirement to 
establish a core depot maintenance capability. This definition 
would require that before an item can be considered a 
commercial item, and therefore not require a core depot 
maintenance capability, at least 90 percent of the total 
content by component value remains identical to the commercial 
version. It would further require that purchases and leases to 
the general public, rather than the government, constitute the 
majority of transactions of the item before it could be 
considered commercial.
      The Senate had no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense submit to the Congress a report that 
outlines any determination regarding core depot maintenance 
capability and a detailed justification for each item 
determined for the first time to be a commercial item for the 
purposes of section 2464 of title 10, United States Code.
Oversight of development and implementation of automated identification 
        technology (sec. 344)
      The House bill contained a provision (sec. 333) that 
would require the Smart Card Technology Office within the 
Defense Human Resources Field Activity of the Department of 
Defense (DOD) to be responsible for the oversight and 
coordination of Automated Identification Technology programs 
within the DOD.
      The Senate amendment contained a provision (sec. 345) 
that would require the Navy to allocate up to $25.0 million for 
Smart Cards. The Senate amendment also required the Navy to 
equip at least one carrier battle group, one air wing, and one 
amphibious readiness group, in each of the Atlantic and Pacific 
Fleets with Smart Card technology by March 31, 1999, and 
prohibited the procurement of the Joint Uniformed Services 
Identification card for the Department of the Navy after March 
31, 1999 unless these units were equipped with Smart Cards. The 
Senate amendment also required the Secretary of the Navy to 
submit a plan to equip all operational naval units with Smart 
Cards.
      The Senate recedes with an amendment that would establish 
an Automated Identification Technology Office within the 
Department of Defense with the responsibility for the 
development and coordination of DOD automated information 
technology programs including but not limited to Smart Cards. 
The conferees further agree to delay the date for equipping the 
Atlantic and Pacific naval units with Smart Cards to June 30, 
1999 and to require the Secretary of Defense to submit a plan 
to the congressional defense committees for the use of Smart 
Card technology by each military department rather than 
requiring a plan only for the Navy.
Contractor-operated civil engineering supply stores program (sec. 345)
      The House bill contained a provision (sec. 338) that 
would prohibit the incorporation of a civil engineering supply 
function into a broader base operations function for the 
purpose of competition or contracting until the Secretary of 
Defense submits a report to the Congress identifying the 
reasons for the incorporation, including why the combined 
competition or contract is the best method by which to achieve 
savings.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
Conditions on expansion of functions performed under prime vendor 
        contracts for depot-level maintenance and repair (sec. 346)
      The House bill contained a provision (sec. 334) that 
would require the Secretary of Defense or the secretary of a 
military department to provide a report to the Congress each 
time the secretary intends to enter into a prime vendor 
contract for a hardware system, including one involving depot-
level maintenance or logistics management functions. The report 
would address the competitive procedures that are proposed to 
be used to award the prime vendor contract, the effect of the 
contract on the working capital funds, and the costs and 
benefits associated with the contract which demonstrate that it 
will result in savings to the Federal Government over the life 
of the contract. The provision would prohibit the secretary 
concerned from entering into such a contract until 60 days 
after submission of the report.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make 
theprovision applicable to any prime vendor contract that the 
Department of Defense proposes to enter into that involves the depot-
level maintenance of a piece of military equipment or major weapon 
systems. The Department would have to wait 30 days after submitting to 
the Congress a report that outlines the competitive procedures to be 
used as well as an examination of the costs (including costs derived as 
a result of changes to the working capital fund organizations) and 
benefits that will result from the contract, before entering into the 
contract.
Best commercial inventory practices for management of secondary supply 
        items (sec. 347)
      The Senate amendment contained a provision (sec. 344) 
that would direct the secretary of each military department to 
develop and submit to the Congress a schedule for the 
implementation of the best inventory management practices found 
in the commercial sector that are consistent with military 
requirements. The provision would also require the Comptroller 
General of the Department of Defense to review the extent to 
which the service secretaries comply with this requirement, and 
the extent to which best commercial inventory practices are 
being implemented by the Defense Logistics Agency.
      The House bill contained a similar provision.
      The House recedes with a technical amendment.
Personnel reductions in Army Materiel Command (sec. 348)
      The House bill contained a provision (sec. 339) that 
would require the Comptroller General of the United States to 
provide to the congressional defense committees a report 
outlining the readiness impact of proposed personnel reductions 
within the Army Materiel Command and would delay the 
implementation of these reductions until the report is 
provided, or March 31, 1999.
      The Senate amendment contained a similar provision but 
did not delay the implementation of these reductions.
      The House recedes.
Inventory management of in-transit items (sec. 349)
      The Senate amendment contained a provision (sec. 349) 
that would require the Secretary of Defense to submit a plan to 
the Congress on those actions the Secretary is taking to ensure 
effective management and oversight of in-transit secondary 
inventory.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a plan to the Congress that 
would address the actions the Department is taking to improve 
the management and oversight of both secondary inventory, as 
well as major end-items.
Review of Defense Automated Printing Service functions (sec. 350)
      The Senate amendment contained a provision (sec. 1085) 
that would require the Secretary of Defense to select an entity 
outside of the Department of Defense to review the functions of 
the Defense Automated Printing Service (DAPS).
      The House bill contained no similar provision.
      The House recedes with an amendment that would require an 
experienced private sector entity be consulted during the 
review of DAPS functions.
Development of plan for establishment of core logistic capabilities for 
        maintenance and repair of C-17 aircraft (sec. 351)
      The House bill contained a provision (sec. 337) that 
included findings regarding the need to perform depot-level 
maintenance of the C-17 aircraft in government depots, and 
would require the Secretary of the Air Force to submit to the 
Congress a plan for the establishment of the core logistics 
capabilities for the C-17 aircraft, consistent with the 
requirements of section 2464 of title 10, United States Code. 
The provision would further prohibit the extension of the 
interim contract for the C-17 Flexible Sustainment Program 
until after the end of the 60 day period beginning on the date 
the plan is submitted to Congress.
      The Senate amendment had no similar provision.
      The Senate recedes with an amendment that would delete 
the findings.
      The conferees note that in January of 1999, the C-17 will 
complete its fourth year of its operational capability. At that 
point, the Department of the Air Force must have the capability 
to maintain the non-commercial portions of this system in a 
public depot, should the need arise.

  Subtitle F--Commissaries and Nonappropriated Fund Instrumentalities

Continuation of management and funding of Defense Commissary Agency 
        through the Office of the Secretary of Defense (sec. 361)
      The House bill contained a provision (sec. 341) that 
would require that the Defense Commissary Agency (DECA) 
continue to be managed and funded through the Office of the 
Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to establish a Board of Directors to 
oversee the operations of DECA.
Expansion of current eligibility of reserves for commissary benefits 
        (sec. 362)
      The House bill contained a provision (sec. 342) that 
would increase the number of days that certain ready reserve 
members and reserve retirees under the age of 60 are eligible 
to use commissary stores from 12 days each calendar year to 24 
days each calendar year,and would extend commissary eligibility 
to members of the national guard who are activated during federally-
declared disasters.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Costs payable to the Department of Defense and other federal agencies 
        for services provided to the Defense Commissary Agency (sec. 
        363)
      The Senate amendment contained a provision (sec. 1049) 
that would prohibit the Defense Commissary Agency from paying 
any costs for services provided by a Department of Defense or 
other federal agency that exceeds the price at which the 
service could be procured in full and open competition.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the prohibition only applies to overseas transportation 
services.
Collection of dishonored checks presented at commissary stores (sec. 
        364)
      The Senate amendment contained a provision (sec. 1050) 
that would permit the Secretary of Defense to impose a charge 
for the collection of dishonored checks presented at a 
commissary store in a manner consistent with the practices of 
commercial grocery stores.
      The House bill contained no similar provision.
      The House recedes.
Restrictions on patron access to, and purchases in, overseas 
        commissaries and exchange stores (sec. 365)
      The House bill contained a provision (sec. 344) that 
would authorize the Secretary of Defense to continue to 
restrict the sale of certain items in overseas exchanges and 
commissaries, but would require that the Secretary ensure that 
such restrictions are consistent with the primary purpose of 
providing U.S. made goods to authorized patrons.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Repeal of requirement for Air Force to sell tobacco products to 
        enlisted personnel (sec. 366)
      The House bill contained a provision (sec. 343) that 
would repeal section 9623 of title 10, United States Code. This 
section requires the Air Force to sell not more than 16 ounces 
of tobacco a month to any enlisted member who requests it.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Prohibition on consolidation or other organizational changes of 
        Department of Defense retail system (sec. 367)
      The House bill contained a provision (sec. 346) that 
would prohibit the Department of Defense from consolidating 
military exchange and commissary operations, and from 
conducting further study of consolidation, unless specifically 
authorized by law.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would eliminate 
the prohibition against conducting further studies.
      The conferees note that the Department of Defense 
recently contracted for a due diligence study regarding 
exchange integration. The conferees intend for that study to 
continue, but expect that implementation of any study 
recommendations would await congressional approval. The 
conferees do not intend that the prohibition against 
consolidation or merger of retail systems be an impediment to 
implementing agreements and operations among the exchange 
systems that are determined to be mutually beneficial and 
increase efficiency of the exchange systems.
Defense Commissary Agency telecommunications (sec. 368)
      The Senate amendment contained a provision (sec. 1051) 
that would require the Secretary of Defense to provide the 
Defense Commissary Agency (DECA) authority to obtain 
telecommunications and related services under the Federal 
Telecommunications System (FTS) 2000/2001 contract, and to 
report to the Committee on Armed Services of the Senate and the 
Committee on National Security of the House of Representatives 
when DECA telecommunications have been initiated under the FTS 
2000/2001 contract.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Survey of commissary store patrons regarding satisfaction with 
        commissary store merchandise (sec. 369)
      The House bill contained a provision (sec. 348) that 
would require the Secretary of Defense to survey eligible 
commissary store patrons to determine their interest in 
commissary stores selling beer and wine. The provision would 
also authorize the Secretary to conduct a demonstration project 
at seven military installations in the United States, after 
consideration of the survey results.
      The Senate amendment contained a provision (sec. 351) 
that would prohibit the Secretary of Defense from conducting a 
survey of eligible commissary store patrons to determine their 
interest in commissary stores selling beer and wine and from 
conducting a demonstration project in which beer and wine would 
be sold in commissaries.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to conduct survey of eligible patrons 
of the commissary system to determine patron satisfaction with 
commissary store products.

                       Subtitle G--Other Matters

Eligibility requirements for attendance at Department of Defense 
        domestic dependent elementary and secondary schools (sec. 371)
      The House bill contained a provision (sec. 361) that 
would permit dependents residing in a territory, commonwealth, 
or possession of the United States to participate in an 
educational program when the parent is a service member 
assigned to a remote or unaccompanied location. The provision 
would also clarify the authority of the Secretary of Defense to 
make exceptions for enrollment in dependent schools for 
dependents of civilian employees in Puerto Rico and Guam, where 
such employees reside off the installation, and would provide 
that the Department be reimbursed for the cost of such 
education.
      The Senate amendment contained a similar provision (sec. 
1055).
      The Senate recedes with an amendment that would preserve 
the portion of the Senate provision with regard to permitting 
dependents of United States Customs Service agents in Puerto 
Rico to attend Department of Defense schools during the term of 
the agent's assignment in Puerto Rico.
Assistance to local educational agencies that benefit dependents of 
        members of the Armed Forces and Department of Defense civilian 
        employees (sec. 372)
      The House bill contained a provision (sec. 364) that 
would authorize $35.0 million for educational assistance to 
local education agencies where the standard for the minimum 
level of education within the state could not be maintained 
because of the large number of military-connected students or 
the effects of base realignments and closures.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Department of Defense readiness reporting system (sec. 373)
      The House bill contained a provision (sec. 367) that 
would require the Secretary of Defense to establish a 
comprehensive reporting system to measure the capability of the 
armed forces to carry out their responsibilities under the 
National Security Strategy, defense planning guidance, and the 
National Military Strategy. The information collected by this 
system would be presented each month to the Chairman of the 
Joint Chiefs of Staff, and to the congressional defense 
committees. This would replace the quarterly readiness reports 
that are currently provided by the Department of Defense to the 
Congress.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delay the 
implementation date of this provision, clarify that the 
Secretary of Defense is not required to submit the complete 
documentation of each joint monthly readiness review to the 
Congress, and make other technical changes.
      The conferees recognize that stable requirements for 
measuring and reporting readiness are essential in order for 
the Department of Defense to develop an effective readiness 
reporting system that is capable of making valid comparisons 
over time.
      The conferees urge the Secretary to retain in the new 
reports required by this section those elements of the expanded 
Quarterly Readiness Report to the Congress that are believed to 
be effective in informing the Congress on the readiness of our 
armed forces.
Specific emphasis of program to investigate fraud, waste, and abuse 
        within Department of Defense (sec. 374)
      The House bill contained a provision (sec. 362) that 
would expand the formal waste, fraud, and abuse program within 
the Department of Defense to include any overpayment to a 
vendor.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Condition for providing financial assistance for support of additional 
        duties assigned to the Army National Guard (sec. 375)
      The Senate amendment contained a provision (sec. 347) 
that would require the Secretary of the Army to conduct a 
competition with the private sector prior to expanding the 
amount of support which the Army National Guard performs 
pursuant to section 113(b) of title 32, United States Code, if 
that support is not yet performed by the Guard, or that support 
is not currently under official consideration by the Secretary 
of the Army for award to the National Guard.
      The House bill contained no similar provision.
      The House recedes with an amendment that would also allow 
qualified public sector sources, including depots, to 
participate in any competition for activities that the National 
Guard is seeking to perform under section 113(b).
Demonstration program to improve quality of personal property shipments 
        of members (sec. 376)
      The House bill contained a series of provisions (secs. 
381-387) that would require the Department of Defense to 
replace its existing pilot program to re-engineer the movement 
of household goods with a program known as the Commercial-Like 
Activities for Superior Quality Demonstration (CLASS) Program, 
that would make certain modifications to the existing 
regulations governing the movement of these goods.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to implement and complete within one 
year the current pilot program designed in consultation with 
industry representatives. The Secretary would also be required 
to submit to the Congress a report, not later than August 31, 
1999, outlining the extent to which the current program meets 
its goals and to report the extent to which the industry 
alternative program would meet these goals.
Pilot program for acceptance and use of landing fees charged for use of 
        domestic military airfields by civil aircraft (sec. 377)
      The Senate amendment contained a provision (sec. 313) 
that would authorize the secretary of the military department 
to accept payments for the use of domestic military and shared 
use airfields by civil aircraft and to use those payments for 
the operation and maintenance of the airfield.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the Secretary of the Department of Defense establish 
uniform procedures for the collection and obligation of any 
receipts generated as a result of such fees.
Strategic plan for expansion of distance learning initiatives (sec. 
        378)
      The House bill contained a provision (sec. 365) that 
would require the Secretary of Defense to develop a plan to 
establish a framework for developing and applying distance 
learning technologies to training courses where it makes sense 
and is cost effective.
      The Senate amendment contained a provision (sec. 1029) 
that would require the Secretary of Defense to develop and 
provide to the Congress a five-year plan for guiding and 
expanding distance learning initiatives in the Department of 
Defense.
      The House recedes.
Public availability of operating agreements between military 
        installations and financial institutions (sec. 379)
      The House bill contained a provision (sec. 366) that 
would subject operating agreements that provide financial 
services, including electronic banking, on military 
installations in the United States, to the same requirements of 
the Freedom of Information Act (FOIA) as all other federal 
contracts.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Funding for information technology and national security programs
      The House bill contained a provision (sec. 313) that 
would require the expenditure of certain funds for information 
technology programs of the military services.
      The Senate amendment contained no similar provision.
      The House recedes.
Requirement to maintain government owned and operated core logistics 
        capability
      The House bill contained a provision (sec. 332) that 
would amend section 2464 of title 10, United States Code, by 
requiring that core depot maintenance workloads be performed by 
public depots acting as prime contractors rather than 
subcontractors.
      The Senate amendment contained no similar provision.
      The House recedes.
Extension of demonstration project for uniform funding of morale, 
        welfare, and recreation activities
      The House bill contained a provision (sec. 345) that 
would extend for one year the authority of the Secretary of 
Defense to conduct a demonstration project for the uniform 
funding of morale, welfare, and recreation activities at 
certain military installations.
      The Senate amendment contained no similar provision.
      The House recedes.
Authorized use of appropriated funds for relocation of Navy Exchange 
        Service Command
      The House bill contained a provision (sec. 347) that 
would provide that the Navy Exchange Service Command (NEXCOM) 
shall not be required to reimburse the United States for 
appropriated funds allotted to NEXCOM during fiscal years 1994, 
1995, and 1996 for costs incurred in connection with the 
relocation of NEXCOM headquarters to Virginia Beach, Virginia, 
and for the lease of headquarters space.
      The Senate amendment contained no similar provision.
      The House recedes.
Fees for providing historical information to the public
      The Senate amendment contained a provision (sec. 1056) 
that would allow the historical institutes of the military 
services to provide historical information to members of the 
public for a fee that is equivalent to the cost of researching 
and transmitting the information.
      The House bill contained no similar provision.
      The Senate recedes.

              Title IV--Military Personnel Authorizations

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

End strengths for active forces (sec. 401)
      The House bill contained a provision (sec. 401) that 
would authorize the following end strengths for active duty 
personnel of the armed forces as of September 30, 1999:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
Army........................       495,000       480,000        484,800
Navy........................       390,802       372,696        376,423
Marine Corps................       174,000       172,200        173,922
Air Force...................       371,577       370,882        371,577
                             -------------------------------------------
      Total.................     1,431,379     1,395,778      1,406,722
------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 401) 
that would authorize active duty end strengths for fiscal year 
1999, as shown below:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
Army........................       495,000       480,000        480,000
Navy........................       390,802       372,696        372,696
Marine Corps................       174,000       172,200        172,200
Air Force...................       371,577       370,882        370,882
                             -------------------------------------------
      Total.................     1,431,379     1,395,778      1,395,778
------------------------------------------------------------------------

      The House recedes.
Revision in permanent end strength levels (sec. 402)
      The House bill contained a provision (sec. 402) that 
would amend section 691 of title 10, United States Code, by 
establishing new end strength floors for the active forces at 
the levels recommended in section 401. This section would also 
permit active end strengths to vary up to one percent below the 
established floor.
      The Senate amendment contained a provision (sec. 404) 
that would repeal section 691 of title 10, United States Code, 
which established end strength floors for the military 
services.
      The Senate recedes with an amendment that would establish 
end strength floors at the levels in the budget request and 
would permit active end strengths to vary up to 0.5 percent 
flexibility below the established floor.
Date for submission of annual manpower requirements report (sec. 403)
      The House bill contained a provision (sec. 403) that 
would establish a new suspense date for the submission of an 
Annual Manpower Requirements Report, requiring it to be 
transmitted to the Congress not later than 30 days after the 
budget for the next fiscal year is submitted to Congress.
      The Senate amendment contained a provision (sec. 521) 
that would change the date the Secretary of Defense must submit 
the Annual Manpower Requirements Report from February 15 of 
each year to a date not later than 45 days after the President 
submits the budget to the Congress.
      The House recedes with a clarifying amendment.
Additional exemption from percentage limitation on number of lieutenant 
        generals and vice admirals (sec. 404)
      The Senate amendment contained a provision (sec. 402(a)) 
that would increase from six to seven the number of lieutenant 
generals and vice admirals serving on the Joint Staff who are 
exempt from the limit of lieutenant generals and vice admirals 
on active duty.
      The House bill contained no similar amendment.
      The House recedes.
Extension of authority for Chairman of the Joint Chiefs of Staff to 
        designate up to 12 general and flag officer positions to be 
        excluded from general and flag officer grade limitations (sec. 
        405)
      The House bill contained a provision (sec. 404) that 
would extend to October 1, 2001, from October 1, 1998, the 
authority for the Chairman of the Joint Chiefs of Staff to 
exclude up to 12 general and flag officer positions from 
existing grade limitations.
      The Senate amendment contained a provision (sec. 402(b)) 
that would extend until October 1, 2002, the temporary 
authority to exclude up to 12 joint duty officers from the 
limitation on authorized general and flag officer strength.
      The House recedes.
Exception for Chief, National Guard Bureau, from limitation on number 
        of officers above major general (sec. 406)
      The conference report includes a provision that would 
exempt the position of Chief of the National Guard Bureau from 
the limitation on the number of officers above major general 
serving on active duty in that officer's armed force.
Limitation on daily average of personnel on active duty in grades E-8 
        and E-9 (sec. 407)
      The Senate amendment contained a provision (sec. 403) 
that would change the method for computing the time limitation 
on active duty enlisted personnel serving in the grades of E-8 
and E-9 to a fiscal year basis from a calendar year basis. The 
recommended provision would also correct a technical error in 
the existing statute.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
provision effective October 1, 1999.

                       Subtitle B--Reserve Forces

End strengths for selected reserve (sec. 411)
      The House bill contained a provision (sec. 411) that 
would authorize the following end strengths for the selected 
reserve personnel, including the end strength for reserves on 
active duty in support of the reserves, as of September 30, 
1999:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
The Army National Guard of
 the United States..........       361,516       357,000        357,000
The Army Reserve............       208,000       208,000        209,000
The Naval Reserve...........        94,294        90,843         90,843
The Marine Corps Reserve....        42,000        40,018         40,018
The Air National Guard of
 the United States..........       108,002       106,991        106,991
The Air Force Reserve.......        73,447        74,242         74,242
The Coast Guard Reserve.....         8,000         8,000          8,000
                             -------------------------------------------
      Total.................       895,259       885,094        886,094
------------------------------------------------------------------------

      The increases in selected reserve end strength shown 
above include the additions to the end strength for reserves on 
active duty in support of the reserves described in section 412 
of the House bill.
      The Senate amendment contained a provision (sec. 411) 
that would authorize Selected Reserve end strengths for fiscal 
year 1999 as shown below:

------------------------------------------------------------------------
                                             Fiscal year--
                             -------------------------------------------
                                   1998          1999          1999
                              authorization    request    recommendation
------------------------------------------------------------------------
The Army National Guard of
 the United States..........       361,516       357,000        357,000
The Army Reserve............       208,000       208,000        208,000
The Naval Reserve...........        94,294        90,843         90,843
The Marine Corps Reserve....        42,000        40,018         40,018
The Air National Guard of
 the United States..........       108,002       106,991        106,991
The Air Force Reserve.......        73,447        74,242         74,242
The Coast Guard Reserve.....         8,000         8,000          8,000
                             -------------------------------------------
      Total.................       895,259       885,094        885,094
------------------------------------------------------------------------

      The House recedes with an amendment that would authorize 
the following end strengths for the selected reserve personnel, 
including the end strength for reserves on active duty in 
support of the reserves, as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................      361,516      357,000       357,223
The Army Reserve..............      208,000      208,000       208,003
The Naval Reserve.............       94,294       90,843        90,843
The Marine Corps Reserve......       42,000       40,018        40,018
The Air National Guard of the
 United States................      108,002      106,991       106,992
The Air Force Reserve.........       73,447       74,242        74,243
The Coast Guard Reserve.......        8,000        8,000         8,000
                               -----------------------------------------
      Total...................      895,259      885,094       885,322
------------------------------------------------------------------------

      The amendment would increase the end strengths for 
Selected Reserve personnel to include the authorization to use 
reserves for emergencies involving weapons of mass destruction.
End strengths for reserves on active duty in support of the reserves 
        (sec. 412)
      The House bill contained a provision (sec. 412) that 
would authorize the following end strengths for reserves on 
active duty in support of the reserves, as of September 30, 
1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................       22,310       21,763        21,763
The Army Reserve..............       11,500       11,804        12,804
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the
 United States................       10,616       10,930        10,930
The Air Force Reserve.........          748          991           991
                               -----------------------------------------
      Total...................       62,869       63,440        64,440
------------------------------------------------------------------------

      The provision would increase by 1,000 the number of 
Active Guard and Reserve authorizations for the United States 
Army Reserve above the budget request.
      The Senate amendment contained a provision (sec. 412) 
that would authorize full-time support end strengths for fiscal 
year 1999, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................       22,310       21,763        21,763
The Army Reserve..............       11,500       11,804        11,804
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the
 United States................       10,671       10,930        10,930
The Air Force Reserve.........          867          991           991
------------------------------------------------------------------------

      The Senate recedes with an amendment that would authorize 
the following end strengths for reserves on active duty in 
support of the reserves, as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................       22,310       21,763        21,986
The Army Reserve..............       11,500       11,804        12,807
The Naval Reserve.............       16,136       15,590        15,590
The Marine Corps Reserve......        2,559        2,362         2,362
The Air National Guard of the
 United States................       10,616       10,930        10,931
The Air Force Reserve.........          748          991           992
                               -----------------------------------------
      Total...................       62,869       63,440        64,668
------------------------------------------------------------------------

      The amendment would increase the end strengths for 
reserves on active duty in support of the reserves to include 
the authorization to use the reserves for emergencies involving 
weapons of mass destruction.
End strengths for military technicians (dual status) (sec. 413)
      The House bill contained a provision (sec. 413) that 
would authorize the following end strengths for military 
technicians (dual status) as of September 30, 1999:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................       23,125       22,179        23,125
The Army Reserve..............        5,503        5,205         5,395
The Air National Guard of the
 United States................       22,853       22,408        22,408
The Air Force Reserve.........        9,802        9,761         9,761
                               -----------------------------------------
      Total...................       61,007       59,553        60,689
------------------------------------------------------------------------

      The Senate amendment contained a provision (sec. 413) 
that would authorize military technician end strengths for 
fiscal year 1999, as shown below:

------------------------------------------------------------------------
                                              Fiscal year--
                               -----------------------------------------
                                     1998         1999         1999
                                authorization   request   recommendation
------------------------------------------------------------------------
The Army National Guard of the
 United States................       23,125       22,179        22,179
The Army Reserve..............        5,503        5,205         5,205
The Air National Guard of the
 United States................       22,853       22,408        22,408
The Air Force Reserve.........        9,802        9,761         9,761
------------------------------------------------------------------------

      The Senate recedes.
Increase in number of members in certain grades authorized to serve on 
        active duty in support of the reserves (sec. 414)
      The House bill contained a provision (sec. 414) that 
would authorize increases in the grades of reserve members 
authorized to serve on active duty or on full-time national 
guard duty for the administration of the reserves or the 
national guard. The provision would authorize 133 additional 
majors, 22 additional enlisted personnel in the grade of E-9, 
and 89 additional enlisted personnel in the grade of E-8 in the 
Air Force. The provision would also authorize 26 additional 
colonels and 20 additional enlisted personnel in the grade of 
E-9 in the Army.
      The Senate amendment contained a provision (sec. 415) 
that would increase the number of officers and senior enlisted 
personnel on active duty in certain grades in the reserve 
components of the Army and the Air Force in support of the 
reserves. The recommended provision would increase the 
authorized number of Army reserve component colonels from 412 
to 438 and enlisted members in the grade of E-9 from 603 to 
623. The provision would increase the authorized number of Air 
Force reserve component majors from 643 to 791; lieutenant 
colonels from 672 to 713; colonels from 274 to 297; enlisted 
members in the grade of E-8 from 890 to 997; and enlisted 
members in the grade of E-9 from 366 to 395.
      The House recedes with a clarifying amendment.
Consolidation of strength authorizations for active status Naval 
        Reserve flag officers of the Navy Medical Department staff 
        corps (sec. 415)
      The Senate amendment contained a provision (sec. 416) 
that would consolidate flag officer authorizations for the Navy 
Reserve Medical Department Staff Corps, identify the components 
of the Medical Department Staff Corps, and allocate one rear 
admiral (lower half) authorization to each component of the 
Medical Department Staff Corps.
      The House bill contained no similar provision.
      The House recedes.

              Subtitle C--Authorization of Appropriations

Authorization of appropriations for military personnel (sec. 421)
      The House bill contained a provision (sec. 421) that 
would authorize $70.7 billion to be appropriated for military 
personnel accounts in fiscal year 1999.
      The Senate amendment contained similar provisions (sec. 
421) that would authorize $70.4 billion to be appropriated for 
military personnel for fiscal year 1999.
      The House recedes with an amendment that would authorize 
$70.6 billion for military personnel for fiscal year 1999.
      The conferees provide the following itemization of the 
increases and decreases from the President's budget request 
related to military personnel accounts and personnel-related 
Operation and Maintenance accounts.

Fiscal Year 1999 Military Personnel Budget Items

                        [In millions of dollars]

  Increases:
    3.6 percent basic pay increase................................ 186.0
    Active Army End Strength......................................  25.0
    USNR Contributory Support to CINCs (ADT)......................   5.0
    USNR Active Duty Special Work.................................   5.0
    USMCR Increased Use...........................................   3.4
    Increase USAR AGRs............................................  15.0
    Army National Guard Schools & Special Training................  20.0
    Army Enlistment Bonus.........................................  10.0
    Navy Enlistment Bonus.........................................   9.4
    Navy College Fund.............................................  13.9
    USMC Enlistment Bonus.........................................   3.0
    USMC College Fund.............................................   5.9
      Total adds.................................................. 301.6
  Reductions:
    Obligations for Advanced Pay.................................. 301.0
        Army...................................................... 161.0
        Navy......................................................  69.0
        Air Force.................................................  53.0
        USMC......................................................  18.0
        FY 99 End Strength Underexecution......................... 151.8
        Army......................................................   3.0
        Navy......................................................  11.8
        USMC......................................................   9.3
        USAF......................................................  83.3
        Army Guard................................................  28.0
        Army Reserve..............................................   5.4
        Navy Reserve..............................................   5.0
        Marine Corps Reserve......................................   N/A
        Air Guard.................................................   N/A
        Air Force Reserve.........................................   6.0
    Foreign Currency Fluctuation..................................  29.6
        Army......................................................   5.3
        Navy......................................................  12.0
        USMC......................................................   4.2
        Air Force.................................................   8.1
  Unemployment Compensation:
    Air Force.....................................................   4.0
                        -----------------------------------------------------------------
                        ________________________________________________
      Total Reductions............................................ 486.4


      The conferees are concerned about the increasing 
challenges to all services in attracting quality personnel. The 
conferees are especially concerned about the Navy's projected 
inability to realize their established recruiting goals during 
fiscal year 1998. In addition, the conferees are concerned that 
Navy recruiting may be underfunded for fiscal year 1999. The 
conferees have increased the recruiting accounts to assist 
services' recruiting efforts. The conferees urge the Navy to 
commit additional resources to the recruiting function so as to 
avoid a recurrence of the projected recruiting failures. The 
conferees adjusted the personnel related Operation and 
Maintenance accounts, as follows:

Fiscal Year 1999 MILPERS-related Operation & Maintenance Accounts

                        [In millions of dollars]

  Increases:
    Navy Recruiting Advertising................................... $17.5
    USMC Recruiting Advertising...................................  12.0
    Air National Guard Recruiting Advertising.....................   3.0
    USAFR Recruiting Advertising..................................   3.0
    Navy Recruiter Support........................................   3.3
    National Guard Youth Challenge Program........................  21.5
    STARBASE......................................................   5.0
    USMCR Increased Use...........................................   1.2
    USMCR Active Duty Special Work................................   2.1
    Army National Guard Military Technicians......................  27.0
    Total MILPERS-related O&M Increases...........................  95.6
  Reductions:
    Innovative Readiness Training.................................  10.0
    Total MILPERS-related O&M Reductions..........................  10.0

                   Legislative Provisions Not Adopted

Exclusion of additional reserve component general and flag officers 
        from limitation on number of general and flag officers who may 
        serve on active duty
      The Senate amendment contained a provision (sec. 414) 
that would permit a number of reserve component general and 
flag officers ordered to active duty for more than 179 days to 
be excluded from the limitation on the number of general and 
flag officers on active duty. The number of reserve component 
general and flag officers ordered to active duty under this 
authority would not exceed three percent of the total number of 
authorized active duty general and flag officers.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title V--Military Personnel Policy

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

Codification of eligibility of retired officers and former officers for 
        consideration by special selection boards (sec. 501)
      The House bill contained a provision (sec. 501) that 
would clarify that a retired or former officer may be 
considered for promotion by a special selection board without 
being returned to active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Involuntary separation pay denied for officer discharged for failure of 
        selection for promotion requested by the officer (sec. 502)The 
House bill contained a provision (sec. 502) that would clarify that the 
Congress intended that written communications from officers to 
promotion boards authorized in section 614 of title 10, United States 
Code, be limited to matters that enhance the officer's case for 
promotion.
      The Senate amendment contained a provision (sec. 503) 
that would modify the conditions under which separation pay is 
paid. Under the provision, officers who submit a request to a 
promotion board not to be selected for promotion and are 
subsequently not selected for promotion would not be eligible 
for separation pay if the reason for their separation is 
failure to be promoted to the next higher grade. The provision 
would require the report of a selection board that received 
communications from an officer who requested not to be selected 
to include that officer's name.
      The House recedes with a clarifying amendment.
Streamlined selective retention process for regular officers (sec. 503)
      The House bill contained a provision (sec. 503) that 
would eliminate the requirement to convene boards of review for 
regular officers who have been recommended for administrative 
separation by boards of inquiry and would eliminate the 30-day 
board of inquiry notification process.
      The Senate amendment contained a provision (sec. 501) 
that would eliminate the requirement to convene boards of 
review for officers who have been recommended for 
administrative separation by a board of inquiry.
      The House recedes.
Permanent applicability of limitations on years of active naval service 
        of Navy limited duty officers in grades of commander and 
        captain (sec. 504)
      The Senate amendment contained a provision (sec. 502) 
that would make permanent the temporary mandatory retirement 
points for Navy Limited Duty Officers. The recommended change 
would not affect Marine Corps Limited Duty Officers of the same 
grades.
      The House bill contained no similar provision.
      The House recedes.
Tenure of Chief of the Air Force Nurse Corps (sec. 505)
      The House bill contained a provision (sec. 505) that 
would clarify that the Secretary of the Air Force determines 
the length of the tour served by the Chief of the Air Force 
Nurse Corps
      The Senate amendment contained a provision (sec. 504) 
that would extend the term of office for the chief of the Air 
Force Nurse Corps from three years to four years.
      The Senate recedes.
Grade of Air Force Assistant Surgeon General for Dental Services (sec. 
        506)
      The conference report includes a provision that would 
require the Assistant Surgeon General for Dental Services of 
the Air Force to be an officer in the grade of brigadier 
general.
Review regarding allocation of Naval Reserve Officers' Training Corps 
        scholarships among participating colleges and universities 
        (sec. 507)
      The Senate amendment contained a provision (sec. 505) 
that would modify the method by which the Navy allocates Naval 
Reserve Officer Training Corps (NROTC) scholarships within a 
state.
      The House bill contained no similar provision.
      The House recedes with an amendment that would urge the 
Secretary of the Navy to review the method by which the Navy 
allocates NROTC scholarships.

                 Subtitle B--Reserve Component Matters

Use of reserves for emergencies involving weapons of mass destruction 
        (sec. 511)
      The Senate amendment contained a provision (sec. 515) 
that would authorize the President to call-up reserve forces in 
response to domestic emergencies involving a use, or threatened 
use, of a weapon of mass destruction. In addition, the 
provision would permit reserve full-time support personnel to 
perform duties in support of emergency preparedness programs to 
prepare for, or to respond to, an emergency involving the use 
of a weapon of mass destruction.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
number of reserves who may serve on active duty in support of 
the defense against the domestic use of weapons of mass 
destruction, and would require the Secretary of Defense to 
certify that members of a rapid assessment element team have 
been trained and that the teams possess the requisite equipment 
to meet all mission requirements.
Service required for retirement of National Guard officer in higher 
        grade (sec. 512)
      The Senate amendment contained a provision (sec. 511) 
that would extend the period for which a National Guard officer 
could receive credit towards the time-in-grade required for 
retirement.
      The House bill contained no similar provision.
      The House recedes.
Reduced time-in-grade requirement for reserve general and flag officers 
        involuntarily transferred from active status (sec. 513)
      The Senate amendment contained a provision (sec. 512) 
that would authorize the secretary of a military department to 
retire, at thegrade held on active reserve status, a reserve 
component general or flag officer who is involuntarily transferred from 
active reserve status.
      The House bill contained no similar provision.
      The House recedes.
Active status service requirement for promotion consideration for Army 
        and Air Force Reserve component brigadier generals (sec. 514)
      The House bill contained a provision (sec. 512) that 
would require the Secretary of the Army and the Secretary of 
the Air Force to consider reserve brigadier generals serving in 
an inactive status for promotion if the officers had been in an 
inactive status for less than one year as of the date of the 
convening of the promotion board, and continuously served for 
at least one year on the reserve active status list or the 
active duty list immediately before transfer to inactive 
status.
      The Senate amendment contained a provision (sec. 513) 
that would authorize the Secretary of the Army or the Secretary 
of the Air Force to waive the eligibility requirements to 
permit a reserve component brigadier general of the Army or Air 
Force who is on the reserve inactive status list to be 
considered for promotion to major general. To be eligible for 
the waiver, the reserve brigadier general must have served at 
least one year on the reserve active status list or active duty 
list immediately preceding transfer to the inactive status 
list, and the transfer to the inactive status list occurred 
within the twelve-month period preceding the date the promotion 
board convenes.
      The Senate recedes.
Composition of selective early retirement boards for rear admirals of 
        the Naval Reserve and major generals of the Marine Corps 
        Reserve (sec. 515)
      The House bill contained a provision (sec. 511) that 
would authorize the Secretary of the Navy to convene selective 
early retirement boards for rear admirals in the Navy Reserve 
and major generals in the Marine Corps Reserve without 
complying with the requirement specified in section 14102 of 
title 10, United States Code, that one half of the selection 
board members be reserve officers and that all the board 
members hold higher permanent grades than the officers being 
considered by the board.
      The Senate amendment contained a provision (sec. 514) 
that would change the minimum grade requirement for officers 
participating as members of a board convened to consider rear 
admirals in the Naval Reserve or major generals in the Marine 
Corps Reserve for early retirement, and would require any 
active duty officer participating in a selective early 
retirement board considering Naval Reserve rear admirals or 
Marine Corps Reserve major generals be one grade higher than 
the officers being considered, and would require that at least 
one member of the board be a reserve officer in the same grade 
as the officers being considered.
      The House recedes with a clarifying amendment.
Authority for temporary waiver for certain Army Reserve officers of 
        baccalaureate degree requirement for promotion of reserve 
        officers (sec. 516)
      The House bill contained a provision (sec. 513) that 
would authorize an exception to the requirement for reserve 
officers in the Army commissioned through the Army Officer 
Candidate School to possess a baccalaureate degree before 
promotion to the grade of captain. The exception would expire 
on October 1, 2000.
      The Senate amendment contained no similar provisions.
      The Senate recedes with an amendment that would authorize 
the Secretary of the Army to waive, on a case-by-case basis, 
for two years, the requirement for reserve officers in the Army 
commissioned through the Army Officer Candidate School to 
possess a baccalaureate degree before being promoted to the 
grade of captain. The authority for the Secretary of the Army 
to grant a waiver would expire on September 30, 2000.
      The conferees expect that the Secretary of the Army will 
only grant waivers to those individuals who demonstrate 
progress toward achieving the goal of earning a baccalaureate 
degree.
Furnishing of burial flags for deceased members and former members of 
        the Selected Reserve (sec. 517)
      The Senate amendment contained a provision (sec. 1082) 
that would direct the Secretary of Veterans Affairs to provide 
a U.S. flag to drape the casket of deceased members or former 
members of the Selected Reserve.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

              Subtitle C--Military Education and Training

Separate housing for male and female recruits during recruit basic 
        training (sec. 521)
      The House bill contained a provision (sec. 521) that 
would amend title 10, United States Code, to require each of 
the military departments to assign male and female recruits to 
same-gender units at the platoon, flight, and division levels, 
and to house male and female recruits in separate barracks or 
troop housing facilities. It would provide each of the service 
secretaries the authority to waive the separate barracks 
requirement initially at specific installations due to a lack 
of adequate facilities at the installation. However, it would 
require that no such waiver be in effect after October 1, 2001. 
This section also would require that if a waiver is granted at 
a particular installation, the secretary of a military 
department shall require that male and female recruits be 
housed on separate floors in military barracks or troop housing 
facilities at that installation. During the interim period, 
housing recruits on separate floors is defined to include 
billeting male and female recruits separately andsecurely 
either on separate floors, in separate bays, or on same floors with a 
fire-safe wall separating the recruits. Further, the separate billeting 
spaces should include independent sleeping areas, latrines and 
separate, lockable entrances. To facilitate the Army's ability to make 
barracks modifications needed for housing by separate floors, the 
committee recommends an increase of $8.0 million in that department's 
operations and maintenance account.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the secretaries of the military departments to provide 
separate, safe, and secure housing for male and female recruits 
with the sleeping areas separated by permanent walls and access 
limited to separate entrances by April 15, 1999. Should an 
installation not be able to meet this requirement, males and 
females would be required to be housed in separate facilities. 
The amendment would require that all future construction of 
barracks at basic training sites accommodate separate, safe, 
and secure housing for both male and female recruits. The 
amendment would also require the General Accounting Office to 
report on the costs associated, by service, with providing 
separate buildings for male and female recruits.
After-hours privacy for recruits during basic training (sec. 522)
      The House bill contained a provision (sec. 522) that 
would amend title 10, United States Code, to require each of 
the secretaries of the military departments to restrict after-
hours access to recruit housing areas to same-sex training 
personnel. The provision would allow an exception to this 
policy in case of an emergency or circumstance requiring 
immediate action.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would restrict 
after-hours access to recruit housing areas to drill sergeants 
and other training personnel who are of the same gender as the 
recruits housed in that area or to members of the chain of 
command as long as they are accompanied by a member, who is not 
a recruit, but is of the same gender, as the recruits housed in 
that area.
      The conferees note that these restrictions are intended 
to cover the period after ``lights out'' at night until 
``lights on'' in the morning.
Sense of the House of Representatives relating to small unit 
        assignments by gender during recruit basic training (sec. 523)
      The conference report contains a provision that would 
express the sense of the House of Representatives that the 
secretaries of the military departments should require males 
and females to be assigned to separate units at the platoon, 
division, or flight level during recruit basic training.
      The conferees direct the Secretary of Defense to include 
a separate section in the report on sexual harassment required 
by section 591 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) of the National Defense 
Authorization Act for Fiscal Year 1998 to report on sexual 
misconduct at the basic training centers of each of the 
military departments. Specifically, the report shall include a 
statistical summary, by type, of all incidents of sexual 
misconduct, including sexual harassment and fraternization, 
involving trainees, cadre members or trainees and cadre members 
that occurred in the basic training centers of each service. 
The data provided in the report for each service should be 
expressed using a common standard of measurement and should 
include a summary of the disciplinary and administrative 
actions taken in response to the misconduct. Consistent with 
the requirement for the sexual harassment report, the report on 
sexual misconduct in basic training shall be submitted to the 
Congress no later than April 1, 1999, and shall include data on 
all cases of sexual misconduct that occurred during the 
preceding year.
      The Commission on Military Training and Gender-Related 
Issues, established in the National Defense Authorization Act 
for Fiscal Year 1998, is expected to report to the Congress in 
April 1999, on its review of the basic training programs of 
each of the military services. The House conferees intend to 
fully review all matters pertaining to basic training once the 
findings and recommendations of the Commission are received and 
anticipate the likelihood of legislation next year on issues 
addressed in the Commission's review, including the issue of 
gender-separate basic training.
Extension of reporting dates for Commission on Military Training and 
        Gender-Related Issues (sec. 524)
      The House bill contained a provision (sec. 523) that 
would amend section 562 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85) to extend the 
reporting dates required of the Commission on Military Training 
and Gender-Related Issues. This provision would extend the date 
of the initial report to October 15, 1998, and the final report 
to March 15, 1999.
      The Senate amendment contained a similar provision (sec. 
526).
      The Senate recedes.
Improved oversight of innovative readiness training (sec. 525)
      The House bill contained a provision (sec. 524) that 
would require the Department of Defense to implement the 
General Accounting Office recommendations to improve program 
compliance with section 2012 of title 10, United States Code, 
which governs the Innovative Readiness Training program, and 
would require the Department to establish better cost 
accounting methods.
      The Senate amendment contained no similar provision.
      The Senate recedes.

           Subtitle D--Decorations, Awards, and Commendations

Study of new decorations for injury or death in line of duty (sec. 531)
      The House bill contained a provision (sec. 531) that 
would require the Secretary of Defense, in cooperation with the 
secretaries of the military departments and the Secretary of 
Transportation with regard to the Coast Guard, to determine the 
appropriate name, policy, award criteria, and design for two 
new decorations, that recognize the service of members of the 
armed forces who are killed or wounded under non-combat 
conditions and U.S. civilians who are killed or wounded while 
serving in an official capacity with a U.S. armed forces. This 
provision would also require the Secretary to submit a 
legislative proposal to establish the two decorations and a 
recommendation concerning the need for the new decorations to 
the Committee on Armed Services of the Senate and the National 
Security Committee of the House of Representatives, not later 
than July 31, 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Defense to study the need for such awards, the 
criteria that may be used to determine eligibility for such 
awards, and to report the results of the study to the Senate 
Armed Services of the Senate and the National Security 
Committee of the House of Representatives, not later than July 
31, 1999.
Waiver of time limitations for award of certain decorations to certain 
        persons (sec. 532)
      The House bill contained a provision (sec. 532) that 
would waive the statutory time limitations for the award of 
military decorations to individuals who have been recommended 
for award of the decorations by the secretaries of the military 
departments.
      The Senate amendment contained a similar provision (sec. 
530).
      The House recedes with an amendment that would include 
awards approved by the secretaries of the military departments 
since May 12, 1998.
Commendation and commemoration of the Navy and Marine Corps personnel 
        who served in the United States Navy Asiatic Fleet from 1910-
        1942 (sec. 533)
      The House bill contained a provision (sec. 533) that 
would commend those personnel who served in the Asiatic Fleet 
of the United States Navy between 1910 and 1942.
      The Senate amendment contained a similar provision (sec. 
1060).
      The House recedes with a clarifying amendment.
      The conferees note that March 1, 1999, is the 57th 
anniversary of the sinking of the Asiatic Fleet's flagship, the 
U.S.S. Houston, by Japanese Imperial Forces. The conferees 
believe that March 1, 1999, may be the most appropriate day for 
the President to designate as the United States Navy Asiatic 
Fleet Memorial Day.
Appreciation for service during World War I and World War II by members 
        of the Navy assigned on board merchant ships as the Naval Armed 
        Guard Service (sec. 534)
      The House bill contained a provision (sec. 534) that 
would express the appreciation of the Congress and the American 
people for the service of members of the Navy assigned as gun 
crews aboard merchant ships as part of the Naval Armed Guard 
Service during World War I and World War II.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Sense of Congress regarding the heroism, sacrifice, and service of the 
        military forces of South Vietnam and other nations, and 
        indigenous groups in connection with the United States Armed 
        Forces during the Vietnam conflict (sec. 535)
      The House bill contained a provision (sec. 535) that 
would recognize and honor the significant heroism, sacrifices, 
and service that the armed forces of South Vietnam and other 
allies made while fighting together with U.S. Military Forces 
during the Vietnam conflict.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Sense of Congress regarding the heroism, sacrifice, and service of 
        former South Vietnamese commandos in connection with the United 
        States Armed Forces during the Vietnam conflict (sec. 536)
      The House bill contained a provision (sec. 536) that 
would recognize and honor the significant heroism, sacrifices 
and service that the South Vietnamese commandos made during the 
Vietnam conflict. The House report (H. Rept. 105-532) notes 
that section 657 of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104-201) authorized compensation 
for Vietnamese commandos incarcerated for 20 years or more.
      The Senate amendment contained a similar provision (sec. 
1068).
      The Senate recedes.
Prohibition on members of armed forces entering correctional facilities 
        to present decorations to persons who have committed serious 
        violent felonies (sec. 537)
      The Senate amendment contained a provision (sec. 531) 
that would prohibit the military services from presenting a 
military award or decoration in a prison or confinement 
facility.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that the provision does not preclude 
the military services from awarding a military award or 
decoration to an eligible current or former service member who 
may be confined. However, the award may not be presented to the 
individual in a prison or confinement facility.

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

Personnel freeze (sec. 541)
      The House bill contained a provision (sec. 541) that 
would preserve the current level of performance of the Army 
Review Board Agency, the Air Force Review Boards Agency, and 
the Board for Correction of Naval Records by requiring a report 
to the Congress 90 days before the number of employees assigned 
to those organizations is reduced below the number assigned, as 
of October 1, 1997.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Professional staff (sec. 542)
      The House bill contained a provision (sec. 542) that 
would amend chapter 79 of title 10, United States Code, to 
require each Board for the Correction of Military Records to 
employ an attorney and a physician to serve as advisors to the 
staff on legal and medical matters being considered by the 
board.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Ex parte communications (sec. 543)
      The House bill contained a provision (sec. 543) that 
would amend chapter 79 of title 10, United States Code, to 
require each Board for the Correction of Military Records to 
provide applicants with copies of communications that directly 
apply to or have a material effect on the applicants' cases.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Timeliness standards (sec. 544)
      The House bill contained a provision (sec. 544) that 
would require each Board for the Correction of Military Records 
to improve the timeliness of board actions over a ten-year 
period, beginning in fiscal year 2001 and culminating with a 
requirement to complete action on 90 percent of the cases 
within ten months of receipt during fiscal year 2011 and 
beyond.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Scope of correction of military records (sec. 545)
      The conference agreement includes a provision that would 
define military records for purposes of payment of claims 
arising from correction of a military record and would require 
the Secretary of Defense to report to the Congress not later 
than March 31, 1998, on the effect of the six-year bar to 
retroactive payments when relief is granted by a Board for the 
Correction of Military Records.

                          Subtitle F--Reports

Report on personnel retention (sec. 551)
      The House bill contained a provision (sec. 1033) that 
would require the Secretary of Defense to submit, within 90 
days of enactment, a report to the Congress that contains 
information on the retention of active duty service members of 
each military service during each fiscal year from 1989 through 
1998.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Report on process for selection of members for service on courts-
        martial (sec. 552)
      The House bill contained a provision (sec. 561) that 
would require the Secretary of Defense to submit to the 
Congress, by April 15, 1999, a report on the method of 
selection of members of the armed forces to serve on courts-
martial, including the development of a plan by the military 
services for random selection of members.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
Report on prisoners transferred from United States Disciplinary 
        Barracks, Fort Leavenworth, Kansas, to Federal Bureau of 
        Prisons (sec. 553)
      The House bill contained a provision (sec. 560) that 
would require the Secretary of Defense to evaluate and report 
to Congress on the rationale for, and effectiveness of, the 
policy of transferring prisoners from the United States 
Disciplinary Barracks, Fort Leavenworth, Kansas, to the Federal 
Bureau of Prisons, and would require the Secretary of the Army 
to monitor the parole and recidivism rates of the military 
prisoners transferred to the Federal Bureau of Prisons.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Review and report regarding the distribution of National Guard full-
        time support among the states (sec. 554)
      The Senate amendment contained a provision (sec. 1035) 
that would require the Chief of the National Guard Bureau to 
review the process used to allocate and distribute resources, 
including all categories of full-time manning, among the states 
for the National Guard and to report not later than March 15, 
1999 to the congressional defense committees.
      The House bill contained no similar provision.
      The House recedes with an amendment that would focus the 
review on the process used to allocate and distribute all 
categories of National Guard full-time support among the 
states, would require theChief of the National Guard Bureau to 
submit the report to the Secretary of Defense, and would require the 
Secretary of Defense to forward the report, along with his evaluation 
of the report, to the Committee on Armed Services of the Senate and the 
National Security Committee of the House of Representatives.

                       Subtitle G--Other Matters

Two-year extension of certain force drawdown transition authorities 
        relating to personnel management and benefits (sec. 561)
      The House bill contained a provision (sec. 551) that 
would extend through fiscal year 2000 certain temporary 
authorities which provide the tools the armed services need to 
manage personnel reductions and shape the force following the 
completion of the drawdown of military forces.
      The Senate amendment contained a provision (sec. 522) 
that would extend until September 30, 2003, the force reduction 
transition period management and benefits authorities 
established during the drawdown of the military services.
      The House recedes with an amendment that would extend the 
temporary authorities until September 30, 2001.
Leave without pay for suspended academy cadets and midshipmen (sec. 
        562)
      The House bill contained a provision (sec. 552) that 
would authorize the appropriate secretary, upon the 
recommendation of the Superintendent of the United States 
Military Academy, the United States Naval Academy, the United 
States Air Force Academy, or the United States Coast Guard 
Academy, to order a cadet or midshipman to be placed on 
involuntary leave without pay under certain circumstances.
      The Senate amendment contained a provision (sec. 604) 
that would authorize the superintendents of the military 
academies and the Coast Guard Academy to order a cadet or 
midshipman to be placed on involuntary leave without pay if the 
cadet or midshipman is pending separation from the academy for 
misconduct, conduct deficiency, or honor violation while the 
separation is pending final approval.
      The House recedes with an amendment that would authorize 
the appropriate service secretary to order a cadet or 
midshipman to be placed on involuntary leave without pay if the 
cadet or midshipman is pending separation from the academy for 
misconduct, conduct deficiency, or honor violation while the 
separation is pending final approval.
Continued eligibility under Voluntary Separation Incentive program for 
        members who involuntarily lose membership in a reserve 
        component (sec. 563)
      The House bill contained a provision (sec. 554) that 
would authorize Voluntary Separation Incentive (VSI) recipients 
to continue to receive VSI payments after separation from the 
reserves when the separation was due to age, years of service, 
failure to be selected for promotion, or medical 
disqualification, provided the ineligibility does not result 
from a deliberate action to avoid service.
      The Senate amendment contained a provision (sec. 523) 
that would permit members who separated under the VSI program 
and lost their membership in a reserve component, as a result 
of certain conditions, to continue to receive the benefit 
payments.
      The House recedes with a clarifying amendment.
Reinstatement of definition of financial institution in authorities for 
        reimbursement of defense personnel for Government errors in 
        direct deposit of pay (sec. 564)
      The House bill contained a provision (sec. 555) that 
would amend sections 1053 and 1594 of title 10, United States 
Code, to specify that the term ``financial institution'' means 
a bank, savings and loan association or similar institution, or 
credit union chartered by the United States or a State.
      The Senate amendment contained a similar provision (sec. 
1047).
      The Senate recedes with a clarifying amendment.
Increase in maximum amount for College Fund program (sec. 565)
      The House bill contained a provision (sec. 556) that 
would increase the maximum College Fund payment to $50,000, 
effective October 1, 1999, for service members enlisting after 
that date.
      The Senate amendment contained a provision (sec. 618) 
that would increase the amount authorized for military service 
College Fund programs, not to exceed $50,000, an increase of 
$10,000.
      The Senate recedes with an amendment that would remove 
the specified effective date.
Central Identification Laboratory, Hawaii (sec. 566)
      The House bill contained a provision (sec. 557) that 
would require the Secretary of Defense to establish joint 
manning requirements for the Central Identification Laboratory, 
Hawaii (CILHI), and to staff CILHI at 100 percent of its 
manpower requirements.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees do not intend that this provision be 
interpreted to direct that billets at the Central 
Identification Laboratory, Hawaii, be designated as joint 
billets on the joint duty assignment list. The Secretary of 
Defense may, however, designate billets at the Central 
Identification Laboratory, Hawaii, as joint duty on the joint 
duty assignment list if he determines that the billets meet the 
existing criteria for such designation.
Military funeral honors for veterans (sec. 567)
      The House bill contained a provision (sec. 558) that 
would require the secretaries of the military departments to 
provide, upon request, honor guard details for the funerals of 
veterans. The provision would specify that the honor guard 
details be comprised of not less than three persons with the 
capability to play a recording of Taps, unless a bugler is 
included in the detail. The honor guard detail would consist of 
members of the armed forces, members of veterans organizations, 
or other organizations approved for participation by the 
Secretary of Defense. The provision would require the Secretary 
of Defense to establish a system for selection of units of the 
armed forces or other organizations to provide honor guard 
details. Before issuing regulations to establish the system, 
the Secretary of Defense would consult with veterans service 
organizations to determine the views of those organizations 
regarding methods for providing honor guard details at funerals 
for veterans, suggestions for organizing the system to provide 
those details, and estimates of the resources that those 
organizations could provide for honor guard details. This 
provision would apply to burials of veterans that occur on, or 
after, October 1, 1999.
      The Senate amendment contained a provision (sec. 1079) 
that would require, not later than October 31, 1998, the 
Secretary of Defense, in consultation with the Secretary of 
Veterans Affairs, to convene a conference to determine means of 
improving and increasing the availability of military burial 
honors for veterans.
      The Senate recedes with an amendment that would combine 
the two provisions in such a manner as to require the Secretary 
of Defense, in consultation with the Secretary of Veterans 
Affairs, to convene a conference, not later than December 31, 
1998, to determine means of improving and increasing the 
availability of military burial honors for veterans, and to 
report the findings and recommendations resulting from the 
conference to the Committee on Armed Services of the Senate and 
the National Security Committee of the House of Representatives 
not later than March 15, 1999. The provision would also require 
the secretaries of the military departments to provide, upon 
request, honor guard details for the funerals of veterans 
comprised of not less than three persons with the capability to 
play a recording of Taps, unless a bugler is included in the 
detail, for the funerals of veterans, after December 31, 1999.
      The conferees intend that the requirement to provide a 
three- person burial detail upon request of a veteran to be 
effective only if the Secretary of Defense and the Secretary of 
Veterans Affairs do not recommend an acceptable alternative 
proposal in the required report. If a recommended alternative 
includes permitting members of veterans service organizations 
to perform burial honor details, the Secretary of Defense may 
consider providing equipment and materiel, as appropriate, to 
support burial honor detail duties.
      The conferees agree that men and women have unselfishly 
answered the call to arms at tremendous personal sacrifice. 
These men and women who served honorably, whether in war or 
peace, deserve commemoration for their military service at the 
time of their death by an appropriate tribute. Burial honors 
are an important means of reminding Americans of the sacrifices 
endured to keep the Nation free.
Status in the Naval Reserve of cadets at the Merchant Marine Academy 
        (sec. 568)
      The House bill contained a provision (sec. 563) that 
would require the Secretary of Defense, in coordination with 
the Secretary of Transportation, to ensure that citizens of the 
United States appointed as cadets at the United States Merchant 
Marine Academy are members of the Naval Reserve. The provision 
would also require the Secretary of Defense to issue such 
cadets military identification cards.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
      The conferees direct the Secretary of the Navy to 
determine the specific status cadets at the United States 
Merchant Marine Academy shall have within the Naval Reserve. 
The Secretary shall ensure that the benefits associated with 
the military identification card issued to cadets at the United 
States Merchant Marine Academy are consistent with their status 
within the Naval Reserve.
Repeal of restriction on civilian employment of enlisted members (sec. 
        569)
      The Senate amendment contained a provision (sec. 525) 
that would repeal section 974 of title 10, United States Code, 
which restricts enlisted personnel from engaging in a civilian 
pursuit or business if the pursuit or business interferes with 
the employment of local civilians in their art, trade, or 
profession.
      The House bill contained no similar provision.
      The House recedes.
Transitional compensation for abused dependent children not residing 
        with the spouse or former spouse of a member convicted of 
        dependent abuse (sec. 570)
      The Senate amendment contained a provision (sec. 528) 
that would authorize transitional compensation to eligible 
dependent children who do not reside with a spouse or former 
spouse who is also eligible for transitional compensation 
payments. The recommended provision would ensure that dependent 
children who are victims of abuse are not denied compensation 
because of family circumstances that may cause the dependent 
children not to reside with the spouse or former spouse.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Pilot program for treating GED and home school diploma recipients as 
        high school graduates for determinations of eligibility for 
        enlistment in the armed forces (sec. 571)
      The Senate amendment contained a provision (sec. 529) 
that wouldestablish a five-year pilot program to permit 
participants in a National Guard Youth Challenge Program who receive a 
general education development (GED) certificate and those who complete 
their high school requirements through a home schooling program to 
enlist in the armed forces, as if they had received a high school 
diploma. The recommended provision would limit the pilot program to not 
more than 10,000 persons per year (1,250 per educational source per 
military service). The provision would require the Secretary of Defense 
to conduct a comprehensive evaluation of the performance of the 
participants in the pilot program and report the results to the 
Congress not later than February 1, 2004.
      The House bill contained no similar provision.
      The House recedes with an amendment that would reduce the 
number of participants to 5,000 per year (1,250 per military 
service) and require a separate evaluation of the performance 
of GED and home school participants.
Sense of Congress concerning New Parent Support Program and military 
        families (sec. 572)
      The House bill contained a provision (sec. 1051) that 
would express the sense of Congress that the New Parent Support 
Program has been an effective tool in curbing family violence 
within the military community and that the Department of 
Defense should seek ways to ensure that, in future fiscal 
years, sufficient funds are made available for this program. 
The recommended provision would also require that, within 120 
days of the date of enactment of this Act, the Secretary of 
Defense to submit a report to the Congress describing the 
manner in which the New Parent Support Program is being 
implemented by each service, the number of military 
installations receiving support for the program, and the 
funding for the program by the date of each military service 
for fiscal years 1994 through 1998 and the amount of funding 
projected for fiscal year 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the report to address funding during fiscal years 1994 through 
1999, and the funding projected for fiscal year 2000.
Advancement of Benjamin O. Davis, Junior, to grade of General on the 
        retired list of the Air Force (sec. 573)
      The Senate amendment contained a provision (sec. 532) 
that would authorize the President to advance Benjamin O. 
Davis, Junior, to the grade of General on the retired list of 
the Air Force. The provision would specifically provide that no 
additional benefits accrue to General Davis or his heirs as a 
result of this advancement.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Sense of the House of Representatives concerning adherence by civilians 
        in military chain of command to the standard of exemplary 
        conduct required of commanding officers and others in authority 
        in the Armed Forces (sec. 574)
      The House bill contained a provision (sec. 559) that 
would extend the requirement for exemplary conduct on 
commanding officers and others to the President, as Commander-
in-Chief, and the Secretary of Defense, both of whom exercise 
authority in the military chain of command.
      The Senate amendment contained no similar provision.
      The conference agreement includes a provision that would 
express the sense of the House of Representatives that civilian 
members of the military chain of command should, in the same 
manner as commanding officers and others in authority in the 
armed forces, show in themselves a good example of virtue, 
honor, and patriotism, and to subordinate themselves to those 
ideals.
      For many years, commanding officers, and others in 
authority, in the Navy have been required by law to conduct 
themselves in an exemplary manner. The National Defense 
Authorization Act for Fiscal Year 1998 extended such a 
requirement for exemplary conduct to commanding officers, and 
others in authority, in the Army and Air Force. This provision 
results from the House conferees' belief that a similar 
standard for exemplary conduct should also extend to the 
civilian leaders designated by title 10, United States Code, as 
being in the military chain of command.

                   Legislative Provisions Not Adopted

Posthumous commissions and warrants
      The House bill contained a provision (sec. 504) that 
would authorize the President to promote an officer 
posthumously when the secretary of a military department 
approves the results of the appropriate board after the date of 
death of the officer, so long as the officer is selected for 
promotion by a promotion board before the date of death.
      The Senate amendment contained no similar provision.
      The House recedes.
Study of revising the term of service of members of the United States 
        Court of Appeals for the Armed Forces
      The House bill contained a provision (sec. 562) that 
would require the Secretary of Defense to submit to Congress a 
report on the desirability of revising the term of appointment 
for judges of the United States Court of Appeals for the Armed 
Forces so that the term would be for 15 years or until the 
judge attained age 65, whichever is later.
      The Senate amendment contained no similar provision.
      The House recedes.
Repeal of limitations on authority to set rates and waive requirement 
        for reimbursement of expenses incurred for instruction at 
        service academies of persons from foreign countries
      The Senate amendment contained a provision (sec. 524) 
that would repeal the limitations on the authority of the 
secretary of a military department to waive the requirement for 
reimbursement of expenses for foreign students at the military 
service academies.
      The House bill contained no similar provision.
      The Senate recedes.
Moratorium on changes of gender-related policies and practices pending 
        completion of the work of the Commission on Military Training 
        and Gender-Related Issues
      The Senate amendment contained a provision (sec. 527) 
that would prohibit the Secretary of Defense from implementing 
any policy changes with regard to separation or integration of 
members of the armed forces on the basis of gender, which are 
within the responsibility of the Commission on Military 
Training and Gender-Related Issues, until the commission has 
completed its work and issued its report. The final report is 
due on March 15, 1999.
      The House bill contained no similar provision.
      The Senate recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

Increase in basic pay for fiscal year 1999 (sec. 601)
      The House bill contained a provision (sec. 601) that 
would waive section 1009 of title 37, United States Code, and 
increase, effective January 1, 1999, the rates of basic pay for 
members of the uniformed services by 3.6 percent or the percent 
increase determined under subsection (c) of section 1009 of 
title 37, United States Code, should the President approve a 
pay increase for federal workers, whichever is higher.
      The Senate amendment contained a provision (sec. 601) 
that would waive section 1009 of title 37, United States Code, 
and increase the rates of basic pay for members of the 
uniformed services by 3.6 percent, effective January 1, 1999.
      The Senate recedes.
Rate of pay for cadets and midshipmen at the service academies (sec. 
        602)
      The Senate amendment contained a provision (sec. 602) 
that would increase the rate of pay for cadets and midshipmen 
at the service academies from $558.04 per month to $600.00 per 
month, effective January 1, 1999.
      The House bill contained no similar provision.
      The House recedes.
Basic allowance for housing outside the United States (sec. 603)
      The House bill contained a provision (sec. 602) that 
would authorize the payment of advance deposits and rent for 
housing in overseas areas when required by local conditions. 
The provision would also protect the member from losses due to 
fluctuations in the value of foreign currency and would allow 
the government to recoup the full amount of advances, to 
include any gain resulting from currency fluctuations.
      The Senate amendment contained no similar provision
      The Senate recedes.
Basic allowance for subsistence for reserves (sec. 604)
      The House bill contained a provision (sec. 603) that 
would clarify the entitlement of reservists to rations in kind 
or payment for meals purchased when rations in kind are not 
available.
      The Senate amendment contained no similar provision.
      The Senate recedes.

             Subtitle B--Bonuses and Special Incentive Pays

Three-month extension of certain bonuses and special pay authorities 
        for reserve forces (sec. 611)
      The House bill contained a provision (sec. 611) that 
would extend the authority for the special pay for health care 
professionals who serve in the Selected Reserve in critically 
short wartime specialties, the Selected Reserve reenlistment 
bonus, the Selected Reserve enlistment bonus, special pay for 
enlisted members of the Selected Reserve assigned to certain 
high priority units, the Selected Reserve affiliation bonus, 
the Ready Reserve enlistment and reenlistment bonus, and the 
prior service enlistment bonus until September 30, 2000. The 
provision would also extend the authority for repayment of 
educational loans for certain health professionals who serve in 
the Selected Reserve until October 1, 2000.
      The Senate amendment contained a provision (sec. 611) 
that would extend the authority to pay special pay critically 
short wartime health specialists in the Selected Reserve, the 
Selected Reserve reenlistment bonuses, the Selected Reserve 
enlistment bonuses, the special pay for enlisted members 
assigned to certain high priority units in the Selected 
Reserve, the Selected Reserve affiliation bonus, the Ready 
Reserve enlistment and reenlistment bonus, the repayment of 
loans for certain health professionals who serve in the 
Selected Reserve, and the prior service enlistment bonus until 
December 31, 1999.
      The House recedes.
      The conferees understand the value of bonuses and special 
pay as a tool for recruiting and retaining skilled, qualified 
personnel. Theconferees intend that these bonuses will be 
reauthorized on an annual basis.
Three-month extension of certain bonuses and special pay authorities 
        for nurse officer candidates, registered nurses, and nurse 
        anesthetists (sec. 612)
      The House bill contained a provision (sec. 612) that 
would extend the authority for the nurse officer candidate 
accession program, the accession bonus for registered nurses, 
and the incentive special pay for nurse anesthetists until 
September 30, 2000.
      The Senate amendment contained a provision (sec. 612) 
that would extend the authority to pay certain bonuses and 
special pay for nurse officer candidates, registered nurses, 
and nurse anesthetists until December 31, 1999.
      The House recedes.
      The conferees understand the value of bonuses and special 
pay as a tool for recruiting and retaining skilled, qualified 
personnel. The conferees intend that these bonuses will be 
authorized on an annual basis.
Three-month extension of authorities relating to payment of other 
        bonuses and special pays (sec. 613)
      The House bill contained a provision (sec. 613) that 
would extend the authority for the aviation officer retention 
bonus, reenlistment bonus for active members, enlistment 
bonuses for members with critical skills, special pay for 
nuclear qualified officers who extend the period of active 
service, and the nuclear career accession bonus to September 
30, 2000. The provision would also extend the authority for the 
nuclear career annual incentive bonus until October 1, 2000.
      The Senate amendment contained a provision (sec. 613) 
that would extend the authority to pay the aviation officer 
retention bonus, the reenlistment bonus for active members, the 
enlistment bonuses for critical skills, the special pay for 
nuclear qualified officers who extend the period of active 
service, the nuclear career accession bonus, and the nuclear 
career annual incentive bonus until December 31, 1999.
      The House recedes.
      The conferees understand the value of bonuses and special 
pay as a tool for recruiting and retaining skilled, qualified 
personnel. The conferees intend that these bonuses will be 
reauthorized on an annual basis.
Increased hazardous duty pay for aerial flight crewmembers in certain 
        pay grades (sec. 614)
      The Senate amendment contained a provision (sec. 620a) 
that would increase the hazardous duty pay for enlisted aerial 
flight crewmembers.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Aviation career incentive pay and aviation officer retention bonus 
        (sec. 615)
      The House bill contained a provision (sec. 614) that 
would make clarifying amendments to sections 301a and 301b of 
title 37, United States Code, to facilitate the payment of 
Aviation Career Incentive Pay and Aviation Continuation Pay to 
warrant officers.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Diving duty special pay for divers having diving duty as a nonprimary 
        duty (sec. 616)
      The House bill contained a provision (sec. 615) that 
would clarify that the service secretaries may continue paying 
diving pay to members not assigned to diving duties when the 
members are required to maintain diving proficiency.
      The Senate amendment contained a similar provision (sec. 
620b).
      The House recedes.
      The conferees believe that members should be required to 
maintain proficiency as a diver only when they are subject to 
no notice return to diving duty on a temporary or permanent 
basis.
Hardship duty pay (sec. 617)
      The House bill contained a provision (sec. 620) that 
would change the criteria eligibility to receive hardship duty 
pay from a location to a specific duty without regard to 
location.
      The Senate amendment contained a similar provision (sec. 
620).
      The House recedes with a clarifying amendment.
Selective reenlistment bonus eligibility for Reserve members performing 
        active Guard and Reserve duty (sec. 618)
      The House bill contained a provision (sec. 616) that 
would authorize payment of selective reenlistment bonuses to 
members of the reserve components who are on extended active 
duty in the Active Guard and Reserve (AGR) program.
      The Senate amendment contained a provision (sec. 614) 
that would authorize the secretary concerned to offer a 
reenlistment bonus to reserve component members who are on 
extended active duty in support of the reserves. The provision 
would require reserve component members on active duty in 
support of the reserves to meet the same criteria as regular 
component enlisted personnel to be eligible for a reenlistment 
bonus.
      The House recedes with a clarifying amendment.
Repeal of ten percent limitation on certain selective reenlistment 
        bonuses (sec. 619)
      The House bill contained a provision (sec. 617) that 
would remove the 10 percent limitation on the number of 
selectivereenlistment bonuses in excess of $20,000 that may be 
paid.
      The Senate amendment contained a provision (sec. 615) 
that would repeal the restriction limiting the number of 
selective reenlistment bonuses which exceed $20,000 paid during 
any fiscal year.
      The Senate recedes with a clarifying amendment.
Increase in maximum amount authorized for Army enlistment bonus (sec. 
        620)
      The House bill contained a provision (sec. 618) that 
would increase the maximum bonus for enlistment in the Army 
from $4,000 to $6,000.
      The Senate amendment contained a provision (sec. 616) 
that would increase the maximum amount authorized to be offered 
to a qualifying high school graduate who enlists in the Army 
for at least three years in designated skills from $4,000 to 
$6,000.
      The House recedes with a clarifying amendment.
Equitable treatment of Reserves eligible for special pay for duty 
        subject to hostile fire or imminent danger (sec. 621)
      The House bill contained a provision (sec. 619) that 
would authorize reserve members to receive the amount of 
imminent danger pay authorized for a full month regardless of 
the number of qualifying days served by the member during the 
month. The provision would make the imminent danger pay payment 
policy for reservists consistent with the policy for active 
duty members. Accordingly, the House bill provided for an 
increase of $3.0 million over the amount included in the budget 
request for reserve imminent danger pay.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Retention incentives initiative for critically short military 
        occupational specialites (sec. 622)
      The Senate amendment contained a provision (sec. 620(c)) 
that would require the Secretary of Defense to establish a 
series of new incentives, in addition to the current 
incentives, to encourage service members in critically short 
specialities to reenlist.
      The House bill contained no similar provision.
      The House recedes.

            Subtitle C--Travel and Transportation Allowances

Payments for movements of household goods arranged by members (sec. 
        631)
      The Senate amendment contained a provision (sec. 603) 
that would authorize the Departments of Defense, Health, and 
Transportation to provide members of the uniformed services 
with a reimbursement or monetary allowance in advance for the 
cost of transportation for that member's baggage and household 
effects. The monetary allowance may be paid only if payment of 
the allowance results in an overall cost savings to the 
government. This will enhance the ability of members of the 
uniformed services to arrange for the movement of their 
household goods themselves, rather than relying upon the 
current system, whereby the employing agencies arrange for the 
movement of these goods for the members.
      The House bill contained no similar provision.
      The House recedes with an amendment that would insert the 
words ``new sentence'' in (a)(1)(B). The amendment would 
further replace the word ``a'' with the word ``the'' in the 
same paragraph. Finally, the amendment would make technical 
changes to standing law reflecting the fact that paragraphs 
have been redesignated because of the elimination of subsection 
(j).
Exception to maximum weight allowance for baggage and household effects 
        (sec. 632)
      The House bill contained a provision (sec. 631) that 
would authorize the service secretaries to exceed the maximum 
weight allowance for shipment of household goods to a new 
permanent duty station to accommodate shipment of consumable 
goods that cannot be reasonably obtained at the new location.
      
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees intend that this apply only to shipments to 
a new permanent duty station where consumable goods are not 
reasonably available. The conferees do not intend the increased 
weight allowance to be used for shipments from a permanent duty 
station in which consumable goods were not reasonably 
available.
Travel and transportation allowances for travel performed by members in 
        connection with rest and recuperative leave from overseas 
        stations (sec. 633)
      The House bill contained a provision (sec. 632) that 
would clarify that the service secretaries may provide the 
transportation authorized the rest and recuperation travel 
using either government or commercial carriers. This provision 
would enhance the cost efficiency of the rest and recuperation 
program being provided to personnel assigned to Operation Joint 
Guard in the Republic of Bosnia and Herzegovina.
      The Senate amendment contained a provision (sec. 621) 
that would authorize the secretary concerned to pay for 
commercial transportation, not to exceed the cost of government 
provided transportation, for leave travel of members assigned 
to overseas locations in contingency operations or at overseas 
locations where unusual conditions exist. The provision would 
permit members to receive one round trip during any period of 
service of at least six months, but not to exceed 24 months.
      The Senate recedes.
Storage of baggage of certain dependents (sec. 634)
      The House bill contained a provision (sec. 633) that 
would amend section 430 of title 37, United States Code, to 
authorize dependents of military members assigned to overseas 
locations annual round trip visits while those dependents are 
college students in the United States. The provision would 
authorize the storage of unaccompanied baggage of such 
dependents in lieu of shipment if advantageous to the 
government.
      The Senate amendment contained a provision (sec. 622) 
that would authorize storage of a dependent student's 
unaccompanied baggage in lieu of shipping the baggage to the 
overseas duty station of the sponsor. When a student attending 
school in the United States returns to spend the summer with 
their family in an overseas location, they must ship their 
goods to the overseas location. The recommended provision would 
permit the baggage to be stored locally, which is less 
expensive than a round-trip overseas shipment.
      The Senate recedes.
Commercial travel of Reserves at Federal supply schedule rates for 
        attendance at inactive-duty training assemblies (sec. 635)
      The House bill contained a provision (sec. 368) that 
would permit members of the reserve components to use General 
Services Administration federal supply contracts for commercial 
air transportation in order to perform inactive duty training.
      The Senate amendment contained a similar provision (sec. 
623).
      The House recedes.

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

Paid-up coverage under Survivor Benefit Plan (sec. 641)
      The Senate amendment contained a provision (sec. 631) 
that would, effective October 1, 2003, terminate Survivor 
Benefit Plan payments following 30 years of payments and 
attainment of the age of 70.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make the 
effective date October 1, 2008.
Survivor Benefit Plan open enrollment period (sec. 642)
      The Senate amendment contained a provision (sec. 634) 
that would establish a one-year open enrollment period for the 
Survivor Benefit Plan, beginning March 1, 1999. The provision 
would require persons electing to enroll in the Survivor 
Benefit Plan during the open enrollment period to pay premiums 
equal to the amount the member would have paid had the member 
enrolled at the first opportunity afforded that member, with 
interest, and any additional amount the Secretary of Defense 
determines to be necessary to make the election actuarially 
sound.
      The House bill contained no similar provision.
      The House recedes.
Effective date of court-required former spouse survivor benefit plan 
        coverage effectuated through elections and deemed elections 
        (sec. 643)
      The House bill contained a provision (sec. 641) that 
would standardize the effective date of Survivor Benefit Plan 
coverage for a former spouse as the first day of the first 
month following the date of the court order directing the 
coverage.
      The Senate amendment contained a similar provision (sec. 
632).
      The House recedes with a clarifying amendment.
Presentation of a United States flag to members of the Armed Forces 
        upon retirement (sec. 644)
      The Senate amendment contained a provision (sec. 637) 
that would require the secretary of a military department to 
present a United States flag to a member upon retirement from 
active or reserve service.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Recovery, care, and disposition of remains of medically retired member 
        who dies during hospitalization that begins while on active 
        duty (sec. 645)
      The House bill contained a provision (sec. 553) that 
would authorize military retirees the same benefits for 
recovery, care, and disposition of remains as active duty 
members when that member is medically retired from active duty 
while hospitalized and the hospitalization is continuous until 
the date of death.
      The Senate amendment contained a similar provision (sec. 
633).
      The House recedes with a clarifying amendment.
Revision to computation of retired pay for certain members (sec. 646)
      The House bill contained a provision (sec. 642) that 
would clarify that section 1406(i) of title 10, United States 
Code, would not apply to enlisted members who, after serving as 
the senior enlisted advisor of an armed force, are reduced in 
grade as the result of a court-martial sentence, nonjudicial 
punishment, or other administrative process. The provision 
would also provide that the computation of the high-three 
average of a retired enlisted member who was reduced in grade 
be based on the lower grade.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would retain 
the clarification to section 1406(i).
      The conferees urge the Secretary of Defense to review the 
effectof a reduction in grade on members who are reduced in 
grade and who may retire under the high-three average method of 
computation of retired pay and, if appropriate, recommend legislation 
to ensure that the member's retired pay be computed based on the lower 
grade.
Elimination of backlog of unpaid retired pay (sec. 647)
      The Senate amendment contained a provision (sec. 638) 
that would require the Secretary of the Army to eliminate the 
backlog of unpaid retired pay for members and the former 
members of the Army, the Army Reserve, and the Army National 
Guard by December 31, 1998.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

Definition of possessions of the United States for pay and allowances 
        purposes (sec. 651)
      The House bill contained a provision (sec. 651) that 
would delete the Canal Zone from the list of U.S. possessions 
as defined in title 37, United States Code.
      The Senate amendment contained a similar provision (sec. 
641).
      The Senate recedes with a clarifying amendment.
Accounting of advance payments (sec. 652)
      The House bill contained a provision (sec. 652) that 
would clarify the authority of the secretary concerned to 
disburse advance payments to service members in a permanent 
change of station status in amounts that may exceed available 
appropriations in the relevant military personnel accounts.
      The Senate amendment (sec. 1046) contained a similar 
provision.
      The Senate recedes with a technical amendment.
Reimbursement of rental vehicle costs when motor vehicle transported at 
        government expense is late (sec. 653)
      The House bill contained a provision (sec. 653) that 
would authorize a service member being transferred to an 
overseas station to rent a car for one week at government 
expense when the privately owned vehicle shipped to the 
overseas location does not arrive as scheduled. The provision 
would limit the car rental reimbursement to $30 a day for one 
week, and would require the Secretary of Defense to certify in 
a report to the Congress that a system is operational to 
recover the cost of the reimbursement for the rental car from 
the shipping company that caused the delay prior to any 
reimbursement.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Education loan repayment program for health professions officers 
        serving in Selected Reserve (sec. 654)
      The House bill contained a provision (sec. 654) that 
would increase the authorized caps on the education loan 
amounts that may be repaid by the Secretary of Defense to 
recruit and retain health professionals with shortage wartime 
critical medical skills who serve in the Selected Reserve. The 
provision would increase the repayment amounts from $3,000 per 
year and $20,000 total to $10,000 and $50,000, respectively.
      The Senate amendment contained a provision (sec. 617) 
that would modify the current education loan repayment program 
by permitting the services to offer the program to certain 
health professions students, and would increase the loan 
repayment limit from $3,000 per year and a total of $20,000 to 
$20,000 per year and a total of $50,000.
      The House recedes.
Federal employees' compensation coverage for students participating in 
        certain officer candidate programs (sec. 655)
      The Senate amendment contained a provision (sec. 642) 
that would provide medical coverage to college students 
participating in a Senior Reserve Officers' Training program or 
the Marine Corps Platoon Leaders Course who are injured or 
become ill while attending training on orders. The provision 
would provide for medical coverage for injury or illness even 
if incurred during non-duty hours, provided the injury or 
illness is determined to be in the line of duty, as prescribed 
by service regulations.
      The House bill contained no similar provision.
      The House recedes.
Relationship of enlistment bonuses to eligibility to receive Army 
        college fund supplement under Montgomery GI bill Educational 
        Assistance Program (sec. 656)
      The Senate amendment contained a provision (sec. 619) 
that would authorize the military services to offer both an 
enlistment bonus and a college fund program to prospective 
recruits in selected critically short specialities.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority to provide financial assistance for education of certain 
        defense dependents overseas (sec. 657)
      The Senate amendment contained a provision (sec. 643) 
that would authorize the Secretary of Defense to provide 
financial assistance to sponsors of dependents in overseas 
areas in which the Department of Defense does not operate 
schools.
      The House bill contained no similar provision.
      The House recedes.
Clarifications concerning payments to certain persons captured or 
        interned by North Vietnam (sec. 658)
      The Senate amendment contained a provision (sec. 635) 
that would authorize payments to the surviving parents or 
siblings of Vietnamese commandos who were not married at the 
time of their death.
      The Senate amendment contained an additional provision 
(sec. 636) that would clarify that payments to Vietnamese 
commandos or their survivors must be paid directly to the 
authorized recipient.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would combine 
the two provisions into a single provision.

                   Legislative Provisions Not Adopted

Voting rights of military personnel
      The Senate amendment contained a provision (sec. 644) 
that would amend the Soldiers' and Sailors' Civil Relief Act of 
1940 to preclude a military member from losing a claim to state 
residency for the purpose of voting in federal and state 
elections because of absence due to military orders, and amend 
the Uniformed and Overseas Citizens Absentee Voting Act to 
require each state to permit absent military voters to use 
absentee registration procedures and to vote by absentee ballot 
in elections for state and local offices, in addition to 
federal offices as provided in current law.
      The House bill contained no similar provision.
      The Senate recedes.

                   Title VII--Health Care Provisions

                     Legislative Provisions Adopted

                    Subtitle A--Health Care Services

Dependents' dental program (sec. 701)
      The House bill contained a provision (sec. 721) that 
would amend section 1076a(b)(2) of title 10, United States 
Code, to allow for the cap on an enrolled member's share of the 
monthly premium for the dependent dental program to be adjusted 
annually for inflation.
      The Senate amendment contained a provision (sec. 701) 
that would establish an index under which an enrolled member's 
monthly premium for the dependent dental plan could increase in 
a manner not to exceed the percentage of the annual pay raise.
      The House recedes with an amendment that would not 
include the Dependent Dental Program within TRICARE and would 
prohibit the Secretary of Defense from reducing the dependent 
dental benefit without prior consultation with the Committee on 
Armed Services of the Senate and the National Security 
Committee of the House of Representatives.
Expansion of dependent eligibility under retiree dental program (sec. 
        702)
      The House bill contained a provision (sec. 701) that 
would amend section 1076c of title 10, United States Code, to 
allow dependents of certain retired service members to enroll 
in the retiree dental program even if the retired member does 
not enroll in the program.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Plan for redesign of military pharmacy system (sec. 703)
      The House bill contained a provision (sec. 703) that 
would require the Secretary of Defense to submit to the 
Congress, by March 1, 1999, a plan for a system-wide redesign 
of the military and contractor retail and mail-order pharmacy 
system by incorporating the ``best business practices'' of the 
private sector.
      The Senate amendment contained no similar provision.
      The Senate recedes.
      The conferees intend that the uniform formulary be 
considered the minimum and not the maximum inventory of drugs 
that may be available through a military treatment facility. 
The conferees expect that, if the military treatment facility 
commander determines that the beneficiary population served by 
that military treatment facility requires drugs that could be 
provided in a more cost effective manner to the government 
through the military treatment facility, the military treatment 
facility commander must have the flexibility to add such drugs 
to the formulary in that facility. The conferees instruct the 
Secretary of Defense that the required pharmacy redesign plan 
not include any proposal in which pharmacies in military 
treatment facilities could charge fees or co-pays for active 
duty personnel, nor for any formulary or equivalent generic 
drug dispensed to any eligible beneficiary. The conferees do 
not intend that any proposed pharmacy redesign would include 
any proposal to permit retail pharmacies to purchase drugs at a 
government rate.
Transitional authority to provide continued health care coverage for 
        certain persons unaware of loss of CHAMPUS eligibility (sec. 
        704)
      The House bill contained a provision (sec. 704) that 
would authorize the Secretary of Defense to extend temporarily 
CHAMPUS eligibility to certain beneficiaries who may have been 
unaware of their loss of eligibility for CHAMPUS coverage.
      The Senate amendment contained a similar provision (sec. 
704).
      The Senate recedes.

                      Subtitle B--TRICARE Program

Payment of claims for provision of health care under the TRICARE 
        program for which a third party may be liable (sec. 711)
      The House bill contained a provision (sec. 711) that 
would amend section 1095 of title 10, United States Code, to 
authorize the Secretary of Defense to allow TRICARE contractors 
to pay certain provider claims for the provision of health care 
services for accidental injury prior to seeking payment from 
potential third-party payers.
      The Senate amendment contained no similar provision.
      The Senate recedes.
TRICARE prime automatic enrollments and retiree payment options (sec. 
        712)
      The House bill contained a provision (sec. 712) that 
would direct the Secretary of Defense to establish procedures 
for the automatic enrollment in TRICARE Prime at a military 
treatment facility for active-duty dependents residing within 
the catchment area of the facility, would require advance 
written notification of this enrollment, and would allow 
enrolled family members to disenroll from Military Treatment 
Facility TRICARE Prime at any time. The provision would also 
permit retired service members to have any fees associated with 
enrollment in TRICARE to be paid through an allotment from 
their retired pay or via electronic funds transfer from a 
financial institution.
      The Senate amendment contained a similar provision (sec. 
703).
      The House recedes with an amendment that would permit 
retired members enrolled in TRICARE Prime to pay enrollment 
fees by allotment, electronic funds transfer or direct payment 
on a monthly or quarterly basis, would permit automatic re-
enrollment for everyone who is enrolled in TRICARE Prime, and 
would permit automatic enrollment in TRICARE Prime for 
authorized family members of service members in grades E-4 and 
below.
      The conferees intend that service members be notified 
that their authorized family members have been enrolled in 
TRICARE Prime and advise them of the procedures to change the 
enrollment if the automatic enrollment process did not properly 
enroll their authorized family members. The conferees intend 
that the Secretary of Defense establish procedures to notify 
those beneficiaries enrolled in TRICARE Prime of the status of 
their enrollment upon arrival at a new duty station to ensure 
that the enrollment is appropriate. The conferees direct the 
secretaries of the military departments to ensure that unit 
commanders include TRICARE Prime enrollment as part of all 
predeployment and permanent change of station inprocessing 
procedures to ensure that service members are apprised of the 
enrollment status of their authorized family members and the 
procedures to modify the enrollment, if necessary. The 
Secretary of Defense may establish the annual re-enrollment 
date for those enrolled in TRICARE Prime as he determines to be 
most efficient. The conferees do not necessarily intend that 
the annual re-enrollment date be on the specific anniversary of 
the initial enrollment.
System for tracking data and measuring performance in meeting TRICARE 
        access standards (sec. 713)
      The House bill contained a provision (sec. 722) that 
would require the Secretary of Defense to establish a system 
for measuring military treatment facilities and TRICARE 
contractors' performance in meeting the Department of Defense 
standards for access to primary care services.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Establishment of appeals process for claimcheck denials (sec. 714)
      The House bill contained a provision (sec. 728) that 
would require the Secretary of Defense, not later than November 
1, 1998, to submit a proposal to establish an appeals process 
in cases of denials through the Claim Check computer software 
system of claims by civilian health care providers in TRICARE.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Secretary of Defense to establish an appeals process in 
cases of denials of claims from a civilian health care provider 
in TRICARE by any computer based software system and to report 
to the Committee on Armed Services of the Senate and the 
National Security Committee of the House of Representatives 
when the appeals system is implemented.
Reviews relating to accessibility of health care under TRICARE (sec. 
        715)
      The Senate amendment contained a provision (sec. 711) 
that would require the Secretary of Defense to revise the 
TRICARE policy manual to clarify that rehabilitative services 
are available to a patient for a head injury when the treating 
physician certifies that such services would be beneficial and 
to review the adequacy of the provider network to determine 
whether the networks include sufficient health care providers 
and specialists.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to review the TRICARE policy manual to 
determine whether the policies dealing with the availability of 
rehabilitative services for patients suffering from head 
injuries are adequate and address the consideration of 
certification by an attending physician and report to the 
Committee on Armed Services of the Senate and the National 
Security Committee of the House of Representatives, not later 
than April 1, 1999.
      The conferees direct the Secretary of Defense to ensure 
that the TRICARE policy manual is written in such a manner as 
to be clear and easy to comprehend by health care providers and 
others who may be involved in decisions concerning the 
authorized coverage under TRICARE.

 Subtitle C--Health-Care Services for Medicare-Eligible Department of 
                 Defense Beneficiaries (secs. 721-724)

      The House bill contained a provision (sec. 729) that 
would authorize a three-year demonstration project under which 
not more than 70,000 Medicare-eligible beneficiaries of the 
Military Health Care System may enroll in the Federal Employees 
Health Benefits Program (FEHBP). The provision would require 
the Secretary of Defense and the Director of the Office of 
Personnel Management to report to the Congress, not later than 
39 months after the beginning of the test, on the effectiveness 
of the demonstration. The Comptroller General would be required 
to make a similar report within the same time frame as the 
report of the Secretary of Defense.
      The Senate amendment contained a provision (sec. 707) 
that would authorize the Secretary of Defense to conduct three 
health care demonstration projects in order to assess the 
feasibility and advisability of providing health care to 
certain Medicare-eligible beneficiaries of the Military Health 
Care System. The demonstrations would begin not later than 
January 1, 2000 and end not later than December 31, 2003. The 
recommended provision would authorize: one demonstration 
project in which Medicare-eligible beneficiaries of the 
Military Health Care System would participate in the Federal 
Employees Health Benefits Program; a second demonstration 
project would create a TRICARE Senior Supplement program in 
which Medicare-eligible beneficiaries of the Military Health 
Care System could enroll; and a demonstration that would extend 
the TRICARE mail order pharmacy benefit to Medicare-eligible 
beneficiaries of the Military Health Care System.
      The Senate recedes with an amendment that would limit the 
FEHBP demonstration to not more than 66,000 participants, 
require the Secretary of Defense to implement a redesigned 
pharmacy benefit for Medicare-eligible DOD beneficiaries at two 
sites, and include the TRICARE Senior Supplement demonstration 
from the Senate amendment. The demonstrations and the 
redesigned pharmacy benefit would begin not later than January 
1, 2000. The FEHBP demonstration would begin during the FEHBP 
open season for 2000. Implementation of the pharmacy redesign 
would begin not later than October 1, 1999. The TRICARE Senior 
Supplement would begin not later than January 1, 2000. The 
demonstrations would end not later than December 31, 2002. The 
Secretary of Defense, and in the case of the FEHBP 
demonstration, the Director of the Office of Personnel 
Management, would be required to report to the Congress not 
later than December 31, 2002 on the costs, effectiveness, and 
the feasibility of making the programs permanent. The 
Comptroller General would be required to make similar reports 
within the same time frame as the reports of the Secretary of 
Defense. In addition, the Comptroller General would be required 
to complete a comprehensive comparative analysis of the three 
projects and report to the Congress not later than March 31, 
2003.
      The conferees expect that the Secretary of Defense will 
strongly urge Medicare-eligible beneficiaries to participate in 
Medicare Part B. The conferees note participation in Medicare 
Part B is not required for eligibility in the FEHBP 
demonstration; however, those who do not elect to participate 
in Medicare Part B and later require Medicare benefits may be 
required to pay a significant penalty.
      The conferees expect that health benefit plans under 
chapter 89 of title 5, United States Code, that participate in 
the FEHBP demonstration project will establish separate 
enrollment codes for self-only and self-and-family elections as 
an essential element of the requirement to maintain a separate 
risk pool for covered beneficiaries. Further, the conferees 
expect the Secretary of Defense and the Director of the Office 
of Management and Budget to seek the views of health plans that 
desire to participate in the demonstration about any aspect 
that the health plan believes would, in any way, prejudice the 
results of the project. The report required of the Secretary of 
Defense and the Director of the Office of Personnel Management 
shall include verbatim, written views by any participating 
health plan on the conduct of the demonstration project.
      The conferees strongly believe that eligible 
beneficiaries must receive accurate, objective, and timely 
information from the Department of Defense about the 
opportunity to enroll in a health benefits plan offered under 
chapter 89 of title 5, United States Code, as well as the other 
projects. The conferees direct the Secretary of Defense, after 
consultation with the Director of the Office of Personnel 
Management and with the participating health plans, to ensure 
that an educational program is implemented that will provide 
each eligible beneficiary with easily understandable 
information concerning enrollment options, enrollment terms and 
limitations, and any other information reasonably considered 
essential to making an informed decision concerning 
participation in a demonstration project.
      As part of the TRICARE Senior Supplement demonstration, 
the Secretary of Defense shall require participants to pay an 
enrollment fee which may not exceed 75 percent of the total 
subscription charges in a year for self-only or self-and-family 
fee for service coverage under FEHBP. The conferees expect the 
Secretary of Defense to use as the basis for determining the 
enrollment fee the FEHBP plan that is comparable to the TRICARE 
Extra benefit. The conferees do not expect that the FEHBP plan 
selected as the base plan will be the most expensive plan, and 
thus prejudice the demonstration project.

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

Process for waiving informed consent requirement for administration of 
        certain drugs to members of Armed Forces for purposes of a 
        particular military operation (sec. 731)
      The Senate amendment contained a provision (sec. 713) 
that would require that an investigational new drug or a drug 
unapproved for its applied use not be administered to a member 
of the armed forces unless the member provides prior consent. 
The recommended provision would permit the Secretary of Defense 
to request the President waive the requirement for prior 
consent if the Secretary determines that obtaining consent is 
not feasible, is contrary to the best interests of the members 
involved, or is not in the best interests of national security.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees note that presidential approval, 
Congressional reports, and prior written notice to the member 
do not apply to Federal Drug Administration informed consent 
exceptions applicable to standard medical practice in the 
United States, as distinguished from informed consent 
exceptions that relate specifically to military functions and 
activities.
Health benefits for abused dependents of members of the armed forces 
        (sec. 732)
      The Senate amendment contained a provision (sec. 712) 
that would require the secretary concerned to provide an abused 
dependent of a former member of a uniformed service with 
medical and dental care during the period that the abused 
dependent is receiving transitional compensation under section 
1059 of title 10, United States Code.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Provision of health care at military entrance processing stations and 
        elsewhere outside medical treatment facilities (sec. 733)
      The Senate amendment contained a provision (sec. 702) 
that would extend the coverage of contract physicians by the 
same malpractice litigation rules as other Department of 
Defense health care providers. The provision would also extend 
the authority of the Secretary of Defense to provide reasonable 
attorney's fees in any litigation in which government attorneys 
do not provide representation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would extend the 
current authority until December 31, 2000, and would require 
the Secretary of Defense to conduct a test of alternative 
methods for conducting medical screenings for enlistment 
qualification and report the findings not later than March 1, 
2000.
Professional qualifications of physicians providing military health 
        care (sec. 734)
      The House bill contained a provision (sec. 726) that 
would require the secretary of a military department to ensure 
that each military physician holds an unrestricted medical 
license. The House bill also contained a provision (sec. 727) 
that would require the Secretary of Defense to establish a 
mechanism to ensure that each military physician completes the 
continuing medical education requirements applicable to their 
medical specialty.
      The Senate amendment contained a single provision (sec. 
708) similar to the two provisions in the House bill.
      The House recedes with a clarifying amendment.

                       Subtitle E--Other Matters

Enhanced Department of Defense organ and tissue donor program (sec. 
        741)
      The Senate amendment contained a provision (sec. 705) 
that would require the Secretary of Defense, the secretaries of 
the military departments, and the Surgeons General to enhance 
the support for organ and tissue donor elections made by 
service members.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that service members are provided with appropriate information 
about organ and tissue donation and are afforded the 
opportunity to elect to be a donor subsequent to completion of 
initial training, but prior to their first duty assignment.
Authorization to establish a Level One Trauma Training Center (sec. 
        742)
      The House bill contained a provision (sec. 724) that 
would authorize the Secretary of the Army to establish a Level 
One Trauma Training Center in accordance with the American 
College of Surgeons standards for trauma centers.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authority to establish center for study of post-deployment health 
        concerns of members of the armed forces (sec. 743)
      The Senate amendment contained a provision (sec. 709) 
that would require the Secretary of Defense to contract with an 
independent organization to assess the feasibility and 
advisability of establishing an independent entity to evaluate 
and monitor interagency coordination of issues related to the 
post-deployment health concerns of members of the armed forces 
and to report to the Congress on the results of the assessment 
not later than one year after the enactment of this act.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the Secretary of Defense to establish a center devoted to a 
longitudinal study to evaluate information on the health 
conditions of members of the armed forces upon their return 
from deployment on military operations in order to rapidly 
identify trends in illnesses or injuries among such members.
Report on implementation of enrollment-based capitation for funding for 
        military medical treatment facilities (sec. 744)
      The House bill contained a provision (sec. 725) that 
would require the Secretary of Defense to report to the 
Congress, by March 1, 1999, on the potential impact of using an 
enrollment-based capitation methodology to allocate funds to 
military medical treatment facilities.
      The Senate amendment contained no similar provision. The 
Senate recedes.
Joint Department of Defense and Department of Veterans Affairs reports 
        relating to interdepartmental cooperation in the delivery of 
        medical care (sec. 745)
      The Senate amendment contained a provision (sec. 706) 
that would require the Secretary of Defense and the Secretary 
of Veterans Affairs to conduct a joint survey of their 
respective beneficiary populations to identify, by category of 
individual, the expectations of, requirements for, and behavior 
patterns of those populations regarding medical care. The 
provision would require this collaborative effort be developed 
jointly and administered by an independent entity. 
Additionally, this provision would require the Secretaries of 
Defense and Veterans Affairs to review all applicable statutes, 
regulations, policies and beneficiary attitudes that may 
preclude or limit cooperative health care programs, including 
the sharing of facilities and other resources, between the 
Department of Defense and the Department of Veterans Affairs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the joint survey need not include information that is 
currently available from other sources and that the secretaries 
report all required information to the Committee on Armed 
Services of the Senate and the National Security Committee of 
the House of Representatives.
      The conferees intend that the required pharmaceutical 
review be oriented toward identifying ways to improve 
cooperative arrangements between the Department of Defense and 
the Department of Veterans Affairs. The conferees do not 
support expanding government pricing for drugs to non-
government entities.
Report on research and surveillance activities regarding Lyme disease 
        and other tick-borne diseases (sec. 746)
      The Senate amendment contained a provision (sec. 710) 
that would authorize $3.0 million within the Defense Health 
Program to be used for research and surveillance activities 
related to Lyme disease and other tick-borne diseases.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to report to the Committee on Armed 
Services of the Senate and the National Security Committee of 
the House of Representatives on the impact of Lyme disease and 
other tick-borne diseases on military readiness and the efforts 
within the Department of Defense to prevent, identify, and 
treat such diseases.

                   Legislative Provisions Not Adopted

Plan for provision of health care for military retirees and their 
        dependents comparable to health care provided under TRICARE 
        Prime
      The House bill contained a provision (sec. 702) that 
would require the Secretary of Defense to submit to the 
Congress, by March 1, 1999, a plan for ensuring that military 
retirees, including Medicare-eligible retirees, and their 
dependents have access to health care benefits comparable to 
those offered through TRICARE Prime, the managed-care option of 
the TRICARE program.
      The Senate amendment contained no similar provision.
      The House recedes.

  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                     Legislative Provisions Adopted

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

Limitation on use of price preference upon achievement of contract goal 
        for small and disadvantaged businesses (sec. 801)
      The Senate amendment contained a provision (sec. 803) 
that would condition the use of the 10 percent price preference 
criteria in section 2323 of title 10, United States Code, on 
the failure of the Department of Defense (DOD) to achieve the 
goal in the section during the prior fiscal year.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The amendment would clarify that the limitation on the 
use of the price preference applies only to the DOD and would 
specify procedures for implementing a suspension of the use of 
the price preference.
Distribution of assistance under the procurement technical assistance 
        cooperative agreement program (sec. 802)
      The Senate amendment contained a provision (sec. 804) 
that would amend section 2413 of title 10, United States Code, 
and repeal section 2415, United States Code, to recognize the 
change in the Department of Defense contract administration 
structure.
      The House bill contained no similar provision.
      The House recedes with an amendment that would retain 
section 2415 and amend sections 2413 and 2415 by striking 
``region'' and inserting ``district''.
Defense commercial pricing management improvement (sec. 803)
      The Senate amendment contained a provision (sec. 805) 
that would require the Federal Acquisition Regulation (FAR) be 
revised to provide guidelines that would ensure price 
reasonableness in sole-source commercial item purchases. The 
FAR would also be revised to clarify issues such as the 
appropriate use of different types of informationfor 
establishing such price reasonableness.
      The provision would also require the Secretary of Defense 
to establish procedures to ensure that, to the maximum extent 
practicable, sole-source spare parts purchases are negotiated 
through corporate contracts by single contracting officers or 
item managers to ensure that the government receives maximum 
leverage for the size of its purchases and to ensure that 
catalog discount issues and price reasonableness determinations 
are not treated in an isolated or piecemeal fashion. Finally, 
the provision would require the Secretary of Defense to 
establish a system for tracking price trends in spare parts in 
order to isolate categories of items that require further 
management attention. The provision would provide the Secretary 
of Defense with the discretion to set up such a system in a 
manner that would ensure minimal burden on the acquisition 
system and proper management.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the information to be considered in determining price 
reasonableness, the role of support organizations in the 
Department of Defense, and the reporting requirements 
applicable to the price trend analyses.
      The conferees intend that these regulatory changes 
address the types of abuses uncovered in recent audits 
conducted by the Department of Defense (DOD) Inspector General 
on sole source commercial spare parts purchases by the DOD. The 
conferees do not intend this provision to impede implementation 
of the general federal government policy stated in the Federal 
Acquisition Streamlining Act of 1994 and the Federal 
Acquisition Reform Act of 1996 of relying on the commercial 
sector to an increasing extent for goods and services.
Modification of senior executives covered by limitation on allowability 
        of compensation for certain contractor personnel (sec. 804)
      The Senate amendment contained a provision (sec. 813) 
that would revise the definition of the term ``senior 
executive'' for purposes of the limitation on allowability of 
compensation for certain contractor personnel.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
that the revised definition applies to costs incurred after 
January 1, 1999, under covered contracts.
Separate determinations of exceptional waivers of truth in negotiation 
        requirements for prime contracts and subcontracts (sec. 805)
      The Senate amendment contained a provision (sec. 814) 
that would allow the heads of agencies to waive the 
requirements under the Truth in Negotiations Act that 
subcontractors provide certified cost and pricing data in cases 
where such requirements have been waived for prime contractors 
due to a determination of exceptional circumstances.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment concerning 
the organizational waiver level.
      The conferees agree that the term ``exceptional 
circumstances'' requires more than the belief that it may be 
possible to determine the contract price to be fair and 
reasonable without the submission of certified cost and pricing 
data. For example, a waiver may be appropriate in circumstances 
where it is possible to determine price reasonableness without 
cost or pricing data and the contracting officer determines 
that it would not be possible to enter into a contract with a 
particular contractor in the absence of a waiver. The conferees 
direct the Department of Defense to work with the appropriate 
executive branch officials to clarify the situations in which 
an exceptional circumstance waiver may be granted.
Procurement of conventional ammunition (sec. 806)
      The House bill contained a provision (sec. 801) that 
would require that ammunition or ammunition components procured 
by the Department of Defense (DOD) be acquired from domestic 
sources pursuant to section 2534 of title 10, United States 
Code.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would assign to 
the single manager for conventional ammunition in the DOD the 
authority to restrict the procurement of conventional 
ammunition to the national technology and industrial base. The 
amendment would also require the single manager for 
conventional ammunition to limit specific procurements, in 
accordance with section 2304(c)(3) of title 10, United States 
Code, in cases where it is determined that doing so is 
necessary to maintain a facility, producer, manufacturer, or 
other supplier available for furnishing an essential item of 
ammunition or ammunition component in cases of national 
emergency or to achieve industrial mobilization.
      This provision supersedes existing guidance issued by the 
DOD as it relates to the procurement of ammunition from 
domestic sources. The conferees direct the Department of the 
Army to issue new guidance to replace the DOD guidance 
superseded by this provision. The conferees intend that the 
determination specified in the provision be conducted within 
the Department of the Army using procedures prescribed by the 
Secretary of the Army.
Para-aramid fibers and yarns (sec. 807)
      The Senate amendment contained a provision (sec. 801) 
that would authorize the Secretary of Defense to procure 
articles containing para-aramid fibers and yarns manufactured 
in a foreign country that is a party to defense memorandum of 
understanding, if such country allows U.S. manufacturers of 
that product to compete for sales to that foreign country.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would allow the 
Secretary of Defense to procure articles containing yarns and 
fibers manufactured in a country with whom the United States 
has a defense memorandum of understanding upon making a 
determination described inthe provision.
Clarification of responsibility for submission of information on prices 
        previously charged for property or services offered (sec. 808)
      The Senate amendment contained a provision (sec. 816) 
that would amend the Truth in Negotiations Act to clarify 
requirements for contractors to provide appropriate price 
information required by federal contracting officers to 
determine price reasonableness.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
that the Federal Acquisition Regulation (FAR) be amended to 
provide that compliance with the requirement to submit data 
shall be a condition for an offer or to be eligible to enter 
into a contract or subcontract, subject to such exceptions as 
the Federal Acquisition Regulatory Council determines 
appropriate. The conferees intend that any exceptions to the 
requirement to submit price-related information be limited to 
those situations that are clearly specified in the FAR pursuant 
to this provision.
      Nothing in this section would require any contractor to 
submit certified cost or pricing data, to comply with the Cost 
Accounting Standards, or to comply with the contract cost 
principles, if the contractor is not otherwise required to do 
so. The conferees do not intend this provision to require any 
revision to the FAR except to the extent specifically required 
by subsections (c) and (d).
Amendments and study relating to procurement from firms in industrial 
        base for production of small arms (sec. 809)
      The House bill contained a provision (sec. 803) that 
would amend section 2473 of title 10, United States Code, to 
require the Secretary of Defense to procure all small arms end 
items, small arms repair parts, modifications to improve small 
arms, and repair parts consisting of small arms barrels, bolts 
and receivers from the small arms production industrial base.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
specified small arms purchases be made only from a firm in the 
small arms industrial base unless the Secretary determines, 
with a regard to a particular procurement, that such 
requirement is not necessary to preserve the small arms 
industrial base. The requirements under section 2473 would 
apply to procurement of repair parts for or modifications to 
improve the M16 series rifle, the MK19 grenade machine gun, the 
M4 series carbine, the M240 series machine gun, and the M249 
squad automatic weapon. The amendment would also require the 
Secretary of the Army to conduct a study under the auspices of 
the Army Science Board to examine whether the requirements of 
section 2473 should be expanded in specified ways and 
authorizes the Secretary to do so based on the recommendations 
of the Army Science Board. The conferees expect the completion 
of the Army Science Board study, including recommendations, no 
later than 180 days after the date of enactment of this Act.

                       Subtitle B--Other Matters

Eligibility of involuntarily downgraded employee for membership in an 
        acquisition corps (sec. 811)
      The House bill contained a provision (sec. 802) that 
would enable civilian members of the Defense Acquisition Corps 
who are reduced in grade due to a base closing or downsizing to 
retain their membership in the Acquisition Corps for the 
purposes of the Defense Acquisition Workforce Improvement Act.
      The Senate amendment contained a similar provision (sec. 
809).
      The House recedes.
Time for submission of annual report relating to Buy American Act (sec. 
        812)
      The House bill contained a provision (sec. 804) that 
would reduce the time for the submission of the annual report 
relating to the Buy American Act required in section 827 of the 
National Defense Authorization Act for Fiscal Year 1997 (Public 
Law 104-201) from 90 to 60 days after the end of the fiscal 
year.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Procurement of travel services for official and unofficial travel under 
        one contract (sec. 813)
      The Senate amendment contained a provision (sec. 802) 
that would allow the procurement of travel services under one 
contract for both official and unofficial travel.
      The House bill contained no similar provision.
      The House recedes.
Department of Defense purchases through other agencies (sec. 814)
      The Senate amendment contained a provision (sec. 806) 
that would require the Secretary of Defense to revise 
regulations issued pursuant to section 844 of the National 
Defense Authorization Act for Fiscal Year 1994 (Public Law 103-
160), which cover all purchases of goods and services by the 
Department of Defense under so-called ``multiple award task 
order and delivery order contracts'' entered into or 
administered by any other agency.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Supervision of defense acquisition university structure by Under 
        Secretary of Defense for Acquisition and Technology (sec. 815)
      The Senate amendment contained a provision (sec. 807) 
that would specify that the responsibility for the 
establishment of policy and requirements for educational 
programs of the defense acquisition university be vested in the 
Under Secretary of Defense for Acquisition and Technology.
      The House bill contained no similar provision.
      The House recedes.
Pilot programs for testing program manager performance of product 
        support oversight responsibilities for life cycle of 
        acquisition programs (sec. 816)
      The Senate amendment contained a provision (sec. 810) 
that would require the Secretary of Defense to designate 10 
programs for which the program manager will be made responsible 
for the life cycle cost issues through the life of the program. 
The Secretary would be required to report, no later than 
February 1, 1999, to the congressional defense committees on 
the 10 programs and to include any policy, regulatory, 
organizational, or legislative changes that would be required 
to fully implement this new approach to life cycle cost 
management.
      The House bill contained no similar provision.
      The House recedes.
      The conferees direct that the Secretary of Defense 
include in the report to the Congress on the pilot program 
candidates a discussion of the appropriate point in the 
acquisition cycle for life cycle cost management to transition 
from the program manager to the logistics organizations of the 
services.
Scope of protection of certain information from disclosure (sec. 817)
      The Senate amendment contained a provision (sec. 811) 
that would amend section 2371 of title 10, United States Code, 
to clarify that certain information submitted by outside 
parties in cooperative agreements for basic, applied, and 
advanced research are protected from disclosure under section 
552 of title 5, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Plan for rapid transition from completion of small business innovative 
        research into defense acquisition programs (sec. 818)
      The Senate amendment contained a provision (sec. 812) 
that would require the Secretary of Defense to develop a plan 
for facilitating a rapid transition for successfully completed 
research under the Small Business Innovative Research (SBIR) 
program into defense acquisition programs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would clarify 
the elements of the plan and the procedures for preparing and 
transmitting the plan to the Congress.
Five-year authority for the Secretary of the Navy to exchange certain 
        items (sec. 819)
      The Senate amendment contained a provision (sec. 815) 
that would authorize the Secretary of the Navy to enter into a 
barter agreement during fiscal years 1999 through 2003 to 
exchange vehicles for repair and remanufacture of ribbon 
bridges for the Marine Corps.
      The House bill contained no similar provision.
      The House recedes.
Permanent authority for use of major test range and test facility 
        installations by commercial entities (sec. 820)
      The Senate amendment contained a provision (sec. 217) 
that would amend section 2681 of title 10, United States Code, 
to make the temporary authority to permit commercial use of 
test and evaluation centers permanent.
      The House bill contained no similar provision.
      The House recedes.
Inventory exchange authorized for certain fuel delivery contract (sec. 
        821)
      The Senate amendment contained a provision (sec. 817) 
that would require the Secretary of Defense to submit to 
Congress no later than December 1, 1998 a report recommending 
alternative means for a small and disadvantaged business that 
delivers by barge to Defense Energy Supply Point-Anchorage 
under a contract with the Defense Energy Supply Center to 
fulfill its contractual obligations and not lose its small and 
disadvantaged business status when ice conditions in the Cook 
Inlet threaten the physical delivery of such fuel. The 
provision would also provide that such small and disadvantaged 
business could not lose its small and disadvantaged business 
status through February 1999 if ice conditions in the Cook 
Inlet prevent deliveries of bulk fuel and the Secretary of 
Defense determines that effects of such inability to deliver 
would result in an inequity to the supplier.
      The House bill contained no similar provision.
      The House recedes with an amendment that would eliminate 
the requirement for a report from the Secretary of Defense and 
clarify that the provision would in no case authorize a barrel-
for-barrel exchanges totaling more than 15 percent of the total 
amount of bulk fuel under a contract. The amendment would also 
clarify that the authority under the section does not affect 
the requirement that a contractor otherwise fulfill its 
contractual obligations.

                   Legislative Provisions Not Adopted

Study on increase in micro-purchase threshold
      The House bill contained a provision (sec. 805) that 
would require the Comptroller General to conduct a study to 
assess the impact of the current micro-purchase program and the 
advisability ofincreasing the micro-purchase threshold to 
$10,000 under section 32 of the Office of Federal Procurement Policy 
Act.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that a thorough analysis of any 
proposal to raise the micropurchase threshold, including the 
impact on small business participation in contracting, must be 
provided to the Congress by the Department of Defense before 
such a change can be considered.
Repeal of requirement for Director of Acquisition Education, Training, 
        and Career Development to be within the Office of the Under 
        Secretary of Defense for Acquisition and Technology
      The Senate amendment contained a provision (sec. 808) 
that would remove the requirement that the Director of 
Acquisition Education, Training, and Career Development be 
appointed within the Office of the Under Secretary of Defense 
for Acquisition and Technology.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees believe that the issue of the status of the 
director of acquisition education, training, and career 
development should be deferred until the Department of Defense 
has clarified the future role of the Office of the Under 
Secretary of Acquisition and Technology in the planning and 
execution of higher education for acquisition professionals in 
the Department of Defense.

      Title IX--Department of Defense Organization and Management

                     Legislative Provisions Adopted

      Subtitle A--Department of Defense Officers and Organization

Reduction in number of Assistant Secretary of Defense positions (sec. 
        901)
      The Senate amendment contained a provision (sec. 901) 
that would codify the reductions in the number of assistant 
secretaries of defense announced by the Secretary of Defense as 
part of the Defense Reform Initiative. Specifically, the 
recommended provision would reduce the number of assistant 
secretaries of defense from ten to nine.
      The House bill contained no similar provision.
      The House recedes.
Repeal of statutory requirement for position of Assistant Secretary of 
        Defense for Command, Control, Communications and Intelligence 
        (sec. 902)
      The Senate amendment contained a provision (sec. 902) 
that would rename the Assistant Secretary of Defense for 
Command, Control, Communications, and Intelligence (ASD-C3I) to 
the Assistant Secretary of Defense for Space and Information 
Superiority, and change the statutorily designated duties 
associated with this position.
      The House bill contained no similar provision.
      The House recedes with an amendment that would repeal 
section 138(b)(3) of title 10, United States Code.
      The Secretary of Defense recently announced a number of 
organizational changes to the Office of the Secretary of 
Defense pursuant to the Defense Reform Initiative. Among these 
changes is a significant modification of the office of the ASD-
C3I. As a result, the current title no longer describes the 
full range of responsibilities of this office, nor adequately 
identifies its functional priorities. The conferees endorse the 
new title ``Assistant Secretary of Defense for Space and 
Information Superiority''.
      The conferees continue to support a ``single focal point 
for space'' in the Department of Defense, and believe that 
there are synergies to be gained by linking this function with 
the Department's information superiority activities. The 
conferees note that, although there is a significant degree of 
overlap between ``information superiority'' and ``space'', 
these two functional areas also have many unique aspects that 
deserve significant focused attention. Therefore, the conferees 
endorse the Secretary's decision to include the term ''space'' 
in the revised title of this important position.
      The conferees note that the Assistant Secretary for Space 
and Information Superiority will be responsible for some of the 
most critical issues facing the Department of Defense, 
including space policy, information assurance, information 
operations, intelligence policy, command, control, 
communications, surveillance, reconnaissance, the ``year 2000'' 
problem, and electromagnetic spectrum issues. The conferees 
believe that one of the most significant challenges facing the 
Assistant Secretary will be the integration and mutual 
leveraging of the various elements that he will supervise.
Independent task force on transformation and Department of Defense 
        organization (sec. 903)
      The House bill contained a provision (sec. 905) that 
would require the Secretary of Defense to create a task force 
of the Defense Science Board for the purpose of determining the 
appropriate organization of the Department of Defense in light 
of the ongoing transformation in the conduct of war. The task 
force would be established not later than November 1, 1998 and 
the Secretary should transmit the findings of the task force 
along with recommendations and comments to the Congress by 
March 1, 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Authority to expand the National Defense University (sec. 904)
      The Senate amendment contained a provision (sec. 903) 
that wouldpermit the Secretary of Defense to designate, as he 
considers appropriate, educational institutions of the Department of 
Defense as institutions of the National Defense University.
      The House bill contained no similar provision.
      The House recedes.
Center for Hemispheric Defense Studies (sec. 905)
      The Senate amendment contained a provision (sec. 909) 
that would authorize funds available within the Latin American 
cooperation authority be used for the operation of the Center 
for Hemispheric Defense Studies.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Restructuring of administration of Fisher Houses (sec. 906)
      The House bill contained a provision (sec. 308) that 
would authorize appropriations from the Fisher House Trust 
Funds for use in the operation and maintenance of the Fisher 
Houses of the Army, Navy, and Air Force.
      The Senate amendment contained a provision (sec. 907) 
that would repeal section 2221 of title 10, United States Code, 
and direct the secretaries of the military departments to 
establish a nonappropriated fund in each department as the 
single source of funding to operate, maintain, and improve the 
Fisher Houses and Fisher Suites, and to close each Fisher House 
Trust Fund and transfer the amounts in the Fund to the 
respective nonappropriated fund.
      The House recedes with a clarifying amendment.
Management reform for research, development, test and evaluation 
        activities (sec. 907)
      The Senate amendment contained a provision (sec. 906) 
that would require the Department of Defense to conduct a 
cross-service analysis and a plan for restructuring and 
revitalization of the Department of Defense laboratories and 
test and evaluation (T&E) centers. The provision would also 
require that the Department develop a plan and schedule for 
establishing a cost-based management information system for 
identifying and comparing costs among the services' labs and 
T&E centers.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Department to analyze opportunities to improve efficiency 
and reduce duplication by designating responsibilities by lead 
agencies or executive agent, by area or function, or by other 
streamlining initiatives. The amendment would also strike 
sections (2)(D) and (2)(E) of the Senate provision. The 
conferees agree that the Department should explore options for 
an alternative management structure for T&E. The conferees 
agree that the lessons learned in personnel demonstration 
projects and pilot projects should be considered in any plan to 
restructure or reengineer the laboratories and test centers.

         Subtitle B--Department of Defense Financial Management

Improved accounting for defense contract services (sec. 911)
      The House bill contained a provision (sec. 906) that 
would require the Department of Defense to make numerous 
changes to the way they request funds for advisory and 
assistance services. The provision would require the 
Comptroller of the Department of Defense to conduct an 
assessment of the total non-Federal effort that resulted from 
the performance of all contracts for such services during the 
previous, current and following fiscal year. The provision 
would also prohibit the Department from classifying more than 
15 percent of its contractual services in a miscellaneous 
budget category but would allow the Department to report 30 
percent in its fiscal year 2000 budget as miscellaneous. In 
addition, the provision would codify the definition of advisory 
and assistance services to include; management and professional 
support services; studies, analyses, and evaluations; and, 
engineering and technical services. Finally, the provision 
would reduce the amount of funding that was budgeted for these 
services by $500.0 million.
      The Senate had no similar provision.
      The Senate recedes with an amendment that would strike 
the requirement for the Comptroller of the Department of 
Defense to conduct an assessment of the total non-Federal 
effort that resulted from the performance of all contracts for 
such services during the previous fiscal year, and the total 
non-Federal effort that will result from the performance of all 
contracts for such services during the current fiscal year. The 
amendment would codify the definition of advisory and 
assistance services to that currently contained in the 
Department of Defense's directive, and would reduce the cut to 
these services to $240.0 million.
Report on Department of Defense financial management improvement plan 
        (sec. 912)
      The Senate amendment contained a provision (sec. 1022) 
that would require the Comptroller General to report to the 
congressional defense committees on the Department's financial 
management improvement plan required by section 2222 of title 
10, United States Code.
      The House bill contained no similar provision.
      The House recedes.
Study of feasibility of performance of Department of Defense finance & 
        accounting functions by private sector sources or other Federal 
        sources (sec. 913)
      The Senate amendment contained a provision (sec. 1023) 
that would require the Department of Defense to study the 
finance and accounting functions within the Department to 
assess the potential forconsolidation and possible competition 
of these functions.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Limitation on reorganization and consolidation of operating locations 
        of the Defense Finance and Accounting Service (sec. 914)
      The Senate amendment contained a provision (sec. 1024) 
that would require the Secretary of Defense to study and define 
future workload requirements for each of the finance and 
accounting operating locations (OPLOCs) of the Defense Finance 
and Accounting Service, and determine whether excess capacity 
exists. The provision would also require that the study be 
submitted to the congressional defense authorization committees 
by December 15, 1998, and that no OPLOCs could be closed until 
six months after the submission of this study.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
date for the submission of the study to the Congress to January 
15, 1999 and delay the closing of any OPLOCs until 90 days 
after the submission of the study.
Annual report on resources allocated to support and mission activities 
        (sec. 915)
      The House bill contained a provision (sec. 1031) that 
would require the Secretary of Defense to provide in his annual 
report to the Congress a description of the personnel and 
budetary resources dedicated to support activities as compared 
to mission-related activities. This provision would also 
require the same information for the prior five years. The 
provision would also require a listing of the number of 
military and civilian personnel assigned to headquarters 
activities as a percentage of military end-strength for the 
past 10 years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the headquarters numbers to be provided for the past five 
years, and would require the Secretary to submit to the 
Congress the definition of ``support'' and ``mission'' 
activities that the Secretary will use in the development of 
the report.

             Subtitle C--Joint Warfighting Experimentation

Findings concerning joint warfighting experimentation (sec. 921)
      The Senate amendment contained a provision (sec. 1201) 
that would make congressional findings that provide the 
historical and policy basis for the need to conduct joint 
warfighting experimentation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would abbreviate 
the description of the basis for the need to conduct joint 
warfighting experimentation.
Sense of Congress concerning joint warfighting experimentation (sec. 
        922)
      The Senate amendment contained a provision (sec. 1202) 
that would express a sense of the Congress on the importance of 
designating a commander with the mission for joint warfighting 
experimentation, a sense of the Congress that such commander 
should be provided with adequate resources and authority to 
effectively conduct such experimentation, and a sense of the 
Congress that the Congress should review the process of 
military transformation, as evidenced by the results of such 
experimentation, and if the process is determined inadequate, 
to consider legislation that would ensure the effective conduct 
of joint warfighting experimentation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
sense of the Congress related to the commander's authority by 
abbreviating the enumeration of such authorities.
Reports on joint warfighting experimentation (sec. 923)
      The Senate amendment contained a provision (sec. 1203) 
that would require the commander designated to conduct joint 
warfighting experimentation to submit comprehensive initial and 
annual reports, through the Secretary of Defense to Congress on 
such experimentation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the designated commander to report on changes in his authority 
to develop or acquire equipment, supplies or services that 
relate directly to joint warfighting experimentation.

                       Subtitle D--Other Matters

Further reductions in defense acquisition and support workforce (sec. 
        931)
      The House bill contained a provision (sec. 901) that 
would reduce the defense acquisition workforce, as defined in 
section 912(a) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85), by a total of 70,000 over 
three years.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The amendment would limit the reduction to 25,000 
personnel positions in fiscal year 1999 and would authorize the 
Secretary of Defense to waive up to 12,500 upon a certification 
by the Secretary that reducing a greater number of such 
positions would be inconsistent with the cost-effective 
management of the defense acquisition system to obtain best 
value equipment and with ensuring military readiness.
      The reduction would apply to positions in the defense 
acquisition and support workforce and limit the reduction of 
core acquisition workforce positions to a level proportional 
with other occupational elements in the larger defense 
acquisition and support workforce.
Limitation on operation and support funds for the Office of the 
        Secretary of Defense (sec. 932)
      The House bill contained a provision (sec. 902) that 
would limit the obligation of funds for the Office of the 
Secretary of Defense to 90 percent of the appropriated level 
for that office until such time as the Secretary submits the 
reports that were required by section 904(b) of the National 
Defense Authorization Act for Fiscal Year 1997, and sections 
911(b) and 911(c) of the National Defense Authorization Act for 
Fiscal Year 1998.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Clarification and simplification of responsibilities of inspectors 
        general regarding whistleblower protections (sec. 933)
      The House bill contained a provision (sec. 908) that 
would modify certain requirements relating to inspector general 
investigations of reprisal complaints.
      The Senate amendment contained a provision (sec. 1053) 
that would modify the same requirements in a different manner, 
and amend certain other requirements imposed upon inspector 
general investigations of such complaints.
      The House recedes with an amendment.
Repeal of requirement relating to assignment of tactical airlift 
        mission to reserve components (sec. 934)
      The House bill contained a provision (sec. 907) that 
would repeal section 1438 of the National Defense Authorization 
Act for Fiscal Year 1991 (Public Law 101-510), which requires 
the Department of Defense to shift the tactical airlift mission 
to the reserves, unless the Secretary of Defense waives this 
requirement on annual basis.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Consultation with Marine Corps on major decisions directly concerning 
        Marine Corps aviation (sec. 935)
      The House bill contained a provision (sec. 909) that 
would direct the Secretary of the Navy to require that the 
views of the Commandant of the Marine Corps be obtained before 
a milestone decision or other major decision is made by an 
element of the Department of the Navy outside the Marine Corps 
on a matter that concerns Marine Corps aviation systems 
acquisition or support.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
provision more generic.

                   Legislative Provisions Not Adopted

Revision to defense directive relating to management headquarters and 
        headquarters support activities
      The House bill contained a provision (sec. 903) that 
would require the Department of Defense to implement a revised 
directive, to be applied uniformly throughout the Department, 
that accounts for management headquarters personnel by function 
rather than organization.
      The Senate amendment contained no similar provision.
      The House recedes.
Report on individuals employed in private sector who provide services 
        under contract for the Department of Defense
      The House bill contained a provision (sec. 910) that 
would require the Secretary of Defense to provide an annual 
report to the Congress that would outline the quantity, costs, 
and value of services that are provided to the Department of 
Defense by non-Federal workers.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees understand that significant cost would be 
incurred by the Department in establishing a new system to 
annually track the quantity and value of non-Federal contract 
services. Therefore, the conferees direct the Department, to 
the extent practicable, using only existing personnel and 
contracting systems, to report to the Committee on Armed 
Services of the Senate and the National Security Committee of 
the House of Representatives by April 15, 1998, the number of 
work year equivalents performed by individuals employed by non-
Federal entities providing services to the Department, 
categorized by Federal supply class code, the appropriation 
from which the contract was funded, and the major 
organizational element procuring the services.
Reduction in Department of Defense headquarters staff
       The Senate amendment contained a provision (sec. 904) 
that would codify the reductions in the Department of Defense 
headquarters staff announced by the Secretary of Defense as 
part of the Defense Reform Initiative. Specifically, the 
recommended provision would require the Office of the Secretary 
of Defense to reduce by 33 percent; defense agencies to reduce 
by 21 percent; Department of Defense field activities to reduce 
by 36 percent; the Joint Staff to reduce by 29 percent; the 
headquarters of the combatant commands and associated 
activities to reduce by seven percent; and other headquarters 
elements, including the headquarters of the military 
departments and their major commands and associated activities 
to reduce by 29 percent. The recommended provision would 
require the Secretary of Defense to submit, not later than 
March 1, 1999, a plan to implement the directed personnel 
reductions.
      The House bill contained no similar provision.
      The Senate recedes.
Permanent requirement for quadrennial defense review
      The Senate amendment contained a provision (sec. 905) 
that would make permanent the requirement for a Quadrennial 
Defense Review and the National Defense Panel.
      The House bill contained no similar provision.
      The Senate recedes.
To redesignate the position of Director of Defense Research and 
        Engineering, abolish the position of Assistant to the Secretary 
        of Defense for Nuclear and Chemical and Biological Defense 
        Programs, and transfer the duties of the latter position to the 
        former position
      The Senate amendment contained a provision (sec. 908) 
that would redesignate the position of Director of Defense 
Research and Engineering, abolish the position of Assistant to 
the Secretary of Defense for Nuclear and Chemical and 
Biological Defense and transfer certain duties to the new 
organization.
      The House bill contained no similar provision.
      The Senate recedes.
      The Nuclear Weapons Council is a statutorily mandated 
body consisting of Department of Defense and Department of 
Energy members. The Council has specific responsibilities to 
ensure the safety and reliability of the Nation's nuclear 
weapons stockpile. The Assistant to the Secretary of Defense 
for Nuclear and Chemical and Biological Defense Programs is the 
primary Department of Defense focal point for nuclear weapons 
matters, and reports directly to the Secretary of Defense. This 
position also serves as the executive director of the Nuclear 
Weapons Council. Unfortunately, this important position has 
been vacant for many months. The conferees are concerned that, 
as a result of this position being vacant for an extended 
period of time, nuclear weapons matters and issues associated 
with maintaining the U.S. nuclear deterrent are not receiving 
the attention they deserve. The conferees urge the President to 
submit to the Senate, for advice and consent, a nomination as 
soon as possible.
Military aviation accident investigations
      The Senate amendment contained a provision (sec. 910) 
that would require the Secretary of Defense to establish a task 
force to review the procedures used by the Department of 
Defense to conduct military aviation accident investigations 
and to identify mechanisms for improving such investigations. 
The provision would also require the Secretary of Defense to 
prescribe uniform regulations that would provide for the 
release of reports on the accident investigation to the family 
members of those involved in the accident.
      The House bill contained no similar provision.
      The Senate recedes.

                      Title X--General Provisions

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

Transfer authority (sec. 1001)
      The House bill contained a provision (sec. 1001) that 
would provide the authorization for reprogramming involving the 
transfer of authorization between the amounts authorized in 
Division A of the Act.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Incorporation of classified annex (sec. 1002)
      The House bill contained a provision (sec. 1002) that 
would incorporate the classified annex prepared by the 
Committee on National Security into this Act.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment that would 
provide that the classified annex prepared by the committee of 
conference be incorporated into this Act.
Authorization of prior emergency supplemental appropriations for fiscal 
        year 1998 (sec. 1003)
       The Senate amendment contained a provision (sec. 1003) 
that would authorize the emergency supplemental appropriations 
enacted in the 1998 Supplemental Appropriations and Rescissions 
Act (Public Law 105-174). This Act provided funding for fiscal 
year 1998 expenses related to military operations in Southwest 
Asia, Bosnia, and for natural disasters.
       The House bill contained no similar provision.
       The House recedes.
Authorization of appropriations for Bosnia peacekeeping operations for 
        fiscal year 1999 (sec. 1004)
      The Senate amendment contained a provision (sec. 1002) 
that would provide emergency authorization of $1.9 billion to 
fund U.S. participation in Bosnia peacekeeping operations for 
fiscal year 1999.
      The House bill contained a provision (sec. 1201) that 
would not authorize additional funding for U.S. participation 
in Bosnia peacekeeping operations, and would limit the 
Secretary of Defense from expending funds appropriated to the 
Department of Defense for fiscal year 1999 in excess of $1.9 
billion. The provision would provide for an emergency exception 
of not more than $100.0 million for the purpose of safeguarding 
U.S. Forces in the event of hostilities, and would require the 
Secretary of Defense to submit a report to the Congress by 
April 1, 1999 on the need for any additional funds required for 
Bosnia operations in fiscal year 1999.
      The conferees agree to a provision that would provide 
emergency authorization of $1.9 billion to fund operations in 
Bosnia for fiscal year 1999, but would limit funding to the 
amounts authorized in thissection. The President may waive this 
limitation after submitting to the Congress a certification that the 
waiver is based on the national interest and will not adversely affect 
the readiness of U.S. Military Forces. In conjunction with the 
certification, the President must submit a request for supplemental 
appropriations to fund the increased costs and a report. The report 
submitted with the certification must contain the reasons for the 
waiver, the specific reasons the additional funds are required, and a 
discussion of the readiness impact of the continued deployment of the 
U.S. Military Forces in Bosnia or supporting Bosnia peacekeeping 
operations.
Partnership for Peace information system management (sec. 1005)
      The budget request included $2.0 million for the 
Partnership for Peace Information Management System (PIMS) (PE 
1001017D8Z).
      The Senate amendment contained a provision (sec. 1004) 
that would make $5.0 million available in defense-wide 
activities for the Partnership for Peace Information Management 
System (PIMS) in the following amounts: $3.0 million in section 
301 and $2.0 million in section 201(4) of this Act.
       The House bill contained no similar provision, but would 
recommend the budget request for operation and maintenance and 
would recommend an increase of $4.0 million to the budget 
request for PIMS research and development activities for the 
development of an international medical program global 
satellite system. Additionally, the House bill would require 
that no funds be made available for this activity until the 
Secretary of Defense submits a report to the congressional 
defense committees on the impact of the international medical 
program global satellite system on the Department of Defense 
(DOD) radio frequency spectrum.
       The conferees agree to a provision that would make $5.0 
million available in defense-wide activities for PIMS in 
defense-wide operation and maintenance and research and 
development activities. In addition, the conferees agree to 
authorize a $4.0 million increase for PIMS research and 
development activities for the development of an international 
medical global satellite system. The conferees agree with the 
recommendation of the House (H. Rept. 105-532) regarding the 
requirement of the Secretary of Defense to submit a report on 
the impact of this system on the DOD frequency spectrum prior 
to obligation of funds. In addition, the report of the 
Secretary of Defense should include a plan on how the 
satellite-based medical telecommunications distribution and 
delivery network would be integrated into PIMS, the cost of 
integrating this technology into PIMS, the primary focus and 
content of the program and the contribution to the overall 
mission of PIMS, and information on the need for bilateral 
agreements.
       Lastly, the conferees direct that all applicable 
competitive procedures be used in the award of contracts, 
grants, and other agreements under this program and that the 
Department require significant cost-sharing from all non-
federal participants.
United States contribution to NATO common-funded budgets in fiscal year 
        1999 (sec. 1006)
      The resolution of ratification to the Protocols to the 
North Atlantic Treaty of 1949 on Accession of Poland, Hungary, 
and the Czech Republic (Treaty Document 105-36) agreed to by 
the Senate on April 30, 1998 included a condition that requires 
authorization of funds for the U.S. contribution to the common-
funded budget of the North Atlantic Treaty Organization (NATO) 
beginning in fiscal year 1999 if the amounts exceed the totals 
expended in fiscal year 1998.
      The Senate amendment contained a provision (sec. 1006) 
that would authorize funds for the U.S. contribution to NATO 
common-funded budgets and the use of unexpended balances from 
prior years.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Liquidity of working-capital funds (sec. 1007)
       The Senate amendment contained a provision (sec. 341) 
that would ensure the liquidity of the working-capital funds 
(WCFs) during fiscal year 1999 and would provide a mechanism to 
allow the Department of Defense to recover operating losses 
during the year of execution. The provision would also place 
limitations on the amounts of advance billing within the 
Department.
      The House bill contained no similar provision.
      The House recedes with an amendment that would not 
specify the corrective actions the Secretary of Defense may 
take to eliminate cash balance shortfalls in the WCFs and 
adjusts the limitations on advance billings.
Termination of authority to manage working-capital funds and certain 
        activities through the Defense Business Operating Fund (sec. 
        1008)
      The Senate amendment contained a provision (sec. 342) 
that would transfer the relevant statutory authorities and 
reporting requirements to the Department of Defense's working-
capital fund operations (section 2208 of title 10, United 
States Code) and would repeal the statutory authority for the 
Defense Business Operations Fund.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Clarification of authority to retain recovered costs of disposals in 
        working-capital funds (sec. 1009)
      The Senate amendment contained a provision (sec. 343) 
that would clarify the authority of the Defense Reutilization 
and Marketing Service to retain, from proceeds received from 
sales of surplus supplies, materials, or equipment, an amount 
equal to the costs incurred in the sale, reutilization, or 
disposal of such items.
      The House bill contained no similar provision.
      The House recedes.
Crediting of amounts recovered from third parties for loss or damage to 
        personal property shipped or stored at government expense (sec. 
        1010)
       The Senate amendment contained a provision (sec. 1054) 
that would allow funds recovered from third parties in relation 
to household good claims to be deposited into the current 
appropriations for payment of such claims.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                Subtitle B--Naval Vessels and Shipyards

Revision to requirement for continued listing of two Iowa-class 
        battleships on the Naval Vessel Register (sec. 1011)
       The House bill contained a provision (sec. 1011) that 
would direct the Secretary of the Navy to list U.S.S. Iowa (BB-
61) and U.S.S. Wisconsin (BB-64) as the two Iowa class 
battleships maintained on the Naval Vessel Register, in 
accordance with section 1011 of the National Defense 
Authorization Act for Fiscal Year 1996
       The Senate amendment contained a similar provision (sec. 
1011).
       The Senate recedes.
Transfer of U.S.S. New Jersey (sec. 1012)
       The House bill contained a provision (sec. 1012) that 
would direct the Navy to strike U.S.S. New Jersey from the 
Naval Vessel Register and transfer it to a not-for-profit 
entity that will locate the vessel in the State of New Jersey.
       The Senate amendment contained no similar provision.
       The Senate recedes.
Homeporting of the U.S.S. Iowa in San Francisco, California (sec. 1013)
       The Senate amendment contained a provision (sec. 1016) 
that would express the sense of the Congress that the U.S.S. 
Iowa should be homeported in San Francisco, California.
       The House bill contained no similar provision.
       The House recedes.
Sense of Congress concerning the naming of an LPD-17 vessel (sec. 1014)
       The Senate amendment contained a provision (sec. 1014) 
that would express the sense of the Congress that an LPD-17 
class vessel should be named the U.S.S. Clifton B. Cates, in 
honor of the 19th Commandant of the Marine Corps.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
Reports on naval surface fire-support capabilities (sec. 1015)
       The Senate amendment contained a provision (sec. 1027) 
that would direct the Secretary of the Navy to report by March 
31, 1999, to the Committee on Armed Services of the Senate and 
the National Security Committee of the House of Representatives 
on battleship readiness for meeting naval surface fire-support 
requirements.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
Long-term charter of three vessels in support of submarine rescue, 
        escort, and towing (sec. 1016)
       The House bill contained a provision (sec. 1013) that 
would authorize charter of the three vessels in accordance with 
section 2401 of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
1012) and directed the Department to utilize fully the R/V 
Gosport and other assets owned and operated by the Navy for 
secondary services including torpedo retrieval, sonar 
calibration, and submarine sea trial escort prior to out-
sourcing for these services.
       The Senate recedes.
       The conferees agree to authorize the Navy to enter into 
charters through September 30, 2003 in accordance with section 
2401 of title 10, United States Code, for the Carolyn Chouest, 
Kellie Chouest, and Dolores Chouest and direct the Department 
of the Navy to utilize fully the R/V Gosport and other similar 
vessels prior to out-sourcing for secondary services described 
above.
Transfer of obsolete Army tugboat (sec. 1017)
       The House bill contained a provision (sec. 1014) that 
would permit the Secretary of the Army to substitute the 
tugboat Attleboro (LT-1977) for the tugboat Normandy (LT-1971) 
as one of two tugboats authorized to be transferred by the 
Secretary under section 1023 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-86).
       The Senate amendment contained no similar provision.
       The Senate recedes.

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

       The budget request for drug interdiction and other 
counter-drug activities of the Department of Defense (DOD) 
totals $882.8 million. This includes the $727.6 million central 
transfer account and $155.2million in the operating budgets of 
the military services for counter-drug operations.
       However, these numbers do not accurately represent the 
Department's total commitment to the war on drugs. For example, 
these numbers do not include a proportionate share of the costs 
of procuring military systems that are used to support the war 
on drugs. They also do not capture the personnel costs for the 
thousands of active duty service members who are engaged in 
counter-narcotics activities over the course of the fiscal 
year. Furthermore, the budget does not include all maintenance 
costs for assets used in counter-drug activities, or a 
proportionate share of base operation support costs for those 
units performing counter-drug activities. Together, these costs 
exceed several hundred million dollars each year.
       In addition, these numbers do not reflect the value of 
the equipment and training that the DOD provides to other 
nations in support of their counter-narcotics activities 
pursuant to section 506 of the Foreign Assistance Act. This 
section provides authorization for up to $75.0 million worth of 
counter-narcotics support to foreign governments each year. The 
conferees are concerned that this authority, which was intended 
to be used to enhance U.S. counter-narcotics support to nations 
in the source zone, is simply used to offset costs which more 
appropriately belong in the State Department budgets. The 
conferees are further concerned that the continued provision of 
non-excess military equipment to foreign governments may have 
an adverse impact on U.S. military readiness. The conferees 
direct the Secretary of Defense to provide the congressional 
defense committees with a list of those items that are provided 
pursuant to Section 506, together with the Secretary's plans 
for replacing this equipment.
       Finally, the conferees are concerned that in some cases 
the Department of Defense may be pressured into dedicating 
scarce resources within its budget recommendation to the 
President for the counter-narcotics missions that are the 
primary responsibility of the Department of State or other 
Federal agencies. This practice could be detrimental to other 
high priority military missions, including counter-terrorism 
and counter-proliferation, in today's resource constrained 
environment. The conferees believe that the Secretary of 
Defense and the Chairman of the Joint Chiefs are in the best 
position to understand all of the national security 
responsibilities of DOD, and to make a balanced recommendation 
to the President regarding the manner in which the resources of 
the Armed Forces should be utilized in such a way as to most 
effectively carry out those responsibilities.
       The conferees recommend the following authorization for 
the Department's counter-narcotics activities:

 Drug Interdiction & Counter-drug Activities, Operations and Maintenance

Fiscal Year 1999 Drug and Counter-drug Requestd due to rounding)
                                                                $882,831
     Goal 1 (Dependent Demand Reduction)......................    12,830
     Goal 2 (Support to DLEAs)................................    97,384
     Goal 3 (DOD Personnel Demand Reduction)..................    72,936
     Goal 4 (Drug Interdiction--TZ/SWB).......................   406,554
     Goal 5 (Supply Reduction)................................   293,127
Increases:
     Caribbean/Eastern Pacific Surface Interdiction...........     8,000
     Caper Focus..............................................     6,000
     Gulf States Initiative/Regional Counter-drug Training....     7,000
     Multi Jurisdictional Task Force..........................     1,000
     South West Border Fence..................................     3,000
     National Guard State Plans...............................    29,000
Reductions:
     JIATF-SOUTH..............................................    17,000
     Southern Air Forces Counter-Drug Support.................     4,000
     Mexico GBEGO.............................................     4,000
     National Guard Cargo/Mail Inspection Project.............    29,000
Enhanced transit zone interdiction--Caribbean/Eastern Pacific 
        interdiction initiative, caper focus
       Although the Department of Defense continues to serve as 
the single lead Federal agency for the detection and monitoring 
of suspected drug-trafficking activities within the transit 
zones, the Department's budget in this region has declined 
dramatically since 1993. This decline is a result of 
presidential guidance in 1993 that directed a gradual shift in 
emphasis from the transit zone to source zone counter-drug 
activities. While the Administration's strategic focus moved to 
South America, illegal drugs continue to flow through the 
eastern Pacific Ocean and Caribbean Sea to U.S. markets.
       The conferees encourage the Department to explore new 
initiatives to enhance current interdiction capabilities so 
that if Panamanian facilities are no longer available, a viable 
interdiction program remains. To assist the Department in this 
effort, the conferees have included a provision that would 
provide $14.5 million within the counter-narcotics central 
transfer account for the increased deployment of the 
Department's Cyclone Class Patrol Coastal Craft (PCs) to the 
Caribbean and eastern Pacific, and any maintenance or 
modifications of these craft (such as forward looking infra-red 
devices and combat craft recovery systems) necessary to enhance 
their interdiction capabilities. Such increased deployment will 
provide Commander-in-Chief, Southern Command (CINCSOUTH) with a 
more substantial naval presence in his theater of operations 
with which to increase surface interdiction efforts of 
suspected narco-traffickers. The conferees include an 
additional $8.0 million for the Department's Caribbean efforts 
in order to help pay for increased deployment. The conferees 
expect the Department to identify the remaining $6.5 million 
from within its interdiction budget.
       The conferees direct the Secretary of Defense to provide 
the Committee on Armed Services of the Senate and the Committee 
onNational Security of the House of Representatives with a 
report outlining the extent to which the PCs, operating either with or 
without a mothership, were effective during fiscal year 1999 in the 
interdiction and deterrence of maritime drug trafficking. This report 
should also outline the CINCSOUTH's and the CINCSOCOM's recommendation 
regarding any future deployment of these craft to SOUTHCOM's Area of 
Responsibility (AOR), and the Secretary of Defense's recommendation as 
to the appropriate funding mechanism for these future deployments.
 Caper Focus
       The conferees are disturbed by the recent testimony of 
General Charles E. Wilhelm, Commander-in-Chief, Southern 
Command (CINCSOUTH), regarding the Department's inability ``to 
mount effective detection, monitoring and tracking operations 
in the eastern Pacific, a pipeline which feeds Mexico and 
ultimately the U.S.'' As a result of competing demands for 
maritime patrol aircraft, the Secretary of Defense postponed 
the final phase of Operation Caper Focus, a promising operation 
targeting multi-nation cargo vessels in the eastern Pacific. 
During the initial phases of Operation Caper Focus, Joint 
Interagency Task Force- East (JIATF-E) assets interdicted 27 
metric tons of cocaine and gained valuable intelligence on 
regional trafficking methods. Despite these preliminary 
results, the Secretary of Defense has not made available the 
additional air or maritime assets necessary to execute the 
operation, nor has the Director of JIATF-E transferred assets 
from the Caribbean.
       The conferees are convinced of the need to take 
advantage of this opportunity to seize large amounts of cocaine 
through the continuation of Operation Caper Focus. Therefore, 
the conferees include a provision that would authorize $10.5 
million to support this operation. The conferees urge the 
Secretary of Defense to seek the views of CINCSOUTH in 
identifying the capabilities needed to determine how these 
funds should be applied. Finally, the conferees directs that 
the Secretary of Defense provide the Committee on Armed 
Services of the Senate and the Committee on National Security 
of the House of Representatives a report outlining the 
recommendations of CINCSOUTH and an implementation plan 
detailing the Department's expanded operational support to 
Operation Caper Focus no later than January 15, 1999. The 
conferees include an additional $6.0 million in order to help 
pay for this deployment. The conferees expect the Department to 
provide the remaining $4.5 million from within its interdiction 
budget.
 Gulf States Counter-drug Initiative
       The conferees understand the Gulf States Counter-drug 
Initiative has grown beyond its original counter-drug mission 
and now performs important work for other high priority 
missions of the Department of Defense, including counter-
terrorism. Therefore, the conferees support the transfer of 
this activity from the Department's Counter-drug account to the 
C3I Joint Military Intelligence Program in accordance with its 
increased mission, and recommend an additional $6.0 million for 
its counter narcotics activities. The conferees expects that 
the Department will fund GSCI's operations through the Joint 
Military Intelligence Program budget in the future. The 
conferees authorize a further $1.0 million for the Gulf States 
Counter-drug Initiative Regional Counter-drug Training Academy.
 Multi-Jurisdictional Task Force
       The budget request included $2.0 million for the Multi-
Jurisdictional Counter-drug Task Force. The conferees 
understand that additional funds are needed to improve the 
Multi-Jurisdictional Counter-drug Task Force's training program 
by increasing the number of conventional courses, distance 
learning projects and state narcotics conventions for law 
enforcement officers. Therefore, the conferees recommend $3.0 
million, an increase of $1.0 million for the Multi-
Jurisdictional Counter-drug Task Force.
 National Guard State plans
       The budget request included $29.0 million for National 
Guard Cargo/Mail Inspection Support and $118.6 million for 
National Guard General Support. The conferees note that 
beginning in fiscal year 1998, funds for cargo/mail inspection 
support were transferred from the general support account due 
to its high priority at the national level. While the conferees 
continue to endorse this program as a means to deny illegal 
drugs from entering the United States, the conferees believe 
that this program should compete with other high priority 
National Guard counter-narcotics operations. Therefore, the 
conferees recommend $147.6 million for National Guard General 
Support, an increase of $29.0 million, and a corresponding 
decrease of $29.0 million for National Guard Cargo/Mail 
Inspection Support.
 JIATF-South
       The conferees continue to be concerned with the impact 
that our military withdrawal from Panama will have upon U.S. 
drug interdiction capabilities. The Panamanian facilities 
provide a unique location from which to deploy U.S. counter-
narcotics assets. The loss of these facilities will have a 
significant impact upon the U.S. ability to maintain the 
current level of drug interdiction efforts. Since the United 
States and the Government of Panama have been unable to reach 
an agreement regarding the continued deployment of U.S. 
military personnel to Panama after the remaining facilities are 
turned over at the end of 1999, the conferees believe it is 
imprudent to significantly expand and facilitize JIATF-South as 
recommended in the budget request. Until such an agreement is 
signed, the conferees believe that JIATF-South should operate 
with the same resources that it received for fiscal year 1998. 
Therefore, the conferees recommend a reduction of $17.0 million 
for this program.
Southern Air Forces Counter-Drug Support
      The budget request included $24.4 million for Southern 
Air Forces (SOUTHAF) Counter-Drug Support, including $19.0 
million for the operation and maintenance of ground mobile 
radars (GMRs) within the U.S. Southern Command area of 
operations. The conferees recommend $20.4 million for SOUTHAF 
Counter-Drug Support, a decrease of $4.0 million.
Ground-based end game operations--Mexico
      The budget request included $16.0 million for the 
counter-narcotics training of the Armed Forces of Mexico; a 
significant increase from previous years. The conferees 
recommend $12.0 for this program; a decrease of $4.0 million.
Support for counter-drug activities of Peru and Colombia
      Section 1033 of the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85) authorized the 
Secretary of Defense to provide support for the counter-drug 
activities of the Governments of Peru and Colombia. The 
conferees wish to clarify that the intent of Congress was to 
provide nonlethal assistance, including unarmed riverine patrol 
boats, to establish a riverine interdiction program in Peru and 
Colombia. The conferees note that other programs exist in which 
the Government of Peru can acquire the weaponry necessary to 
arm these vessels.

                     Legislative Provisions Adopted

Program authority for Department of Defense support to other agencies 
        for counter-drug activities (sec. 1021)
      The House bill contained a provision (sec. 1021) that 
would extend section 1004 of the National Defense Authorization 
Act for Fiscal Year 1991 through fiscal year 2000. The 
provision would also allow the Department of Defense to use 
counter-drug funds for any major renovation or modification of 
a Department of Defense facility being used for counter-
narcotics purposes. Prior to using this authority for any such 
projects that will exceed $500,000, the Department must notify 
the congressional defense committees.
      The Senate amendment contained a similar provision.
      The Senate recedes with an amendment that would extend 
section 1004 of the National Defense Authorization Act for 
Fiscal Year 1991 through fiscal year 2002.
Department of Defense support of National Guard drug interdiction and 
        counter-drug activities (sec. 1022)
      The Senate amendment contained a provision (sec. 334) 
that would make certain changes to the National Guard's 
authority to perform counter-narcotics activities. These 
changes would include the authorization to make minor purchases 
using National Guard counter-narcotics funding. This provision 
would also allow the Guard to provide expanded support to youth 
outreach programs. Finally, the provision would authorize the 
use of funds appropriated for counter-narcotics activities to 
be used for a member of the Guard's annual training as long as 
these funds were reimbursed with funds that were appropriated 
for training.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
size of purchases to $5,000 per purchase order unless approval 
to exceed that amount is provided in advance by the Secretary 
of Defense. The amendment would further require that counter-
narcotics activities not degrade military readiness, or 
increase the cost of training. The amendment would also require 
that in the case of unit participation in counter-narcotics 
activities, the missions will support valid unit training 
requirements. Finally, the amendment would clarify that the pay 
and benefits of a member of the Guard who is serving on full 
time active duty in support of the counter-narcotics activities 
of the Guard does not receive an amount of pay and benefits 
during his annual training more than the amount he would be 
entitled to if he were not performing these counter-narcotics 
activities.
Patrol Coastal Craft for drug interdiction by Southern Command (sec. 
        1023)
      The Senate amendment contained a provision (sec. 331) 
that would provide $18.5 million within the counter-narcotics 
central transfer account for the increased deployment of the 
Department's Patrol Coastal Craft to the Caribbean and eastern 
Pacific. The Senate amendment also contained a provision (sec. 
335) that would express the sense of the Congress that the 
Secretary of Defense should revise the Global Military Force 
Policy to treat counter-drug operations as a military operation 
other than war. Furthermore, the Senate amendment contained a 
provision (sec. 311) that would require the U.S. Special 
Operations Command to use the resources that are saved within 
its operating budget as a result of funding the Patrol Coastal 
Craft within the counter-narcotics budget for training and 
related operations associated with its counter-proliferation 
and counter-terrorism missions.
      The House bill contained a provision (sec. 1022) that 
would provide $24.4 million within the counter-narcotics 
central transfer account for the continued conduct of Operation 
Caper Focus.
      The conferees include a single provision that would (1) 
express the sense of the Congress that the Secretary of Defense 
should ensure that the international drug interdiction and 
counter-drug activities of the Department of Defense are 
accorded adequate resources within the budget allocation of the 
Department to execute its counter-narcotics mission; (2) 
provide $10.5 million within the counter-narcotics central 
transfer account for the continued conduct of Operation Caper 
Focus; and (3) provide $14.5 million within the counter-
narcotics central transfer account for the increased deployment 
of the Department's Patrol Coastal Craft to the Caribbean and 
eastern Pacific. The provision would also require that the $4.5 
million that the Special Operations Command saved within its 
operatingbudget as a result of funding the Patrol Coastal Craft 
within the counter-narcotics budget be used for training and related 
operations associated with its counter-proliferation and counter-
terrorism missions.

       Subtitle D--Miscellaneous Report Requirements and Repeals

Repeal of unnecessary and obsolete reporting provisions (sec. 1031)
       The Senate amendment contained a provision (sec. 1021) 
that would repeal certain obsolete reporting requirements 
imposed upon the Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment which would retain an 
annual report on the use of money rentals for leases of non-
excess property, and which would completely repeal a provision 
partially repealed in the Senate amendment.
Report regarding use of tagging system to identify hydrocarbon fuels 
        used by Department of Defense (sec. 1032)
      The Senate amendment contained a provision (sec. 312) 
that would authorize the Department of Defense to conduct a 
pilot program to determine if hydrocarbon fuels used by the 
Department can be tagged.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to provide a report to the 
congressional defense committees outlining the feasibility, 
costs, and benefits of using fuel tags to help deter theft and 
facilitate the determination of the source of surface and 
underground pollution in locations having separate fuel storage 
facilities belonging to the Department and civilian companies.

                Subtitle E--Armed Forces Retirement Home

Appointment of Director and Deputy Director of the Naval Home (sec. 
        1041)
      The Senate amendment contained a provision (sec. 1075) 
that would disestablish the civilian positions of director and 
deputy director of the Naval Home and would require that the 
Secretary of Defense appoint a director and deputy director 
from among military officers recommended by the military 
departments.
      The House bill contained no similar provision.
      The House recedes.
Revision of inspection requirements relating to Armed Forces Retirement 
        Home (sec. 1042)
      The House bill contained a provision (sec. 363) that 
would revise the current procedures for the periodic inspection 
of the Armed Forces Retirement Homes by the Inspector General 
of each of the military departments on an alternating basis, 
and would require that upon completion of these inspections, 
the report of the inspections shall be provided to the 
Congress.
      The Senate amendment contained a provision (sec. 1057) 
that would eliminate the requirement for the Department of 
Defense Inspector General to conduct inspections of the Armed 
Forces Retirement Homes, as well as review the inspections 
conducted by the inspectors general of the military 
departments. The recommended provision would require 
inspections of the homes every three years. Responsibility to 
conduct inspections would rotate among the three services on a 
schedule determined by the Secretary of Defense.
      The Senate recedes with a clarifying amendment.
Clarification of land conveyance authority, Armed Forces Retirement 
        Home (sec. 1043)
      The House bill contained a provision (sec. 1041) that 
would clarify subsection (a) of section 1053 of the National 
Defense Authorization Act for Fiscal Year 1997 (Public law 104-
201), to state clearly that the original purpose of this 
disposal provision was to authorize only the sale of a specific 
parcel of land at the Armed Forces Retirement Home, Washington, 
D.C. through an open bid process at not less than fair market 
value, with the receipts of the sale to be deposited in the 
Armed Forces Retirement Homes Trust Fund.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would direct 
the Armed Forces Retirement Home to proceed with the sale of a 
specific parcel of land at the Armed Forces Retirement Home, 
Washington, D.C. to a neighboring non-profit organization or an 
entity or entities related to such organization at fair market 
value, as determined by the Armed Forces Retirement Home Board 
based on an independent appraisal, to a neighboring non-profit 
organization or an entity or entities related to such 
organization.

            Subtitle F--Matters Relating to Defense Property

Plan for improved demilitarization of excess and surplus defense 
        property (sec. 1051)
      The Senate amendment contained a provision (sec. 1077) 
that would require the Secretary of Defense to assign 
demilitarization codes to military equipment and ensure that 
this equipment is demilitarized in accordance with those codes. 
The provision would further require that anyone who is 
convicted of knowingly participating in the exportation of 
merchandise in violation of Federal law, be fined or imprisoned 
for up to five years.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit to Congress a plan to 
address theproblems with the sale or other disposal of excess 
and surplus defense materials. The plan would include how the 
Department will (1) implement all appropriate demilitarization 
training, (2) improve oversight of demilitarization functions and the 
maintenance of demilitarization codes, and (3) assign accurate 
demilitarization codes. The plan will also include the steps the 
Secretary intends to take to centralize the demilitarization functions 
and responsibilities of the Department of Defense.
Transfer of F-4 Phantom II aircraft to foundation (sec. 1052)
      The Senate amendment contained a provision (sec. 1058) 
that would authorize the Secretary of the Air Force to transfer 
one surplus F-4 phantom aircraft to a foundation by means of a 
conditional deed of gift.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

            Subtitle G--Other Department of Defense Matters

Pilot program on alternative notice of receipt of legal process for 
        garnishment of federal pay for child support and alimony (sec. 
        1061)
      The House bill contained a provision (sec. 1042) that 
would allow the Department of Defense to refrain from providing 
court documents to a military member, concerning child support 
and alimony payments, prior to proceeding with a court ordered 
garnishment. The Defense Finance and Accounting Service would 
continue to include pertinent information with the notification 
to the service member involved.
      The Senate amendment contained a similar provision (sec. 
1048), but limited the Department of Defense to a pilot 
program.
      The House recedes with an amendment that would allow the 
Department to conduct a pilot program for three years and 
provide an annual report on the status of this program to the 
congressional defense committees.
Training of special operations forces with friendly foreign forces 
        (sec. 1062)
      The House bill contained a provision (sec. 1043) that 
would amend section 2011 of title 10, United States Code, to 
improve the level of reporting associated with the authority of 
U.S. special operations forces to train with the forces of 
foreign nations and require that any such training receive the 
prior approval of the Secretary of Defense.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
scope of the provision to changes in the regulations for, and 
the elements of the annual report on, the training of special 
operations forces with friendly foreign forces.
      The conferees emphasize that, while improved 
interoperability and relations with the friendly foreign forces 
may be an ancillary benefit, the training of U.S. special 
operations forces under the authority of this section must 
clearly be the primary purpose of the training. The conferees 
also underscore that training with ``other security forces'' of 
a friendly foreign country, rather than with such country's 
armed forces, should be a rare exception. Finally, it is 
expected that the Secretary will not delegate the approval 
authority for such training to a level below an assistant 
secretary of defense and that both the Assistant Secretaries 
for International Security Affairs and Special Operations and 
Low Intensity Conflict should participate in the required 
approval process.
Research grants competitively awarded to service academies (sec. 1063)
      The Senate amendment contained a provision (sec. 1052) 
that would permit the service academies to compete for and 
receive research grants offered by a corporation, fund, 
foundation, educational institution, or other similar entity 
that is organized and operated primarily for scientific, 
literary, or educational purposes that are awarded 
competitively.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Department of Defense use of frequency spectrum (sec. 1064)
      The Senate amendment contained a provision (sec. 1062) 
that would require the Secretary of Defense to report to the 
defense authorizing committees the costs to the Department of 
Defense (DOD) resulting from reallocations of the radio 
frequency spectrum authorized by DOD. The provision would also 
require that any entity that purchases any portion of the radio 
frequency spectrum previously reserved for use by any federal 
agency, including DOD, and that the Federal agency has 
relinquished for sale or lease, shall reimburse the Federal 
agency for the cost incurred by the Federal government to make 
that portion of the frequency spectrum available. The provision 
would further require a report in the annual budget request for 
each Federal department or agency that incurs costs for such 
frequency reallocations. Finally, the provision would exempt 
from the reimbursement requirement those portions of the 
Federal radio frequency spectrum identified for reallocation in 
the first reallocation report submitted to the President and 
Congress, except for reallocations of that portion of the 
spectrum located in the 1710-1755 megahertz band.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Department of Defense aviation accident investigations (sec. 1065)
      The Senate amendment contained a provision (sec. 1028) 
that wouldrequire the Secretary of Defense to provide an 
assessment of the role of the Office of the Secretary of Defense and 
the Joint Staff in the investigation of military aircraft accidents. 
Additionally, the provision would require the Secretary of Defense to 
report on the advisability of requiring an independent entity of the 
Department of Defense to supervise military aircraft accident 
investigations.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to prescribe uniform regulations 
establishing procedures by which the military departments shall 
provide periodic reports on the conduct and progress of 
investigations to the families of those involved in an aviation 
accident.
      The conferees note the importance of a regular flow of 
accurate information to the families of those involved in an 
aviation accident and encourage the Secretary of Defense to 
include in regulations specific circumstances for providing 
information to the families. Additionally, the conferees 
encourage the Secretary of Defense to consider accepting 
comments from the National Transportation Safety Board in 
developing regulations pertaining to aviation accident 
investigations.
Investigation of actions relating to 174th Fighter Wing of New York Air 
        National Guard (sec. 1066)
      The House bill contained a provision (sec. 1047) that 
would require the Inspector General of the Department of 
Defense to investigate the grounding of the 174th Fighter Wing 
of the New York Air National Guard and the subsequent 
dismissal, demotion, or reassignment of 12 pilots.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Inspector General of the Department of Defense to conduct a 
new investigation into the facts and circumstances leading to 
the December 1, 1995, grounding of the 174th Fighter Wing of 
the New York Air National Guard and to provide the report of 
the investigation to the Committee on Armed Services of the 
Senate and the Committee on National Security of the House of 
Representatives, not later than 180 days after enactment.
Program to commemorate 50th anniversary of the Korean War (sec. 1067)
      The Senate amendment contained a provision (sec. 1061) 
that would increase the amount authorized to be expended for 
the Korean War Commemorative Program from $1.0 million to $10.0 
million over a seven year period.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
$1.82 million for this program in fiscal year 1999.
      The conferees direct the Secretary of the Army to include 
within future budget requests the amount of funds necessary for 
the continued operation of this program.
Designation of America's national maritime museum (sec. 1068)
      The Senate amendment contained a provision (sec. 1078) 
that would designate two maritime museums as America's National 
Maritime Museum. The provision also provided criteria for 
subsequent additions of museums to the group of museums 
designated as America's National Maritime Museum.
      The House bill contained no similar provision.
      The House recedes with an amendment that prescribes the 
procedures for subsequent additions of museums to the group 
designated as America's National Maritime Museum.
Technical and clerical amendments (sec. 1069)
      The Senate amendment contained a provision (sec. 1063) 
that would make various technical and clerical amendments to 
existing law.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make 
additional technical and clerical amendments to existing law.

                       Subtitle H--Other Matters

Act constituting presidential approval of vessel war risk insurance 
        requested by the Secretary of Defense (sec. 1071)
      The Senate amendment contained a provision (sec. 1059) 
that would authorize the pre-approval of vessel war risk 
insurance under the Merchant Marine Act, 1936 (46 U.S.C. App. 
1281), so that it can be immediately available in an emergency 
or contingency.
      The House bill contained no similar provision.
      The House recedes with a technical amendment and an 
amendment adding an effective date to the provision.
Extension and reauthorization of Defense Production Act of 1950 (sec. 
        1072)
      The Senate amendment contained a provision (sec. 1064) 
that would reauthorize the Defense Production Act of 1950 (50 
U.S.C. 2161 and 2166) for a period of one year.
      The House bill contained no similar provision.
      The House recedes.
Requirement that burial flags furnished by the Secretary of Veterans 
        Affairs be wholly produced in the United States (sec. 1073)
      The House bill contained a provision (sec. 1046) that 
would amend section 2301 of title 38, United States Code, to 
require that any flags furnished for burial purposes be wholly 
produced in the United States.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment allowing the 
Secretary ofVeterans Affairs to waive the requirement upon 
making a determination that the requirement cannot reasonably be met or 
that it would not be in the national interest of the United States. The 
conferees direct that, in the event he intends to waive the 
requirement, the Secretary notify Congress concerning the factors upon 
which he has based his determination.
Sense of Congress concerning tax treatment of principal residence of 
        members of armed forces while away from home on active duty 
        (sec. 1074)
      The House bill contained a provision (sec. 1049) that 
would express the sense of Congress that a member of the armed 
forces should be treated as using property as a principal 
residence during any period that the member (or the member's 
spouse) is serving on extended active duty, but only if the 
member used the property as a principal residence for any 
period during or before the period of extended active duty.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Clarification of State authority to tax compensation paid to certain 
        employees (sec. 1075)
      The House bill contained a provision (sec. 1045) that 
would limit state taxation of the pay of workers at Fort 
Campbell, Kentucky, to the state or political subdivision 
thereof in which the workers reside. The provision would also 
limit state taxation of federal employees employed at federal 
hydroelectric facilities located on the Columbia and Missouri 
Rivers to the state or political subdivision thereof in which 
the employees reside.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Outlay limitations
      The House bill contained a provision (sec. 1003) that 
would restrict the amount of fiscal year 1999 discretionary 
outlays available to the Department of Defense for military 
functions and the Department of Energy for national security 
programs to an amount consistent with the national defense 
total provided in the Balanced Budget Act of 1997.
      The Senate amendment contained no similar provision.
      The House recedes.
Long-term charter contracts for acquisition of auxiliary vessels for 
        the Department of Defense
      The House bill contained a provision (sec. 1015) that 
would authorize the Secretary of the Navy to enter into a 
contract for the long-term lease or charter of newly built 
combat logistics force, strategic sealift and auxiliary support 
vessels.
      The Senate amendment contained no similar provision.
      The House recedes.
Sense of the Congress regarding the establishment of a counter-drug 
        center in Panama
      The House bill contained a provision (sec. 1023) that 
would express the sense of the Congress that the Secretary of 
Defense, in consultation with the Secretary of State, should 
continue to engage in negotiations with the Government of 
Panama for the establishment of a multinational counter-drug 
center in Panama.
      The Senate amendment had no similar provision.
      The House recedes.
      The conferees understand the important contribution that 
the facilities in Panama, including JIATF-South, provide. The 
conferees are aware of the unfortunate difficulty that the U.S. 
Government has encountered in its negotiations with the 
Government of Panama for the continued operation of these 
facilities as part of a multinational counter-narcotics center. 
The conferees encourage the Secretary of State to continue 
these important negotiations.
Assignment of members of armed forces to assist INS and Customs Service
      The House bill contained a provision (sec. 1024) that 
would authorize the assignment of members of the armed services 
to assist the Immigration and Naturalization Service and the 
Customs Service.
      The Senate amendment had no similar provision.
      The House recedes.
Facilitation of operations at Edwards Air Force Base
      The House bill contained a provision (sec. 1048) that 
would authorize the Secretary of the Air Force to provide 
assistance to the Dryden Flight Research Center of the National 
Aeronautics and Space Administration.
      The Senate amendment contained no similar provision.
      The House recedes.
Operation, maintenance, and upgrade of Air Force space launch 
        facilities
      The House bill contained a provision (sec. 1050) that 
would prohibit the obligation of funds appropriated for the 
operation, maintenance, or upgrade of the Western and Eastern 
Space Launch Facilities of the Air Force for any other purpose.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees believe that maintaining a strong, robust 
space launch capability, including modern and well maintained 
space launchfacilities, is essential to preserving a strong 
military and scientific capability. The conferees believe that the 
reprogramming of any resources appropriated to ensure that space launch 
facilities are fully maintained in their best condition, should only be 
conducted if planned launches, or other programmed activities, are 
canceled.
Southwest border fence
      The Senate amendment contained a provision (sec. 333) 
that would require the Secretary of Defense to perform an 
analysis of the effectiveness of the Southwest border fence in 
reducing the flow of drugs into the United States before 
further expansion.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees are concerned with the continued 
transportation of narcotics across the Southwest border and 
into the United States. Over the past few years, the Department 
of Defense has explored several initiatives to reduce this flow 
of illegal drugs. One such initiative was the construction of a 
border fence along portions of the border. Although the 
conferees support such initiatives, the conferees believe that 
a thorough analysis should be performed to determine how the 
fence might be made more effective before the Department 
proceeds with any planned expansion. The conferees direct the 
Secretary of Defense to undertake such an analysis.
      In the interim, the conferees recommend $3.0 million to 
facilitate completion of the Southwest border fence project 
from within the domestic law enforcement agencies support 
component of the Department of Defense Counter-Drug Plan.
Increase operations and maintenance for Army National Guard/reduce 
        amounts from revised economic assumptions
      The Senate amendment contained a provision (sec. 1005) 
that would reduce authorizations for appropriations to reflect 
the updated inflation estimates for fiscal year 1999 by the 
Office of Management and Budget. The amendment also increased 
funding for the Army National Guard operations and training 
programs, and the arms control programs of the Department of 
Energy.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agreed to adopt the revised economic 
assumptions. Funding for the Army National Guard and the 
Department of Energy arms control programs are discussed in 
other portions of this report.
Ship scrapping pilot program
      The Senate amendment contained a provision (sec. 1017) 
that would direct the Secretary of the Navy to carry out a ship 
scrapping pilot program to gather data on the costs associated 
with scrapping and to demonstrate cost effective technologies 
and techniques that ensure worker safety and environmental 
protection. Under the pilot program, the Secretary would be 
required to give a greater weight to technical and performance-
related factors than to cost and price-related factors. The 
Secretary of the Navy would also be required to give 
significant weight to technical qualifications and past 
performance of the contractor and major subcontractors or team 
members of the contractor in complying with applicable legal 
requirements for environmental protection and worker safety.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees acknowledge the recommendations of the 1998 
Report of the Interagency Panel on Ship Scrapping. Consistent 
with those recommendations, the conferees object to any 
congressionally mandated restrictions or prohibitions related 
to domestic or overseas scrapping of naval vessels.
Report on inventory and control of military equipment
      The Senate amendment contained a provision (sec. 1025) 
that would require the Department of Defense to perform a 
thorough review of its inventory of military equipment and 
submit a report to the Congress outlining the location of this 
equipment, or the efforts of the Department in locating any 
equipment that could not be located.
      The House bill contained no similar provision.
      The Senate recedes.
Report on reduction of infrastructure costs at Brooks Air Force Base, 
        Texas
      The Senate amendment contained a provision (sec. 1033) 
that would require the Secretary of the Air Force to submit a 
report, not later than December 31, 1998, on the options for 
the reduction of infrastructure costs at Brooks Air Force Base, 
Texas.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to include a requirement for the 
Secretary of Defense to assess the options to reduce 
infrastructure costs at Brooks Air Force Base, Texas, in 
section 2814 concerning leasing and other alternative uses of 
non-excess military property.
Sense of the Senate regarding declassification of classified 
        information of the Department of Defense and the Department of 
        Energy
      The Senate amendment contained a provision (sec. 1069) 
that would set forth the sense of the Senate that the 
Secretaries of Defense and Energy should request adequate funds 
in fiscal year 2000 for activities relating to the 
declassification of information required by Executive Order 
12958 and the Atomic Energy Act of 1954 (42 U.S.C. 2011 et 
seq.).
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees have addressed this issue in a separate 
section in Title XXXI of this Act.
Sense of the Senate regarding the August 1995 assassination attempt 
        against President Shevardnadze of Georgia
      The Senate amendment contained a provision (sec. 1081) 
that would express the sense of the Senate that the Russian 
Federation should extradite the alleged perpetrators of the 
August 5, 1995 assassination attempt on the life of President 
Shevardnadze to Georgia to stand trial, that the Russian 
Federation and the Russian Minister of Defense should cooperate 
and ensure that Russian military bases on Georgian territory 
are not used to facilitate the escape of perpetrators acting 
against the Government and committing acts in violation of the 
national sovereignty of Georgia, and that the U.S. Government 
should use all available authorities to provide assistance to 
ensure the safety of the President of Georgia.
      The House bill contained no similar provision.
      The Senate recedes. However, the conferees do agree that 
the Russian Federation should respect the national sovereignty 
of Georgia and the Russian Ministry of Defense should cooperate 
to ensure that its military bases located on Georgian territory 
are not used to facilitate acts of terrorism and violence, nor 
used to protect and provide escape to perpetrators of terrorism 
or violence against the Georgian Government or its people.
Eliminating secret Senate holds
      The Senate amendment contained a provision (sec. 1083) 
that would state that it is a standing order of the Senate that 
a Senator who provides notice to leadership of his intention to 
object to proceeding to a motion or matter shall disclose the 
objection or hold in the Congressional Record not later than 
two session days after the date of the notice. The provision 
also stated that it was adopted as an exercise of the 
rulemaking process of the Senate and with full recognition of 
the constitutional right of the Senate to change its rules at 
any time.
      The House bill contained no similar provision.
      The Senate recedes.
Cooperation between the Department of the Army and the Environmental 
        Protection Agency in meeting the Chemical Weapons Convention 
        requirements
      The Senate amendment contained a provision (sec. 1087) 
that would require the Department of Defense (DOD), in 
coordination with the Environmental Protection Agency (EPA), to 
submit a report to the congressional defense committees by 
April 1, 1999. The report would address the mutual 
responsibilities of DOD and EPA with respect to the Resource 
Conservation and Recovery Act (RCRA) (42 U.S.C. 6901 et seq.) 
permit process related to fulfilling U.S. international 
obligations under the Chemical Weapons Convention (CWC).
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that compliance with international 
obligations to destroy the U.S. chemical weapons stockpile by 
April 28, 2007, as required under the CWC, is a national 
priority. Given the international obligation of the United 
States under the CWC, the President must ensure that DOD and 
the Army receive all necessary assistance from federal agencies 
to facilitate the safe and effective destruction of the lethal 
chemical stockpile.
      The EPA is a federal agency with specific oversight 
responsibility for states with authorized hazardous waste 
programs under RCRA. The conferees expect EPA to exercise its 
oversight responsibility in a way that supports the DOD and the 
Army in the execution of CWC obligations. The conferees, 
however, have been apprised of EPA assertions that it is not 
adequately funded to meet its federal RCRA permitting 
responsibilities associated with CWC commitments. The conferees 
expect that EPA shall work in concert with federal, state, and 
local government entities in the successful resolution of 
issues related to the destruction of the U.S. chemical weapons 
stockpile, and that the EPA shall properly budget for these 
efforts.
      The conferees are concerned about the possibility that 
inadequate EPA planning and budgeting could be used as a 
justification for authorization of the Army funding of EPA 
obligations. Such a justification would be inappropriate. In 
addition, there remains a question about the extent to which 
EPA must participate in the CWC RCRA permit process, 
particularly in states with authorized hazardous waste 
programs. The conferees agree that the level of EPA 
participation must not exceed the requirements related to 
federal regulatory oversight under RCRA.
      The Army received specific authorization to reimburse 
states for their efforts in permitting chemical 
demilitarization facilities in the National Defense 
Authorization Act for Fiscal Year 1986, but there was no 
provision for EPA reimbursement. There is no statutory 
authority for the Army to reimburse EPA for federal regulatory 
oversight activities related to the CWC RCRA permit process.
      The conferees direct the Secretary of Defense and the 
Administrator of the EPA to submit a report to the 
congressional defense committees by April 1, 1999 that includes 
the following: (1) a detailed description of the federal, 
state, and local RCRA permitting responsibilities related to 
CWC obligations to destroy the U.S. chemical stockpile, with 
particular focus on the federal regulatory role in states with 
authorized hazardous waste programs; (2) a description of the 
state authorized hazardous waste programs in those states with 
existing or projected chemical weapons destruction sites; (3) 
the level of technical assistance provided by EPA to its 
regional offices and to the state and local governments in the 
overall RCRA permitting process, the legal basis for such 
assistance, and how such assistance supports the national 
commitment to destroy U.S. chemical weapons, particularly in 
states with authorized hazardous waste programs; (4) the legal 
rationale, if any, for the Army to fund EPA technical 
assistance for EPA regional offices, and for the state and 
local governments in the RCRA permitting process associated 
with chemical weapons destruction, particularly in relation to 
state authorized hazardous waste programs; (5) the legal 
rationale, if any,for the Army to fund EPA attendance of 
meetings with the National Chemical Agent Demilitarization Workgroup, 
meetings between the Office of Solid Waste and the affected EPA 
Regional Offices and states, and meetings between the Office of Solid 
Waste, the Program Manager for Chemical Demilitarization, and DOD; (6) 
the legal rationale, if any, for DOD or the Army to provide funds to 
EPA for employment of full time equivalents (FTEs) to assist in the 
formulation of RCRA permits, the projected geographical location of the 
FTEs, and the projected function of the FTEs in relation to CWC RCRA 
permit requirements; (7) a complete explanation of the need, if any, 
for the Army to fund the EPA role with respect to CWC RCRA permit 
requirements, a complete description of the overall EPA functions and 
activities that may require Army funding, an identification of the 
other instances in which the Army has provided funds to EPA for other 
RCRA permit oversight activities, and the specific authority for the 
proposed level of EPA participation in CWC RCRA permit process; and (8) 
the Army and EPA funding levels within the President's budget projected 
to support the RCRA permit process related to CWC for fiscal year 1999 
and the out years.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

Defense Advanced Research Projects Agency experimental personnel 
        management program for technical personnel (sec. 1101)
      The Senate amendment contained a provision (sec. 1105) 
that would authorize the Secretary of Defense special personnel 
management authorities to carry out a five-year experimental 
personnel management program in which eminent experts in 
science and engineering fields for research and development 
projects administered by the Defense Advanced Research Projects 
Agency could be hired and paid without regard to existing civil 
service laws concerning appointment and compensation. The 
provision would limit authority to a maximum of five years and 
would require the Secretary of Defense to submit an annual 
report to the Congress beginning in fiscal year 1999.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Maximum pay rate comparability for faculty members of the United States 
        Air Force Institute of Technology (sec. 1102)
      The Senate amendment contained a provision (sec. 1102) 
that would permit civilian faculty at the United States Air 
Force Institute of Technology to be paid at the same level as 
civilian faculty at other senior military schools and the 
service academies.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Authority for release to Coast Guard of drug test results of civil 
        service mariners of the Military Sealift Command (sec. 1103)
      The House bill contained a provision (sec. 1101) that 
would permit the Secretary of the Navy to release to the Coast 
Guard the results of a drug test of a former employee of the 
Department of the Navy who was employed as a civil service 
mariner.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Limitations on back pay awards (sec. 1104)
      The House bill contained a provision (sec. 1102) that 
would clarify that any award of back pay to civil service 
employees, resulting from a finding of an unjustified personnel 
action adjudged under section 5596 of title 5, United States 
Code, shall not exceed six years, unless a shorter limitation 
period applies.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Restoration of annual leave accumulated by civilian employees at 
        installations in the Republic of Panama to be closed pursuant 
        to the Panama Canal Treaty of 1977 (sec. 1105)
      The House bill contained a provision (sec. 1103) that 
would provide federal employees, working to close installations 
in the Republic of Panama in accordance with the Panama Canal 
Treaty Implementation Plan, the same automatic restoration of 
excess annual leave that is provided to employees at bases 
closed under current base realignment and closure procedures.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Repeal of program providing preference for employment of military 
        spouses in military child care facilities (sec. 1106)
      The House bill contained a provision (sec. 1104) that 
would repeal section 1792d of title 10, United States Code, 
which provides military spouses with an additional hiring 
preference in the civil service that has proven unnecessary 
given the other general military spouse preferences provided by 
section 1784 of title 10, United States Code.
      The Senate amendment contained a similar provision (sec. 
1101).
      The Senate recedes.
Observance of certain holidays at duty posts outside the United States 
        (sec. 1107)
      The House bill contained a provision (sec. 1106) that 
would allow civil service employees, working in foreign areas 
where the regular work week is other than Monday through 
Friday, to observe federal holidays in conjunction with a 
weekend.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Random drug testing of Department of Defense employees (sec. 1108)
      The House bill contained a provision (sec. 1025) that 
would expand the current drug testing program of the Department 
of Defense by requiring that all civilian employees be subject 
to random tests, rather than just those serving in sensitive 
positions as required by executive order.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would codify 
the executive order which requires random drug testing of those 
serving in sensitive positions, and authorize the Secretary of 
Defense to test any employee of the Department of Defense if 
there is a reasonable suspicion that the employee uses illegal 
drugs.
Department of Defense employee voluntary early retirement authority 
        (sec. 1109)
      The Senate amendment contained a provision (sec. 1104) 
that would modify the conditions under which voluntary early 
retirement would be authorized for civilian employees of the 
Department of Defense.
      The House bill contained no similar provision.
      The House recedes with an amendment that would change the 
effective date to October 1, 2000.

                   Legislative Provisions Not Adopted

Elimination of retained pay as basis for determining locality-based 
        adjustments
      The House bill contained a provision (sec. 1105) that 
would eliminate windfall pay adjustments that have been made to 
some federal employees by requiring that future pay adjustments 
be measured against the pay rate necessary to retain the 
employees and eliminate the windfall.
      The Senate amendment contained no similar provision.
      The House recedes.
Four-year extension of voluntary separation incentive pay authority
      The Senate amendment contained a provision (sec. 1103) 
that would extend until September 30, 2003, the civilian 
voluntary separation incentive pay authority established by 
5597(e) of Title 5, United States Code.
      The House bill contained no similar provision.
      The Senate recedes.

              Title XII--Matters Relating to Other Nations

                     Legislative Provisions Adopted

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

United States armed forces in Bosnia and Herzegovina (secs. 1201-1205)
      The House bill contained a provision (sec. 1202) that 
would express the views and concerns of Congress regarding the 
participation of U.S. armed forces in NATO operations in Bosnia 
and would require the President to report to Congress on the 
continued participation of U.S. armed forces in NATO operations 
in Bosnia and the status of progress achieved in implementing 
the civilian tasks of the Dayton Accords on an annual basis. 
The provision would also require the Secretary of Defense to 
report to Congress by December 15, 1998 on the effects of the 
military operations in Bosnia on the readiness of U.S. armed 
forces and the ability of U.S. forces to conduct two nearly 
simultaneous major regional conflicts.
      The Senate amendment contained three provisions regarding 
the continued participation of U.S. ground combat forces in 
NATO operations in Bosnia. One provision (sec. 1065) would 
express the sense of Congress that the funds sufficient to 
cover continued U.S. participation in the NATO operation in 
Bosnia should be included in the defense budget and in the 
Future Years Defense Program above the defense topline 
contained in the Balanced Budget Agreement of 1997, rather than 
through reprogrammings or rescissions of existing defense 
activities. Another provision (sec. 1066) would express 
concerns that U.S. armed forces should not act as civil police 
in Bosnia and would require the President to submit a report to 
Congress on the status of establishing a NATO force of 
gendarmes, to include information on the mission of the force, 
the composition of the force, and the extent to which, if any, 
U.S. forces will participate in the force.
      Lastly, the Senate amendment included a provision (sec. 
1072) that would express the sense of Congress that U.S. ground 
combat forces should not remain in Bosnia indefinitely, that a 
NATO-led follow-on force, without participation of U.S. combat 
forces, would be suitable to continue implementation of the 
Dayton Agreement if the European Security and Defense Identity 
is not sufficiently established, that our European allies 
should take steps to establish a European follow-on force, led 
either by the Western European Union (WEU) or NATO, and that 
the President should continue to consult closely with Congress 
on the progress in implementing the Dayton Agreement and in 
reducing and ultimately withdrawing U.S. ground combat forces 
from Bosnia. It would also require the President to report to 
Congress by September 30, 1998 on the impact on the security 
situation in Bosnia that would result from a phased reduction 
of U.S. military forces, and the prospects for establishing a 
self-sustaining peace and stable government in Bosnia. Finally, 
it would require the President to submit a report to Congress 
on the following: the performance objectives, to include the 
benchmarks reported in thelatest semi-annual report submitted 
under section 7(b)(2) of the 1998 Supplemental Appropriations and 
Rescissions Act, and schedule for implementing the Dayton Agreement, to 
include objectives not specifically covered in the Dayton Agreement and 
support provided by U.S. forces to the military and non-military 
objectives. Along with the budget request for fiscal year 2000 and each 
time the President submits a proposal for funding continued operations 
of U.S. forces in Bosnia, the provision would require the President to 
submit a report to Congress including information on the mission of 
U.S. forces, the support provided by U.S. armed forces to military and 
non-military missions; U.S. armed forces participation in apprehending 
war criminals and any role in connection with civilian police 
functions; the role of U.S. armed forces in assisting in the 
resettlement of refugees and the support of U.S. armed forces in 
supporting international and local civilian authorities. The report 
would also include an assessment of the cost to the United States by 
fiscal year of carrying out the aforementioned missions, and a joint 
assessment by the Secretary of Defense and the Secretary of State on 
the status of planning for European military and paramilitary forces to 
take over the remaining military missions in Bosnia, and for the 
establishment and support of a forward-based U.S. rapid reaction force 
outside Bosnia that would be capable of responding rapidly to threats 
posed in Bosnia, and of providing support to a European follow-on force 
to ensure that it is fully capable of accomplishing the implementation 
of the Dayton Agreement.
       The conferees agree to three provisions (secs. 1201-
1204) that would combine, update, and clarify the provisions 
contained in the House bill and Senate amendment and to an 
additional provision (sec. 1205) that would contain definitions 
for the subtitle containing these provisions.

         Subtitle B--Matters Relating to Contingency Operations

Report on involvement of Armed Forces in contingency and ongoing 
        operations (sec. 1211)
      The Senate amendment contained a provision (sec. 1030) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees outlining: 1) the 
effects of U.S. involvement in contingency operations on the 
retention and reenlistment of personnel in the armed forces; 2) 
the extent to which involvement in these operations has 
resulted in shortfalls in personnel and equipment; 3) the cost 
of these operations and the accounts from which the funds to 
pay these costs were drawn; and 4) the objectives of the 
operation and the set of conditions that defines the end of 
each operation.
      The House bill contained no similar provision.
      The House recedes.
Submission of report on objectives of a contingency operation with 
        requests for funding for the operation (sec. 1212)
      The Senate amendment contained a provision (sec. 1031) 
that would require the Secretary of Defense to include with the 
initial funding request for any contingency operation involving 
the deployment of over 500 U.S. military personnel, a report 
outlining the objectives of the operation, and the conditions 
or date that defines the end of that operation.
      The House bill contained no similar provision.
      The House recedes.

            Subtitle C--Matters Relating to NATO and Europe

Limitation on United States share of costs of NATO expansion (sec. 
        1221)
      The House bill contained a provision (sec. 1211) that 
would limit the amount spent by the United States as its share 
of the total cost of enlarging the North Atlantic Treaty 
Organization NATO) to 10 percent of the cost of expansion, or a 
total of $2.0 billion, whichever is less, for fiscal years 1999 
through 2011.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit the 
U.S. share of the costs of enlarging NATO to include Poland, 
Hungary, and the Czech Republic to 25 percent of the commonly-
funded costs, or $2.0 billion, whichever is less, for fiscal 
years 1999 through 2011.
Report on military capabilities of an expanded NATO alliance (sec. 
        1222)
      The House bill contained a provision (sec. 1203) that 
would require the Secretary of Defense to provide a report to 
Congress by March 15, 1999 on the planned future requirements 
and military capabilities of an enlarged North Atlantic Treaty 
Organization (NATO).
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The conferees agree that continued U.S. participation in 
NATO advances U.S. national security interests in the region, 
as well as around the world. Additionally, the conferees 
endorse the concerns expressed by the House (H. Rept. 105-532) 
that information prepared both by the United States and NATO 
military authorities on the costs of enlarging the Alliance to 
include Poland, Hungary, and the Czech Republic was 
contradictory. However, the conferees understand that the 
differing information offered by the Department of Defense, the 
Congressional Budget Office, RAND, and NATO, in the varying 
reports submitted on the costs of enlarging the Alliance, as 
well as on the capabilities of the prospective new Alliance 
members and the future Alliance military capabilities and 
requirements, was the result of the use of different criteria 
and assumptions.
      In an effort to compile all the information contained in 
thevarious reports of the DOD and NATO on the military 
requirements and costs of enlarging the Alliance, the conferees agree 
to a provision that would require the Secretary of Defense to provide a 
report to Congress by March 15, 1999 that would include information on 
the planned future military capabilities of an Alliance that includes 
Poland, Hungary and the Czech Republic, along with an assessment of the 
tactical, operational and strategic military requirements raised by 
their inclusion. The report is to include information on the military 
capabilities of the forces of Poland, Hungary and the Czech Republic, 
and their ability to achieve the minimum military requirements 
established by NATO prior to their anticipated accession to the 
Alliance in 1999, as well as the improvements to common Alliance 
military assets and to the national capabilities of current NATO 
members as a result of including these new prospective members in the 
Alliance.
      In addition, the report is to include information on 
required improvements to the national military capabilities of 
prospective new members, and any additional necessary 
improvements to the common Alliance military assets to carry 
out both Article V of the Washington Treaty of 1949 and 
contingency operations.
      Lastly, the report should include information on any 
additional assistance the United States may agree to provide on 
a bilateral basis to assist Hungary, Poland, and the Czech 
Republic in meeting additional requirements related to 
enlarging the Alliance.
Reports on the development of the European security and defense 
        identity (sec. 1223)
      The Senate amendment contained a provision (sec. 1032) 
that would require the Secretary of Defense to submit a report 
to the congressional defense committees by December 15, 1998, 
and thereafter submit a report on a semiannual basis, on the 
progress achieved in establishing a European Security and 
Defense Identity (ESDI) within the North Atlantic Treaty 
Organization (NATO).
      The House bill contained no similar provision.
      The House recedes with an amendment.
      Several years ago, the North Atlantic Treaty Organization 
(NATO) decided to build a European pillar within NATO that 
would enable the Western European Union (WEU), with the consent 
of the Alliance, to assume the political control and strategic 
direction of NATO assets and capabilities. The establishment of 
an ESDI within the Alliance is a welcome and extremely 
important development. With the worldwide commitments of the 
United States, the successful development of an ESDI is very 
much in our national interests, since it could enable the WEU 
to carry out operations without the participation of U.S. Armed 
Forces.
      The conferees agree to a provision that would require the 
Secretary of Defense to submit an initial report to the 
congressional defense committees by December 15, 1998 on the 
plans developed and actions taken to establish an ESDI. 
Thereafter, the report shall be submitted on a semiannual basis 
and shall include information on the status of progress made in 
developing an ESDI. The submission of semiannual reports on the 
progress in establishing an ESDI would be terminated when the 
Secretary of Defense reports that an ESDI has been successfully 
established.

                       Subtitle D--Other Matters

Limitation on the assignment of United States forces for certain United 
        Nations purposes (sec. 1231)
      The House bill contained a provision (sec. 1044) that 
would prohibit the use of Department of Defense funds to assign 
any member of the armed forces to duty with the United Nations 
Rapidly Deployable Mission Headquarters.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment.
      The conferees agree that not more than eight members of 
the U.S. Armed Forces may be assigned to the United Nations 
Rapidly Deployable Mission Headquarters during fiscal year 
1999. Additionally, the conferees agree that no funds available 
to the Department of Defense during fiscal year 1999 may be 
used, either as a contribution to the United Nations to 
establish a United Nations standing international force, or to 
assign or detail U.S. Armed Forces to a United Nations Stand By 
Force.
Kyoto Protocol to the United Nations Framework Convention on Climate 
        Change (sec. 1232)
      The House bill contained a provision (sec. 1210) that 
would provide that no provision of the Kyoto Protocol to the 
United Nations Framework Convention on Climate Change, or any 
related regulation, could restrict the procurement, training, 
or operation and maintenance of the U.S. Armed Forces.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.
      The conferees note that the Kyoto Protocol has not yet 
been submitted to the Senate, and as such, a full Senate debate 
on the ratification of the Kyoto Protocol has not taken place. 
It is not the intention of the conferees, through this 
provision, to predetermine the outcome of the Senate debate on 
the advice and consent to ratification of the Kyoto Protocol.
      The conferees are aware that the Department of Defense 
has undertaken a number of activities to achieve greater 
efficiency in its operations. These include a broad-based 
effort to improve the energy efficiency of its buildings and 
facilities and an effort to improve the fuel efficiency of 
trucks and combat vehicles for the purpose of reducing the fuel 
logistics burden associated with the deployment of armed 
forces. The conferees do not intend to prohibit or discourage 
such efforts, provided that they are undertaken for a purpose 
other than the implementation of the Kyoto Protocol.
Defense burdensharing (sec. 1233)
      The Senate amendment contained a provision (sec. 1084) 
that would amend section 1221 of the National Defense 
Authorization Act for Fiscal Year 1998, placing more emphasis 
on increasing allied burdensharing in the area of military 
contributions to defense and could take one or more actions: 
increase financial contributions to the payment of nonpersonnel 
costs to the U.S. Government for the stationing of U.S. 
military personnel in a foreign country, increase annual 
budgetary outlays for national defense, increase the amount of 
military assets that a country contributes to multinational 
military activities worldwide, or increase annual budgetary 
outlays for foreign assistance by September 30, 1999. The 
Secretary of Defense would be required to report to Congress by 
March 1, 1999, on the progress achieved in increasing allied 
defense burdensharing. The Secretary of Defense would also be 
required to provide an assessment to Congress by March 1, 1999, 
of forward deployed U.S. forces permanently stationed outside 
the United States and the national security interests that 
support the forward deployment of the forces, as well as the 
cost associated with stationing these elements outside the 
United States, and potential alternatives to meet national 
security interests or alliance requirements.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Transfer of excess UH-1 Huey and AH-1 Cobra helicopters to foreign 
        countries (sec. 1234)
      The House bill contained a provision (sec. 1215) that 
would require the Secretary of Defense to make all reasonable 
efforts to ensure that any excess UH-1 Huey or AH-1 Cobra 
helicopters that are to be transferred to a foreign country for 
flight operations are in the same maintenance condition that 
such a helicopter would require for operational use by U.S. 
military forces.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that any funds that are used for such maintenance be provided 
from funding sources outside of those available to the 
Department of Defense.
Transfers of naval vessels to certain foreign countries (sec. 1235)
      The Senate amendment contained a provision (sec. 1013) 
that would transfer, on a grant, lease, or sale basis, upon 
notification to the Congress certain ships to foreign 
countries.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Repeal of the landmine moratorium (sec. 1236)
      The House bill contained a provision (sec. 1205) that 
would repeal section 580 of the Foreign Operations 
Appropriations Act of 1996 (Public Law 104-107) which requires 
a one-year moratorium on the use of anti-personnel landmines by 
U.S. armed forces on February 12, 1999.
      The Senate amendment contained a provision (sec. 1074) 
that would provide the President authority to waive, if deemed 
to be in the national security interests, the one-year 
moratorium on the use of anti-personnel landmines by U.S. armed 
forces as required by section 580 of the Foreign Operations 
Appropriations Act of 1996.
      The Senate recedes.
Application of authorities under the International Emergency Economic 
        Powers Act to communist Chinese military companies (sec. 1237)
      The Senate amendment contained provisions (secs. 3601-
3602) that would apply certain authorities under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) to business entities controlled by the People's 
Liberation Army of the People's Republic of China, as well as 
require the Secretary of Defense to compile and continually 
update a list, to be published in the Federal Register, of the 
communist Chinese military companies that are operating, 
directly or indirectly, in the United States.
      The House bill contained no similar provisions.
      The House recedes with a technical amendment.

  Title XIII--Cooperative Threat Reduction With States of the Former 
                              Soviet Union

                     Legislative Provisions Adopted

Cooperative Threat Reduction (CTR) program (secs. 1301-1309)
      The budget request included $442.4 million for the 
Cooperative Threat Reduction (CTR) program.
      The House bill contained provisions (secs. 1301-1311) 
that would authorize $417.4 million for the CTR program for 
fiscal year 1999, a $25.0 million decrease to the budget 
request; allocate fiscal year 1999 funding for various CTR 
programs and activities; prohibit the use of funds for specific 
activities; prohibit the use of funds for the construction of a 
chemical weapons destruction facility in Russia and reallocate 
a portion of these funds to additional strategic offensive 
elimination projects in Russia and Ukraine; limit the 
availability of CTR funds; require that future budget requests 
for CTR include a descriptive summary and funding breakout of 
activities; would limit the use of CTR funds until various 
reports, notifications and certifications are received by 
Congress; require a report on biological weapons activities in 
Russia; limit the use of CTR funds for biological proliferation 
prevention activities in Russia; and limit the use of CTR funds 
for strategic offensive elimination activities in Russia and 
Ukraine in excess of the budget request pending the receipt of 
a report.
      The Senate amendment would authorize $440.4 million, a 
$2.0 million reduction to the budget request, and contained 
provisions (secs. 1036 and 1041) that would require the 
Secretary of Defense to report to the congressional defense 
committees on the need for and thefeasibility of programs to 
further U.S. nonproliferation objectives regarding former Soviet 
experts in ballistic missiles and weapons of mass destruction; and 
would authorize the Secretary of Defense to provide assistance 
necessary to destroy, remove or obtain from a country, weapons of mass 
destruction or materials, equipment or technology related to the 
delivery or development of weapons of mass destruction.
      The conferees agree to a series of provisions that would 
authorize $440.4 million for the CTR program, establish 
sublimits for CTR activities and provide the Secretary of 
Defense limited authority to exceed established sublimits for 
fiscal year 1999, pending appropriate Congressional 
notification.
      In addition, the conferees prohibit CTR funds from being 
used for activities related to peacekeeping activities with 
Russia, the provision of housing, assistance to promote 
environmental restoration, to promote job retraining, or for 
the provision of assistance to Russia or any other state of the 
former Soviet Union to promote defense conversion. The 
conferees understand that the provision of housing for 
decommissioned officers in Russia remains an issue for Russia 
as it reduces its strategic military forces. Although the 
conferees reiterate their strong belief that CTR funds should 
not be used to provide housing, they encourage the appropriate 
agencies of the U.S. Government with responsibility for this 
issue to explore the matter of providing additional assistance 
as appropriate and urge the President to report to the Congress 
on any recommendations. The conferees will continue to review 
this issue in the future.
      The conferees agree to limit the use of funds for 
chemical weapons destruction activities in Russia, pending a 
Presidential certification regarding Russia's chemical weapons 
program. In addition, the Department of Defense is required to 
submit as part of the Secretary's annual budget request to 
Congress a descriptive summary of the funds requested for the 
CTR program, to include the use of prior years CTR funds.
      With regard to biological proliferation prevention 
activities in Russia, the conferees direct the Secretary of 
Defense to report to the congressional defense committees by 
March 1, 1999 on Russia's compliance with international 
agreements related to biological weapons and to provide an 
evaluation of the costs and benefits of collaborative research 
efforts between the United States and Russia. In addition, the 
conferees agree to limit the use of funds for biological 
weapons prevention activities in Russia until 15 days after the 
Secretary of Defense submits a report to the congressional 
defense committees regarding the use of CTR funds for 
cooperative research activities at biological research 
institutes in Russia.
      The conferees also agree to require the Secretary of 
Defense, in consultation with the Secretary of Energy, to 
provide a report to the congressional defense committees no 
later than January 1, 1999 on their estimate of the number of 
individuals in the Former Soviet Union with expertise in 
weapons of mass destruction and the risks posed by that 
expertise if transferred to states potentially hostile to the 
United States. The report would also include a description of 
the activities conducted by the United States and other nations 
to assist in the employment of these experts in 
nonproliferation and non-military related endeavors, and an 
assessment of such activities that should be reduced, 
maintained or expanded.
      Lastly, the conferees agree to provide the Secretary of 
Defense authority to use funds authorized for the CTR program 
to provide a country of the Former Soviet Union with emergency 
assistance to remove or obtain from that country weapons of 
mass destruction or materials, equipment or technology related 
to the development or delivery of weapons of mass destruction. 
The conferees agree that no funds authorized for strategic 
offensive elimination activities in Russia or Ukraine shall be 
used for this activity. Except in certain limited situations, 
the Secretary of Defense shall not provide such assistance 
until 15 days after written notification is received by the 
congressional defense committees.

 Title XIV--Domestic Preparedness for Defense Against Weapons of Mass 
                              Destruction

                     Legislative Provisions Adopted

Defense against weapons of mass destruction (secs. 1401-1405)
      The Department of Defense forwarded with its fiscal year 
1999 budget request a number of legislative provisions to 
expand the ability of the Department of Defense to respond to 
domestic terrorist activity and the potential use by terrorists 
of weapons of mass destruction on U.S. territory.
      The House bill contained a series of provisions (Title 
XIV) that would express the findings of Congress regarding the 
threat of terrorist use of weapons of mass destruction and the 
need to enhance domestic preparedness to respond to such 
incidents (sec. 1402), would direct the President to increase 
the effectiveness of the domestic emergency preparedness 
program and to report by January 31, 1999, the actions taken to 
develop an integrated program for such response (sec. 1411), 
would provide for an annual report on the program and 
recommendations for its improvement (sec. 1412); and would 
require the assessment of the threat and risk of terrorist 
employment of weapons of mass destruction against cities and 
other local areas (sec. 1413). The House bill would also 
establish an Advisory Commission to Assess Domestic Response 
Capabilities for Terrorism Involving Weapons of Mass 
Destruction to provide recommendations to the President and the 
Congress for improvements in Federal, State, and local domestic 
emergency preparedness (secs. 1421-1429).
      The Senate amendment contained no similar provisions.
      The conferees agree that there is a need to improve 
domestic emergency preparedness to respond to the threat of 
terrorist use of weapons of mass destruction in the United 
States. The conferees are also aware that nearly 40 Federal 
departments and agencies are involved in combating terrorism 
(including the Departments of Justice, Defense, Energy, Health 
and Human Services, and the Federal Emergency Management 
Agency), and are concerned that the efforts of the 
Federalgovernment to enhance domestic preparedness to respond to an 
incident involving weapons of mass destruction are hampered by 
incomplete interagency coordination and by the overlapping 
jurisdictions and missions of the various Federal departments and 
agencies. As a consequence, the conferees are concerned that state and 
local emergency response agencies are often presented with different 
and/or competing requirements and program priorities from the 
responsible Federal agencies.
      The conferees are also aware of the actions taken by the 
President in Presidential Decision Directive 62, pursuant to 
direction contained in section 1441 of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201), to 
establish the office of the National Coordinator for Security, 
Infrastructure Protection and Counter-Terrorism to oversee 
policies and programs in these areas. However, the conferees 
are not aware of specific actions that have been taken to 
insure an integrated, interagency program for improving 
domestic emergency response to the potential terrorist threat. 
The conferees are concerned that the Congress is not being kept 
adequately informed of the activities of the National 
Coordinator and the status of efforts undertaken to implement 
the responsibilities of the Office, pursuant to direction 
contained within section 1442 of the National Defense 
Authorization Act for Fiscal Year 1997. The conferees direct 
the National Coordinator to provide the congressional defense 
committees with a report by March 1, 1999 on the status of 
activities and efforts undertaken to coordinate policy and 
countermeasures against the proliferation of weapons of mass 
destruction.
      The conferees agree to provisions that would require the 
President (sec. 1411) to increase the effectiveness of the 
domestic emergency preparedness program at the Federal, State, 
and local levels by establishing an integrated program built 
upon the program established under the Defense Against Weapons 
of Mass Destruction Act of 1996, and to submit a report to 
Congress by January 31, 1999 that outlines the actions taken in 
this regard. The conferees also agree to a provision (sec. 
1412) that would amend the National Defense Authorization Act 
for Fiscal Year 1998 (Public Law 105-85) to include an annex to 
the report on oversight of counterterrorism and antiterrorism 
activities of the Federal government, submitted by the Director 
of the Office of Management and Budget, that would include 
information on the Federal government domestic emergency 
response program, and any recommendations for improving 
Federal, state and local domestic emergency response.
      Further, the conferees agree to a provision (sec. 1413) 
that would require the Attorney General, in consultation with 
the Director of the Federal Bureau of Investigation and 
representatives of other Federal agencies and departments, and 
state and local agencies, to develop and test methodologies for 
assessing the threat and risk of terrorist employment of 
weapons of mass destruction against cities and local areas. 
Information from such assessments could be used to help 
determine the training and equipment requirements necessary for 
an effective domestic emergency response program.
      Finally, the conferees agree to a provision (sec. 1421) 
that would require the Secretary of Defense, in consultation 
with the Attorney General, the Secretary of Energy, the 
Secretary of Health and Human Services, and the Director of the 
Federal Emergency Management Agency to enter into a contract 
with a federally funded research and development center to 
establish a panel to assess the capabilities for domestic 
response to terrorism involving weapons of mass destruction and 
to report to the President and the Congress recommendations for 
improvements in Federal, state, and local domestic emergency 
preparedness for such response. The conferees emphasize the 
guidance in the provision that the membership of the panel be 
drawn from private citizens with knowledge and expertise in 
emergency response matters, and direct that the recommendations 
of the local emergency response community be sought in the 
selection of the members of the panel.
      Elsewhere in this Act, the conferees have included a 
provision (sec. 511) that would provide expanded authority for 
use of the Reserve Components to respond to domestic 
emergencies involving the use of weapons of mass destruction.

   Title XV--Matters Relating to Arms Control, Export Controls, and 
                          Counterproliferation

                     Legislative Provisions Adopted

                    Subtitle A--Arms Control Matters

One-year extension of limitation on retirement or dismantlement of 
        strategic nuclear delivery systems (sec. 1501)
      The Senate amendment contained a provision (sec. 1043) 
that would extend by one year section 1302(e) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-
85).
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Transmission of executive branch reports providing Congress with 
        classified summaries of arms control developments (sec. 1502)
      The House bill contained a provision (sec. 1032) that 
would direct the Director of the Arms Control and Disarmament 
Agency (ACDA), or the Secretary of State (if ACDA is merged 
into the Department of State), to submit reports to Congress on 
a periodic basis summarizing the status of negotiations on arms 
control matters, and developments in the various arms control 
forums, in which the United States is a participant. These 
forums include the Joint Compliance and Inspection Commission, 
the Joint Verification Commission, the Open Skies Consultative 
Commission, the Standing Consultative Commission, and the Joint 
Consultative Group.
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Report on adequacy of emergency communications capabilities between the 
        United States and Russia (sec. 1503)
      The Senate amendment contained a provision (sec. 1044) 
that would express the sense of the Congress that a direct line 
of communications between U.S. and Russian commanders of 
strategic forces would be a useful confidence building tool, 
and would require the Secretary of Defense to submit a report 
to the Committee on Armed Services of the Senate and the House 
Committee on National Security on the feasibility of initiating 
discussions between the United States and Russia on such a 
direct line of communication.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a report within three months 
of enactment of this Act on the status and adequacy of current 
direct communications capabilities between the governments of 
the United States and the Russian Federation. The report is to 
include recommendations for improvements, if necessary, to 
improve direct communications capabilities. In addition, the 
report would include an assessment of the feasibility and the 
desirability of establishing communications links between 
United States commanders in chief and their Russian 
counterparts.
Russian nonstrategic nuclear weapons (sec. 1504)
      The Senate amendment contained a provision (sec. 1070) 
that would express concerns of the Senate that the Russian 
nonstrategic nuclear arsenal, estimated to include around 7,000 
to 12,000 tactical nuclear weapons, may pose a great threat in 
the world if they are sold or are stolen, and could become 
strategically destabilizing. Since the end of the Cold War, the 
United States has unilaterally reduced its tactical nuclear 
stockpile by almost ninety percent, and the Senate calls on the 
Russian Federation to live up to its pledges in 1991 and 1992 
to implement steep reductions in its tactical nuclear 
stockpile. The provision would require the Secretary of Defense 
to submit a report to the Congress by March 15, 1999 on the 
current Russian Federation tactical nuclear stockpile, 
including an assessment of the strategic implications of using 
tactical nuclear weapons in a strategic role, as well as an 
assessment of the Russian command and control of its tactical 
nuclear stockpile and the threat posed by the possible sale, or 
theft of tactical nuclear weapons, and past, current and 
planned efforts of the United States to work cooperatively with 
the Russian Federation to reduce its tactical nuclear stockpile 
and related fissile material.
      The House bill contained no similar provision.
      The House recedes with an amendment that would express 
the concerns of the Congress that the vast Russian Federation 
tactical nuclear stockpile poses a grave threat to the world, 
and that the Russian Federation should live up to its pledges 
in 1991 and 1992 to significantly reduce its tactical nuclear 
stockpile.
      In addition, the conferees direct the Secretary of 
Defense to submit a report to the Congress by March 15, 1999, 
including the views of the Director of Central Intelligence and 
the commander of the United States Strategic Command, on the 
current Russian Federation tactical nuclear stockpile, 
assessing the strategic and destabilizing implications of the 
use of tactical nuclear weapons used in a strategic role. In 
addition, the report should include an analysis of Russia's 
command and control of its tactical nuclear stockpile, and the 
threat posed by the theft, sale or unauthorized use of the 
warheads of these weapons. Lastly, the report should include a 
summary of past, current, and planned U.S. efforts to assist 
Russia in reducing its stockpile, as well as a summary of how 
the United States would cope militarily if Russia threatens to 
employ or actually use its tactical nuclear weapons in a 
regional conflict involving the United States or its allies.

                 Subtitle B--Satellite Export Controls

Satellite export controls (secs. 1511-1516)
      The House bill contained provisions (secs. 1206-1209 and 
1212) regarding the export of satellites of U.S. origin and 
their launch on space launch vehicles owned by the People's 
Republic of China (PRC). The provisions would prohibit the 
participation of U.S. persons in the investigations of 
satellite launch failures; prohibit the export of missile 
equipment and technology to the PRC; prohibit the export or 
reexport of satellites, information, equipment and technology 
to the PRC; and transfer the jurisdiction for licensing the 
export of satellites and satellite components to the Department 
of State.
      The Senate amendment contained no similar provisions.
      The conferees agree to transfer the jurisdiction for the 
export of satellites to the U.S. Munitions List, administered 
by the Department of State, effective March 15, 1999, and 
direct the Secretary of State, in consultation with the 
Secretary of Defense and the Secretary of Commerce, to report 
to the Congress by January 1, 1999 on steps necessary to 
implement the transfer in a manner that will permit timely and 
orderly processing of applications for export licenses, 
consistent with current law. The conferees understand that the 
transfer of these advanced technologies to the jurisdiction of 
the Department of State may result in the need for additional 
personnel to assist in the evaluation of license applications. 
To provide additional resources for this purpose, the conferees 
agree to a provision that would amend section 45 of the State 
Department Basic Authorities Act of 1956 to allow the Office of 
Defense Trade Controls of the Department of State to retain all 
registration fees, which are to be used for the payment of 
expenses incurred in acquiring additional personnel to evaluate 
and process license applications, as well as to improve the 
monitoring of compliance with the terms of the licenses.
      The conferees also agree to a provision that would 
require the President to certify to Congress in advance of any 
export to the PRC of missile technology or equipment, as 
defined in section 74 of the Arms Export Control Act, that the 
export will not be detrimental tothe U.S. space launch industry 
and that the export will not measurably improve the missile or space 
launch capabilities of the PRC. The conferees note that this 
certification is not, and is not intended to be, a prohibition on the 
export of U.S. satellites to be launched by the PRC, but is intended to 
ensure that U.S. national security would not be jeopardized by any such 
export.
      In addition to the transfer of jurisdiction to the U.S. 
Munitions List, the conferees direct the President to implement 
a series of actions to improve the national security controls 
on the export licensing of satellites and their related items 
not later than 45 days after enactment of this Act. These 
actions include, among other requirements, ensuring the full 
reimbursement to the Department of Defense for the costs of 
providing launch monitoring services, to ensure that no 
unauthorized transfer of technology occurs, by the person or 
entity receiving such services with respect to a satellite 
launch in a foreign country. The provision also requires the 
Secretary of Defense to establish a program to recruit, train 
and maintain a staff of personnel dedicated to monitoring 
foreign launches of U.S. satellites. The conferees agree to 
provide an exception to these increased national security 
controls to countries that are members of NATO or are major 
non-NATO allies of the United States.
      The President is authorized by section 902 of the Foreign 
Relations Authorization Act for Fiscal Years 1990 and 1991 to 
waive certain restrictions regarding the export of satellites 
to China, but must report to the Congress on the waiver of 
these restrictions. In addition to the report required by 
section 902(b), the conferees agree that a detailed 
justification shall accompany this report setting forth 
information related to the militarily-sensitive characteristics 
integrated within or associated with the satellite, an estimate 
of the number of U.S. personnel necessary in-country to monitor 
the proposed launch, a description of the U.S. Government's 
plan to monitor the proposed launch, the estimated cost to the 
Department of Defense to provide monitors for the launch and 
the amount to be reimbursed to the Department, and the national 
security interests for launching the satellite in a foreign 
country. The conferees direct the President to include 
information in the report regarding the impact of the export of 
satellites to the PRC on U.S. employment, including the 
creation of jobs in the United States or, in the event of a 
denial of an export license, the loss of jobs in the United 
States. Additionally, the report is to include information 
related to the balance of trade between the United States and 
the PRC and the transition of the PRC from a nonmarket economy 
to a market economy.
      Lastly, the conferees understand that, with transfer of 
satellites and related items to the U.S. Munitions List, and 
the enhanced role of the Department of Defense in export 
control activities, there may be a requirement for additional 
personnel in the Defense Technology Security Administration 
(DTSA) (or any successor organization), to assist in the 
evaluation of license applications, as well as to monitor the 
foreign launches of U.S. satellites. The conferees expect the 
Department to include in its report to the congressional 
defense committees any requirements for additional personnel. 
Additionally, the conferees believe that the Department may 
have available through the On-Site Inspection Agency (OSIA) 
personnel who would be suitable to perform such monitoring 
tasks, as required by this Act, and direct the Department to 
report on the possibility of using OSIA personnel in the 
monitoring of foreign launches, as well as in the evaluation 
of, and compliance with, license applications.
      The conferees emphasize that the agreement to transfer 
commercial communication satellites and their related items 
from the Commerce Control List to the Munitions List is not 
done with the intention of penalizing or harming an important 
U.S. industry or the competitive posture of the U.S. satellite 
industry. Rather, it is the intention of the conferees to 
affirm the importance of U.S. national security interests in 
considering the export of advanced technology to foreign 
countries, which might enhance or contribute to their military 
capabilities.

                Subtitle C--Other Export Control Matters

Authority for export control activities of the Department of Defense 
        (sec. 1521)
      The House bill contained a provision (sec. 904) that 
would invest in the Under Secretary of Defense for Policy 
responsibility for the overall supervision of activities of the 
Department of Defense relating to export controls and require a 
report on the plans of the Secretary of Defense to implement 
this provision.
      The Senate amendment contained no similar provision.
      The conferees agree to a provision that would establish a 
Deputy Under Secretary of Defense for Technology Security 
Policy, whose principal responsibilities would include the 
supervision and direction of activities of the Defense 
Technology Security Administration, or any successor 
organization charged with similar responsibilities, and other 
activities of the Department of Defense related to export 
controls. Because the position does not require Senate 
confirmation, the conferees express their view that this 
position be filled by a qualified individual with knowledge of 
the military implications of technology exports. The Secretary 
of Defense would be required to report to the congressional 
defense committees on the plans for implementing this 
provision, to include any organizational changes to the 
Department, and a description of the role of the Chairman of 
the Joint Chiefs of Staff in the export control activities of 
the Department of Defense.
Release of export information by the Department of Commerce to other 
        agencies for the purpose of national security assessment (sec. 
        1522)
      The House bill contained a provision (sec. 1213) that 
would require the Secretary of Commerce to transmit post-export 
information to the Director of Central Intelligence, the 
Secretary of Defense, and the Secretary of Energy for the 
purpose of conducting nationalsecurity risk assessments within 
five days of receiving a request for such information. The provision 
would also allow the Director of Central Intelligence, the Secretary of 
Defense, and the Secretary of Energy to delegate authority to other 
officials within their respective departments or agencies to request 
such information from the Department of Commerce.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Department of Commerce to respond within 10 days of 
receiving a request for such information in order to conduct 
national security risk assessments. The amendment would expand 
the officials authorized to request information that is 
necessary to conduct national security risk assessments, to 
include the Secretary of State.
Nuclear export reporting requirement (sec. 1523)
      The House bill contained a provision (sec. 1216) that 
would require prior congressional notification of the export or 
retransfer of special nuclear materials or production 
facilities, as defined by the Atomic Energy Agency Act of 1954, 
to any country that is not a member of the Organization for 
Economic Cooperation and Development. The notification would be 
accompanied by a report describing the details of the proposed 
export, and would be submitted to the Congress at least 30 days 
prior to the proposed export unless the President determines 
that an emergency exists which requires its immediate approval.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the President to notify Congress upon the granting of a license 
for the export or re-export of nuclear material, technology or 
equipment by the Nuclear Regulatory Commission to countries 
determined by the President to have detonated nuclear explosive 
devices and that are not members of the North Atlantic Treaty 
Organization (NATO).
Execution of objection authority within the Department of Defense (sec. 
        1524)
      The House bill contained a provision (sec. 1214) that 
would amend section 1211 of the National Defense Authorization 
Act for Fiscal Year 1998 to provide authority to the Secretary 
of Defense to delegate objection authority to a Department of 
Defense official at the Assistant Secretary level with regard 
to the export or re-export of digital computers with a 
composite theoretical performance level of more than 2000 
millions of theoretical operations per second (MTOPS), or such 
other composite theoretical performance level that may be 
subsequently established by the President.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                Subtitle D--Counterproliferation Matters

One-year extension of counterproliferation authorities for support of 
        United Nations Special Commission on Iraq (sec. 1531)
      The House bill contained a provision (sec. 1204) that 
would extend the authority of the Department of Defense to 
provide support to the United Nations Special Commission on 
Iraq (UNSCOM) under the Weapons of Mass Destruction Control Act 
of 1992 for one year.
      The Senate amendment contained a similar provision (sec. 
1042).
      The Senate recedes with a clarifying amendment.
      The conferees support the extension of this authority 
given efforts by Iraq to preserve a weapons of mass destruction 
capability and its interference with the work of the Special 
Commission. The conferees raise concerns that the weapons 
inspection process has been hampered by Iraq's flagrant 
violation of its obligations under the United Nations Security 
Council resolutions and its efforts to seek modifications to 
the inspections regime through the expulsion of U.S. inspectors 
and the suspension of the monitoring program.
      The conferees endorse concerns expressed in the House 
report (H. Rept. 105-532) regarding continued provision of 
support by the Department of Defense for UNSCOM activities. The 
conferees agree that the United States should more vigorously 
undertake efforts to negotiate an agreement with the United 
Nations to reimburse the Department of Defense for expenses 
incurred in providing support to UNSCOM.
      The conferees direct the Secretary of Defense, in 
consultation with the Secretary of State, to submit a report to 
the congressional defense committees by December 1, 1998 
describing the efforts undertaken by the Department of Defense 
to seek reimbursement, the specific support activities for 
which reimbursement would be requested, and the results of 
discussions with United Nations officials on the request of the 
United States Government.
Sense of Congress on Nuclear Tests in South Asia (sec. 1532)
      The Senate amendment contained a provision (sec. 1071) 
that would express the sense of the Senate with regard to 
condemning India and Pakistan for testing nuclear devices and 
calling for cessation of nuclear testing, steps to prevent the 
transfer of technology that could further exacerbate the arms 
race in South Asia, U.S. and international mediation to promote 
peace and stability in South Asia and to resolve the dispute 
over Kashmir, the reevaluation of U.S. bilateral relations with 
both nations, and for India and Pakistan to establish active 
dialogue on differences to minimize the potential for future 
conflict.
      The House bill contained no similar provision.
      The House recedes with an amendment that would update and 
clarify the provision as a sense of Congress.
Report on requirements for response to increased missile threat in 
        Asia-Pacific region (sec. 1533)
      The Senate amendment contained a provision (sec. 1086) 
that would require the Secretary of Defense to conduct a study 
of architecture requirements for the establishment and 
operation of a theater ballistic missile defense system in the 
Asia-Pacific region that would have the capability to protect 
key regional allies of the United States.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees understand the phrase ``key regional allies 
of the United States'' to include Japan, South Korea, and 
Taiwan.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

                                OVERVIEW

      The budget request for fiscal year 1999 included 
$7,778,074,000 for military construction and family housing.
      The House bill would authorize $8,228,074,000 for 
military construction and family housing.
      The Senate amendment would provide $8,463,940,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $8,443,742,000 for military construction and family housing, 
including general reductions and termination of prior year 
projects.






    1999 Amended Budget Estimates--FY 1999 BRAC Military Construction
                                Projects
                        [In thousands of dollars]
------------------------------------------------------------------------
Component/State/Project Description        BRAC round           Amount
------------------------------------------------------------------------
              NAVY BRAC III CONSTRUCTION, FISCAL YEAR 1999
  Nevada:
    Naval Air Station, Fallon:
        Bachelor Office Quarters     III                          11,100
         Phase II (P-XX1T).
                                    ------------------------------------
          Subtotal Navy Nevada.....  ......................       11,100
          Total for Navy             ......................       11,100
           Construction, FY 1999.
               ARMY BRAC IV CONSTRUCTION, FISCAL YEAR 1999
  Alaska:
    Fort Greely:
        Munitions Storage Facility   IV                            1,550
         (PN 47461).
                                    ------------------------------------
          Subtotal Army Alaska.....  ......................        1,550
  Colorado:
    Fitzsimons Army Medical Center:
        Warehouse Addition (PN       IV                            1,550
         47653).
        Reserve Center (PN 50296)..  IV                            2,750
                                    ------------------------------------
          Subtotal Army Colorado...  ......................        4,300
  Indiana:
    Crane Army Ammunition Activity:
        Surveillance Test Facility   IV                            1,850
         (PN 50057).
                                    ------------------------------------
          Subtotal Army Indiana....  ......................        1,850
  Maryland:
    Fort Detrick:
        Physical Fitness Center (PN  IV                            3,050
         48153).
    Fort Meade:
        Administrative Facility DIS  IV                           12,000
         (PN 46307).
        Administrative Facility      IV                            2,900
         ESSD Renovation (PN 47770).
        SDC-W Renovation--Pershing   IV                            6,300
         Hall (PN 47237).
                                    ------------------------------------
          Subtotal Army Maryland...  ......................       24,250
  New York:
    Fort Totten:
        Storage Facility (PN 46258)  IV                            1,900
                                    ------------------------------------
          Subtotal Army New York...  ......................        1,900
  Pennsylvania:
    Letterkenny Army Depot:
        Enclave Fencing (PN 49714).  IV                            1,150
                                    ------------------------------------
          Subtotal Army              ......................        1,150
           Pennsylvania.
  Virginia:
    Fort Pickett:
        Reserve Center (PN-46354)..  IV                            3,100
    Fort Lee:
        WAC Museum (PN 50091)......  IV                            2,400
                                    ------------------------------------
          Subtotal Army Virginia...  ......................        5,500
  Various Locations:
    Program Management.............  IV                            2,350
                                    ------------------------------------
          Subtotal Army Various....  ......................        2,350
          Total for Army BRAC IV     ......................       42,850
           Construction, FY 1999.
            ARMY BRAC IV FAMILY HOUSING CONSTRUCTION, FY 1999
  Alaska:
    Fort Wainwright:
        Family Housing (PN 47530)..  IV                            1,700
                                    ------------------------------------
          Subtotal Army Family       ......................        1,700
           Housing Alaska.
          Total Army Family Housing  ......................        1,700
           Construction, FY 1999.
                   NAVY BRAC IV CONSTRUCTION, FY 1999
  California:
    Naval Air Weapons Station,
     Point Mugu:
        Aviation Support Facilities  IV                            1,500
         (260U).
        Maintenance and Training     IV                           12,800
         Facilities (261U).
                                    ------------------------------------
          Subtotal Navy California.  ......................       14,300
  District of Columbia:
    Naval District of Washington:
        NAVSEASYSCOM Headquarters    IV                           71,543
         Building Relocation (009U).
          Subtotal Navy District of  ......................       71,543
           Columbia.
  Hawaii:
    Naval Telecommunications
     Center, Makalapa:
        Building Addition (411U)...  IV                              920
                                    ------------------------------------
          Subtotal Navy Hawaii.....  ......................          920
  New Jersey:
    McGuire AFB:
        Defense Courier Service      IV                              850
         Building (935U).
                                    ------------------------------------
          Subtotal Navy New Jersey.  ......................          850
  Tennessee:
    Naval Support Activity,
     Memphis:
        Building Renovation (329U).  IV                            4,200
                                    ------------------------------------
          Subtotal Navy Tennessee..  ......................        4,200
  Texas:
    Naval Air Station, Corpus
     Christi:
        Sled Ramp Facility and Land  IV                           13,313
         Acquisition (421U).
                                    ------------------------------------
          Subtotal Navy Texas......  ......................       13,313
  Virginia:
    Naval Station, Norfolk:
        Building Renovations and     IV                            3,970
         Alterations (317U).
    Naval Air Station, Oceana:
        Strike Fighter Weapons       IV                            4,073
         School Additions (163U).
                                    ------------------------------------
          Subtotal Navy Virginia...  ......................        8,430
          Total for Navy BRAC IV     ......................      131,169
           Construction, FY 1999.
                 AIR FORCE BRAC IV CONSTRUCTION, FY 1999
  New York:
    Stewart International Airport:
        Communications Training      IV                            6,000
         Complex (WHAY 959635).
                                    ------------------------------------
          Subtotal Air Force New     ......................        6,000
           York.
  Oklahoma:
    Tinker AFB:
        Alter Product Management     IV                            2,300
         (WWYK990032).
        Alter Engine Test Cell       IV                            3,800
         (WWYK993200).
        ADAL Fuel Air Facility       IV                            1,300
         (WWYK993201A).
                                    ------------------------------------
          Subtotal Air Force         ......................        7,400
           Oklahoma.
  Texas:
    Kelly AFB:
        Security Fence/Gates (MBPB   IV                              400
         993205R1).
        Vehicle OPS/Maintenance      IV                            6,200
         Complex (MBPB 993213R1).
        Fuel Operations Facility     IV                            1,200
         (MBPB 993214R1).
        Reconfigure Utility Systems  IV                            2,500
         (MBPB 993230).
                                    ------------------------------------
          Subtotal Air Force Texas.  ......................       10,300
  Utah:
    Hill AFB:
        GTE Test Cell (KRSM 993009)  IV                            2,100
        Alter Product Management/    IV                            5,300
         Composites (KRSM983102).
        F-117 Radar Facility (KRSM   IV                            1,100
         983002).
                                    ------------------------------------
          Subtotal Air Force Utah..  ......................        8,500
  Various Locations:
        Planning and Design (BCL     IV                              700
         99RD4).
                                    ------------------------------------
          Subtotal Air Force         ......................          700
           Various.
          Total Air Force BRAC IV    ......................       32,900
           Construction, FY 1999.
         DEFENSE LOGISTICS AGENCY BRAC IV CONSTRUCTION, FY 1999
  Utah:
    Defense Distribution Region
     West Defense Depot Hill, UT:
        Deployable Medical Systems   IV                           31,000
         Warehouse.
                                    ------------------------------------
          Subtotal Defense           ......................       31,000
           Logistics Agency Utah.
          Total Defense Logistics    ......................       31,000
           Agency Construction, FY
           1999.
------------------------------------------------------------------------

                            Title XXI--Army

                            Fiscal Year 1999

Overview
      The House bill would authorize $2,010,036,000 for Army 
military construction and family housing programs for fiscal 
year 1999.
      The Senate amendment would authorize $2,037,965,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $2,098,713,000 for Army military construction and family 
housing for fiscal year 1999.
      The conferees agree to general reductions of $13,639,000 
in the authorization of appropriations for the Army military 
construction and military family housing accounts. The 
reductions are to be offset by savings from favorable bids, 
reduced overhead costs, and cancellations due to force 
structure changes. The general reductions shall not cancel any 
military construction authorized by title XXI of this Act.

                       ITEMS OF SPECIAL INTEREST

Improvements of Military Family Housing, Army
      The conferees recommend that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Army execute the following projects: 
$7,400,000 for Whole Neighborhood Revitalization (40 units) at 
Fort Richardson, Alaska; $8,800,000 for Whole Neighborhood 
Revitalization Phase II (104 units) at Fort Campbell, Kentucky; 
and $3,650,000 for Whole Neighborhood Revitalization (36 units) 
at White Sands Missile Range, New Mexico.

                     Legislative Provisions Adopted

Authorized Army construction and land acquisition projects (sec. 2101)
      The House bill contained a provision (sec. 2101) that 
would authorize Army construction projects for fiscal year 
1999. The authorized amounts are listed on an installation-by-
installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Family housing (sec. 2102)
      The House bill included a provision (sec. 2102) that 
would authorize new construction and planning and design of 
family housing units for the Army for fiscal year 1999. The 
authorized amounts are listed on an installation-by-
installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Improvements to military family housing units (sec. 2103)
      The House bill contained a provision (sec. 2103) that 
would authorize improvements to existing units of family 
housing for fiscal year 1999.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Authorization of appropriations, Army (sec. 2104)
      The House bill contained a provision (sec. 2104) that 
would authorize specific appropriations for each line item 
contained in the Army's budget for fiscal year 1999. This 
section would also provide an overall limit on the amount the 
Army may spend on military construction projects.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Modification of authority to carry out fiscal year 1998 projects (sec. 
        2105)
      The House bill contained a provision (sec. 2105) that 
would amend the table in section 2101 of the Military 
Construction Authorization Act for Fiscal Year 1998 (division B 
of Public Law 105-85) to provide for an increase in the amount 
authorized for the construction of an aerial gunnery range at 
Fort Drum, New York, and a whole barracks complex renewal at 
Fort Sill, Oklahoma.
      The Senate amendment contained a provision (sec. 2105) 
that would provide for an increase in the amount authorized for 
the construction of the whole barracks complex renewal at Fort 
Sill, Oklahoma, due to a change in scope.
      The Senate recedes with a technical amendment.

                            Title XXII--Navy

                            Fiscal Year 1999

Overview
      The House bill would authorize $1,776,726,000 for Navy 
military construction and family housing programs for fiscal 
year 1999.
      The Senate amendment would authorize $1,762,298,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $1,812,476,000 for Navy military construction and family 
housing for fiscal year 1999.
      The conferees agree to general reductions of $16,323,000 
in the authorization of appropriations for the Navy military 
construction and military family housing accounts. The 
reductions are to be offset by savings from favorable bids, 
reduction in overhead costs, and cancellation of projects due 
to force structure changes. The general reductions shall not 
cancel any military construction authorized by title XXII of 
this Act.

                       ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Navy
      The conferees recommend that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Navy execute the following projects: 
$10,000,000 for family housing improvements (171 units) at 
Marine Corps Base, Camp Pendleton, California; and $5,800,000 
for family housing improvements (80 units) at Naval Air 
Station, Whidbey Island, Washington.

                     Legislative Provisions Adopted

Authorized Navy construction and land acquisition projects (sec. 2201)
      The House bill contained a provision (sec. 2201) that 
would authorize Navy construction projects for fiscal year 
1999. The authorized amounts are listed on an installation-by-
installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Family housing (sec. 2202)
      The House bill contained a provision (sec. 2202) that 
would authorize new construction and planning and design of 
family housing units for the Navy for fiscal year 1999. The 
authorized amounts are listed on an installation-by-
installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Improvements to military family housing units (sec. 2203)
      The House bill contained a provision (sec. 2303) that 
would authorize improvements to existing units of family 
housing for fiscal year 1999. The authorized amounts are listed 
on an installation-by-installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Authorization of appropriations, Navy (sec. 2204)
      The House bill contained a provision (sec. 2204) that 
would authorize specific appropriations for each line item in 
the Navy's budget for fiscal year 1999. This section would also 
provide an overall limit on the amount the Navy may spend on 
military construction projects.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Authorization to accept road construction project, Marine Corps Base, 
        Camp Lejeune, North Carolina (sec. 2205)
      The House bill contained a provision (sec. 2205) that 
would authorize the Secretary of the Navy to accept a road 
construction project valued at $2,000,000 from the State of 
North Carolina at Marine Corps Base, Camp Lejeune, North 
Carolina.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                         Title XXIII--Air Force

                            Fiscal Year 1999

Overview
       The House bill would authorize $1,577,264,000 for Air 
Force military construction and family housing programs for 
fiscal year 1999.
       The Senate amendment would authorize $1,729,050,000 for 
this purpose.
       The conferees recommend authorization of appropriations 
of $1,679,978,000 for Air Force military construction and 
family housing for fiscal year 1999.
       The conferees agree to general reductions of $24,584,000 
in the authorization of appropriations for the Air Force 
military construction and military family housing accounts. The 
reductions are to be offset by savings from favorable bids, 
reduction in overhead costs, and cancellation of projects due 
to force structure changes. The general reductions shall not 
cancel any military construction authorized by title XXIII of 
this Act.

                       ITEMS OF SPECIAL INTEREST

Improvements of military family housing, Air Force
      The conferees recommend that, within authorized amounts 
for improvements to military family housing and facilities, the 
Secretary of the Air Force execute the following projects: 
$5,220,000 for family housing improvements (68 units) at Moody 
Air Force Base, Georgia; $8,000,000 for family housing 
improvements (70 units) at Seymour Johnson Air Force Base, 
North Carolina; and $9,110,000 for family housing improvements 
(94 units) at Charleston Air Force Base, South Carolina.

                     Legislative Provisions Adopted

Authorized Air Force construction and land acquisition projects (sec. 
        2301)
      The House bill contained a provision (sec. 2301) that 
would authorize Air Force construction projects for fiscal year 
1999. The authorized amounts are listed on an installation-by-
installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Family housing (sec. 2302)
      The House bill contained a provision (sec. 2302) that 
would authorize new construction and planning and design of 
family housing units for the Air Force for fiscal year 1999.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by- 
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Improvements to military family housing units (sec. 2303)
      The House bill contained a provision (sec. 2303) that 
would authorize improvements to existing units of family 
housing for fiscal year 1999.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Authorization of appropriations, Air Force (sec. 2304)
      The House bill contained a provision (sec. 2304) that 
would authorize specific appropriations for each line item in 
the Air Force's budget for fiscal year 1999. This section would 
also provide an overall limit on the amount the Air Force may 
spend on military construction projects.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.

                      Title XXIV--Defense Agencies

                            Fiscal Year 1999

Overview
      The House bill would authorize $648,664,000 for Defense 
Agencies military construction and family housing programs for 
fiscal year 1999. The bill would also authorize $1,730,704,000 
for base closure activities.
      The Senate amendment would authorize $607,919,000 for 
this purpose. The amendment would also authorize $1,725,704,000 
for base closure activities.
      The conferees recommend authorization of appropriations 
of $585,358,000 for Defense Agencies military construction and 
family housing for fiscal year 1999. The conferees also 
recommend authorization of appropriations of $1,630,902,000 for 
base closure activities.
      The conferees agree to a general reduction of $13,300,000 
in the authorization of appropriations for the Defense Agencies 
military construction account. The general reduction is to be 
offset by savings from favorable bids and reduction in overhead 
costs. The conferees further agree to a general reduction of 
$50,500,000 in the authorization of appropriations for the 
chemical demilitarization program. The reduction to the entire 
chemical demilitarization program is based on unobligated prior 
year funds and delays in obtaining the required environmental 
and construction permits. The general reductions shall not 
cancel any military construction projects authorized by title 
XXIV of this Act.
      The conferees agree to terminate $5,000,000 in prior year 
authorization for the Military Unaccompanied Housing 
Improvement Fund. The termination is due to the absence of 
specific project activity under this account.
      The conferees agree to a general reduction of $33,102,000 
in the authorization of appropriations for the Base Closure and 
Realignment Accounts based on approved cost variations which 
accelerated six construction projects from fiscal year 1999 to 
fiscal year 1998. The conferees agree to an additional general 
reduction of $31,000,000 based on revised economic assumptions. 
The conferees are aware that the military departments have 
collected $35,700,000 more in proceeds from land sales and 
leases at closing or realigning bases than reported in the 
fiscal year 1999 budget request and recommend an adjustment in 
the accounts to accommodate these revenues.

                     Legislative Provisions Adopted

Authorized Defense Agencies construction and land acquisition projects 
        (sec. 2401)
      The House bill contained a provision (sec. 2401) that 
would authorize defense agencies construction projects for 
fiscal year 1999. The authorized amounts are listed on an 
installation-by-installation basis.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The authorized amounts are listed on a installation-by-
installation basis. The state list contained in this report is 
intended to be the binding list of the specific projects 
authorized at each location.
Improvements to military family housing units (sec. 2402)
      The House bill contained a provision (sec. 2402) that 
would authorize the Secretary of Defense to make improvements 
to existing units of family housing for fiscal year 1999.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Energy conservation projects (sec. 2403)
      The House bill contained a provision (sec. 2403) that 
would authorize the Secretary of Defense to carry out energy 
conservation projects.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Authorization of appropriations, Defense Agencies (sec. 2404)
      The House bill contained a provision (sec. 2404) that 
would authorize specific appropriations for each line item in 
the Defense Agencies' budget for fiscal year 1999. This section 
would also provide an overall limit on the amount the Defense 
Agencies may spend on military construction projects.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
Repeal of fiscal year 1997 authorization of appropriations for certain 
        military housing improvement program (sec. 2405)
      The conferees include a provision which would amend 
section 2406(a) of the Military Construction Authorization Act 
for Fiscal Year 1997 (division B of Public Law 104-201) to 
reduce the funding for the Department of Defense Military 
Unaccompanied Housing Improvement Fund by $5,000,000. The 
amendment would also make certain conforming changes to section 
2404 of that Act.
Modification of authority to carry out certain fiscal year 1995 
        projects (sec. 2406)
      The House bill contained a provision (sec. 2405) that 
would amend the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Year 1995 (division B 
of Public Law 103-337), as amended, to provide for an increase 
in the amount authorized for military construction projects to 
support chemical weapons and munitions destruction at Pine 
Bluff Arsenal, Arkansas, and Umatilla Army Depot, Oregon.
      The Senate amendment contained a similar provision.
      The House recedes.
Modification of authority to carry out fiscal year 1990 project (sec. 
        2407)
      The House bill contained a provision (sec. 2406) that 
would amend the table in section 2401 of the Military 
Construction Authorization Act for Fiscal Years 1990 and 1991 
(division B of Public Law 100-189) to provide for an increase 
in the amount authorized for the construction of a replacement 
hospital at Naval Hospital, Portsmouth, Virginia.
      The Senate amendment contained a similar provision.
      The Senate recedes with a clarifying amendment.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

                            Fiscal Year 1999

Overview
      The House bill would authorize $169,000,000 for the U.S. 
contribution to the NATO Security Investment Program for fiscal 
year 1999.
      The Senate amendment would authorize $158,000,000 for 
this purpose.
      The conferees agree to authorize $154,000,000 million for 
the U.S. contribution to the NATO Security Investment Program.

                     Legislative Provisions Adopted

Authorized North Atlantic Treaty Organization (NATO) construction and 
        land acquisition projects (sec. 2501)
      The House bill contained a provision (sec. 2501) that 
would authorize the Secretary of Defense to make contributions 
to the North Atlantic Treaty Organization Security Investment 
program in an amount equal to the sum of the amount 
specifically authorized in section 2502 of H.R. 3616 and the 
amount of recoupment due to the United States for construction 
previously financed by the United States.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Authorization of appropriations, NATO (sec. 2502)
      The House bill contained a provision (sec. 2502) that 
would authorize appropriations of $169,000,000 as the United 
States contribution to the North Atlantic Treaty Organization 
(NATO) Security Investment Program.
      The Senate would authorize $158,000,000 for this purpose.
      The conferees agree to authorize $154,000,000 for the 
United States contribution to the NATO Security Investment 
Program.

            Title XXVI--Guard and Reserve Forces Facilities

                            Fiscal Year 1999

Overview
      The House bill would authorize $309,025,000 for military 
construction and land acquisition for fiscal year 1999 for the 
Guard and Reserve components.
      The Senate amendment would authorize $443,622,000 for 
this purpose.
      The conferees recommend authorization of appropriations 
of $480,315,000 for military construction and land acquisition 
for fiscal year 1999. This authorization would be distributed 
as follows:

Army National Guard.....................................    $142,403,000
Army Reserve............................................     102,119,000
Naval and Marine Corps Reserve..........................      31,621,000
Air National Guard......................................     169,801,000
Air Force Reserve.......................................      34,371,000

      The conferees agree to a general reduction of $2,000,000 
in the authorization of appropriations for the Army National 
Guard military construction account and $4,000,000 in the 
authorization of appropriations for the Air National Guard 
military construction account. The general reductions are to be 
offset by savings from favorable bids, reduction in overhead 
costs, and cancellation of projects due to force structure 
changes. The general reductions shall not cancel any military 
construction authorized by title XXVI of this Act.

                     Legislative Provisions Adopted

Authorized Guard and Reserve construction and land acquisition projects 
        (sec. 2601)
      The House bill contained a provision (sec. 2601) that 
would authorize appropriations for military construction for 
the guard and reserve by service component for fiscal year 
1999.
      The Senate amendment contained a similar provision.
      The conference agreement includes a similar provision.
      The state list contained in this report is intended to be 
the binding list of the specific projects authorized at each 
location.
Modification of authority to carry out fiscal year 1998 project (sec. 
        2602)
      The House bill contained a provision (sec. 2602) that 
would authorize the Secretary of the Army to accept financial 
or in-kind contributions from the State of Utah in connection 
with the construction of a reserve center and organizational 
maintenance shop in Salt Lake City, Utah. The provision would 
also terminate the authorization for a similar military 
construction project at Camp Williams, Utah authorized in 
section 2601 of the Military Construction Authorization Act for 
Fiscal Year 1998 (division B of Public Law 105-85).
      The Senate amendment contained a similar provision.
      The House and Senate recede.
      The conferees include a provision that amends section 
2603 of the Military Construction Authorization Act for Fiscal 
Year 1998 (division B of Public Law 105-85) to direct the 
Secretary of the Army to enter into an agreement under which 
the State of Utah agrees to provide financial or in-kind 
contributions with regard to the construction of a reserve 
center and organizational maintenance shop at an appropriate 
site in, or in the vicinity of, Salt Lake City, Utah.

                   Legislative Provisions Not Adopted

National Guard Military Educational Facility, Fort Bragg, North 
        Carolina
      The Senate amendment contained a provision (sec. 2603) 
that would authorize $1,000,000 from the funds authorized for 
appropriations by section 2601(1)(A) for the purpose of 
planning and design of a military educational facility for the 
Army National Guard at Fort Bragg, North Carolina.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees note that this military educational 
facility requires no additional funding for planning and design 
and urge the Secretary of the Army to make every effort to 
include this construction requirement in the fiscal year 2000 
future years defense program.

        Title XXVII--Expiration and Extension of Authorizations

                     Legislative Provisions Adopted

Expiration of authorizations and amounts required to be specified by 
        law (sec. 2701)
      The House bill contained a provision (sec. 2701) that 
wouldprovide that authorizations for military construction 
projects, repair of real property, land acquisition, family housing 
projects and facilities, contributions to the North Atlantic Treaty 
Organization Security Investment Program, and guard and reserve 
projects will expire on October 1, 2001, or the date of enactment of an 
Act authorizing funds for military construction for fiscal year 2002, 
whichever is later. This expiration would not apply to authorizations 
for which appropriated funds have been obligated before October 1, 
2001, or the date of enactment of an Act authorizing funds for these 
projects, whichever is later.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Extension of authorizations of certain fiscal year 1996 projects (sec. 
        2702)
      The House bill contained a provision (sec. 2702) that 
would provide for selected extension of certain fiscal year 
1996 military construction authorizations until October 1, 
1999, or the date of the enactment of an Act authorizing funds 
for military construction for fiscal year 2000, whichever is 
later.
      The Senate amendment contained a similar provision.
      The House recedes with a technical amendment.
Extension of authorization of fiscal year 1995 project (sec. 2703)
      The House bill contained a provision (sec. 2703) that 
would provide for selected extension of certain fiscal year 
1995 military construction authorizations until October 1, 
1999, or the date of the enactment of the Act authorizing funds 
for military construction for fiscal year 2000, whichever is 
later.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Effective date (sec. 2704)
      The House bill contained a provision (sec. 2704) that 
would provide that Titles XXI, XXII, XXIII, XXIV, XV, and XXVI 
of this bill shall take effect on October 1, 1998, or the date 
of the enactment of this Act, whichever is later.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

Authorization of additional military construction and military family 
        housing projects
      The Senate amendment contained a provision (sec. 2704) 
that would authorize for appropriation $200,000,000 in 
additional military construction and military family housing 
projects for fiscal year 1999.
      The House bill contained no similar provision.
      The House recedes and the Senate recedes.
      The conferees note that the disposition of the military 
construction projects contained in the Senate amendment is 
addressed by title XXI, title XXII, and title XXIII of this Act 
where appropriate.

                    Title XXVIII--General Provisions

                     Legislative Provisions Adopted

 Subtitle A--Military Construction and Military Family Housing Changes

Architectural and engineering services and construction design (sec. 
        2801)
      The Senate amendment contained a provision (sec. 2801) 
that would amend section 2807 (a) and (d) of title 10, United 
States Code, to clarify the authority to use design funds after 
a project has been authorized and to use design funds for the 
design portion of a design-build contract. The provision would 
also clarify that ``planning'' and ``study'' efforts associated 
with military construction projects are not authorized uses of 
design funds. The provision would also amend 2807(b) of title 
10, United States Code, to increase the threshold for 
congressional notification for payment of architectural and 
engineering services and construction design from $300,000 to 
$500,000.
      The House bill contained no similar provision.
      The House recedes with an amendment that would strike 
paragraph (a) of the Senate amendment modifying section 2807(a) 
of title 10, United States Code, regarding covered projects.
Expansion of Army overseas family housing lease authority (sec. 2802)
      The Senate amendment contained a provision (sec. 2802) 
that would amend section 2828(e) of title 10, United States 
Code, to authorize the Secretary of the Army to increase, by no 
more than 500 family housing units in Italy and no more than 
800 family housing units in Korea, the number of leases for 
which the maximum amount is $25,000 per unit per year.
      The House bill contained no similar provision.
      The House recedes.
Definition of ancillary supporting facilities under the alternative 
        authority for acquisition and improvement of military housing 
        (sec. 2803)
      The House bill contained a provision (sec. 2801) that 
would amend section 2871 of title 10, United States Code, to 
clarify that the development of ancillary supporting facilities 
in military housingprojects undertaken under the authority of 
subchapter IV, chapter 169 of title 10, United States Code, may include 
the development of educational facilities to support the needs of 
dependents of military personnel.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Purchase of build-to-lease family housing at Eielson Air Force Base, 
        Alaska (sec. 2804)
      The Senate amendment contained a provision (sec. 2831) 
that would authorize the Secretary of the Air Force to purchase 
a 366-unit military family housing development at Eielson Air 
Force Base, Alaska, constructed and leased by the Secretary 
under the authority provided by section 801 of the Military 
Construction Authorization Act for Fiscal Year 1984 (Public Law 
98-115). The purchase price of the housing development would be 
an amount equal to the amount of the outstanding indebtedness 
of the developer for the project which would remain at the time 
of the purchase if the developer had paid down the indebtedness 
to the lender according to the original payment schedule for 
the project.
      The House bill contained no similar provision.
      The House recedes.
Report relating to improvement of housing for unaccompanied members 
        (sec. 2805)
      The Senate amendment contained a provision (sec. 2834) 
that would require the Secretary of Defense to submit a report 
on the costs and benefits of implementing the initiative to 
build single occupancy barracks rooms with shared bath, 
generally known as the ``one-plus-one'' barracks initiative. 
The provision would prohibit the Secretary from requesting 
additional funding for the ``one-plus-one'' barracks initiative 
unless he certifies that it is necessary to assure retention, 
in adequate numbers, of first-term enlisted members of the 
Armed Forces.
      The House bill contained no similar provision.
      The House recedes with an amendment that would broaden 
the scope of the report to include the plans of the military 
departments to improve unaccompanied military personnel 
housing, a cost comparison of implementing the ``one-plus-one'' 
initiative versus improving existing facilities, and an 
assessment of the authorities provided by subchapter IV of 
chapter 169 of title 10, United States Code. The report would 
include the views of the chiefs and senior enlisted members of 
each of the military services regarding the impact of the 
quality of unaccompanied military housing on readiness and 
retention of enlisted members of the Armed Forces. The 
amendment would also strike the requirement for the Secretary 
to certify that the ``one-plus-one'' initiative assures the 
retention of first-term enlisted members in sufficient numbers.

        Subtitle B--Real Property and Facilities Administration

Exceptions to real property transaction reporting requirements for war 
        and certain emergency and other operations (sec. 2811)
      The Senate amendment contained a provision (sec. 2812) 
that would amend section 2662 of title 10, United States Code, 
to waive the reporting requirements for certain real estate 
transactions. The provision would modify the reporting 
requirements in the event of a declaration of war, a national 
emergency, a natural disaster, a contingency operation, or a 
civil disturbance. In the event the secretary of a military 
department enters into a real property agreement under these 
conditions, the secretary would be required to submit a report 
on the agreement to the Committee on the Armed Services of the 
Senate and the National Security Committee of the House of 
Representatives, not later than 30 days after entering into the 
agreement.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
Restoration of Department of Defense lands used by another federal 
        agency (sec. 2812)
      The House bill contained a provision (sec. 2811) that 
would amend section 2662 of title 10, United States Code, to 
provide the authority for the secretary of a military 
department to require, as a condition of a lease, permit, 
license, or other grant of access to lands under the control of 
the secretary to another federal agency, the removal of any 
improvements or the taking of any corrective action necessary 
to restore the land used by another federal agency to the 
condition the land was in prior to such use.
      The Senate amendment contained a similar provision (sec. 
2814) that would amend section 2691 of title 10, United States 
Code, to authorize the secretary of the military department 
concerned to require users of Department of Defense lands to 
restore lands upon expiration of their use or to reimburse the 
military department for performing the restoration.
      The House recedes.
Outdoor recreation development on military installations for disabled 
        veterans, military dependents with disabilities, and other 
        persons with disabilities (sec. 2813)
      The House bill contained a provision (sec. 2812) that 
would amend section 103 of the Sikes Act (10 U.S.C. 670c) to 
ensure, to the maximum extent practicable, that opportunities 
for outdoor recreation on military installations would be 
equally available without substantial modification of the 
natural environment, to disabled veterans, military dependents 
with disabilities, and other persons with disabilities.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would limit 
donations to items of real or personal property.
      The conferees expect the Secretary of Defense to fund the 
requirements of this provision without increasing amounts 
previously planned for activities under the Sikes Act.
Report on leasing and other alternative uses of non-excess military 
        property (sec. 2814)
      The Senate amendment contained a provision (sec. 2836) 
that would require the Secretary of Defense to submit, not 
later than February 1999, a report on the Department of 
Defense's use of the authority provided by section 2667 of 
title 10, United States Code. The report would address the 
number and purpose of leases entered into under section 2667, 
the type and amount of payments received, the cost, if any, 
foregone as a result of the leases, the positive and negative 
aspects of leasing, the efforts to promote these type leases to 
the private sector, any legislative proposal to enhance the 
Department's capability to lease to the private sector, an 
estimate of income that could potentially be accrued as a 
result of enhanced leasing capability, and a discussion on 
retaining any income from these leases at the installation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense to submit a report regarding the 
authority of the military departments and Defense Agencies to 
lease to the private sector non-excess real and personal 
property. The report would be prepared in consultation with the 
secretaries of the military departments and the Director of the 
Office of Management and Budget. The amendment would include an 
assessment of the proposal by the Secretary of the Air Force to 
reduce infrastructure costs at Brooks Air Force Base, Texas, 
and the proposal of the Secretary of the Navy regarding the 
potential for the development of Ford Island as part of Naval 
Complex, Pearl Harbor, Hawaii. The Secretary of Defense shall, 
as he considers appropriate, also include proposed general 
legislative authority or authority to conduct pilot projects 
based on the assessment made of the proposals for Brooks Air 
Force Base and Ford Island. The amendment would also make 
certain technical and conforming changes.
Report on implementation of utility system conveyance authority (sec. 
        2815)
      The House bill contained a provision (sec. 2813) that 
would require the secretary of each military department to 
submit to Congress, not later than March 1, 1999, a report with 
a description of the criteria to be used by the secretary in 
the selection of utility systems and related real property for 
conveyance pursuant to the authority provided by section 2688 
of title 10, United States Code, a description of the manner in 
which the secretary will ensure that any such conveyance would 
not adversely affect the national security of the United States 
and a list of utility systems which are likely to be conveyed.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would delete 
the requirement for a report containing a list of the utility 
systems likely to be conveyed. The amendment would also direct 
the secretary of each military department to assess the 
advisability of including associated real property with the 
utility system to be conveyed.

            Subtitle C--Defense Base Closure and Realignment

Applicability of property disposal laws to leases at installations to 
        be closed or realigned under base closure laws (sec. 2821)
      The Senate amendment contained a provision (sec. 2813) 
that would amend section 2667(f)(1) of title 10, United States 
Code, to clarify that the Federal Property and Administrative 
Services Act of 1949, does not apply to the lease of excess 
property at closing or realigned installations if the secretary 
of a military department determines that such lease would 
facilitate state or local economic adjustment efforts.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Elimination of waiver authority regarding prohibition against certain 
        conveyances of property at Naval Station, Long Beach, 
        California (sec. 2822)
      The House bill contained a provision (sec. 2822) that 
would amend section 2826 of the Military Construction 
Authorization Act for Fiscal Year 1998 (division B of Public 
Law 105-85) to eliminate the authority of the President to 
waive the prohibition against the direct or indirect 
conveyance, by sale, lease, or other method, of real property 
at the former Naval Station, Long Beach, California, under the 
authority provided by the Defense Base Closure and Realignment 
Act of 1990 (part A of title XXIX of Public Law 101-510) to the 
China Ocean Shipping Company or any successor of that 
organization.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Payment of stipulated penalties assessed under CERCLA in connection 
        with McClellan Air Force Base, California (sec. 2823)
      The House bill contained a provision (sec. 2821) that 
would authorize the use of funds from the base realignment and 
closure account for the payment of a $15,000 stipulated penalty 
assessed under the Comprehensive Environmental Response, 
Compensation and Liability Act of 1980 in connection with the 
closure of McClellan Air Force Base, California.
      The Senate amendment contained a similar provision (sec. 
324).
      The Senate recedes.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Modification of land conveyance, Army Reserve Center, Youngstown, Ohio 
        (sec. 2831)
      The Senate amendment contained a provision (sec. 2830B) 
that would authorize the Secretary of the Army to convey, 
without consideration, to the City of Youngstown, Ohio, a 
parcel of real property, including improvements thereon, that 
is located at 399 Miller Street and contains the Kefurt Army 
Reserve Center. The property is to be used for educational 
purposes. The provision would also repeal section 2861 of the 
Military Construction Authorization Act for Fiscal Year 1996 
(division B of Public Law 104-106), which authorized a similar 
conveyance for a different purpose.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify 
section 2861(b) of the Military Construction Authorization Act 
for Fiscal Year 1996 to authorize the conveyance for 
educational purposes.
Release of interests in real property, former Kennebec Arsenal, 
        Augusta, Maine (sec. 2832)
      The Senate amendment contained a provision (sec. 2824) 
that would authorize the Secretary of the Army to release, 
without consideration, all right, title, and interest of the 
United States in and to a parcel of real property consisting of 
approximately 40 acres located in Augusta, Maine, and formerly 
known as the Kennebec Arsenal. The provision would remove 
conditions on the conveyance of the property to permit the 
State of Maine and the City of Augusta to redevelop the 
property in support of a museum and for commercial activities.
      The House bill contained no similar provision.
      The House recedes.
Release waiver, or conveyance of interests in real property, former 
        Redstone Army Arsenal property, Alabama (sec. 2833)
      The House bill contained a provision (sec. 2837) that 
would authorize the Secretary of the Army to release, without 
consideration and to such extent necessary to protect the 
interests of the United States, the reversionary interests of 
the United States in a parcel of real property conveyed to the 
Alabama Space Science Exhibit Commission pursuant to Public Law 
90-276, section 813 of the Military Construction Authorization 
Act, 1980 (Public Law 96-125), and section 813 of the Military 
Construction Authorization Act, 1984 (Public Law 98-115).
      The Senate amendment contained no similar provision.
      The Senate recedes with a clarifying amendment.
Conveyance of utility systems, Lone Star Army Ammunition Plant, Texas 
        (sec. 2834)
      The Senate amendment contained a provision (sec. 2830C) 
that would authorize the conveyance, at fair market value, of 
all or part of the utility systems at the Lone Star Army 
Ammunition Plant, Texas, to the Redevelopment Authority for the 
Red River Army Depot in conjunction with the disposal of 
property at the Depot under the Defense Base Closure and 
Realignment Act of 1990 (part A of title XXIX of Public Law 
101-510).
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the fair market value of the conveyed utility systems and any 
associated real property to be determined by an independent 
appraisal. The amendment would also make certain technical 
corrections.
Conveyance of water rights and related interests, Rocky Mountain 
        Arsenal, Colorado, for purposes of acquisition of perpetual 
        contracts for water (sec. 2835)
      The Senate amendment contained a provision (sec. 2828) 
that would authorize the Secretary of the Army to convey, with 
consideration, water rights at Rocky Mountain Arsenal, Colorado 
to the City and County of Denver, Colorado. The provision would 
authorize the Secretary to replace the current unreliable water 
source at the Arsenal with a constant water supply, consistent 
with an agreement entered into by the Secretary to provide 
water to local communities affected by environmental 
contamination caused by the operation of the Arsenal. The 
provision would also provide for a permanent water supply for 
the wildlife refuge located at the Arsenal and water storage 
facilities.
      The House bill contained no similar provision.
      The House recedes.
Land conveyance, Army Reserve Center, Massena, New York (sec. 2836)
      The House bill contained a provision (sec. 2831) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements in 
Massena, New York, to the Village of Massena. The property is 
to be used for recreational, educational, or other public 
purposes. The cost of any surveys necessary for the conveyance 
would be borne by the Village.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require a 
reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance.
Land conveyance, Army Reserve Center, Ogdensburg, New York (sec. 2837)
      The House bill contained a provision (sec. 2832) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements in 
Ogdensburg, New York, to the Town of Ogdensburg. The property 
is to be used forrecreational, educational, or other public 
purposes. The cost of any surveys necessary for the conveyance would be 
borne by the Town.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
a reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance.
Land conveyance, Army Reserve Center, Jamestown, Ohio (sec. 2838)
       The House bill contained a provision (sec. 2833) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements in 
Jamestown, Ohio, to the Greeneview Local School District. The 
property is to be used for educational purposes. The cost of 
any surveys necessary for the conveyance would be borne by the 
District.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
a reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance. The amendment would also make certain technical 
corrections.
Land conveyance, Army Reserve Center, Peoria, Illinois (sec. 2839)
       The Senate amendment contained a provision (sec. 2830) 
that would authorize the Secretary of the Army to convey, 
without consideration, a parcel of real property with 
improvements to Peoria School District #150, Peoria, Illinois. 
The purpose of the conveyance would be for education, training, 
maintenance, and transportation facilities. The provision would 
contain a reversionary clause in the event that the Secretary 
of the Army determines that the property is not used in 
accordance with the condition of conveyance.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
reversionary interest of the United States to a five year 
period, beginning on the date the Secretary makes the 
conveyance. The amendment would also make certain technical 
corrections.
Land conveyance, Army Reserve Center, Bridgton, Maine (sec. 2840)
       The Senate amendment contained a provision (sec. 2822) 
that would authorize the Secretary of the Army to convey, 
without consideration, a parcel of excess real property with 
improvements consisting of approximately 3.65 acres to the Town 
of Bridgton, Maine. The purpose of the conveyance would be for 
public benefit to facilitate the expansion of a municipal 
office complex. The provision would include a reversionary 
clause in the event that the Secretary determines that the 
conveyed property is not in accordance with the condition of 
conveyance.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
reversionary interest of the United States to a five year 
period beginning on the date the Secretary makes the 
conveyance. The amendment would also make certain technical 
corrections.
Land conveyance, Fort Sheridan, Illinois (sec. 2841)
       The House bill contained a provision (sec. 2838) that 
would authorize the Secretary of the Army to convey, at fair 
market value, to the City of Lake Forest, Illinois, 
approximately 14 acres, including improvement, known as the 
northern Army reserve enclave. The Secretary of the Army would 
be authorized, subject to appropriations, to use the proceeds 
from the conveyance to provide for the construction of 
replacements facilities and for the relocation costs for 
reserve units and activities affected by the conveyance.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
the Secretary of the Army to submit a report to the 
congressional defense committees certifying that the relocation 
of reserve units and activities impacted by the conveyance is 
consistent with an approved master plan for the consolidation 
of reserve activities in the vicinity of Chicago, Illinois. The 
Secretary may not convey the property until 21 days after the 
date he submits the report.
Land conveyance, Skaneateles, New York (sec. 2842)
       The Senate amendment contained a provision (sec. 2830A) 
that would authorize the Secretary of the Army to convey, 
without consideration, a parcel of real property with 
improvements consisting of approximately 147 acres to the Town 
of Skaneateles, New York. The purpose of the conveyance would 
be for recreational and educational purposes. The provision 
would contain a reversionary clause in the event that the 
Secretary of the Army determines that the property is not used 
in accordance with the condition of conveyance.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
reversionary interest of the United States to a five year 
period, beginning on the date the Secretary makes the 
conveyance. The amendment would also make certain technical 
corrections.
Land conveyance, Indiana Army Ammunition Plant, Charlestown, Indiana 
        (sec. 2843)
       The House bill contained a provision (sec. 2835) that 
would authorize the Secretary of the Army to convey a parcel of 
real property with improvements, consisting of approximately 
4,660 acres at the Indiana Army Ammunition Plant, Charlestown, 
Indiana, to the Indiana Army Ammunition Plant Reuse Authority. 
The property is to be used for economic development purposes. 
As consideration for the conveyance, the Authority would pay to 
the United States an amount equal to the fair market value of 
the property at the end of the ten year period, beginning on 
the date the conveyance is completed. The cost of any surveys 
necessary for the conveyance, and any additional administrative 
expenses, would be borne by the Authority. Thissection would 
also amend section 2858(a) of the Military Construction Authorization 
Act for Fiscal Year 1996 (division B of Public Law 104-106), as 
amended, to authorize the Secretary of the Army to convey, without 
consideration, an additional parcel of real property consisting of 
approximately 2,000 acres at the Indiana Army Ammunition Plant, 
Charlestown, Indiana, to the State of Indiana. The property is to be 
used for recreational purposes.
       The Senate amendment contained a similar provision (sec. 
2821).
       The Senate recedes with a technical amendment.
Land conveyance, Volunteer Army Ammunition Plant, Chattanooga, 
        Tennessee (sec. 2844)
       The House bill contained a provision (sec. 2836) that 
would authorize the Secretary of the Army to convey a parcel of 
real property with improvements, consisting of approximately 
1,033 acres at the Volunteer Army Ammunition Plant, 
Chattanooga, Tennessee, to Hamilton County, Tennessee. The 
property is to be used for economic development purposes. As 
consideration for the conveyance, the County would pay to the 
United States an amount equal to the fair market value of the 
property at the end of the ten year period, beginning on the 
date the conveyance is completed. The cost of any surveys 
necessary for the conveyance, and any additional administrative 
expenses, would be borne by the County.
       The Senate amendment contained a similar provision (sec. 
2823).
       The House recedes.
Land conveyance, Stewart Army Sub-Post, New Windsor, New York (sec. 
        2845)
       The House bill contained a provision (sec. 2834) that 
would authorize the Secretary of the Army to convey, without 
consideration, a parcel of real property with improvements, 
consisting of approximately 391 acres, to the Town of New 
Windsor, New York. The property is to be used for economic 
development purposes. The cost of any surveys necessary for the 
conveyance would be borne by the Town.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would specify 
that the purpose of the conveyance would be for economic 
development. The amendment would include as a condition of 
conveyance that the Town agree to provide connections to local 
waste water and sewage treatment systems for existing and 
future improvements to property retained by the Army Reserve 
and the Marine Corps. The Town would also provide waste water 
and sewage services at rates established by the appropriate 
Federal or State regulatory authority.

                       Part II--Navy Conveyances

Conveyance of easement, Marine Corps Base, Camp Pendleton, California 
        (sec. 2851)
       The House bill contained a provision (sec. 2841) that 
would authorize the Secretary of the Navy to grant an easement 
in perpetuity over a parcel of real property, consisting of 
approximately 340 acres, to the Foothill/Eastern Transportation 
Corridor Agency. The easement is to be used to permit the 
construction, operation, and maintenance of a restricted access 
highway. As consideration for the easement, the Agency would 
pay to the United States an amount equal to the fair market 
value of the easement. The cost of any surveys necessary for 
the easement would be borne by the Agency.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
Land exchange, Naval Reserve Readiness Center, Portland, Maine (sec. 
        2852)
       The House bill contained a provision (sec. 2842) that 
would authorize the Secretary of the Navy to convey a parcel of 
real property, with improvements, consisting of approximately 
3.72 acres, to the Gulf of Maine Aquarium Development 
Corporation. As consideration for the conveyance, the 
Corporation would pay to the United States an amount equal to 
the fair market value of the property. The Secretary would use 
the funds paid by the Corporation for the design, construction, 
or acquisition of facilities suitable for use by the Naval 
Reserve.
       The Senate amendment contained a similar provision (sec. 
2825) that would authorize the Secretary of the Navy to convey 
a parcel of real property consisting of approximately 3.72 
acres, including adjacent submerged lands, and the Naval 
Reserve Readiness Center, in Portland, Maine, to the Gulf of 
Maine Aquarium Development Corporation, Portland, Maine, for 
the purpose of establishing an aquarium and research facility. 
In exchange for the conveyance, the corporation would provide 
replacement facilities for the Naval Reserve, as the Secretary 
determines appropriate.
       The House recedes with an amendment that would require 
the Secretary of the Navy to provide a report to the 
congressional defense committees on the terms and conditions of 
the agreement between the Secretary and the Corporation. The 
Secretary may not convey the property until 21 days after the 
date he submits the report.
Land conveyance, Naval and Marine Corps Reserve facility, Youngstown, 
        Ohio (sec. 2853)
       The House bill contained a provision (sec. 2843) that 
would authorize the Secretary of the Navy to convey, without 
consideration, a parcel of real property with improvements in 
Youngstown, Ohio, to the City of Youngstown, Ohio. The purpose 
of the conveyance would be for educational purposes. The cost 
of any survey necessary for the conveyance would be borne by 
the city.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
a reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance. Theamendment would also make certain technical 
corrections.
Land conveyance, Naval Air Reserve Center, Minneapolis, Minnesota (sec. 
        2854)
       The Senate amendment contained a provision (sec. 2829) 
that would authorize the Secretary of the Navy to convey or 
lease a parcel of real property, with improvements consisting 
of approximately 32 acres, comprising the Naval Air Reserve 
Center, Minneapolis, Minnesota, to the Minneapolis-St. Paul 
Metropolitan Airports Commission. The purpose of the conveyance 
would be for expansion of the Minneapolis-St. Paul 
International Airport. In consideration, the Commission shall 
provide a replacement facility, acceptable to the Secretary of 
the Navy, to be used as a Naval Air Reserve Center. The 
provision would also require the Commission to assume the 
relocation expenses.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify 
the alternative lease authority. The amendment would also 
include a notice-and-wait provision and make certain technical 
corrections.

                    Part III--Air Force Conveyances

Modification of land conveyance authority, Eglin Air Force Base, 
        Florida (sec. 2861)
       The Senate amendment contained a provision (sec. 2827) 
that would amend the Military Construction Authorization Act, 
1979 (Public Law 95-356), as amended by the Military 
Construction Authorization Act, 1989 (division B of Public Law 
100-456), to authorize the conveyance, at fair market value, of 
an additional parcel of real property consisting of 
approximately four acres at Eglin Air Force Base, Florida, to 
the Air Force Enlisted Men's Widows and Dependents Home 
Foundation, Inc.
       The House bill contained no similar provision.
       The House recedes.
Modification of land conveyance, Finley Air Force Station, North Dakota 
        (sec. 2862)
       The Senate amendment contained a provision (sec. 2830D) 
that would amend section 2835 of the Military Construction 
Authorization Act for Fiscal Year 1995 (division B of Public 
Law 103-337) to authorize the Secretary of the Air Force to 
convey, without consideration, to the City of Finley, North 
Dakota, three parcels of real property with improvements 
consisting of approximately 77 acres. The purpose of the 
conveyance would be for economic development. The provision 
would contain a reversionary clause in the event that the 
Secretary of the Air Force determines that the property is not 
used in accordance to the condition of conveyance. The 
Secretary would be authorized to abate any hazardous substance 
in the improvements to be conveyed.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
reversionary interest of the United States to a five year 
period, beginning on the date the Secretary makes the 
conveyance. The amendment would also strike section (c) 
regarding authority to conduct abatement of hazardous 
substances. The conferees note that the Secretary of the Air 
Force, under existing statute, has the authority and 
responsibility to abate hazardous materials.
Land conveyance, Lake Charles Air Force Station, Louisiana (sec. 2863)
       The House bill contained a provision (sec. 2851) that 
would authorize the Secretary of the Air Force to convey, 
without consideration, a parcel of real property with 
improvements, consisting of approximately 4.38 acres, at Lake 
Charles Air Force Station, Louisiana, to McNeese State 
University. The property is to be used for educational purposes 
and for agricultural research. The cost of any surveys 
necessary for the conveyance would be borne by the University.
       The Senate amendment contained a similar provision (sec. 
2826). The provision would condition the conveyance upon the 
acceptance by the University of the property subject to such 
easements or rights of way as the Secretary considers 
appropriate. The provision would include a reversion clause in 
the event that the Secretary determines that the conveyed 
property is not used in accordance with the condition of 
conveyance.
       The Senate recedes with an amendment that would require 
a reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance.
Land conveyance, Air Force Housing facility, La Junta, Colorado (sec. 
        2864)
       The House bill contained a provision (sec. 2852) that 
would authorize the Secretary of the Air Force to convey, 
without consideration, a parcel of real property with 
improvements, consisting of approximately 28 acres, to the City 
of La Junta, Colorado. The property is to be used for housing 
and educational purposes. The cost of any surveys necessary for 
the conveyance would be borne by the City.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
a reversionary interest of the United States for a five year 
period, beginning on the date the Secretary makes the 
conveyance. The amendment would also make certain technical 
corrections.

                       Subtitle E--Other Matters

Modification of authority relating to Department of Defense laboratory 
        revitalization demonstration program (sec. 2871)
      The Senate amendment contained a provision (sec. 2833) 
that would extend the authority relating to the Department of 
Defense Laboratory Revitalization Demonstration Program 
authorized by section 2892 of the Military Construction 
Authorization Act for Fiscal Year 1996 (division B of Public 
Law 104-106) for a five year period, ending on September 30, 
2003. The provision would require the Secretary of Defense to 
submit a report, not later than February 1, 2003, on the 
desirability of making the program permanent.
      The House bill contained no similar provision.
      The House recedes.
Repeal of prohibition on joint use of Gray Army Airfield, Fort Hood, 
        Texas, with civil aviation (sec. 2872)
      The House bill contained a provision (sec. 2861) that 
would repeal the prohibition on joint military-civilian use of 
Gray Army Airfield.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Modification of demonstration project for purchase of fire, security, 
        police, public works, and utility services from local 
        government agencies (sec. 2873)
      The House bill contained a provision (sec. 2864) that 
would amend section 816(b) of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337), as 
amended, to extend the period under which a demonstration 
project is authorized for the purchase of fire, security, 
police, public works, and utility services from local 
government at specified locations in Monterey, California.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would amend 
section 816 of the National Defense Authorization Act for 
Fiscal Year 1995, as amended, by adding new section that would 
terminate the demonstration project effective September 30, 
2000.
Designation of building containing Navy and Marine Corps Reserve 
        Center, Augusta, Georgia (sec. 2874)
      The House bill contained a provision (sec. 2862) that 
would designate the building housing the Navy and Marine Corps 
Reserve Center in Augusta, Georgia, as the A. James Dyess 
Building.
      The Senate amendment contained no similar provision.
      The Senate recedes.

                   Legislative Provisions Not Adopted

Expansion of Arlington National Cemetery
      The House bill contained a provision (sec. 2863) that 
would authorize the transfer of real property and exchange of 
jurisdiction between the Secretary of Defense and the Secretary 
of the Army to provide for an expansion of Arlington National 
Cemetery, Virginia. The property to be transferred to the 
administrative jurisdiction of the Secretary of the Army 
consists of three parcels, totaling approximately 36.5 acres, 
located at the Navy Annex of the Pentagon. The provision would 
also require the Secretary of the Army to modify the boundary 
of Arlington National Cemetery to include two parcels of real 
property, totaling approximately eight acres, situated in Fort 
Myer, Virginia, contiguous to the Cemetery.
      The Senate amendment contained no similar provisions.
      The House recedes.
      The conferees note that Arlington National Cemetery may 
be able to accommodate ground burials through approximately the 
year 2025. The conferees further note that this circumstance 
may not permit the accommodation of veterans who served in the 
armed forces during the Vietnam era. The conferees direct the 
Secretary of the Army, in coordination with the Secretary of 
Defense and in consultation with the Commonwealth of Virginia, 
the County of Arlington, Virginia, and appropriate federal 
agencies, to assess the land requirements, through either 
acquisition, exchange, or transfer, that would permit an 
expansion of Arlington National Cemetery to accommodate ground 
burials beyond the current estimated useful life of the 
cemetery. The conferees direct the Secretary of the Army to 
assess the adequacy of the master planning process for the 
cemetery. The Secretary shall submit a report on the 
Department's findings, including any recommendations, to the 
Congress no later than April 1, 1999. The conferees further 
direct the Secretary to report periodically, as circumstances 
warrant, on options to enhance Arlington National Cemetery.
Increase in thresholds for reporting requirements relating to real 
        property transactions
      The Senate amendment contained a provision (sec. 2811) 
that would amend section 2662 of title 10, United States Code, 
to increase the threshold for congressional notification for 
real property transactions from $200,000 to $500,000. The 
transactions requiring notification include the purchase, 
lease, transfer, and disposal of real property.
      The House bill contained no similar provision.
      The Senate recedes.
Beach replenishment, San Diego, California
      The Senate amendment contained a provision (sec. 2832) 
that would authorize the Secretary of the Navy to use funds 
remaining from the Naval Air Station North Island, California, 
dredging project authorized in section 2204(a)(1) of the 
Military Construction Authorization Act for Fiscal Year 1997 
(division B of Public Law 105-85) to carry out beach 
replenishment in and around San Diego, California. The 
provision would authorize the secretary to merge any funds 
contributed to the cost of that project by the State of 
California and by local governments under the agreement under 
section2205 of the Military Construction Authorization Act for 
Fiscal Year 1997. The provision would prohibit any obligation of funds 
to carry out the beach replenishment project until 30 days after the 
date on which the Secretary submits to the congressional defense 
committees a report.
      The House bill contained no similar provision.
      The Senate recedes.
      Upon completion of the dredging project at Naval Air 
Station, North Island, California, authorized by section 
2204(a)(1) of the Military Construction Authorization Act for 
Fiscal Year 1997, and any associated beach replenishment 
activity otherwise authorized by law, the conferees direct the 
Secretary of the Navy to submit a report to the congressional 
defense committees detailing the total cost of the dredging 
project, the cost of any beach replenishment activity conducted 
by the Secretary, and the contributions, if any, provided by 
the State of California and local government agencies for beach 
replenishment activities associated with activities conducted 
by the Secretary.
Development of Ford Island, Hawaii
      The Senate amendment contained a provision (sec. 2835) 
that would require the Secretary of Defense to submit, not 
later than December 1, 1998, a report regarding the potential 
for development of Ford Island within the Pearl Harbor Naval 
Complex, Oahu, Hawaii. The report would consider innovative 
resource development measures, including but not limited to, an 
enhanced-use leasing program similar to that of the Department 
of Veterans Affairs, as well as the sale or other disposal of 
land in Hawaii under the control of the Navy as part of an 
overall program for Ford Island development. The report would 
include proposed legislation for carrying out the measures 
recommended.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees agree to include a requirement for the 
Secretary of Defense to assess the proposal of the Secretary of 
the Navy regarding the potential for the development of Ford 
Island, and to submit any proposed legislation deemed 
appropriate, in section 2814 concerning leasing and other 
alternative uses of non-excess military property.
Repairs and stabilization measures at Walter Reed Army Medical Center
      The Senate amendment contained a provision (sec. 2837) 
that would authorize $2.0 million for repairs and stabilization 
efforts at Walter Reed Army Medical Center.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees urge the Department of the Army to allocate 
sufficient real property maintenance funding to provide for the 
repair and stabilization of the Forest Glen Annex.
Modification of limitations on general authority relating to base 
        closures and realignments
      The Senate amendment contained a provision (sec. 2851) 
that would amend section 2687 of title 10, United States Code, 
to further restrict the general authority of the Department of 
Defense regarding the closure and realignment of military 
installations. The provision would reduce the current ceiling 
for closure actions from 300 civilian personnel to 225, and 
reduce the current ceiling for realignments from 1,000 
civilians, or 50 percent of the total civilian employment at a 
base to 750 or 40 percent respectively.
      The House bill contained no similar provision.
      The Senate recedes.
Prohibition on closure of a base within four years after a realignment 
        of the base
      The Senate amendment contained a provision (sec. 2852) 
that would amend chapter 159 of title 10, United States Code, 
to prohibit the Department of Defense from obligating or 
expending any funds to close a military installation that has 
been realigned within four years after the completion of any 
realignment that would reduce the number of civilian personnel 
employed at that installation below 225.
      The House bill contained no similar provision.
      The Senate recedes.
Sense of Congress on further rounds of base closures
      The Senate amendment contained a provision (sec. 2853) 
that would express the sense of Congress that Congress should 
not authorize further rounds of base closure and realignment 
until all actions resulting from the 1995 round are completed 
and that the Department of Defense should submit forthwith the 
report required by section 2815 of the National Defense 
Authorization Act for Fiscal Year 1995 (Public Law 103-337), 
concerning the effects of base closures on the ability of the 
armed forces to remobilize.
      The House bill contained no similar provision.
      The Senate recedes.

               Title XXIX--Juniper Butte Range Withdrawal

                     Legislative Provisions Adopted

Juniper Butte Range withdrawal (secs. 2901-2919)
      The Senate amendment contained title XXIX (secs. 2901-
2919) that would provide for the withdrawal and reservation of 
approximately 12,000 acres of public lands, known as the 
Juniper Butte Range, Idaho, to support enhanced military 
training at Mountain Home Air Force Base, Idaho.
      The House bill contained no similar provision.
      The House recedes with an amendment that would ensure 
that environmental remediation of relinquished withdrawn lands 
conforms to existing legal requirements, strike the sense of 
the Senate regardingthe monitoring of withdrawn lands, provide 
for indemnification of the United States against any liability related 
to mining activities, and make certain technical corrections.
      The conferees direct the Department of the Air Force to 
develop a cooperative effort with the Bureau of Land 
Management, the State of Idaho, and Owyhee County, Idaho, to 
monitor the impact of military activities on the natural, 
cultural, and other resources of the lands withdrawn and 
reserved by this title, as well as other federal and state 
lands affected by military activities associated with the 
Juniper Butte Range. The Secretary of the Air Force shall 
ensure that budgetary planning includes sufficient funds to 
provide for the participation of the Department of the Air 
Force in such a federal, state, and local cooperative 
monitoring effort. The conferees expect that the budgetary 
planning of the Department of the Air Force will be consistent 
with the commitment made by the Secretary of the Air Force, in 
a letter dated June 11, 1998.

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

      Title XXXI--Department of Energy National Security Programs

Overview
      The budget request for fiscal year 1999 contained an 
authorization of $12,280.2 million for the Defense Nuclear 
Activities. The House bill would authorize $11,879.5 million. 
The Senate amendment would authorize $11,920.9 million. The 
conferees recommended an authorization of $11,950.2 million. 
Unless noted explicitly in the statement of managers, all 
changes are made without prejudice.





                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

Weapons activities (sec. 3101)
      The House bill contained a provision (sec. 3101) that 
would authorize $4.5 billion for weapons activities and an 
offset of $340.9 million to account for available uncosted, 
unobligated prior year funds.
      The Senate bill contained a similar provision (sec. 3101) 
that would authorize $4.5 billion for weapons activities and an 
offset of $145.0 million to account for available uncosted, 
unobligated prior year funds.
      The House recedes in part and the Senate recedes in part.
      The conferees recommend authorization of $4.5 billion for 
atomic energy defense weapons activities of the Department of 
Energy, a reduction of $2.0 million from the requested amount 
of $4.5 billion. The amount authorized is for the following 
activities: $2.1 billion for stockpile stewardship, a reduction 
of $40.0 million; $2.1 billion for stockpile management 
activities, an increase of $62.1 million; and $250.0 million 
for program direction, a reduction of $10.5 million. The 
conferees recommend an undistributed reduction of $13.6 million 
to stockpile stewardship and stockpile management construction 
projects. The conferees further recommend an undistributed 
reduction of $178.9 million to operating and management and 
program direction funds to be offset by available uncosted, 
unobligated prior year funds.
            Stockpile stewardship programs
      The conferees recommend $487.0 million for the 
Accelerated Strategic Computing Initiative (ASCI) and Stockpile 
Computing program, a reduction of $30.0 million. The conferees 
note that even at this reduced level of funding, the ASCI 
program will experience significant growth over fiscal year 
1998 funding levels.
      The conferees believe that the Department has not fully 
justified the rapid growth requested for this program or the 
pace of acquisition of added computational capacities. The 
conferees believe that the proposed reduction will have no 
significant impact on the Department's stockpile stewardship 
and management programs. The conferees strongly encourage the 
Department to slow the rate of growth in this program in future 
fiscal years.
      The conferees support the Secretary of Energy's 
commitment to fund cooperative efforts with the Pittsburgh 
Supercomputing Center. The conferees note, however, that the 
utilization rate of existing DOE-owned supercomputers is very 
low. The conferees direct the Secretary of Energy to report to 
the congressional defense committees on the justification for 
such leases, and whether any such leased capabilities can 
better meet the Department's supercomputing needs in lieu of 
planned acquisitions proposed within the ASCI program.
            Stockpile management programs
      Of the funds available for stockpile management, the 
conferees recommend an increase of $58.5 million for weapons 
production plants, to be allocated as follows: $25.0 million 
for the Pantex Plant to support scheduled workload requirements 
associated with weapons dismantlement activities and for skills 
retention; $15.5 million for the Kansas City Plant to support 
advanced manufacturing efforts such as the Advanced Development 
Program and for skills retention; $13.0 million for the Y-12 
Plant to support maintenance of core stockpile management 
capabilities; and $5.0 million for the Savannah River Site to 
support infrastructure and maintenance activities.
      The Senate report (S. Rpt. 105-189) encouraged the 
Assistant Secretary for Defense Programs to create a stockpile 
stewardship and management council to advise the Assistant 
Secretary on programmatic and budget issues related to the 
Department's weapons missions. The conferees address this issue 
in a separate provision in this title.
      Consistent with the Senate report, the conferees direct 
the Secretary of Energy and Secretary of Defense to prepare a 
long range plan identifying pit production requirements, 
including quantities by warhead type, schedules, costs, and 
siting options. The report should also identify the military 
requirements and assumptions underlying each option and include 
options that reflect various potential stockpile levels. The 
report should be submitted to the Committee on Armed Services 
of the Senate and the Committee on National Security of the 
House of Representatives in both unclassified and classified 
form not later than March 1, 1999.
            Technology transfer and education
      The conferees recommend $59.0 million for technology 
transfer and education activities. Of this amount, the 
conferees recommend $10.0 million for the American Textiles 
Partnership project.
            Program direction
      The conferees recommend a $10.5 million reduction to the 
budget request for program direction. The conferees believe 
that the reduction can be achieved through continued efficiency 
savings to be gained from realignment efforts described in the 
Institute for Defense Analysis report on the Department's 
management structure for weapons activities.
            Construction projects
      The conferees recommend a reduction of $30.0 million to 
stockpile stewardship and stockpile management construction 
projects, to be allocated as follows: a reduction of $11.0 
million from the chemistry and metallurgy research facility 
renovation project (95-D-102) to reflect continued delays and 
suspended operations at that facility; a reduction of $5.4 
million from the nuclear material storage facility renovation 
project (97-D-122) to reflect delays in final design and 
deferral of planned construction activities; and an 
undistributed reduction of $13.6 million.
      The conferees compliment the Director of Los Alamos 
National Laboratory on the establishment of an external 
evaluation team to review laboratory construction projects, 
including laboratory management practices, management tools, 
organization, and training. The conferees understand that the 
external team will make recommendations to the Director for 
systematic improvements to current practices. The conferees 
endorse this approach.
            Tritium production
      The conferees do not believe the Department's fiscal year 
1999 budget request of $157.0 million for tritium production to 
be credible. The conferees note that the requirement to deliver 
new tritium by the year 2005 for the light water reactor and 
the year 2007 for the accelerator, as identified in the Nuclear 
Weapons Stockpile Memorandum, has not changed. The conferees 
believe that the Department's unwillingness to include funding 
for the acquisition of a new tritium source in its proposed out 
year funding plan is unacceptable. Further, the conferees note 
that the fiscal year 1999 budget request does not appear to be 
sufficient to complete the Department's own dual track tritium 
strategy. The conferees are very concerned that the Department 
did not request sufficient funds to continue evaluation of both 
technologies being considered under the dual track approach. 
The conferees recommend an increase of $20.0 million for design 
and research associated with the accelerator production of 
tritium option.
      The conferees direct the Secretary of Energy to submit to 
the congressional defense committees a plan regarding how all 
fiscal year 1999 tritium funds will be allocated. The plan 
shall be submitted not later than 45 days after enactment of 
this Act.
            Inertial confinement fusion
      The budget request included $213.8 million for the 
inertial confinement fusion (ICF) program. The conferees 
believe that work by the University of Rochester's Laboratory 
for Laser Energetics with the Omega laser is an essential 
element of the ICF program. The conferees recommend the 
requested amount and direct that, within the amount available, 
the $29.0 million be allocated for the Laboratory for Laser 
Energetics.
Defense environmental restoration and waste management (sec. 3102)
      The House bill contained a provision (sec. 3102) that 
would authorize $5.8 billion for defense environmental 
restoration and waste management activities (also known as the 
Environmental Management program), including defense 
environmental management privatization, and an offset of $94.1 
million to account for available uncosted, unobligated prior 
year funds, for a total reduction of $76.4 million to the 
budget request.
      The Senate amendment contained a similar provision (sec. 
3102) that would authorize $5.3 billion for defense 
environmental restoration and waste management activities, 
excluding defense environmental management privatization, and 
an offset of $21.0 million to account for available uncosted, 
unobligated prior year funds, for a total increase of $36.0 
million to the budget request.
      The House recedes in part and the Senate recedes in part.
      The conferees recommend authorization of $5.4 billion for 
defense environmental management activities, excluding defense 
environmental management privatization, an increase of $85.9 
million to the budget request. The amount authorized is for the 
following activities: $1.0 billion for closure projects, an 
increase of $32.0 million; $1.0 billion for site and project 
completion, an increase of $20.0 million; $2.7 billion for 
post-2006 completion, an increase of $71.0 million; $250.0 
million for technology development, an increase of $57.0 
million; $346.2 million for program direction, the amount of 
the budget request. The conferees recommend an undistributed 
reduction of $94.1 million to be offset by available uncosted, 
unobligated prior year funds.
            Post-2006 completion
      Of the amounts authorized for post-2006 completion, the 
conferees recommend an increase of $5.0 million to the National 
Spent Fuel Program to address regulatory and repository issues 
associated with Department of Energy owned spent nuclear fuel, 
an increase of $10.0 million to accelerate research and 
treatment of high level nuclear wastes at the Idaho National 
Engineering and Environmental Laboratory, an increase of $18.0 
million to drain single shell tanks at the Hanford site, an 
increase of $30.0 million for augmentation of the Defense Waste 
Processing Facility operations and modification of in-tank 
precipitation process equipment at the Savannah River Site to 
address problems associated with the release of explosive 
benzene, and an increase of $8.0 million to assist the State of 
New Mexico with completion of a bypass around Santa Fe to 
accomodate shipments of materials to the Waste Isolation Pilot 
Plant. The conferees recommend full funding for the F-canyon 
and H-canyon materials processing facilities.
            Site and project completion
      Of the amounts authorized for site and project 
completion, the conferees recommend an increase of $20.0 
million for the heavy water processing project at the Savannah 
River Site. The conferees understand that this project will 
result in net revenues to the government over the next five 
years.
            Technology development
      The conferees are concerned that the budget request for 
the Office of Science and Technology is inadequate. Recent 
departmental testimony to the Committee on Armed Services of 
the Senate and findings in the ``Accelerating Cleanup--Pathways 
to Closure'' report have identified that the Department cannot 
meet its accelerated closure goals without aggressive 
application of new technologies. The conferees agree with the 
Department's assessment of the need for increased use of 
innovative technology at DOE facilities. The conferees 
encourage the Department to revise its performance measures for 
facility managers to include the application of new technology 
in site cleanup activities.
      The conferees encourage DOE to continue cooperative 
efforts with Federal and State regulators and non-profit 
organizations to facilitate the rapid deployment of innovative 
technologies at DOE sites. This effort should include 
cooperative efforts to assist the implementation of more 
uniform technology verification and regulatory acceptance 
criteria to DOE-developed technologies.
      The conferees direct the Secretary of Energy to submit a 
report to Congress on the proposed uses of the $57.0 million 
increase in this account.
      No funds authorized to be appropriated pursuant to this 
section are available to support, or enter into cooperative 
efforts in support of, the Russian Nuclear Cities Initiative, 
or any other foreign assistance program. The conferees continue 
to support cooperative programs with international partners 
that facilitate environmental cleanup or waste management 
activities at Department of Energy sites.
            Off-site disposal of low level waste
      The conferees are concerned that the Department has only 
one commercial low-level waste disposal option available. 
Although this facility has a satisfactory operating record and 
has proven to be a cost effective option for waste disposal, it 
remains the Department's sole large-scale commercial disposal 
option. The conferees encourage the Department to move forward 
with a national procurement, as announced by the Secretary of 
Energy, to initiate open competition for the Department's off-
site waste disposal contracts.
Other defense activities (sec. 3103)
      The budget request included $1.667 billion for Other 
Defense Activities for the Department of Energy (DOE) for 
fiscal year 1999, which included an offset to user 
organizations of $20.0 million.
      The House bill contained a provision (sec. 3103) that 
would authorize a $33.6 million increase to the budget request.
      The Senate amendment contained a provision (sec. 3103) 
that would authorize a $5.0 million increase to the budget 
request.
      The conferees recommend authorization of $1.716 billion 
for other defense activities, an increase of $27.0 million to 
the budget request, for the following activities: $679.3 
million for nonproliferation and national security activities, 
of which $503.5 million is for verification and control 
technology activities; $168.9 million for fissile materials 
control and disposition; $89.0 million for environment, safety 
and health activities; $35.0 million for international nuclear 
safety activities; and $681.5 million for navalreactors. The 
amount authorized is offset by $20.0 million to account for user 
organizations, and is further offset by $2.0 million in uncosted and 
unobligated prior year funds.
            Nonproliferation and verification and control technology
      The conferees agree to a $3.0 million increase to the 
budget request for intelligence activities. The conferees also 
express their continued support for the broad participation of 
the Department of Energy national laboratories, including the 
Pacific Northwest Laboratory, Idaho National Laboratory, the 
Savannah River Site and industry in the research and 
development of forensic analytical technologies to detect and 
respond to radiological and nuclear threats and international 
nuclear smuggling events. Additionally, the conferees direct 
that the Department ensure that all research and development 
activities in the area of chemical and biological detection and 
defense be coordinated with the Department of Defense.
            Russian reactor core conversion program
      The conferees endorse the recommendation contained in the 
Senate report (S. Rept. 105-189) that the Department of Energy 
keep the congressional defense committees informed on the 
status of the Reactor Shutdown Agreement between the United 
States and the Russian Federation.
            Nuclear smuggling and counterterrorism
      The conferees direct the Department of Energy to report 
to the congressional defense committees not later than 30 days 
after the date of enactment of this Act on the use of funds 
made available in the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) to plan and conduct 
exercises to prepare Federal, state, and local entities to 
respond to domestic terrorist use of nuclear materials and 
devices. Additionally, the conferees direct the Department of 
Energy to report to the congressional defense committees not 
later than November 1, 1998 on the status of the investigations 
of the sale of high performance computers to Russia and China, 
and steps taken by the Department of Energy and other federal 
agencies and department of the U.S. Government to recover such 
high performance computers.
            Emergency management
      The conferees agree to authorize the budget request of 
$23.7 million for emergency management activities to strengthen 
and expand the Department's support for domestic crisis and 
consequence management in combatting weapons of mass 
destruction terrorism and nuclear smuggling and nuclear 
material trafficking as well as to provide comprehensive, 
integrated emergency planning, preparedness, response, and 
management throughout the Department of Energy. The conferees 
agree that no funds authorized for the Department are to be 
used to provide support to state and local authorities for 
activities unrelated to providing appropriate emergency 
responses to natural and man-made disasters involving 
radiological hazards and threats.
            Fissile materials control and disposition
      The conferees recommend the budget request of $168.9 
million for fissile materials control and disposition. The 
conferees are pleased with the approach being pursued by the 
Department in the fissile materials disposition program. The 
conferees authorize full funding for title I design for new 
materials disposition facilities. The conferees direct the 
Secretary to continue planning and design of such facilities.
      The conferees agree that $25.0 million, as requested in 
the budget for the fissile materials control and disposition 
program, for cooperative efforts with the Russian Federation is 
adequate for this activity. With the exception of achieving 
agreement on a joint testing program, the conferees believe 
there has has been insufficient progress achieved in 
negotiating the bilateral agreement with the Russian 
Federation. The conferees encourage the Department to continue 
its efforts to achieve an agreement with the Russian Federation 
on this program. In the interim, the conferees direct the 
Department to report periodically to the congressional defense 
committees on the status of efforts to achieve agreement on 
this program, as well as on the estimated cost and how the 
Russian Federation proposes to finance the program.
            Security investigations
      The conferees understand that the costs of conducting 
security investigations is borne principally by individual 
departmental program elements. The conferees further understand 
that the amount requested by the Department in the security 
investigations account includes funds that are also included in 
individual Departmental program element budgets and are, 
therefore, double counted. In order to reflect the true costs 
of such activities, the conferees decreased the amount 
authorized by section 3103(a)(1)(C) by $20.0 million to reflect 
those funds that are included in program element budgets.
            Worker and community transition
      The conferees recommend a reduction of $5.0 million to 
the worker and community transition budget request.
            Environment, safety and health--defense
      The conferees recommend an increase of $15.0 million to 
the budget request for defense environment, safety and health 
for health studies.
            Naval reactors
      The conferees recommend an increase of $16.0 million to 
the budgetrequest for the Office of Naval Reactors to expedite 
decommissioning and decontamination activities at surplus prototype 
plant facilities.
Defense nuclear waste disposal (sec. 3104)
      The House bill contained a provision (sec. 3104) that 
would authorize $190.0 million for the Department of Energy 
fiscal year 1998 defense contribution to the defense nuclear 
waste fund.
      The Senate amendment contained an identical provision 
(sec. 3104).
      The conference agreement includes this provision.
Defense environmental management privatization (sec. 3105)
      The Senate amendment contained a provision (sec. 3105) 
that would provide $273.9 million for defense environmental 
management privatization projects to be allocated as follows: 
$113.5 million for the tank waste remediation system project, 
phase I (Richland); $20.0 million for spent nuclear fuel dry 
storage (Idaho); $87.3 million for advanced mixed waste 
treatment (Idaho); $19.6 million for remote handled transuranic 
waste transportation (Carlsbad); and $33.5 million for 
environmental management/waste management disposal (Oak Ridge). 
The Senate amendment further authorized the use of $32.0 
million in unobligated, uncosted, and undistributed prior year 
defense environmental management privatization funds.
      The House bill contained a similar provision (section 
3102) that addressed all defense environmental management 
funds, including $286.8 million for defense environmental 
management privatization projects.
      The House recedes with an amendment that would provide 
$286.9 million for defense environmental management 
privatization projects to be allocated as follows: $100.0 
million for the tank waste remediation system project, phase I 
(Richland); $30.0 million for spent nuclear fuel dry storage 
(Idaho); $87.3 million for advanced mixed waste treatment 
(Idaho); $19.6 million for remote handled transuranic waste 
transportation (Carlsbad); and $50.0 million for environmental 
management/waste management disposal (Oak Ridge). The conferees 
agree to offset this amount through the use of $32.0 million in 
unobligated, uncosted, and undistributed prior year defense 
environmental management privatization funds. The conferees 
direct that the offset be achieved through the use of: $15.0 
million in fiscal year 1997 unobligated, uncosted balances to 
reflect the cancellation of the broad spectrum low activity 
mixed waste treatment privatization project (Oak Ridge); $10.0 
million in fiscal year 1997 unobligated, uncosted balances to 
reflect cancellation of the waste water treatment plant 
privatization project (Rocky Flats); and $7.0 million in fiscal 
year 1998 unobligated, uncosted and undistributed balances.
      The conferees note that the Senate report endorsed the 
transfer of responsibility for the Hanford Tank Waste 
Remediation System (TWRS) project to the Assistant Secretary of 
Energy for Environmental Management. The conferees address this 
issue in a separate section of this title.

                Subtitle B--Recurring General Provisions

Reprogramming (sec. 3121)
      The House bill contained a provision (sec. 3121) that 
would prohibit the reprogramming of funds in excess of 110 
percent of the amount authorized for the program, or in excess 
of $1.0 million above the amount authorized for the program, 
until the Secretary of Energy submits a report to the 
congressional defense committees and a period of 30 calendar 
days has elapsed after the date on which the report is 
received.
      The Senate amendment contained an identical provision 
(sec. 3121).
      The conference agreement includes this provision.
Limits on general plant projects (sec. 3122)
      The House bill contained a provision (sec. 3122) that 
would authorize the Secretary of Energy to carry out any 
construction project authorized under general plant projects if 
the total estimated cost does not exceed $5.0 million. The 
provision would require the Secretary to submit a report to the 
congressional defense committees if the cost of the project is 
revised to exceed $5.0 million. Such a report would include the 
reasons for the cost variation.
      The Senate amendment contained an identical provision 
(sec. 3122).
      The conference agreement includes this provision.
Limits on construction projects (sec. 3123)
      The House bill contained a provision (sec. 3123) that 
would permit any construction project to be initiated and 
continued only if the estimated cost for the project does not 
exceed 125 percent of the higher of: (1) the amount authorized 
for the project or (2) the most recent total estimated cost 
presented to the Congress as justification for such project. 
The Secretary of Energy may not exceed such limits until 30 
legislative days after the Secretary submits to the 
congressional defense committees a detailed report setting 
forth the reasons for the increase. This provision would also 
specify that the 125 percent limitation would not apply to 
projects estimated to cost under $5.0 million.
      The Senate amendment contained an identical provision 
(sec. 3123).
      The conference agreement includes this provision.
Fund transfer authority (sec. 3124)
      The House bill contained a provision (sec. 3124) that 
would permit funds authorized by this Act to be transferred to 
other agencies of the government for performance of work for 
which the funds were authorized and appropriated. The provision 
would permit the merger of such transferred funds with the 
authorizations of the agency to which they are transferred. The 
provision would also limit, to not more than five percent of 
the account, the amount of such funds that may betransferred 
between authorization accounts in the Department of Energy that were 
authorized pursuant to this Act.
      The Senate amendment contained an identical provision 
(sec. 3124).
      The conference agreement includes this provision.
Authority for conceptual and construction design (sec. 3125)
      The House bill contained a provision (sec. 3125) that 
would limit the Secretary of Energy's authority to request 
construction funding until the Secretary has completed a 
conceptual design. This limitation would apply to construction 
projects with a total estimated cost greater than $5.0 million. 
If the estimated cost to prepare the construction design 
exceeds $600,000, the provision would require the Secretary to 
obtain a specific authorization to obligate such funds. If the 
estimated cost to prepare the conceptual design exceeds $3.0 
million, the provision would require the Secretary to request 
funds for the conceptual design before requesting funds for 
construction. The provision would further require the Secretary 
to submit to Congress a report on each conceptual design 
completed under this provision. The provision would also 
provide an exception to these requirements in the case of an 
emergency.
      The Senate amendment contained an identical provision 
(sec. 3125).
      The conference agreement includes this provision.
Authority for emergency planning, design, and construction activities 
        (sec. 3126)
      The House bill contained a provision (sec. 3126) that 
would permit the Secretary of Energy to perform planning and 
design with any funds available to the Department of Energy 
pursuant to this title, including those funds authorized for 
advance planning and construction design, whenever the 
Secretary determines that the design must proceed expeditiously 
to protect the public health and safety, to meet the needs of 
national defense, or to protect property.
      The Senate amendment contained an identical provision 
(sec. 3126).
      The conference agreement includes this provision.
Funds available for all national security programs of the Department of 
        Energy (sec. 3127)
      The House bill contained a provision (sec. 3127) that 
would authorize, subject to section 3121 of this Act, amounts 
appropriated for management and support activities and for 
general plant projects to be made available for use in 
connection with all national security programs of the 
Department of Energy.
      The Senate amendment contained an identical provision 
(sec. 3127).
      The conference agreement includes this provision.
Availability of funds (sec. 3128)
      The House bill contained a provision (sec. 3128) that 
would authorize amounts appropriated for operating expenses or 
for plant and capital equipment for the Department of Energy to 
remain available until expended. Program Direction funds would 
remain available until the end of fiscal year 2000.
      The Senate amendment contained a similar provision (sec. 
3128) that would authorize Program Direction funds to remain 
available until the end of fiscal year 2001.
      The House recedes.
Transfers of defense environmental management funds (sec. 3129)
      The House bill contained a provision (sec. 3129) that 
would provide the manager of each field office of the 
Department of Energy with limited authority to transfer up to 
$5.0 million in fiscal year 1999 defense environmental 
management funds from one program or project under the 
jurisdiction of the office to another such program or project, 
once in a fiscal year. The provision would extend the authority 
granted by section 3139 of the National Defense Authorization 
Act for Fiscal Year 1997 by allowing transfers of funds among 
programs and projects in the Site and Project Completion, Post-
2006 Completion, and Science and Technology accounts.
      The Senate amendment contained a similar provision (sec. 
3129) that would allow transfers of funds between programs and 
projects in the Site Closure Project, and Project Completion, 
and Post-2006 Completion accounts.
      The Senate recedes with an amendment that would allow 
transfers of funds between programs and projects in the Site 
and Project Completion and Post-2006 Completion accounts.

   Subtitle C--Program Authorizations, Restrictions, and Limitations

Permanent extension of funding prohibition relating to international 
        cooperative stockpile stewardship (sec. 3131)
      The House bill contained a provision (sec. 3132) that 
would amend section 3133(a) of the National Defense 
Authorization Act for Fiscal Year 1998 (P.L. 105-85) to 
establish a permanent prohibition on expenditures of funds for 
cooperative stockpile stewardship efforts with any nation 
except for France or the United Kingdom, or, as specifically 
authorized with nations of the former Soviet Union.
      The Senate amendment contained a similar provision (sec. 
3131) that would prohibit use of fiscal year 1999 or prior year 
funds to conduct such international cooperative stockpile 
stewardship activities.
      The Senate recedes.
Support of ballistic missile defense activities of the Department of 
        Defense (sec. 3132)
      The House bill contained a provision (sec. 3133) that 
would require the Secretary of Energy to make available, from 
funds authorized for Department of Energy atomic energy weapons 
activities, no less than$60.0 million for missile defense 
technology development in cooperation with the Ballistic Missile 
Defense Organization (BMDO) for the purpose of developing, 
demonstrating, and testing hit-to-kill interceptor vehicles for theater 
missile defense systems.
      The Senate amendment contained a provision (sec. 3132) 
that would prohibit the use of any funds authorized by title 
XXXI to support ballistic missile defense research, 
development, demonstration, testing, and evaluation. The 
prohibition would include studies and assessments. The 
provision would also prohibit use of Laboratory Directed 
Research and Development and laboratory overhead funds for such 
purposes.
      The Senate recedes with an amendment that would make 
available $30.0 million for technology development, concept 
demonstration, and integrated testing to improve reliability 
and reduce risk in hit-to-kill interceptors; science and 
engineering teams to address technical problems identified by 
the Director of BMDO which are critical to the acquisition of a 
theater missile defense capability; and other research, 
development and demonstration activities that support the 
mission of BMDO. The provision would require that any such 
activities conform to the joint memorandum of understanding 
between the Secretaries of Energy and Defense required by 
section 3131 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85). The provision would allow 
the covered activities to be funded through direct 
contributions or waiver of a Federal administrative charge, 
overhead costs, or other indirect costs of the Department of 
Energy or its contractors.
Nonproliferation activities (sec. 3133)
      The Senate amendment contained a provision (sec. 3139) 
that would make $30.0 million available for the Initiatives for 
Proliferation Prevention (IPP) program and $30.0 million 
available to implement the initiative known as the ``Nuclear 
Cities Initiative'' (NCI) program pursuant to the March 1998 
agreement between the United States and the Russian Federation.
      The House bill contained no similar provision.
      The House recedes with an amendment that would make up to 
$20.0 million available for the IPP program. Additionally, the 
provision would require the Secretary of Energy to submit a 
report to the congressional defense committees on the Nuclear 
Cities Initiative program and wait a period of 20 legislative 
days after the date on which the report is received prior to 
the obligation and expenditure of any funds.
      The amendment would also require the report of the 
Secretary on the NCI program to include among other items, the 
objectives of the NCI program and the process and method by 
which the program will be implemented (to include the status of 
bilateral agreements), a timeline of the program and milestones 
to be achieved, and the funding requirements through the 
completion of the program. In addition, the report should 
include any information on the participation of other federal 
agencies and departments in the NCI program, as well as the 
participation of U.S. industry.
Licensing of certain mixed oxide fuel fabrication and irradiation 
        facilities (sec. 3134)
      The Senate amendment contained a provision (sec. 3133) 
that would require any person constructing or operating a new 
or operating an existing facility to fabricate mixed oxide 
(MOX) fuel for use in a commercial nuclear reactor to be 
subject to licensing by the Nuclear Regulatory Commission 
(NRC). The provision would also require the occupational safety 
and health of employees working at such facilities to be 
subject to regulation by the Department of Labor. The provision 
would exempt the Department of Energy MOX-related 
demonstration, testing, and research activities from such 
licensing requirements.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.
      The conferees do not endorse the wholesale external 
regulation of Department of Energy defense nuclear facilities 
and remain skeptical of the potential benefits associated with 
implementing new regulatory regimes at other new or existing 
DOE defense nuclear facilities.
Continuation of processing, treatment, and disposition of legacy 
        nuclear materials (sec. 3135)
      The Senate amendment contained a provision (sec. 3134) 
that would require the Secretary of Energy to maintain a high 
state of readiness at the F-canyon and H-canyon facilities at 
the Savannah River Site.
      The House bill contained no similar provision.
      The House recedes.
      The conferees note that this action was recommended by 
the Defense Nuclear Facilities Safety Board and is consistent 
with direction provided by previous authorization acts.
Authority for Department of Energy federally funded research and 
        development centers to participate in merit-based technology 
        research and development programs (sec. 3136)
      The Senate amendment contained a provision (sec. 3135) 
that would amend the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337) to grant Department of 
Energy (DOE) sponsored federally funded research and 
development centers (FFRDCs) the same ability to compete for 
contracts as Department of Defense (DOD) sponsored FFRDCs.
      The House bill contained no similar provision.
      The House recedes with an amendment that would limit the 
authority to those activities conducted under contract with, or 
on behalf, of the Department of Defense.
      The conferees do not support the concept of DOE FFRDCs 
competing directly or indirectly with the private sector. In 
implementing this authority, the conferees expect DOE FFRDCs to 
comply fully with all DOD and DOE policy guidance and 
regulations governing FFRDCs. The conferees expect DOE FFRDCs 
to focus on their core competencies, expertise, or unique 
facilities.
Activities of Department of Energy facilities (sec. 3137)
      The Senate amendment contained a provision (sec. 3140) 
that would establish a uniform Federal administrative charge of 
three percent on all contract research activities carried out 
for non-Department of Energy (DOE) entities at DOE contractor 
operated facilities. The provision would eliminate the 
Secretary of Energy's current authority to waive the Federal 
administrative charge, except that the Secretary would be 
authorized to continue existing waivers, if the Secretary so 
determines, and would be authorized to waive charges for small 
businesses, institutions of higher education, non-profit 
entities, and state and local governments. The provision would 
authorize the Secretary to enter into a five-year pilot program 
at selected facilities to develop reduced overhead charges 
designed to recover all costs generated by external entities 
who may not utilize the full range of services at a DOE 
facility for which overhead costs may be charged. The provision 
would encourage the Secretary to establish a new small business 
technology partnership program to make DOE expertise and 
capabilities more accessible to small businesses, and would 
encourage the Secretary to pursue partnerships and interactions 
with universities and private businesses.
      The House bill contained no similar provision.
      The House recedes with an amendment that would allow the 
Secretary to waive the Federal administrative charge at all DOE 
facilities. The conferees did not include the small business 
technology partnership or partnerships and interactions 
provisions.
      The conferees encourage the Secretary to continue the 
establishment of cooperative partnerships and interactions with 
universities and private industry at contractor-operated 
facilities where such interaction will help the Department 
better carry out its national security missions. The conferees 
further encourage the Secretary to create small business 
technology partnership programs at contractor-operated 
facilities where such interaction will help the Department 
better carry out its national security missions. The Secretary 
is encouraged to designate small funding pools at DOE sites to 
carry out such programs. The Secretary should include annually 
with the President's budget request a report on the 
effectiveness and applicability of any such programs to the 
missions of the Department of Energy.
Hanford overhead and service center costs (sec. 3138)
      The House bill contained a provision (sec. 3135) that 
would prohibit the use of certain fiscal year 1999 funds at the 
Hanford Site until the Secretary of Energy certifies to 
Congress that the Department does not intend to pay overhead 
costs of more than 33 percent of total contract overhead costs 
at that Site. The provision would prohibit the obligation of 
$12.0 million for reactor decontamination and decommissioning 
and $18.0 million for drainage of single-shell waste tanks at 
the Hanford Site until the Secretary completes the 
certification. The provision would further require that any 
savings that result from compliance with this section be 
retained for use at the Hanford Site to ensure full compliance 
with the Hanford Federal Facility Agreement and Consent Order 
and the recommendations of the Defense Nuclear Facilities 
Safety Board. In addition, the provision conveyed the sense of 
the Congress that overhead costs for contractors performing 
cleanup work at DOE facilities is out of control, that some 
increased overhead costs are a result of unnecessary 
regulation, and that the Department should take action to 
minimize any such unnecessary regulation.
      The Senate amendment contained a related provision (sec. 
3148) that would require the General Accounting Office (GAO) to 
conduct a review of Department of Energy (DOE) overhead costs, 
including the methods used to calculate direct and indirect 
overhead costs at DOE cleanup sites and the methods used to 
allocate and report such overhead costs. The GAO would be 
required to submit a report to Congress not later than January 
31, 1999, to include the findings of the review and any 
resulting recommendations for standardizing the methods used to 
allocate and report overhead costs at DOE cleanup sites.
      The Senate recedes with an amendment that would require 
the Secretary to establish a target for fiscal year 1999 
contract overhead costs at the Hanford Site and utilize any 
savings that result from lower overhead costs to perform 
additional cleanup activities at the Site and to comply with 
the Hanford Tri-party Agreement. The Senate amendment would 
further require the Defense Contract Audit Agency (DCAA) to 
conduct an assessment of overhead, service center, and other 
related costs assessed by the Project Hanford Management 
Contractor at the Hanford Site. The DCAA assessment would be 
submitted to Congress not later than March 1, 1999.
Hanford waste tank cleanup program reforms (sec. 3139)
      The House bill contained a provision (sec. 3136) that 
would direct the Secretary of Energy to establish an Office of 
River Protection at the Department of Energy's Hanford Site. 
The office would be headed by a senior official of the 
Department of Energy who would be responsible for managing all 
aspects of Hanford tank farm operations, including the Tank 
Waste Remediation System project. The provision would create a 
five-member advisory committee to provide advice to the new 
office. The provision would require the Secretary to submit 
within 90 days of the date of enactment of this Act an 
integrated management plan for all aspects of the tank farm 
operations, including the roles and responsibilities and 
reporting relationships of the Office of River Protection. The 
plan would address whether the office should be physically and 
administratively separate from the DOE Richland Operations 
Office. The provision would further require the Secretary, two 
years after the creation of the office, to report on any 
progress and management improvements that result from this 
provision. The Office of River Protection would terminate in 
five years, unless the Secretary determines that the office 
should continue.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the office to report directly to the Assistant Secretary for 
EnvironmentalManagement, but be physically located at the 
Hanford Site in Richland, Washington. The amendment also would 
eliminate the creation of the five-member advisory committee. The 
conferees believe the existing advisory structure at the site is 
adequate.
Hanford Health Information Network (sec. 3140)
      The Senate amendment contained a provision (sec. 3138) 
that would authorize the Secretary of Energy to utilize $2.5 
million within existing Hanford Site funding for the Hanford 
Health Information Network.
      The House bill contained no similar provision.
      The House recedes with an amendment that would authorize 
the use of $1.5 million within existing Hanford Site funding 
for the Hanford Health Information Network.
Hazardous Materials Management and Emergency Response training program 
        (sec. 3141)
      The House bill contained a provision (sec. 3155) that 
would authorize the Hazardous Materials Management and 
Emergency Response (HAMMER) training facility in Richland, 
Washington to accept payments in kind in exchange for services.
      The Senate amendment contained a similar provision (sec. 
3137).
      The Senate recedes.
Support for public education in the vicinity of Los Alamos National 
        Laboratory, New Mexico (sec. 3142)
      The Senate amendment contained a provision (sec. 3136) 
that would authorize the Department of Energy (DOE) to make a 
$5.0 million payment to a not-for-profit education foundation 
in the area around the Los Alamos National Laboratory to enrich 
educational activities of the local school system. The 
provision would require the foundation to place DOE 
contributions in an endowment fund, the corpus of which would 
remain in trust and the annual revenue used to support the 
local school system.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      This provision would extend the authority granted to the 
Secretary of Energy by section 3167 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85). The 
conferees expect the Secretary of Energy to make no more than 
five total annual payments to this fund for a total 
contribution not to exceed $25.0 million. The conferees note 
that the Secretary was authorized to make the first of such 
payments in fiscal year 1998. The conferees expect, that upon 
making the fifth payment or meeting the $25.0 million cap, all 
DOE assistance to the local school system will end.
Relocation of National Atomic Museum, Albuquerque, New Mexico (sec. 
        3143)
      The Senate amendment contained a provision (sec. 3140A) 
that would require the Secretary of Energy to submit a plan on 
the design, construction and relocation of the National Atomic 
Museum located in Albuquerque, New Mexico.
      The House bill contained no similar provision.
      The House recedes with an amendment that would direct the 
Secretary of Energy to submit a plan to relocate the museum. 
This provision does not authorize the Secretary to proceed with 
a conceptual design of a new National Atomic Museum or to 
obligate any funds to implement any plan.
Tritium production (sec. 3144)
      The House bill contained a provision (sec. 3154) that 
would modify the Atomic Energy Act of 1954 (42 U.S.C. 2077(e)) 
to prohibit the use of tritium produced in commercial nuclear 
reactors for nuclear explosive purposes.
      The Senate amendment contained a related provision (sec. 
3150) that would require the Secretary of Energy to select a 
tritium production technology after completion of an 
interagency review regarding the proliferation ramifications of 
using a commercial light water reactor to produce tritium for 
nuclear explosive purposes, but not later than December 31, 
1998. The provision would direct the Secretary of Energy to 
make the decision notwithstanding any provision of the Atomic 
Energy Act of 1954 (42 U.S.C. 2011, et. seq.), but consistent 
with the laws, regulations and procedures of the Department of 
Energy.
      The conferees agree to include a provision that would 
prohibit use of any funds available during fiscal year 1999, 
including prior year funds, to implement any tritium technology 
decision made pursuant to section 3135 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85). 
This prohibition includes any construction or related 
activities. Nothing in this provision shall be interpreted to 
preclude the Secretary of Energy from continuing planned 
research and design activities on both technology options 
currently under consideration.
      The conferees strongly support the Department of Energy's 
efforts to restore on a timely basis tritium production to 
maintain the viability of the U.S. nuclear deterrent. The 
conferees note that tritium is not a special nuclear material 
as defined by the Atomic Energy Act of 1954, and thus, unlike 
plutonium and highly enriched uranium, is not capable of 
sustaining a nuclear chain reaction. It is, however, a 
radioactive material that is vital to the performance of U.S. 
nuclear warheads.
      The conferees endorse the United States' long-standing 
policy requiring the separation of civilian and military uses 
of nuclear energy. Concerns have been raised that the use of a 
commercial light water reactor to produce tritium might 
establish a precedent for other nations to use government-owned 
civilian reactors to produce materials for nuclear weapons 
programs. The conferees note that the Interagency Review of 
Nonproliferation Implications of Alternative Tritium 
Technologies transmitted to Congress by the Department of 
Energy in July 1998, as required by the National Defense 
Authorization Act forFiscal Year 1998 (Public Law 105-85), 
concluded that the nonproliferation risks associated with the 
commercial light water reactor option are ``manageable.'' Implicit in 
this conclusion, is a recognition that the commercial reactor option 
could pose nuclear proliferation risks that might harm U.S. national 
security interests.
      The conferees expect the Secretary of Energy to consider 
whether, or to what extent, the selection of a light water 
reactor would violate U.S. policy and might encourage other 
nations to divert nuclear materials from government-owned 
civilian reactors into nuclear weapons programs. In addition, 
the conferees expect the Secretary to assess any nuclear 
proliferation risk that any such outcome could pose for the 
United States.
      The conferees direct the Secretary of Energy to select a 
tritium technology option consistent with the requirements of 
section 3135 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85). The decision criteria 
shall include the ability to meet the national defense 
requirements of the United States, nuclear proliferation 
implications, and cost.
      In addition, the conferees direct the Secretary to submit 
to the Committee on Armed Services of the Senate and the 
National Security Committee of the House of Representatives, a 
comprehensive plan to implement the technology option selected. 
The plan should be submitted with the President's fiscal year 
2000 budget and include a proposed implementation schedule, 
annual funding requirements for the life of the project, any 
legislation needed to implement the technology selected, and an 
assessment of the viability of purchasing tritium, if necessary 
for national security purposes, on an interim basis.

                       Subtitle D--Other Matters

Study and plan relating to worker and community transition assistance 
        (sec. 3151)
      The House bill contained a provision (sec. 3151) that 
would repeal the requirements of section 3161 of the National 
Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
484). Section 3161 required the implementation of a worker and 
community transition program to restructure the Department of 
Energy (DOE) private contractor workforce at the end of the 
Cold War. This section would also prohibit the expenditure of 
funds for the DOE Worker and Community Transition program after 
September 30, 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to develop a plan describing how the Office of 
Worker and Community Transition would be terminated and how the 
authority of that office would be transferred to Department of 
Energy program offices. The Secretary shall submit the plan to 
the Congressional defense committees not later than July 1, 
1999. The amendment would also require the General Accounting 
Office to conduct a study on the effects of DOE workforce 
restructuring plans from fiscal years 1995 through 1998.
Extension of authority for appointment of certain scientific, 
        engineering, and technical personnel (sec. 3152)
      The Senate amendment contained a provision (sec. 3144) 
that would extend for one year the authority granted to the 
Secretary of Energy by the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337) to appoint certain 
scientific, engineering, and technical personnel in areas of 
nuclear safety and environmental clean up.
      The House bill contained no similar provision.
      The House recedes.
Requirement for plan to modify employment system used by Department of 
        Energy in defense environmental management programs (sec. 3153)
      The House bill contained a provision (sec. 3152) that 
would prohibit the use of more than 75 percent of Defense 
Environmental Restoration and Waste Management program 
direction funds for fiscal year 1999 until the Secretary of 
Energy submits a plan for improvement of the Department of 
Energy federal employment system. The plan would address 
strategies to recruit and hire individuals for the 
Environmental Management program who are highly skilled and who 
have experience as project and construction managers. The plan 
would further identify any provisions of Federal law that must 
be altered to allow its implementation.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary to submit the plan to Congress not later than 
February 1, 1999, and would remove the prohibition on use of 
program direction funds.
Department of Energy nuclear materials couriers (sec. 3154)
      The Senate amendment contained several provisions (secs. 
3161-3172) that would allow nuclear materials couriers at the 
Department of Energy (DOE) to retire with full federal benefits 
after 20 years of service.
      The House bill contained no similar provision.
      The House recedes with an amendment that would apply 
eligibility for early retirement benefits only to those 
couriers who retire after fiscal year 1998.
Increase in maximum rate of pay for scientific, engineering, and 
        technical personnel responsible for safety at defense nuclear 
        facilities (sec. 3155)
      The Senate amendment contained a provision (sec. 3142) 
that would raise the pay level for the excepted service 
authority provided in the National Defense Authorization Act 
for Fiscal Year 1995 (Public Law 103-337) from Level IV to III 
of the Executive Schedule.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
      The conferees expect this enhanced authority to assist 
the Department of Energy in attracting and retaining senior 
scientific, engineering, and technical personnel who possess 
the skills to perform critical nuclear health and safety 
activities at the Department's defense nuclear facilities. The 
conferees note that, in recent years, the Level IV pay cap has 
limited the Department's ability to attract and retain the 
highest qualified scientific and technical talent.
Extension of authority of Department of Energy to pay voluntary 
        separation incentive payments (sec. 3156)
      The Senate amendment contained a provision (sec. 3145) 
that would extend for one year authority granted to the 
Secretary of Energy by the Treasury, Postal Service, and 
General Government Appropriations Act, 1997 (Public Law 104-
208) to pay voluntary separation incentive payments to certain 
Federal employees.
      The House bill contained no similar provision.
      The House recedes.
      The conferees expect this authority to be used to 
continue reductions in federal staffing levels in an effort to 
decrease costs and increase program efficiencies. The conferees 
do not intend this authority to be used for broad, untargeted 
staff reductions. The conferees expect the Secretary of Energy 
to utilize this authority, in conjunction with other 
authorities, to eliminate selectively those job classifications 
and positions that are no longer needed to carry out the 
missions of the Department of Energy. The conferees expect the 
authority to allow the Department to save money over the long 
term and reorient the DOE federal workforce to focus on the 
Department's most pressing problems.
Repeal of fiscal year 1998 statement of policy on stockpile stewardship 
        program (sec. 3157)
      The Senate amendment contained a provision (sec. 3141) 
that would repeal section 3156 of the National Defense 
Authorization Act for Fiscal Year 1998 (Public Law 105-85).
      The House bill contained no similar provision.
      The House recedes.
      Section 3156 of the National Defense Authorization Act 
for Fiscal Year 1998 addressed findings and current policies 
regarding the stockpile stewardship program of the Department 
of Energy. This repeal action does not represent a change in 
policy and is taken without prejudice. The conferees note that 
the findings and policy statements expressed in section 3156 
are consistent with the activities of the stockpile stewardship 
program focused on ensuring that the United States possesses a 
safe, secure, effective, and reliable nuclear stockpile 
consistent with our national security requirements and treaty 
commitments. The conferees do not believe that such policy 
statements need to be set forth in law.
Report on stockpile stewardship criteria (sec. 3158)
      The House bill contained a provision (sec. 3153) that 
would require the Secretary of Energy to submit a report to the 
Committee on Armed Services of Senate and the National Security 
Committee of the House of Representatives by March 1, 1999, on 
DOE efforts to develop a clear set of criteria pertaining to 
the technical performance of science based stockpile 
stewardship program tools and their relationship to key nuclear 
weapons technologies. The provision would require the Secretary 
to identify the performance criteria that, if met, would offer 
sufficient certainty that the U.S. stockpile is safe and 
reliable.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the report to be submitted not later than March 1, 2000, and be 
coordinated with the Secretary of Defense.
Panel to assess the reliability, safety, and security of the United 
        States nuclear stockpile (sec. 3159)
      The Senate amendment contained a provision (sec. 1073) 
that would establish a six member commission to assess the 
reliability, safety, and security of the U.S. nuclear 
deterrent. The commission would review the safety, security, 
and reliability of the U.S. nuclear deterrent and the annual 
nuclear warhead certification process carried out by the 
Department of Energy weapons laboratory directors, the 
Commander in Chief of the United States Strategic Command, and 
the Secretary of Defense. Commission members would be appointed 
as follows: two members each by the Majority Leader of the 
Senate and Speaker of the House of Representatives and one 
member each by the Minority Leaders of the Senate and House of 
Representatives. The chairman of the commission would be 
designated by the Majority Leader of the Senate. The cost of 
the commission would be borne equally by the Departments of 
Energy and Defense. The commission would terminate three years 
after the date of the appointment of the chairman.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Defense, in consultation with the Secretary of 
Energy, to contract with a Federally Funded Research and 
Development Center (FFRDC) to establish a panel to assess the 
reliability, safety, and security of the U.S. nuclear 
stockpile. The panel would examine the annual nuclear warhead 
certification documents, the processes and assumptions upon 
which the certification is based, and the stockpile stewardship 
and management criteria to be established by the Secretary of 
Energy pursuant to section 3158 of this Act.
      The conferees believe that in order to ensure an 
independent assessment, no employees of the FFRDC should be 
appointed as panel members.
International cooperative information exchange (sec. 3160)
      The House bill contained a provision (sec. 3156) that 
would express the sense of Congress that the President should 
instruct the Secretary of Energy to consult with the Secretary 
of Defense, the Administratorof the Environmental Protection 
Agency, and other appropriate officials, and submit to the Committee on 
Armed Services of the Senate and the Committee on National Security of 
the House of Representatives an assessment of whether the United States 
should consider favorably the ``Advanced Technology Research Project'' 
proposal which recommends establishment of an international project to 
facilitate the exchange of information on advanced nuclear waste 
technologies. The assessment should include a discussion of whether the 
proposal could be funded privately and administered by an international 
nongovernmental organization. The Secretary would also be required to 
identify any legislation required to carry out any such a project.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would express 
the sense of the Congress that the Secretary of Energy, in 
consultation with the Secretary of Defense, the Administrator 
of the Environmental Protection Agency, and the Director of the 
Agency for International Development, should prepare a report 
on those programs that currently facilitate sharing of 
information on international nuclear waste problems, and any 
recommendations to expand or consolidate such activities under 
a single international cooperative program.
Protection against inadvertent release of restricted data and formerly 
        restricted data (sec. 3161)
      The Senate amendment contained a provision (sec. 3146) 
that would amend section 3155 of the National Defense 
Authorization Act for Fiscal Year 1996 (Public Law 104-106) by 
requiring all federal agencies, including the National Archives 
and Records Administration, to conduct a visual inspection of 
all records over 25 years old to ascertain that such records 
contain no information classified as restricted data or 
formerly restricted data. The provision would require that any 
records found to contain such classified information be set 
aside pending completion of a review by the Department of 
Energy.
      The House bill contained no similar provision.
      The House recedes with an amendment that would require 
the Secretary of Energy and the Archivist of the United States, 
after consultation with members of the National Security 
Council, and, in consultation with the Secretary of Defense and 
the heads of appropriate federal agencies, to develop a plan to 
prevent records containing restricted data or formerly 
restricted data from being inadvertently released under 
Executive Order 12958. The plan would include the following 
elements: (1) actions that will be taken to ensure that only 
records series that are highly unlikely to contain restricted 
data or formerly restricted data are released without a page-
by-page review; (2) the criteria by which documents will be 
determined to be highly unlikely to contain restricted data or 
formerly restricted data; (3) steps to be taken to ensure 
proper training, evaluation, and supervision of 
declassification personnel to recognize restricted data and 
formerly restricted data; (4) the extent to which automated 
declassification technologies will be used to protect 
restricted data and formerly restricted data; (5) procedures 
for periodic Department of Energy review and evaluation of 
agency compliance with the plan; (6) procedures for resolving 
disagreements among agencies regarding declassification 
procedures and decisions; (7) identification of funding, 
personnel, and other resources required to carry out the plan; 
and (8) a timetable to implement the plan. Summaries of the 
periodic review of agency compliance would be provided to the 
President's National Security Advisor and to the Committee on 
Armed Services of the Senate and the National Security 
Committee of the House of Representatives. The amendment would 
halt the use of bulk declassification of any document covered 
by this provision until 60 days after the plan is submitted to 
the Committee on Armed Services of the Senate and the National 
Security Committee of the House of Representatives, and the 
Assistant to the President for National Security Affairs.
      The conferees support current efforts to reduce the 
volume of information retained as classified. The conferees 
are, however, concerned that Executive Order 12958 does not 
ensure adequate protection of information classified as 
restricted data or formerly restricted data. This provision is 
intended to ensure greater review and scrutiny of those federal 
records that may contain information classified as restricted 
data or formerly restricted data prior to the bulk 
declassification and subsequent release of such records. The 
conferees do not intend this provision to slow down much needed 
efforts to reduce the amount of classified material maintained 
in federal archives.
      The conferees believe that the President must ensure that 
each Executive Branch agency with custodial responsibility for 
the records described in the provision has available sufficient 
funds to carry out the requirements of this provision.
Sense of Congress regarding treatment of Formerly Utilized Sites 
        Remedial Action Program under a non-defense discretionary 
        budget function (sec. 3162)
      The Senate amendment contained a provision (sec. 3143) 
that would express the sense of the Senate that the Office of 
Management and Budget should transfer funding for the Formerly 
Utilized Sites Remedial Action Program into a non-defense 
discretionary portion of the Federal budget in future years.
      The House bill contained no similar provision.
      The House recedes with an amendment that would modify the 
provision to be a sense of Congress.
Reports relating to tritium production (sec. 3163)
      The House bill contained a provision (sec. 3134) that 
would delay the date by which the Secretary of Energy must 
select a primary technology for the production of tritium from 
December 31, 1998 to December 31, 1999. The Secretary would be 
prohibited from selecting a primary technology until the date 
that is the later of 30 days following completion of the test 
at the Watts Bar nuclear plant and the date that the Secretary 
submits to the congressional defensecommittees a report on the 
results of that test. The report would provide information regarding 
the amount of tritium produced, data on the leakage of tritium from the 
test, and any other technical findings resulting from the test.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
the Secretary of Energy to submit a report on the results of 
the test currently being carried out at the Watts Bar nuclear 
plant. The report would include data on the performance of the 
tritium test rods, the performance of the reactor, any leakage 
of tritium from the test rods, the amount of tritium produced, 
and any other technical findings resulting from the test. The 
Secretary would be required to submit to the congressional 
defense committees a preliminary report on the test program not 
later than 60 days after the test rods are removed from the 
Watts Bar reactor.
      The amendment would also direct the Secretary of Defense, 
in consultation with the Secretary of Energy, to establish a 
task force of the Defense Science Board to examine the risks 
associated with each tritium production technology, the nuclear 
weapons proliferation implications of each technology, the 
ability of each technology to meet the national security 
requirements of the United States, and any other factors that 
the Secretaries of Defense and Energy consider appropriate. The 
Secretaries of Energy and Defense would be required to provide 
the task force report to the congressional defense committees 
not later than June 30, 1999.

                   Legislative Provisions Not Adopted

Prohibition on Federal loan guarantees for defense environmental 
        management privatization projects
      The House bill contained a provision (sec. 3131) that 
would prohibit the use of Federal government loan guarantees 
for Department of Energy defense environmental management 
privatization projects.
      The Senate amendment contained no similar provision.
      The House recedes.
      The conferees remain deeply concerned that the use of 
Federal loan guarantees are inconsistent with the concept of 
privatization in Department of Energy (DOE) environmental 
remediation projects. The conferees note that the Federal 
Credit Reform Act of 1990 requires that a large portion of the 
costs of Federal loan guarantees be appropriated in the fiscal 
year in which the project is initiated. This requirement would 
draw into question the cost effectiveness and desirability of 
any DOE privatization project that would rely upon such 
instruments.
      The conferees note, however, that a recent General 
Accounting Office report on the DOE privatization program 
recommended a wide variety of contracting and project financing 
tools be made available to DOE to carry out privatized cleanup 
projects. Nevertheless, the conferees cannot envision many 
instances where Federal loan guarantees would prove beneficial 
to the Federal government.
      The conferees intend to scrutinize any proposed use of 
Federal loan guarantees in DOE privatization projects to ensure 
that the concept of privatization is not violated. The 
conferees do not intend to authorize funding in future years 
for those projects that include a Federal loan guarantee, if 
utilizing a loan guarantee either removes the consequences of 
failure for the contractor or increases the cost of the 
privatization project.
      The conferees direct that any use of Federal loan 
guarantees for privatization projects be made only in those 
circumstances where the Secretary of Energy certifies that (1) 
the loan guarantee is necessary for the contractor to obtain a 
private sector loan, and (2) the percentage of the loan amount 
covered by the loan guarantee does not harm the incentive for 
success.
Sense of the Senate regarding memoranda of understanding with the State 
        of Oregon relating to Hanford
      The Senate amendment contained a provision (sec. 3147) 
that would set forth the sense of the Senate that the 
Department of Energy (DOE) and the State of Washington should 
seek to implement existing memoranda of understanding regarding 
cleanup activities at the Hanford Site in ways that permit 
continued information sharing and participation by the State of 
Oregon in those decisions at the Site that affect the public 
health or safety of the citizens of Oregon.
      The House bill contained no similar provision.
      The Senate recedes.
      The conferees encourage the State of Washington and the 
Department of Energy to continue those cooperative efforts with 
the State of Oregon that speed the pace of cleanup at the site 
and ensure appropriate participation by all external 
stakeholders, including the State of Oregon. The conferees note 
that the State of Oregon has executed memoranda of 
understanding with the State of Washington and with the 
Department of Energy. The conferees further note that the State 
of Oregon holds two seats on the Hanford Site Specific Advisory 
Board (SSAB), a group of regulators, stakeholders, and tribes 
that reviews clean up progress at the site and makes 
recommendations to DOE. The conferees believe that Oregon's 
participation in the Hanford SSAB and the increased access to 
information provided via memoranda of understanding with DOE 
and the State of Washington, provide Oregon with appropriate 
participation in Hanford cleanup programs.
Sense of Congress on funding requirements for the nonproliferation 
        science and technology activities of the Department of Energy
      The Senate amendment contained a provision (sec. 3149) 
that would express the sense of Congress that the budget for 
nonproliferation science and technology activities for fiscal 
years 2000 through fiscal year 2008 should be increased each 
year over the preceding year by at least one percent above the 
rate of inflation.
      The House bill contained no similar provision.
      The Senate recedes.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

Defense Nuclear Facilities Safety Board (sec. 3201)
      The House bill contained a provision (sec. 3201) that 
would authorize $17.5 million for the Defense Nuclear 
Facilities Safety Board (DNFSB) for fiscal year 1999.
      The Senate amendment contained an identical provision 
(sec. 3201).
      The conference agreement includes this provision.
      The conferees anticipate that the report required by 
section 3202 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) regarding which Department 
of Energy (DOE) facilities should remain under the jurisdiction 
of the DNFSB will be submitted on time.
      The conferees are concerned that the implementation of an 
additional external regulation approach could draw scarce 
resources away from high priority, compliance driven cleanup 
actions and critical national security activities. The 
conferees believe no decisions should be made or actions taken 
until the findings of the DNFSB and the comments of the 
Secretary of Energy and the Chairman of the Nuclear Regulatory 
Commission have been provided to the Congress as required by 
section 3202 of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85) and the on-going external 
regulation pilot programs are completed and evaluated.

                Title XXXIII--National Defense Stockpile

                     Legislative Provisions Adopted

Definitions (sec. 3301)
      The House bill contained a provision (sec. 3301) that 
would define the National Defense Stockpile and the National 
Defense Stockpile Transaction Fund.
      The Senate amendment contained an identical provision.
      The conference agreement includes this provision.
Authorized uses of stockpile funds (sec. 3302)
      The House bill contained a provision (sec. 3302) that 
would authorize the obligation of $82.6 million for the 
operation of the National Defense Stockpile.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Authority to dispose of certain materials in the national defense 
        stockpile (sec. 3303)
      The Senate amendment contained a provision (sec. 3303) 
that would authorize the disposal of certain materials from the 
National Defense Stockpile and require that sufficient 
materials are sold to generate receipts to the United States in 
the amount of $103.0 million by the end of fiscal year 1999 and 
$377.0 million by the end of fiscal year 2003.
      The House bill had no similar provision.
      The House recedes with an amendment that would modify the 
quantity of materials authorized for disposal in order to 
generate receipts of $105.0 million by the end of fiscal year 
1999 and $590.0 million by the end of fiscal year 2005.
      The conferees expect that any sales of tungsten ores and 
concentrates contained in the National Defense Stockpile shall 
be made at a price that is no less than the market value at the 
time of the proposed sale (taking into account any specific 
location and as-is sale adjustments), and that the Department 
of Defense will fully consider the views of the Market Impact 
Committee concerning any projected domestic economic effect by 
the sale of these materials. The conferees also expect that the 
Market Impact Committee, in developing recommendations for the 
sale of tungsten ores and concentrates, will consult with 
representatives of producers, processors, and consumers of 
these materials.
Use of stockpile funds for certain environmental remediation, 
        restoration, waste management, and compliance activities (sec. 
        3304)
      The Senate amendment contained a provision (sec. 3304) 
that would authorize the use of funds from the National Defense 
Stockpile Transaction Fund to be used for environmental 
remediation, restoration, waste management, or compliance 
activities that are required under a federal law or are 
undertaken by the Federal Government under an administrative 
decision or negotiated agreement.
      The House bill contained no similar provision.
      The House recedes.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

Definitions (sec. 3401)
      The House bill contained a provision (sec. 3401) that 
would provide definitions for naval petroleum reserves, Naval 
Petroleum Reserve Number 2, Naval Petroleum Reserve Number 3, 
Oil Shale Reserve Number 2, antitrust laws, general land laws, 
and petroleum.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would include 
definitions for each of these terms, except general land laws.
Authorization of appropriations (sec. 3402)
      The House bill contained a provision (sec. 3402) that 
would authorize $22.5 million for the operations of the naval 
petroleum and oil shale reserves.
      The Senate amendment contained a similar provision.
      The Senate recedes.
Disposal of Naval Petroleum Reserve Numbered 2 (sec. 3403)
      The House bill contained a provision (sec. 3404) that 
would require the Secretary of Energy to dispose of that 
portion of the Naval Petroleum Reserve Numbered 2 located 
within the town lots in Ford City, California, by competitive 
sale or lease consistent with commercial practices, by transfer 
to another Federal agency or a public or private entity, or by 
any other means. The provision would further require the 
Secretary of Energy to transfer to the Secretary of Interior, 
administrative jurisdiction and control over the remaining 
lands within Naval Petroleum Reserve Numbered 2 after the 
Secretary of Energy makes a determination to abandon oil and 
gas operations.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would permit, 
rather than require, the disposal of this property.
Disposal of Naval Petroleum Reserve Numbered 3 (sec. 3404)
      The House bill contained a provision (sec. 3405) that 
would authorize the disposal of Naval Petroleum Reserve 
Numbered 3 by sale, lease, transfer, or other means.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would authorize 
the disposal of this property by sale, lease, or transfer to 
another federal agency.
Disposal of Oil Shale Reserve Numbered 2 (sec. 3405)
      The House bill contained a provision (sec. 3406) that 
would require the Secretary of Energy to transfer to the 
Secretary of Interior administrative jurisdiction and control 
over all public lands included in Oil Shale Reserve Numbered 2 
by September 30, 1999.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would 
authorize, rather than require, the transfer of this property.
Administration (sec. 3406)
      The House bill contained a provision (sec. 3407) that 
would establish administrative requirements for the disposal of 
property within the Naval Petroleum and Oil Shale Reserves, as 
would otherwise be authorized in H.R. 3616.
      The Senate amendment contained no similar provision.
      The Senate recedes with a technical amendment.

                   Legislative Provisions Not Adopted

Price requirement on price of certain petroleum during fiscal year 1999
      The House bill contained a provision (sec. 3403) that 
would require that the sale of any of the U.S. share of 
petroleum produced from Naval Petroleum Reserve Numbered 2, or 
Naval Petroleum Reserve Numbered 3, shall be made at a price 
not less than 90 percent of the current sales price of 
comparable petroleum.
      The Senate amendment contained no similar provision.
      The House recedes.
Treatment of State of California claim regarding Naval Petroleum 
        Reserve Numbered 1
      The House bill contained a provision (sec. 3408) that 
would eliminate the requirement for an appropriation before 
funds resulting from the sale of the Naval Petroleum Reserve 
Numbered 1 at Elk Hills can be distributed to the State of 
California in accordance with the Settlement Agreement entered 
into between the State of California and the Department of 
Energy.
      The Senate amendment had no similar provision.
      The House recedes.

                  Title XXXV--Panama Canal Commission

                     Legislative Provisions Adopted

Short title; references to Panama Canal Act of 1979 (sec. 3501)
      The House bill contained a provision (sec. 3501) that 
would provide a short title to the amendments to the Panama 
Canal Act of 1979 (22 U.S.C. 3601 et seq.) contained in this 
Act, and state that, unless otherwise noted, such amendments 
relate to the Panama Canal Act.
      The Senate amendment contained an identical provision 
(sec. 3501).
      The conference agreement includes this provision.
Authorization of expenditures (sec. 3502)
      The House bill contained a provision (sec. 3502) that 
would authorize the Panama Canal Commission to make 
expenditures from its revolving fund, subject to certain 
ceilings, for fiscal year 1999.
      The Senate amendment contained an identical provision 
(sec. 3502).
      The conference agreement includes this provision, and an 
increase of $10,000 in the ceiling for the representation and 
reception expenses of the Administrator of the Panama Canal 
Commission.
Purchase of vehicles (sec. 3503)
      The House bill contained a provision (sec. 3503) that 
wouldauthorize the Panama Canal Commission to purchase vehicles 
built in the United States.
      The Senate amendment contained a similar provision (sec. 
3503) that excluded the requirement for the vehicles to be 
built in the United States.
      The House recedes.
      The conferees note that the Commission has previously 
purchased only vehicles built in the United States and 
encourage the continuation of that practice.
Expenditures only in accordance with treaties (sec. 3504)
      The House bill contained a provision (sec. 3504) that 
would ensure amounts authorized for expenditure by the Panama 
Canal Commission for fiscal year 1999 be spent only in 
accordance with the terms of the Panama Canal Treaties of 1977 
and U.S. laws implementing those treaties.
      The Senate amendment contained an identical provision 
(sec. 3504).
      The conference agreement includes this provision.
Donations to the Commission (sec. 3505)
      The House bill contained a provision (sec. 3505) that 
would authorize the Panama Canal Commission to seek and to 
accept donations from private and public entities for the 
purpose of funding its promotional activities subject to 
guidelines to be established by the Commission.
      The Senate amendment contained an identical provision 
(sec. 3505).
      The conference agreement includes this provision.
Agreements for United States to provide post-transfer administrative 
        services for certain employee benefits (sec. 3506)
      The Senate amendment contained a provision (sec. 3506) 
that would allow the Secretary of State to enter into 
agreements to provide administrative services for certain 
Panama Canal-related employee benefits after December 31, 1999.
      The House bill contained no similar provision.
      The House recedes.
Sunset of United States overseas benefits just before transfer (sec. 
        3507)
      The House bill contained a provision (sec. 3506) that 
would sunset certain benefits to certain U.S. citizens employed 
by the Panama Canal Commission to clarify the conditions of 
employment intended to be continued by the Government of Panama 
after the transfer of the Canal on December 31, 1999.
      The Senate amendment contained an identical provision 
(sec. 3507).
      The conference agreement includes this provision.
Central Examining Office (sec. 3508)
      The House bill contained a provision (sec. 3507) that 
would repeal an obsolete provision of law relating to the 
Central Examining Office.
      The Senate amendment contained an identical provision 
(sec. 3508).
      The conference agreement includes this provision with a 
technical amendment.
Liability for vessel accidents (sec. 3509)
      The House bill contained a provision (sec. 3508) that 
would provide the Panama Canal Commission with a degree of 
immunity against claims for damages occurring while vessels 
transiting the Canal are under the direction of pilots employed 
by the Commission. The provision is intended to lower the costs 
of Canal operations by instituting a liability regime that 
would prevent claims against the Commission for $1.0 million or 
less in damages.
      The Senate amendment contained an identical provision 
(sec. 3509).
      The conference agreement includes a provision that would 
allow the Panama Canal Commission to prescribe regulations that 
limit its exposure to liability to those damages that exceed a 
specified threshold amount, provided that such threshold amount 
does not exceed $1.0 million, by requiring claimants to look to 
their insurers for compensation for damages below the threshold 
amount.
      The conferees believe that a regulatory approach will 
allow greater flexibility for the Commission to implement any 
changes through procedures and on a timetable that will allow 
for consideration of maritime industry concerns. The adopted 
provision would also allow the Commission to set the insurance 
requirement, and thereby its immunity against claims, at a 
lower threshold if a level less than $1.0 million is 
determined, through consultation with interested parties, to be 
in the best interests of the Panama Canal and world shipping.
      In light of expectations that the Panama Canal Authority, 
the successor agency to the Commission, will implement such a 
liability-limiting regime after it assumes stewardship of Canal 
operations, this provision is pursuant to the U.S. treaty 
commitment to facilitate transition to Panamanian control. The 
conferees expect that if damages during Canal transits increase 
significantly under any new liability regime, that the 
Commission, or its successor Panamanian entity, will consider a 
revised liability regime that minimizes costs for world 
commerce as well as for Canal operations.
Panama Canal Board of Contract Appeals (sec. 3510)
      The House bill contained a provision (sec. 3509) that 
would authorize the Panama Canal Commission to establish the 
salaries of members of the Panama Canal Board of Contract 
Appeals.
      The Senate amendment contained a similar provision (sec. 
3511).
      The House recedes.
Restatement of requirement that Secretary of Defense designee on Panama 
        Canal Commission supervisory board be a current officer of the 
        Department of Defense (sec. 3511)
      The Senate amendment contained a provision (sec. 3513) 
that would ensure the Secretary of Defense's designee on the 
Panama Canal Commission Supervisory Board be an officer of the 
Department of Defense (DOD), rather than an individual who was 
a DOD officer at the time of his designation and subsequently 
left his position in the Department.
      The House bill contained no similar provision.
      The House recedes with a clarifying amendment.
Technical amendments (sec. 3512)
      The House bill contained a provision (sec. 3510) that 
would make certain technical and conforming amendments to the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).
      The Senate amendment contained a similar provision (sec. 
3512).
      The House recedes.

                   Legislative Provisions Not Adopted

Placement of United States citizens in positions with the United States 
        Government
      The Senate amendment contained a provision (sec. 3510) 
that would provide placement priority for involuntarily 
separated employees of the Panama Canal Commission who are U.S. 
citizens and were hired after the Panama Canal Treaty of 1977 
that is on par with priority for other federal employees who 
are involuntarily separated.
      The House bill contained no similar provision.
      The Senate recedes.

                  Title XXXVI--Maritime Administration

                     Legislative Provisions Adopted

Authorization of appropriations for fiscal year 1999 (sec. 3601)
      The House bill contained a provision (sec. 3601) that 
would authorize $90.6 million for fiscal year 1999, as included 
in the budget request, for the United States Maritime 
Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes.
Authority to convey National Defense Reserve Fleet vessel (sec. 3602)
      The House bill contained a provision (sec. 3602) that 
would authorize the Secretary of Transportation to convey a 
National Defense Reserve Fleet surplus vessel, M/V Bayamon, to 
the Trade Fair Ship Company.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that the Secretary dispose of the vessel using competitive 
procedures.
Authority to convey certain National Defense Reserve Fleet vessels 
        (sec. 3603)
      The House bill contained a provision (sec. 3603) that 
would authorize the Secretary of Transportation to sell, at 
fair market value, two surplus TAO class vessels that were 
partially built and then transferred to the National Defense 
Reserve Fleet.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would require 
that the Secretary dispose of the vessels using competitive 
procedures.
Clearinghouse for maritime information (sec. 3604)
      The House bill contained a provision (sec. 3604) that 
would authorize the establishment of a clearinghouse for 
maritime information by providing an online trade information 
database at a state maritime academy. The provision would 
require the $75,000 funding needed for this effort be derived 
from funds authorized for operations of the Maritime 
Administration.
      The Senate amendment contained no similar provision.
      The Senate recedes with an amendment that would make the 
provision of funds for a clearinghouse for maritime information 
discretionary.
Conveyance of NDRF vessel ex-USS Lorain County (sec. 3605)
      The House bill contained a provision (sec. 3605) that 
would authorize the Secretary of Transportation to convey, at 
no cost to the government, a surplus National Defense Reserve 
Fleet ship, ex-USS Lorain County, to a not-for-profit 
organization for use as a memorial to Ohio veterans.
      The Senate amendment contained a similar provision (sec. 
1015).
      The Senate recedes.

 Title XXXVII--Increased Monitoring of Products Made With Forced Labor

                     Legislative Provisions Adopted

Increased monitoring of products made with forced labor (secs. 3701-
        3703)
      The Senate amendment contained provisions (secs. 3701-
3704) related to the monitoring of products derived from forced 
labor.
      The House bill contained no similar provisions.
      The House recedes with an amendment that would eliminate 
a provision containing findings, which emphasized products 
derived from forced labor from the People's Republic of China, 
strike direct references to indentured labor, including child 
labor (secs. 3701-3703), and eliminate a specific reference to 
mining products (sec. 3702).
      The conferees note that forced labor includes convict 
labor, forced labor, and indentured labor, as such terms are 
used in section 307 of the Tariff Act of 1930 (19 U.S.C. 1301 
et seq.). Accordingly, the conferees understand that indentured 
labor, to include child labor, is a category of labor included 
in the definition of forced labor as established in the Tariff 
Act of 1930, which thereby prohibits the importation of 
products made through the use of indentured or child labor. The 
conferees further recognize the importance of strong and 
enforceable laws relating to products derived from child labor, 
and emphasize that such laws should be enforced to the maximum 
extent practicable by the U.S. Customs Service.

             Title XXXVIII--Fair Trade in Automotive Parts

                     Legislative Provisions Adopted

Fair trade in automotive parts (secs. 3801-3805)
      The Senate amendment contained provisions (sec. 3801-
3805) that would deal with trade in automotive parts. Section 
3801 would provide that the title could be cited as the ``Fair 
Trade in Automotive Parts Act of 1998.'' Section 3802 would 
define certain terms. Section 3803 would direct the Secretary 
of Commerce to re-establish an initiative to increase the sale 
of U.S.-made auto parts to Japanese markets, and prescribe the 
functions of the Secretary in this regard. Section 3804 would 
direct the Secretary to establish a special advisory committee 
from the automotive parts industry. Section 3805 would provide 
that the authority under the Act shall expire on December 31, 
2003.
      The House bill contained no similar provision.
      The House recedes with technical amendments.

                      Title XXXIX--Radio Free Asia

                     Legislative Provisions Adopted

Short title (sec. 3901)
      The Senate amendment contained a provision (sec. 3901) 
that would provide that the provisions in this title related to 
international broadcasting activities to China may be cited as 
the Radio Free Asia Act of 1998.
      The House bill contained no similar provision.
      The House recedes.
Authorization of appropriations for increased funding for Radio Free 
        Asia and Voice of America broadcasting to China (sec. 3902)
      The Senate amendment contained a provision (sec. 3903) 
that would authorize $30.0 million for fiscal year 1998 and 
$22.0 million for fiscal year 1999 for the purpose of funding 
Radio Free Asia broadcasting to the People's Republic of China 
and Tibet, $5.0 million for fiscal year 1998 and $3.0 million 
for fiscal year 1999 for Voice of America broadcasting to China 
and Tibet, and an additional $10.0 million for fiscal year 1998 
and $2.0 million for fiscal year 1999 for radio construction in 
support of such broadcasting. The provision would reserve 
$100,000 of the funds authorized for Voice of America 
broadcasting for broadcasts in the Hmong language.
      The House bill contained no similar provision.
      The House recedes with an amendment that would delete the 
authorizations for fiscal year 1998, eliminate the requirement 
that certain broadcasts be in the Hmong language, and specify 
that the additional authorizations for fiscal year 1999 are 
with respect to appropriations for the U.S. Information Agency.
Reporting requirement (sec. 3903)
      The Senate amendment contained a provision (sec. 3904) 
that would require the Broadcasting Board of Governors to 
submit a report on their efforts to increase Radio Free Asia 
and Voice of America broadcasts to China and Tibet, as well as 
an analysis of the control by the Government of the People's 
Republic of China of the media in China, to the Committees on 
Foreign Relations and Appropriations of the Senate and the 
Committees on International Relations and Appropriations of the 
House of Representatives.
      The House bill contained no similar provision.
      The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

Findings
      The Senate amendment contained a provision (sec. 3902) 
that would make certain findings with respect to freedom of 
information in the People's Republic of China.
      The House bill contained no similar provision.
      The Senate recedes.
                From the Committee on National Security, for 
                consideration of the House bill and the Senate 
                amendment, and modifications committed to 
                conference:

                                   Floyd Spence,
                                   Bob Stump,
                                   Duncan Hunter,
                                   John R. Kasich,
                                   Herbert H. Bateman,
                                   James V. Hansen,
                                   Curt Weldon,
                                   Joel Hefley,
                                   Jim Saxton,
                                   Steve Buyer,
                                   Tillie K. Fowler,
                                   John M. McHugh,
                                   J.C. Watts, Jr.,
                                   William M. Thornberry,
                                   Saxby Chambliss,
                                   Walter B. Jones,
                                   Michael Pappas,
                                   Bob Riley,
                                   Ike Skelton,
                                   Norman Sisisky,
                                   John M. Spratt, Jr.,
                                   Solomon P. Ortiz,
                                   Owen Pickett,
                                   Lane Evans,
                                   Gene Taylor,
                                   Neil Abercrombie,
                                   Martin T. Meehan,
                                   Jane Harman,
                                   Paul McHale,
                                   Patrick J. Kennedy,
                                   Thomas H. Allen,
                                   Vic Snyder,
                                   James H. Maloney,
                As additional conferees from the Permanent 
                Select Committee on Intelligence, for 
                consideration of matters within the 
                jurisdiction of that committee under clause 2 
                of rule XLVIII:
                                   Porter J. Goss,
                                   Jerry Lewis,
                                   Norm Dicks,
                As additional conferees from the Committee on 
                Banking and Financial Services, for 
                consideration of section 1064 of the Senate 
                amendment:
                                   Jim Leach,
                                   Michael N. Castle,
                                   John J. LaFalce,
                As additional conferees from the Committee on 
                Commerce for consideration of sections 601, 
                3136, 3151, 3154, 3201, 3401, 3403, 3404, 3405, 
                3406, and 3407 of the House bill, and sections 
                321, 601, 1062, 3133, 3140, 3142, 3144, 3201, 
                and title XXXVIII of the Senate amendment, and 
                modifications committed to conference:
                                   Thomas J. Bliley, Jr.,
                                   Dan Schaefer,
                                   John D. Dingell,
                Provided that Mr. Oxley is appointed in lieu of 
                Mr. Dan Schaefer for consideration of section 
                321 of the Senate amendment.
                                   Michael G. Oxley,
                Provided that Mr. Bilirakis is appointed in 
                lieu of Mr. Dan Schaefer for consideration of 
                section 601 of the House bill, and section 601 
                of the Senate amendment.
                                   Mike Bilirakis,
                Provided that Mr. Tauzin is appointed in lieu 
                of Mr. Dan Schaefer for consideration of 
                section 1062 and Title XXXVIII of the Senate 
                amendment.
                                   Billy Tauzin,
                As additional conferees from the Committee on 
                Education and the Workforce, for consideration 
                of sections 361, 364, 551, and 3151 of the 
                House bill, and sections 522, 643, and 1055 of 
                the Senate amendment, and modifications 
                committed to conference:
                                   Tom Petri,
                                   Frank Riggs,
                                   Tim Roemer,
                As additional conferees from the Committee on 
                Government Reform and Oversight, for 
                consideration of sections 368, 729, 1025, 1042, 
                and 1101-1106 of the House bill, and sections 
                346, 623, 707, 805, 806, 813, 814, 815, 816, 
                1101-1105, 3142, 3144, 3145, 3162-3172 and 3510 
                of the Senate amendment, and modifications 
                committed to conference:
                                   Dan Burton,
                                   John L. Mica,
                Provided that Mr. Horn is appointed in lieu of 
                Mr. Mica for consideration of section 368 of 
                the House bill and sections 346, 623, 707, 805, 
                806, 813, 814, 815, and 816 of the Senate 
                amendment.
                                   Stephen Horn,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                sections 233, 1021, 1043, 1044, 1201, 1204, 
                1205, 1210, 1211, 1213, 1216, and Title XIII of 
                the House bill, and sections 326, 332, 1013, 
                1041, 1042, 1074, 1084, 3506, 3601, 3602, and 
                3901-3904 of the Senate amendment, and 
                modifications committed to conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                                   Lee H. Hamilton,
                As additional conferees from the Committee on 
                International Relations, for consideration of 
                sections 1207, 1208, 1209, and 1212 of the 
                House bill, and modifications committed to 
                conference:
                                   Benjamin A. Gilman,
                                   Doug Bereuter,
                                   Christopher H. Smith,
                                   Dan Burton,
                                   Dana Rohrabacher,
                                   Lee H. Hamilton,
                                   Tom Lantos,
                As additional conferees from the Committee on 
                the Judiciary for consideration of sections 
                1045 and 2812 of the House bill and section 
                1077 of the Senate amendment, and modifications 
                committed to conference:
                                   Henry J. Hyde,
                                   Ed Bryant,
                As additional conferees from the Committee on 
                Resources, for consideration of sections 601, 
                2812, and 3404-3407 of the House bill, and 
                sections 601, 2828, and Title XXIX of the 
                Senate amendment and modifications committed to 
                conference:
                                   Don Young,
                                   Billy Tauzin,
                As additional conferees from the Committee on 
                Science, for consideration of sections 3135 and 
                3140 of the Senate amendment, and modifications 
                committed to conference:
                                   F. James Sensenbrenner, Jr.,
                                   Ken Calvert,
                                   George E. Brown, Jr.,
                As additional conferees from the Committee on 
                Transportation and Infrastructure, for 
                consideration of sections 552, 601, 1411, and 
                1413 of the House bill, and sections 323, 601, 
                604, and 1080 of the Senate amendment, and 
                modifications committed to conference:
                                   Bud Shuster,
                                   Sherwood Boehlert,
                                   Bob Clement,
                As additional conferees from the Committee on 
                Veterans' Affairs for consideration of sections 
                556 and 1046 of the House bill, and sections 
                618, 619, 644, and 1082 of the Senate 
                amendment, and modifications committed to 
                conference:
                                   Christopher H. Smith,
                                   Mike Bilirakis,
                                   Ciro D. Rodriguez,
                As additional conferees from the Committee on 
                Ways and Means, for consideration of Titles 
                XXXVII and XXXVIII of the Senate amendment, and 
                modifications committed to conference:
                                   Philip M. Crane,
                                   Bill Thomas,
                                   Robert T. Matsui,
                                 Managers on the Part of the House.

                                   Strom Thurmond,
                                   John Warner,
                                   John McCain,
                                   Dan Coats,
                                   Bob Smith,
                                   Dirk Kempthorne,
                                   Jim Inhofe,
                                   Rick Santorum,
                                   Olympia J. Snowe,
                                   Pat Roberts,
                                   Carl Levin,
                                   Edward M. Kennedy,
                                   Jeff Bingaman,
                                   John Glenn,
                                   Robert C. Byrd,
                                   Chuck Robb,
                                   Joseph I. Lieberman,
                                   Max Cleland,
                                Managers on the Part of the Senate.

                                
